Why You Should Not Buy A Property Subject To A Building Inspection

In general, vendors won’t permit buyers to purchase a property subject to a satisfactory building inspection.  This is because a purchaser’s satisfaction standard is subjective.  Instead, vendors will usually impose objective outcomes on the inspection, such as the presence of a major building defect or an active pest infestation.

The problem with these inspection outcomes is that they are too high a bar for purchasers, particularly if their inspection reveals no major defects but many minor ones.  In this case, the purchaser is compelled to continue with the contract on its current terms, despite the (many) minor defects that might be present.

Consequently, we always recommend to purchaser clients that they get their building inspection done before they sign the contract (i.e. before they make a formal offer for the property).  Having the building inspection report before making a formal offer gives purchasers essential information as to what the property is really worth.  You wouldn’t buy a used car without taking it for a test drive, and it’s no different when buying land with improvements (i.e. a dwelling built on it).

For more information about building inspections, please contact Glenferrie Conveyancing in Northcote at 03 9815 2351.