To avoid any problems and extra costs later on, you must know as much as you can about the condition of the property before you purchase. One of the first steps that should be taken when purchasing a property is to order a Pest and Building Report which should be obtained before exchange. The reports should be in writing, completed by an experienced inspector and the inspector must hold personal indemnity Insurance. All reports should be addressed to the purchaser. In many cases when the vendor provides a copy to the purchaser we advise the purchaser to request that a copy be addressed to them as the inspector is only liable to the party that commissioned the report. The purchaser must also have time to read them thoroughly. If there are any matters that need to be looked into further be sure to speak to the inspector for clarification.
If the report is not favourable the purchaser can either withdraw from the purchase or they might like to negotiate the purchase price so that any decrease in price will allow them the cost of rectification of any matter disclosed in the report. The purchaser can also request that the contract be made subject to the vendor rectifying any issue that has risen from these reports.
Some things disclosed in the report may already be known to the purchaser and considered when initially negotiating the purchase price.
It is preferable not to exchange until you have received the Pest and Building report and are satisfied with it.
If you are unsure of a Pest/Building inspector to use feel free to contact our office to request a list of Pest and Building inspectors in our surrounding area.
