Navigating the Building and Pest Inspection.
A ‘building and pest inspection’ special condition is a common condition inserted into contracts for the purchase of residential houses and units, particularly if the property or unit is not brand new.
When purchasing property in Brisbane, a building and pest property inspection is essential due to inclement weather and the high presence of termites, and although it will cost a few hundred dollars, it gives buyers the information they need to decide whether or not the purchase is worthwhile. Inspectors come armed to the inspection with thermal imaging machines, moisture detectors and other instruments to determine their findings and spend from about one hour (for a unit) up to 3 hours (for a large house), and supply a written report at the end.
Building and pest reports contain information about the internals and externals of the property including descriptions, photographs, disclaimers and definitions. It is usually very informative and contains a lot of information for the buyer. Due to the length of most reports and the nature of the content, many are difficult to read and even harder to decipher. Information can be repetitive and listed in one or more sections of the report and the terminology used can be subjective, thus rendering the report fairly useless without interpretation. Although reports categorise defect items, there is still some room for interpretation which can leave a buyer confused as to whether they should continue with the purchase. For example, a ‘moderate’ crack could be minor or a major concern.
Reports are written to protect inspectors from liability and come with a number of clauses, terms and conditions, so as to avoid potential lawsuits in the future. As a result, many reports can seem alarmist. There are companies in Australia who prepare documentation and procedures with a view to minimise the exposure of building and pest inspectors to the potential liabilities. The documentation and procedures have been seen and approved by the insurers who underwrite the scheme, therefore, if they are followed there should be no difficulties with insurance cover should a claim be made. If the documentation and procedures are not followed the insurance may not be effective, exposing inspectors to personal liability without the backing of insurance.
So, if you’re a buyer, the first rule of thumb is to attend the inspection if you can. Find an inspector who is happy for you to follow them around as they explain the defect items as they arise, or alternatively, they can give you a presentation at the end. This will give you a clear understanding of what is a serious area of concern and what is not worth worrying about.
If you are unable to attend the inspection, ensure that the inspector/s walk you through the report on the phone. Have a list of questions to ask and make notes along the way, as a verbal report will contain a lot more information than a written one. I find inspectors are more forthcoming in verbal reports as they are only really liable for what they have written down, not what they state in a conversation, which means they are able to provide a more lengthy explanation of an item. This assists buyers navigate through the report and make a more informed decision.
As Brisbane buyer’s agents, we attend countless Brisbane property inspections every year on behalf of clients, many of whom live interstate. It puts us in a privileged position as we have become privy to what the inspectors are looking for, so it becomes easier over time to distinguish between a good and a bad property during the initial inspection. There’s nothing worse than paying your money and having your building and pest inspection fail! It is important to note every defect you can on the first inspection, ascertain its seriousness, investigate what it will take to rectify the issue and decide whether to pursue the purchase.
If you have a buyer’s agent working on your side, and you decide to go ahead with a purchase that has defects, we will work with the selling agent to see that certain items are rectified by the seller prior to settlement. For major items, we can opt to re-negotiate the purchase price and just another one of the benefits of using a buyer’s agent.
For more information on buying property in Brisbane, contact us.
