"Taking a Closer Look"

 "You’ve found your dream home, you make an offer, you move in, but then you discover that things aren’t quite what you expected. Maybe there’s a power point that doesn’t work or a door that won’t shut. Carrying out a few simple inspections could prevent this.

An initial inspection
Properties are sold in reasonably the same state as when they are first inspected, and with the expectation that everything is in full working order.

It is a good idea to make a thorough visual inspection before you make your offer.  At this stage if you notice that something doesn’t work you can include a condition in the contract to repair it.  It is also worth specifying any fittings that you want to remain in the property such as curtains, pool equipment and light fittings.

Sellers, if you have made the buyers aware that something is not working or will not be included in the sale, make sure it is noted in the contract that they have been informed and accept the situation.

Building inspections
Building inspections are intended to satisfy the buyer that the property is structurally sound and free from major defects.  They generally only look at the building, so if the property has retaining walls for example, and you want these to be inspected, you will have to request that this be carried out.

If a structural issue is found the seller must be given the opportunity to rectify it.  If they are unable or unwilling to do so, the buyer may cancel the contract.

Buyers need to be aware of the difference between cosmetic issues and structural issues.  Missing roof trusses, or sagging ceilings are structural issues, cracked plaster, broken windows or hot water systems that don’t work, are not – however, these may be addressed by a pre-settlement inspection.

Pre-settlement inspections
Pre-settlement inspections allow the buyer to familiarise themselves with the property and check that everything is working properly.

A pre-settlement inspection should be carried out at least a week before settlement to give the seller time to fix any problems.  This is where you check the airconditioning, reticulation, hot water system, power points, taps, oven, lights, doors, etc.  Again it is worth noting that certain things may need to be fixed, while others, like a cracked bathroom tile, may not.

Pest inspections
Building inspections may indicate damage by white ants, but won’t say if termites are still active.  For this you need a pest inspection.

The contract is the key
When you make your offer you can insert special conditions about the types of inspections to be carried out.  You will need to word your conditions carefully and indicate what will happen if there are any major problems, for example, if a pest inspection finds active white ants, the seller will arrange for the property to be sprayed by a licensed pest controller."

This article was sourced from the Acton June newsletter.