''Subject to building and pest inspection'' What Does it Mean?
‘'Subject to building and pest inspection” applies to the sale of a home being contingent on the satisfaction of a building and timber pest inspection, as requested or required by the buyer. This is a intelligent option especially when buying an older property which might have a number of hidden issues or defects. Newer properties can also benefit from a building & pest inspection just to make sure that the building and any termite barriers or treatments are to the Australian standard or codes.
As a purchaser, you can request a “Subject to building and pest inspection” condition to be added to your contract. This means that the sale of the property will only be a done deal after a standard building and pest inspection has been carried out. You can also add other pre-purchase requirements, such as the seller shouldering expenses for any and all necessary repairs, the freedom to back out of the sale if the inspection reveals issues you do not deem acceptable, or the opportunity to renegotiate the seller’s price.
You may need the help of a legal professional or another real estate expert to adequately word the “Subject to building and pest inspection” clause in your contract and ensure that it is favourable to you. At the same time, your requests should be fair to the seller as this would help your negotiations run more smoothly. The latter is particularly important if you and your family feel that you have finally found the home of your dreams.
The next thing you need to know is what to expect from a building and pest inspection. A qualified and experienced inspector will thoroughly assess the overall condition of the property. It would be an added bonus if the inspector is also familiar with the location and the conducive environment to termite activity, as he would be able to include in his report a more detailed risk assessment with regards to the property’s immediate environment as well as the greater risk factors of the suburb it belongs to. For example, you can learn from the building inspector’s report if the location is prone to flooding, drainage or high risk to termite infestations.
Requesting for a “Subject to building and pest inspection” condition in your contract will not only help you get a fairer price for the property; you will also get a better idea of your potential new home’s current issues and future risks that could affect the property’s structural integrity and value and which might burden you with huge expenditures. The building inspector’s report can also give you more room to move when negotiating not just the price of the property, but other contract conditions, as well.
And most importantly, a building and pest inspection will give you peace of mind as it can guarantee that your family will be comfortable and safe in your new home.