Scenario 2 Timber pests can cause costly damage if allowed to go unchecked and can reduce the value of a property. Before you buy a home, it is recommended that you have a timber pest inspection report prepared to make sure the property is not infested by termites or other timber pests. It is therefore important to include a timber pest inspection on your offer as a special condition, rather than relying on verbal agreements with the seller, making the terms clear and verifiable. 8527cf88-370c-4976-92ca-bde25adf0d43 The special condition should state that if termite activity is sufficient to cause, or has caused, damage then the contract of sale can be cancelled or the seller made liable for the cost of treatment or repair. Sellers may offer to pay for the timber pest inspection. Although this option may seem cheaper for a buyer, there are strong reasons why buyers should engage their own timber pest inspector

Q2.2 Read Scenario 2, then provide your client with advice about whether a vendor's pest inspection

report should be relied upon at the time of loan settlement