What can break a signed contract?
Only a major defect or the presence of termites can break a signed contract.
So what is a major defect?
A major defect is a defect of sufficient magnitude where rectification has to be carried out in order to avoid unsafe conditions, loss of utility or further deterioration of the property (as per Australian Standard AS 4349.1 – 2007 Inspection of Buildings, Part 1: Pre-purchase inspections – Residential buildings)
Most contracts will have a clause stating the above re the breaking of a contract.
For this reason you might be wiser to have an pre-purchase property inspection done prior to signing a contract on the property. Even minor defects can be expensive to rectify and if a property has a lot of them you might want to think twice about making an offer or on how much to offer on a house that may have you forking out thousands more in repairs and general maintenance just as you move in.
All the best from the Geraldton Property Inspection Team.
