STATE OF REPAIR – STANDARD CONTRACT

If the subject of the sale is a new house, there is an implied term in the contract, a warranty by the Seller that he/she has used proper materials and good workmanship. The effect of this warranty is that even after the time specified in any maintenance clause (usually 90 days) the Buyer can sue the Seller for breach of warranty if a defect can be shown to be due to bad materials of workmanship.

The building code may also contains certain "statutory insurance" provisions under which a claim may be brought.

An established house is bought in its state of repair at the time contracts are exchanged. The Buyer cannot later complain if he/she has failed to notice defects or if he/she thought the condition of the house to be better than in fact it is. For this reason, the Buyer should arrange for a builder or other expert to carry out a structural inspection before contracts are exchanged. The Buyer has the right to inspect the property prior to completion to satisfy himself/herself that its condition has not substantially deteriorated since the date of agreement.