BUILDING INSPECTIONS - What Are You Paying For?
Purchasing a property is one of the most significant decisions you will make during your lifetime, and paying for a pre-purchase building inspection is one way to protect your investment. A building inspection will cost approximately $400-$1000, depending on the governing state and size of the property. The inspection can reveal unknown minor to serious structural defects in walls, ceilings, floors, doors, windows, cornices, skirting boards, cupboards, robes, light fittings, switches, toilets, laundry areas, stairs, driveways, fences, roof voids, as well as leaks, rising damp, mould and terminate activity that is readily accessible to the inspector.
It is important to know that, generally speaking, a building inspector will not report on spaces hidden by the walls and ceiling, areas obstructed during the inspection or home appliances, accessories and items such as an oven, air conditioner, dishwasher, ducted vacuum, fireplaces, spas, swimming pools and equipment, alarm systems, CCTV cameras, intercom systems, television reception and lawn watering systems to name a few.
When engaging a building inspector, it is vital to know the scope of work they will inspect, as not every inspector is the same. You might be surprised to know that in some states, a building inspector is not required to be licensed, and there are currently no minimum standards regarding the requirements of an inspection. Queensland is the only state where pre-purchase building inspections must be undertaken by a licensed residential building inspector.
Obtaining a building inspection gives purchasers an idea of how much it might cost to rectify issues or act as leverage to negotiate with the seller regarding the price should major defects be identified within the property. While in most states’ sellers must disclose serious defects and building work rectification orders, sometimes these defects are only revealed once a purchaser acquires the property.
It is also worth noting that a seller is not required to disclose less serious defeats, so engaging a reputable and licensed building inspector is essential. The Australian Capital Territory government requires a building and pest inspection report to be made available to purchasers before a property is offered for sale. Albeit, other governments only recommend or urge that a purchaser obtains a building inspection with the inclusion of special terms written into the contract of sale that they must be satisfied with the report's results before the sale becomes unconditional.
On rare occasions, purchasers can also be lured into believing that the property is in a good state of repair when produced with a seller’s building inspection saving them the cost of the report. To avoid uncertainty or a conflict of interest when purchasing a property, we recommend engaging an independent building inspector with the appropriate skills and competencies, such as a licensed builder or building surveyor, to increase your investment protection against unknown defects.
Take the time to ask the inspection company to be clear on what they will be inspecting, what they are licensed to do, what insurance cover they have, and what is their warranty policy if defects are not disclosed.
Before committing to the sale, check that the property inclusions, such as appliances, accessories and other items, are in working order to avoid unnecessary costly expenses. For such a minimal cost and by taking the extra time to ask important questions, purchasers can reduce the likelihood of taking expensive civil action should serious defects not be disclosed, which is often the only recourse once the property has been purchased.
As a landlord, we also recommend that you periodically invest in a building inspection so that you are fully informed on the current state of repair of the property. As property managers, we are not building inspectors; our routine inspections are only visual observations.
