No one wants to buy a property with underlying issues. As appealing as a house may be, there may be pests, defects, or even harmful substances such as asbestos that may go unnoticed.
It is our strong recommendation that a pest and building inspection be carried out by a licenced and insured inspector, prior to exchange of Contracts. This will provide buyers with a clear picture of what they are purchasing. An inspector will prepare a detailed report that outlines minor faults like cracks on walls, to major faults like structural issues that require immediate attention. While the presence of a defect does not necessarily mean that a property should not be purchased, it allows a buyer to make an informed decision about the viability of the purchase and may also assist in negotiating the purchase price.
We have also had many clients who, after obtaining a pest and building report that discloses defects, decide not to proceed with the purchase.
Most Contracts in New South Sales have an additional special condition within the Contract stating that the buyer takes the property in its current condition and state of repair. In the event that there is a defect that goes unnoticed, the buyers’ rights are limited, or sometimes lost completely.
One of the main reasons people avoid pest and building inspections is the perceived cost involved in obtaining them. An inspection and report can cost anywhere between $400-$1000 depending on the property and the location. However, these reports provide a peace of mind and will help prevent uncovering hidden problems and the significant costs to rectify them after settlement. At the end of the day, purchasing a property is one of the biggest investments a person will make during their lifetime. When put into perspective, the cost of a pest and building repot is cheap insurance.
If you are thinking about entering a property transaction or require any assistance with respect to your property matters, please contact our team at Anderson Boemi Lawyers on 02 9653 9466.
The content of the Anderson Boemi Lawyers website is provided for information purposes only. The contents of this website do not constitute legal advice and should not be used as such. Formal legal advice should be sought in particular matters. If you have a particular matter you need legal advice for, or you have any questions about our disclaimer please contact our office on (02) 9653 9466.