If you are selling a house or unit in Queensland and using the standard REIQ contract, the buyer will have the option to make the purchase/contract conditional on receiving a satisfactory building and pest report. The contract will have to nominate the Inspection Date by which a written report should be obtained by the buyer. This is usually expressed as xx days after the Contract.
If the buyer elects to make the Contract conditional on a satisfactory building and pest report,it is expected that the they act reasonably in relation to the condition. For example, if you are selling a very old house the buyer cannot expect the house to be in perfect condition.
Clause 4.1 of the contract covers Building and Pest Reports. Clause 4.1(2) does not specify when the buyer must give notice to the seller. Instead 4.1(4) allows the seller do terminate the contract if a notice under clause 4.1(2) is not received by 5pm on the Inspection Date.
If the buyer does not provide notice that the clause is satisfied (i.e. advise the seller that the report is satisfactory) by the Inspection date the seller has 2 choices : to terminate the contract by notice to the buyer; or wait to see if the buyer gives notice.
This clause operates in the buyer’s favour. If the seller does not terminate the contract on the Inspection Date of a satisfactory or unsatisfactory pest report the buyer enjoys a continuing right of waiver of the condition. A seller’s only remedy for the buyer’s failure to give notice of the report is to terminate the contract.