Pre-purchase pest inspection reports play a vital role in residential property transactions.  Buyers must rely on these reports when deciding whether to proceed with a purchase, renegotiate the price, or seek further investigation.  Disputes arise where a report fails to identify existing termite activity, damage, or risk factors, and the buyer later discovers that the property is, or has been, affected by termites.  Negligent pest inspection claims typically arise where:

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• a report states that no evidence of termite activity or damage was observed when in fact such activity or damage is present;

• risk factors are minimised or not adequately identified;

• visible signs of damage are missed or misinterpreted by the inspector; or

• qualifications or limitations are unreasonably relied upon to deny responsibility.

 

In many cases, the issue only comes to light after the buyer has taken possession of the property, and problems emerge that reveal termite damage that pre-dates the purchase.  Unfortunately for unsuspecting buyers, these claims are not determined simply by whether termites are (or were) present, but by:

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• the scope of the inspector’s duty and the terms of the inspection;

• whether the inspection was carried out with reasonable care and skill;

• what was reasonably observable at the time of inspection;

• whether any disclaimers or limitations are effective; and

• whether the buyer relied on the report in proceeding with the purchase.

 

Expert evidence is central to pest inspection claims.  These matters often involve competing expert opinions on:

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• whether termite activity or damage should have been detected;

• whether signs were visible or accessible at the time of inspection;

• the adequacy of the inspection methodology;

• the likely age and progression of the damage; and

• what is will cost to rectify the situation.

 

Careful management of expert evidence is often critical to the outcome of the case.

 

Raine Litigation Lawyers represents home buyers in claims involving alleged negligence in pre-purchase pest and timber inspection reports.  We can assist in assessing and pursuing such claims, including:

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• analysing the inspection report and contractual documents;

• assessing prospects, causation and recoverable loss;

• advising on the appropriateness of proceedings;

• preparing claims and conducting negotiations; and

• acting in court proceedings where the matter cannot be resolved.

 

Early advice is crucial once termite damage is suspected or discovered. Delay can affect the availability of evidence and complicate issues of causation and loss.  If you are concerned that a pre-purchase pest inspection report may have been negligently prepared or misleading, it is advisable to obtain legal advice before committing to significant rectification works or commencing proceedings.  Contact Raine Litigation Lawyers for an assessment of your situation, rights and options.