New laws for purchasers of ACT properties
New laws in the ACT now require the seller to provide prospective buyers with an independent builder’s inspection report and a pest inspection report among other documents as part of the contract for sale (see our guide to the new real estate Act for more details). With this new legislation, designed to shorten the time between offer and exchange in order to prevent buyers from being gazumped, buyers can now refer to these reports for any existing and potential problems concerning the physical condition of the house.
Make a note of any concerns
Even with these reports it is still important to make your own judgment on each property you view. Do not allow the real estate agent to rush you through an inspection and if there are areas of concern, make a note of them so you can highlight them with the agent and consider them more closely on your second inspection. Where problems have been identified in a report before the property was put onto the market, it may not be possible to negotiate a lower price on that basis alone, but even if this is the case, at least it will help you decide whether you want to take on a property with expenses from the outset.
What to look out for
On your second inspection of a house take a thorough look around with a view to identifying any potential problem areas. If an inspection report has already been provided with the contract for sale, check out any problems that have been recorded to get an idea of whether you need to get a quote for repairs and how this will affect any offer you may make. Keep in mind however that some seemingly minor faults can point to major problems so do not rely solely on your own observations to assess the physical well being of the property. Some things you can look out for include:
- Evidence of rising damp under the house and on external walls
- Black spots on walls and ceilings or rotted carpet near skirting boards
- Rotten timbers under and around the shower area
- Discoloured or flaking paintwork
- Signs of pests
- Freshly repaired or painted boards (may be hiding a larger flaw)
- Springy floorboards
- Doors and windows should close and open properly
- Problem free plumbing
- Bowed roof
- Cracking in external and internal walls around cornices
- Cracking running through the bricks and not the mortar
- Gardens that are close to the walls of a house or that cover the external vents
- Large trees close (2 metres) to the house
- Guttering and downpipes that are not connected properly
- Effective drainage for properties whose external ground level is near to the internal ground level
Arrange a professional inspection
If you are looking at a house in a state or territory other than the ACT, you will need to arrange a professional inspection before the sale goes ahead. Do not be tempted to skip on this expense and do it yourself. Potentially expensive and dangerous problems can be hidden in a number of ways that you could easily overlook. Make sure that the inspector you hire has professional indemnity insurance so that if a problem is missed you may be able to make a claim against them. The building report will identify trouble areas, but not usually recommend what needs to be done, so if there are any problems, seek advice from the appropriate trades person on costs of repairs and chances of the problem recurring. There may be additional inspections needed depending on the property, for example a structural engineer may be needed to follow up any issues with stability and a geotechnical expert could be required for properties built on a steep block.
Other issues
There may be no major problems with the physical state of the property, but do not neglect to take note of those other issues that may impose on your lifestyle and effect the value of your house. For example, if you are buying the house during autumn or winter, could there be large trees that when in season may block sunlight or the views that you are paying for? Did you see or hear any large or loud dogs that might keep you awake at night or beat down your back fence? Do neighbours take the same pride in your garden as you intend to or is there rubbish and debris lying around that takes away from the streetscape? Include your observations of potential issues such as these along side your other notes when making your property inspections.