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Pre-Contract Advice – Building & Pest Inspection Clauses


A first home buyer engaged our office to review and provide pre-contract advice on an existing property she was looking to purchase. Our client was keen to secure the purchase quickly although had concerns regarding the structure of the dwelling and possible pest infestation. The building and pest inspection clause within the Contract allowed the client to make an offer conditional on a satisfactory building and pest inspection report being obtained.

The wording restricted our client from cancelling the Contract if the report identified major structural defects and current major infestation. We drafted a clause widening the definition of this clause so that our client would have rights to cancel the contract, if the report revealed any defects or pest infestation that was unsatisfactory to our client. Our client was able to comfortably enter the contract of sale and proceeded through to settlement.

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