Buying a home is likely the biggest investment you’ll ever make – which is why it’s so important to get it right.
Amid the excitement of finding “the one,” it’s very easy to overlook potential issues that could cost you a bomb down the track!
It goes without saying, good research is everything when buying property, and that includes getting a comprehensive building and pest inspection to serve as your safety net.
3 Reasons to Terminate a Contract on a Property
1. Extensive Termite Damage
Termites are every homeowner’s worst nightmare. They can remain hidden for years, quietly eating away at structural timbers until the damage becomes costly – or even dangerous. If an inspection uncovers active termites or even past damage, it may be time to rethink the purchase – as termites often return to the scene of the crime!
2. Moisture Problems
Moisture issues are unfortunately quite common, especially in older homes. This could include things like failed bathroom membranes, a roof that leaks, or dampness in walls. While some moisture problems are minor, others can signal deeper defects or mould risks – and once water gets in, those repair bills can escalate quickly …
3. Structural Defects
Big-ticket structural issues, such as major retaining wall failures, significant cracking, or subsidence (gradual sinking), can dramatically affect the safety, value, and longevity of a property. These defects often require specialist assessments and costly remediation, making them a key reason many buyers terminate a contract.
If your building and pest inspection uncovers problems like any of the above, you generally have two choices: crash the contract OR negotiate.
Depending on the severity of the issue, you might secure a price reduction or request that repairs be completed prior to settlement. But if the problems are extensive, walking away may be the smartest financial decision you could make.
One of our clients recently went through this exact situation. They were set on buying an apartment in South Brisbane – great views, amazing location. However, our building and pest inspection revealed elevated moisture levels in the wall between the bathroom and the bedroom. According to the real estate agent, the apartment hadn’t been lived in for months, so the moisture raised concerns about potential termite issues. Combined with a handful of other defects, it became clear the place needed more work than the potential purchaser was willing to take on. Their decision? Crash the contract and keep looking.
While the new Disclosure Laws in Queensland are definitely of benefit to potential purchasers, reviewing the Form 2 is only the start of the due diligence process. If you’ve signed a contract for a residential or commercial property in Brisbane, Ipswich, Logan or Redlands – call today to book a building and pest inspection with the team at Trimax Building Inspections so you can make the best decision possible.