What to do if timber pest or structural building problems are discovered.
If your timber pest and/or structural building inspection report identifies issues, your options will to some extent depend on the wording of the relevant special condition in the contract. This may include the rights to either:
- Request that the seller remedy or rectify the issue
- Adjust the contract price
- Terminate the contract
If you decide to continue with the purchase, and the special condition requires that the seller pay for the issue be remedied/rectified, then it is recommended that you immediately write to the seller (or the seller’s settlement agent/solicitor) outlining the expected repairs and treatment. If the contract requires that a “Notice” is sent, you should refer to the definition of a “Notice” in Clause 21 of the General Conditions.
If the clause in your contract regarding Structural Defects is the ‘standard’ REIWA Annexure, a Template for the Notice is available here.
Make sure that it is understood that a further inspection will take place prior to settlement to confirm that proper treatment or repairs have been carried out. If the special condition allows you to terminate the contract, you may decide to give written notice of termination to the seller or the seller’s agent according to the terms of the special condition.
If there is any ambiguity in the report/s or special condition/s, you may need to see a lawyer for a legal interpretation of your position. It is also advisable to liaise with your settlement agent. In addition, if issues are discovered and there is no special condition in your contract covering this situation, it is suggested that you seek legal advice.
The above information is based on the following:
http://www.commerce.wa.gov.au/publications/timber-pest-inspections-and-reports-guide-homebuyers