Conveyancing
8. Tips for Purchasers
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 12 Jul 2015
- A purchaser should ideally consult with a lawyer before signing a contract of sale in order to make the required pre-purchase enquiries.
- Although the written law requires a vendor to provide the purchaser with various warranties they do not cover all the issues that impact a prospective purchaser’s decision to purchase the property. In addition a vendor can contract out of certain warranties in the special conditions to the contract. Purchasers should carry out their own investigations to ensure that they are getting clear title to the property and the property is of good quality and suitable for the use they intend to make of it.
- A purchaser should obtain all relevant inspection reports to ensure quality of the property. It is important that these inspections are made before the exchange of contracts because the contract makes it clear that the purchaser is acquiring the property as it is at the moment when contracts are exchanged. Most contracts include a special condition that prevents a purchaser from making any objections, requisitions or claims for compensation based on quality.
- A purchaser should also obtain a building inspection report. A building inspection report is a pre-purchase report obtained by the purchaser that outlines the condition of a property. A building inspection report includes any significant building defects or problems visually evident at inspections. For example cracks in the walls, dampness, slanting construction, damaged roofing or safety hazards.
- A purchaser should obtain a pest inspection report. A pest inspection report helps identify any pest related issues that are either presently evident at the property or any possible future insect infestations.
- There are many independent building and pest inspection agencies that provide a building and pest inspection report. A purchaser should speak to their lawyer or their conveyancer regarding how and where to obtain one. Generally a lawyer or a conveyancer can obtain one for you for a cost. In the case of self-conveyance the do-it-yourself kits include instructions and contact details for obtaining a building inspection report.
- Remember that it is not a lawyer’s job to comment on the quality of a property. A lawyer can only comment on any legal matters that may be identified in the report. Any specific questions should be directed to the inspector who carries out the inspection and drafts the report.
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