15/04/2018
Do we need to carry out a building and pest inspection before auction?
It may seem like and over reach to conduct building and pest inspections on a dwelling or structure that you have not made and offer on, but it should be taken as non-negotiable.
Purchasing property is the biggest economic decision a individual or company will make in their lifetime. For that reason, it is essential to be sure the dwelling or structure really is what it should be to be. Building and pest inspections reports will provide you with an inspection report detailing the condition of the property – including things you can’t see and potential maintaince required. The building and pest inspection reports cover everything from cosmetic damage to major structural faults.
The building and pest inspection services report is the most valuable tool for property investors, as it can almost always be used to negotiate a purchase prices down or adjust the settlement terms. Properties are not perfect, and defects can give you leverage if you need to bargain.
Should you conduct a building and pest inspection?
If possible, a building and pest inspection should be conducted before entering a contract. In some cases this may not be possible. If a property is in high demand and the vendor is looking for a fast sale, timing may reduce your opportunity to undertake a building and pest inspection . When this is happens it is essential to protect yourself by having the building and pest inspection listed as a condition of the contract (“subject to building and pest inspection”). A solicitor can check the wording of the clause to ensure you are covered.
If a property go’s to auction, it is essential to get a building and pest inspection report prior to auction day, a purchaser who is successful under the hammer is making a non-negotiable commitment to buy the property – there is no cooling off period. If you neglect to conduct a building and pest inspection before auction, you could find yourself in a difficult position, as the property faults may be be substantial, and there’s no option post-auction to negotiate the price down.
A vendor is under no legal obligation to disclose building faults, failures or maintaince requirements. This means that if you do not conduct a building and pest inspection prior to success at auction, you are automatically accepting any of the structures faults and immediate maintaince. .
Determining what is material and non-material in the inspection report
A building and inspection report will inform the prospective buyer of all things great and small that are wrong with the property. It is the responsibility of the prospective buyer to determine what they see as a ‘deal breaker’ and what could be an ‘easy fix’.
Property buyers should also be clear on the difference between ‘material’ and ‘non-material’ issues within the building and pest inspection reports.
Material
Material faults in a building and pest inspection report are the ones that are cause for concern. It is important to note, however, that material faults are not necessarily deal breakers. They can work in your favour to enable you to negotiate the price down. Some examples of material faults are:
• Termites
• Structural faults
• Electrical faults
• Rising damp
• Major water pe*******on
Non-material
Non-material faults in a building and pest inspection report are faults that are easily reparable, including:
• Broken tiles
• Leaky taps
• Loose doorknobs
• Hairline cracks
• Jarred windows
