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Your Investment Property | 22 Mar 2012, 12:00 AM Agree 0
We signed a contract of sale at an auction that was subject to a building inspection. There was no cooling off period, but the contract included a clause saying that it could only be ended if 'major structural defects' were found. But what constitutes a 'major structural defect'? We want to terminate the contract. What are our options?
  • Lilly | 26 Mar 2012, 03:59 PM Agree 0
    We just bought a house and paid for a detailed building report. Both Major and Minor Defects were reported as well as Safety Hazards. Anything that was 'Major' (or a Safety Hazard) i took to mean as 'significant'. The Australian Standard AS 4349.1-2007 for Residential building pre-purchase inspections, states a Major Defect to be:

    "A defect of sufficient magnitude where rectification has to be carried out without undue delay to avoid: unsafe conditions, posing a threat to life or serious injury; loss of utility, whereby the defect is such that the whole of the relevant part of the building can no longer serve its intended function; or further substantial deterioration of the building."

    I think you could definitely opt out.
  • Lexus Conveyancing Melbourne | 28 Jul 2015, 04:01 PM Agree 0
    Hi, It comes down to this you need to have a builder or a building inspector to provide a written report that sates that the property has a major structural defect. You have a big problem if the property does not have a major structural defect. A major structural defect example is the roof collapsing or the house subsiding it has to be a very major fault.
    There are other possible ways of getting out of contracts. If you purchased in Victoria you are welcome to contact me.
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