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The Inspection Clause explained

The standard form Tasmanian contract for sale includes an Inspection Clause that you can use if you would like to have a building inspection carried out.

You will need to note the building inspection period and a defect limit. Most purchasers allow seven to ten days for an inspection and note a defect limit of one or two per cent of the sale price.

The lower the defect limit, the better for the purchaser.

If defects in buildings and other improvements on the property are detected, you might want to end the Contract under the Inspection Clause. To do so, you will need to serve on the seller or their lawyer, a copy of a report by a qualified building inspector or a licensed building services provider specifying the defects and certifying such defects are likely to cost more than the defect limit to remedy.

If no notice is received within the building inspection period, the benefit of the Clause will automatically waive.

Why use a building inspector?

It is an inspectors' responsibility to make sure a building is structurally sound. They can identify any problems with design, building materials, or construction techniques and offer a resolution.

Employing a building inspector to carry out an inspection will guarantee you peace of mind with your property purchase.

Evidence of cost is essential

You should ensure your inspector will be able to provide you with their written opinion of the likely cost to remedy any defects. Not all do. Without evidence of the cost, you will not be able to end the contract under the Inspection Clause.