The agreement is good and maintains a good balance between the rights of the buyer and seller.

I note that sections have been marked with a ‘x’ where options are available. I presume you are aware of the same. However, I wish to caution you on the potential consequences that may arise.

Under clause Clause 10: Property maintenance and condition, the active option is:

Buyer waives the opportunity to make this Contract contingent upon home inspection(s).

This means that the agreement will automatically become binding on you without having the opportunity to first inspect the house and confirming that everything is in order. This puts you in a risky position because you will not know any existing defects on the property, and any attempt to terminate the agreement because of a defect on the property may come with penalties.

Under clause 17. Target Lead-Based Paint Housing, the active option is:

Buyer  does not waive the right to a risk assessment or inspection of Property for the presence of lead-based

Within the same clause it is admitted that the property was developed prior to 1978 when lead based paint was used. The above option denies you the opportunity to first inspect the house for any lead based paint. Again, termination in the event you discover lead based paint will come with penalties.

Under Clause 18 Wood-Destroying insect Inspection, the active option is:


This means you will not have the opportunity to inspect the house for wood destroying insects such as termites or wood louse. You will be bound by the agreement and will have to incur penalties if you terminate the contract for the above reasons. Equally so, you will not be able to gain possession of the house until full payment is made.

I advise you to review the above to allow you to conduct an inspection. I also advise that you ensure that an inspection be conducted prior to signing the agreement.


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