Following Major Structural Defect Findings in Ferntree Gully
Red Door Conveyancing acted for a purchaser of a house in Ferntree Gully, Victoria, where a dispute arose over whether findings in a building and pest report satisfied the contractual threshold for ending the contract.
By verifying the inspector’s intent, escalating the issue with the vendor’s legal representatives, and obtaining an amended report using the exact contractual wording, our team secured a successful exit from the contract.
This process protected the client from acquiring a property with major structural issues and ensured a full release from their contractual obligations.
- Client: Purchaser of a residential house
- Company: Red Door Conveyancing
- Industry: Conveyancing / Property Law Support
- Transaction Type: Purchase
- Property Type: House
- Location: Ferntree Gully, Victoria
- Core Service Used: Conveyancing advice, contract review, building and pest clause management, dispute resolution with vendor representatives
- Matter Type: Residential purchase contract dispute
- Primary Risk Area: Interpretation of building and pest report terminology under the contract
The Challenge
The purchaser sought to end the contract after a building and pest report identified serious issues with the property. The difficulty was not the existence of the defects, but the wording used in the report and how that wording interacted with the specific building and pest clause in the contract.
The vendor’s conveyancer took the position that the report referred to “major defects” rather than “major structural defects,” arguing that the contractual basis for cancellation had not been satisfied.
Key issues included:
- A building and pest report that used the term “major defects.”
- A contract clause strictly requiring evidence of “major structural defects.”
- Rejection of the purchaser’s cancellation request by the vendor’s conveyancer.
- Continued resistance even after direct explanation to the vendor’s solicitor and their manager.
The risk of the client remaining locked into a contract for a property with serious structural problems.
The Solution
Red Door Conveyancing implemented a practical dispute-resolution strategy focused on aligning the technical report wording with the contractual requirements.
Key actions included:
- Identified that the dispute centred on terminology rather than the physical nature of the defects.
- Contacted the building and pest inspector directly to confirm the issues were indeed structural.
- Spoke with the vendor’s solicitor and their manager to explain the inspector’s position and the structural character of the faults.
- Requested an amended report from the inspector using the exact wording required under the contract.
- Secured an explicit identification of the issues as “major structural defects.”
- Re-submitted the cancellation position using the amended report as definitive evidence.
- Achieved acceptance from the vendor’s conveyancer and finalised the client’s exit.
The Results
- 1 residential purchase contract cancelled successfully.
- 100% avoidance of settlement risk on a property affected by major structural issues.
- Vendor resistance overcome through multi-party intervention and strategic escalation.
- Critical report wording corrected to align perfectly with the contractual test for cancellation.
- Client protected from acquiring a structurally defective asset.
- Successful outcome achieved through evidence-based advocacy and procedural follow-through.
Summary
- Red Door Conveyancing represented a purchaser of a house in Ferntree Gully, Victoria.
- The dispute turned on the specific wording of a building and pest report.
- The report used “major defects” while the contract required “major structural defects” for cancellation.
- Vendor representatives initially refused to accept the report as grounds for termination.
- Red Door Conveyancing obtained an amended report using the exact contractual language.
- The purchaser successfully cancelled the contract, avoiding a house with major structural defects.
Concerned About Your Building and Pest Findings?
Don’t get locked into a defective property purchase.
We are experts at aligning inspection reports with specific building and pest clauses to defend your position. Our team ensures that when a property has issues, your contract provides a clear way out.