The consultant that you hire to inspect the property and provide you with a Pre-purchase inspection report will generally need to have unrestricted access to a number of areas of the property in question. Given this, it’s a good idea to let the vendor know as early as possible in the sales process that you want to have a Pre-purchase Inspection completed so that they can organise to provide the inspector with access to the property.
It’s important to know that a Pre-purchase Inspection Report will not and is not able to predict the future and see problems or issues that don’t exist or appear visible at the time of inspection. The purpose of the inspection and subsequent report is to reasonably identify any major problems that are immediately visible and may require attention.
However, it’s also important that you ensure that the report complies with the Australian Standard (AS 4349.1) – you can clarify this with the consultant you hire to conduct your inspection and write the report for you.
|
The following areas should be inspected as part of a Pre-purchase Inspection Report:
|
- the overall building – both interior and exterior
- roof area – both interior and exterior
- any under-floor areas
- the overall building site
|
|
There are a number things that are not included in a Pre-purchase Inspection report, such as driveways, non-structural walls, fencing, footings, air conditioning, alarm systems, carpet, tiles and lino, appliances, paint coatings, all windows, plumbing, gas fittings etc. If you want these included in the assessment for any reason, you need to stipulate as such.
It is best to check with the consultant that you have hired to conduct the inspection to confirm exactly what is and isn’t covered in the report.
If there are any specific areas that you want inspected as part of the report, be certain to itemise these clearly for the consultant before s/he proceeds so order that they are also included in the inspection.
The report should present you with a summarised assessment of the overall state of the property and should generally also detail any significant problems that have been identified as requiring repair or maintenance.
The consultant may also recommend that a further assessment be carried out in relation to any specialist issues that are identified, such as the presence of pests, concerns with water drainage, structural issues etc.
Depending on the consultant’s recommendations and the problems at hand, you may then need to speak with a specialist, such as a pest inspector, water supply authority, electricity supply authority, structural engineer, geotechnical engineers, property surveyor or solicitor.
The report will also outline any items or areas that were not inspected, give the reasons why and if appropriate, provide a recommendation for further assessment.
The information above is of a general nature only and it is important to keep in mind that the content of Pre-purchase Inspection Report may vary depending on which consultant carries out the inspection and from state to state.
|
Should you have a Special Purpose Property Report done?
|
A Special Purpose Property Report is necessary if you’re purchasing a strata property that includes common property areas which you want assessed as part of the reporting process.
If so, you will need to stipulate that the consultant is to inspect any common property areas as part of the reporting process.
If there are any minor defects to the property, such as blemishes, corrosion, cracking, weather damage, unevenness or damage to building materials and finishes, you will also need to specify these in your requirement for a Special Purpose Property Report.
You will also need to request a Special Purpose Property Report if you want the consultant to provide you with an estimate of any costs involved in attending to the problems that are identified in the Pre-purchase Inspection Report.
|
A Special Purpose Property Report will normally cover the same items as a Pre-purchase Inspection Report. However it can also include information such as:
|
- Cost estimates on any repair work required to fix problems identified as part of the inspection process.
- A list of minor problems that are identified as requiring attention or of which you should be aware.
- Recommendations on any repair work and maintenance that needs to be done to the property.
|
|
Hire a Qualified Consultant
|
It is important to ensure that your Pre-purchase Inspection Report or Special Purpose Property Report is conducted by a qualified consultant. As noted earlier, you should also make sure that the consultant abides by the Australian Standards AS 4349.1 when conducting the inspection and presenting the report.
It is recommended that you source three different quotes before choosing the consultant to do the inspection and report.
However, before making your final selection, make sure that the consultant you choose has the appropriate qualifications and experience. They will need to have a licence number and insurance coverage for professional indemnity, public risk and death or injury of any employees.
It is also important to ascertain whether or not the consultant is a member of any associations, and as such, abides by the relevant code of conduct of such a body.
You should also find out if they have a set process for handling any disputes that arise as a result of the inspection and if they can provide you with references (it is a good idea to reference check before making your final selection).
Before you give the consultant the go ahead to proceed with the inspection, you should also ask them to provide you with a sample of a report for your consideration – so that you know what sort of information and format you can expect from the report.
You can also enquire as to whether or not they can provide you with a brief verbal assessment on the day of the inspection (and if this will cost you any extra). They may also be able to provide you with an on-the-spot indication of how long it will take before you receive the full report.
|
Provide the consultant with a brief and property access
|
Before the consultant can proceed with the report, you will need to brief him / her and provide some key information, such as:
|
- The property address
- The name and contact details of the owner or the acting real estate agent
- A brief description of the property, including the number of rooms, type of construction, approximate size and age etc.
- A list of any particular areas of the property or items that you want inspected as part of the report (as outlined above)
|
|
Make sure you that you arrange with the owner or real estate agent for the consultant to have access to the property in order to conduct the assessment and prepare the report.
|
Allow yourself the time to make a decision
|
When conducting a Pre-purchase Inspection Report prior to the exchange of contracts of sale, it is important that you allow yourself enough time to consider the information outlined in the report and then make a decision as to whether or not you will proceed with the purchase of the property.
If you are conducting the inspection during the ‘cooling off period’, it is imperative that you give the consultant as much notice as possible in order that they can do the inspection and provide you with a report in a timely manner – enabling you to make your own assessment and decision.
If as a result of the findings of the Pre-purchase Inspection Report you decide not to purchase the property you must present a letter to the vendor or their agent within the cooling off period to notify of your decision to withdraw from the contract of sale.
|
Getting things fixed
|
If the Pre-purchase Inspection Report identifies issues or repairs but you still decide to proceed with the purchase of the property, it’s advisable to have any repairs done before you move into the property, particularly if any major work is required.
Some work may need council approval before you can go ahead, so you may need to lodge plans with the council or enquire as to the correct process.
It’s also important that you make sure that any tradesperson that you hire to do your repairs is licensed with the Office of Fair Trading or with any other State Consumer Affairs agencies. You should also ensure that they provide you with a written, signed contract as to the work they will do for you, including the cost of materials.
If you are contracting the tradesperson to do a significant job, at a significant cost, then it’s also a good idea to ask them to provide you with a home warranty insurance certificate before you provide them with any start-of-work deposit and signed contract.
|
What if the Pre-purchase Inspection Report doesn’t find any problems? Are you covered?
|
If you go ahead with the purchase of a property, taking into account the findings of your Pre-purchase Inspection Report and then later discover problems that were not outlined in the report, it is advisable to seek legal advice to ascertain whether you can show negligence on the part of the consultant, particularly if the consultant’s negligence costs you money in repairs.
You can also speak directly with the consultant or their company to settle the matter with them as they may provide compensation if it can be illustrated that their negligence has impacted you financially. If the consultant or company is part of an industry association, you can also consult the association as it is their responsibility to ensure that their members act within their code of conduct.
|
Find out more…
|
You can visit http://www.fairtrading.nsw.gov.au/ for more information, or contact your local government agency or council to find out more about Pre-purchase inspection reports.
If you do more research online about ‘Pre-purchase inspection reports’ or ‘Building inspection reports’ you should also be able to find more comprehensive information to assist you with conducting the inspection and preparing a report.
|
Share
