Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

Building Report Clause

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Building Report Clause

    If you have a conditional s and p with the building report clause can you pull out for any reason?

    Or can vendor fix any problems and you need to continue with the purchase?

  • #2
    Are you buying? Just go with a General DD clause
    Free online Property Investment Course from iFindProperty, a residential investment property agency.

    Comment


    • #3
      Never use a building report clause. You HAVE to get one and you HAVE to prove why it is not good enough to proceed. Due diligence only.

      Comment


      • #4
        Originally posted by Nick G View Post
        Are you buying? Just go with a General DD clause
        yes buying

        Comment


        • #5
          Originally posted by Bobsyouruncle View Post
          Never use a building report clause. You HAVE to get one and you HAVE to prove why it is not good enough to proceed. Due diligence only.
          If there is something that causes me to pull out. Will the seller have an option to fix it and i need to buy?

          Comment


          • #6
            You will have the option to ask them to fix it and if they do then yes you have to buy. Why are you considering this?
            Free online Property Investment Course from iFindProperty, a residential investment property agency.

            Comment


            • #7
              If there is something that causes me to pull out. Will the seller have an option to fix it and i need to buy?
              YEs so never use one. Unless of course there is no other reason why you wouldn't buy and you are in love with the property. It's just a really bad idea.

              Comment


              • #8
                Originally posted by Nick G View Post
                You will have the option to ask them to fix it and if they do then yes you have to buy. Why are you considering this?
                If i dont want to continue with the sale why would I ask them to fix it?
                Considering it because its cheap for area and it will be home. Reason im doubting it cause it was built in late 80s. No eaves. Fake brick that looks to be stuck directly onto framing.

                Bad building practices in that era I have read about
                Last edited by investorak; 26-10-2016, 09:57 AM.

                Comment


                • #9
                  They are annoying, and a broad due diligence clause is much to be preferred. You need to have some grounds on which to cancel, because you are required to provide the building report to the vendor on request, which means you need to have commissioned and paid for one in the first place, which somehow seems to be a surprise every now and then to a purchaser. If you cancelled for no decent reason, best just to avoid providing the report so they have no obvious grounds to sue....but please don't think I'm advocating cancelling for any or no reason; that's just making the best of a bad situation. Use a dd clause!

                  Comment


                  • #10
                    If you have a finance clause do you need to provide evidence? What time do you need to let the agent know by?
                    Last edited by investorak; 26-10-2016, 11:50 AM.

                    Comment


                    • #11
                      YES. USE A DUE DILIGENCE CLAUSE.
                      IF you tick finance you have to show the attempts at finance and the refusal to lend.

                      Comment


                      • #12
                        Not in terms of the agreement, but if it were ever taken to court you would. To explain: purchasers (and vendors, with any condition they might have) are required to make a good faith effort to satisfy a condition. So...if you cancel for non-fulfillment of the finance condition, don't go giving reasons that encourage a vendor to argue or, in extreme cases, withhold the deposit on the grounds that you haven't made a good faith effort to satisfy the condition and force you to the disputes tribunal or district court to recover, or give the vendor grounds to sue you for any loss they incur on re-sale. If they have no reasons to argue about, a vendor is most unlikely to risk those actions.

                        In short, giving reasons invites an argument as to the validity of those reasons. Best avoided, which is why I'm not that keen on building report clauses vs due diligence clauses.

                        Comment


                        • #13
                          Next time i will use a due diligence clause - lesson learnt

                          I do like the property if the building is sound. If the building inspection brings up things which cause me not to want to go through with the sale. How should i notify the agent?

                          Also somethings might be deal beakers for me but not others so how can i be forced to go through with sale? How can you tell if something is worthy enough

                          Comment


                          • #14
                            Originally posted by Ivan McIntosh View Post
                            In short, giving reasons invites an argument as to the validity of those reasons. Best avoided. . . .
                            Sounds like the very same advice for declining a tenancy application.

                            Comment


                            • #15
                              The main thing Investorak if the inspection brings up any issues is to separate them into:
                              1. I will proceed if these items are fixed or the cost of repairs is deducted from the purchase price, and
                              2. These issues are not resolvable and therefore I cannot proceed.

                              As long as you notify sellers lawyer in this manner you'll have no problem.

                              Comment

                              Working...
                              X