Can the vendor pull out during cooling off period after contracts exchanged?

Question

We are currently in our 5 day cooling off period after exchanging contracts on our first home (in Aus). During the cooling off we have had pest and building inspections done and have found problems with some water leakage from the main bathroom which has leaked under the wall into the kitchen area. This will require the kitchen to be pulled out to replace the particle board under the oven and kitchen cupboards. This is our dream home and despite the damage we are still wanting to buy the property. Our conveyancer has mentioned to us that we are able to approach the vendor about a possible rebate on settlement to cover some of the costs associated with the water damage. We have approached the agent and they have told us that the vendor would not be interested in doing this and is even considering removing the property from the market. We have been told by our conveyencer that it is not possible for the vendor to do this as they have already signed a contract agreeing to sell.

Answer 1

If you want, you may be able to sue the vendor for specific performance.

It completely depends on the contract, and the things they agreed to have done.

Most likely though, if you really want the home, you will have to pay for the fixes yourself.

I guess it all depends on the amount of true damage, and how strong your stomach is...