A pre-purchase inspection report is a collection of documents that real estate agents are legally obliged to keep records of, and disclose to potential buyers. These documents include the building examination of the property and a pest inspection of the property.
Furthermore in reference to disclosure agreements, the agency must also provide an investigation of documents about the property to assure that they are all there and in place (according to section 182 of the Strata Schemes Management Act 2015), a certificate dealing with financial matters (according to section 184 of the Strata Schemes Management Act 2015) and a look through of the documents about the property provided (according to section 26 of the Community Land Management Act 1989).
Before purchasing a property, a pre-purchase inspection report is important, however, it can seem complicated to buyers about what to look for in these documents. What should be looked for within the documents, will be discussed further.
What is the purpose of a pre-purchase inspection report?
The document’s purpose is to help you decide whether the property you are looking to purchase is worth the asking price, or worth buying in general. This is similar to taking a car you plan to purchase for a test drive, to see if it is worth buying.
The pre-purchase inspection report is a general assessment of the properties condition, which is assessed by a qualified inspector. The pre-purchase inspection report will cover areas such as cracked ceilings or tiles, and the finances required to repair these issues or if it is even fixable.
This is important to display any problems with the property, and if there are any, how much more it would cost to repair these, so as to give a realistic expectation of the price of the property. Furthermore, a pest examination is provided to ensure that there are no pest issues with the property which need to be dealt with, or if there is any structural damage which could lead to problems with the property in the future. This usually costs extra, but is advisable as pest’s can cause extensible damage to a property, and cause problems in the future.
What areas are checked by inspectors?
A pre-purchase inspection report will contain an overview of structural issues, and usually ignores smaller issues to do with the property. The first area covered in the building examination is general view of structural defects.
This is very important as a building with structural defects may lead to disastrous results, due to the building collapsing which can lead to injury, and is a cause for concern. For the building to pass the pre-purchase inspection report, it must conform to the Building Codes and Standards of Australia.
If a property is purchased which doesn’t conform to these standards, it is the buyers responsibility to bring the building up to standard at their own cost. In addition to this, electrical wiring and smoke alarm tests are conducted in order to ensure that electrical wiring has not eroded or does not pose a threat, and that smoke alarms are working accurately.
Likewise, any unsafe areas that are determined by the inspector will also be included in the pre-purchase inspection report. These hazards can include asbestos, cracks in the walls and other hazards of the same nature.
Pre-purchase inspection reports are important to do before purchasing a property as it shows you if the property is worth the asking price, and any other extra costs that would be otherwise hidden from the buyer, and save them time.
