When it comes to purchasing a property, one of the most crucial steps in the due diligence process is a thorough building inspection. Buying subject to the outcome of a pre-purchase inspection is smart. Designed to uncover potential issues and defects in the property you’re considering, you’ll have all the essential information you need to make an informed purchase.
While these reports can be incredibly informative, their true value depends on several factors, including the thoroughness of the inspection and the wording of the fine print. As with much in life today, jargon and hard-to-understand clauses complicate what should be a straightforward process.
"Building inspections are supposed to serve the buyer. You must trust your inspector to be looking out for your best interests. While the inspection report will contain some terms and conditions, if you have any doubts, ask your lawyer before going ahead." said Andrew Mackintosh, seasoned Building Inspector in Brisbane.
Fine print – what to look out for!
Don’t be nervous, be forewarned.
The fine print may contain language that limits the scope of the inspection, excluding specific areas of the property and leaving potential issues unexamined. In addition, it could further restrict what is expected to be a thorough inspection and be limited to what is visible and accessible at the time of the inspection.
So, what does this all mean?
It means that hidden defects or issues behind walls, under floors, or in concealed areas may not be included in the report. The impact of such fine print typically only becomes apparent when an issue in your newly acquired property is discovered that was not disclosed. Depending on the severity, you may feel deceived and opt to take legal action to seek remedies.
But be warned. The fine print can be used as a defence by the inspection company, making it challenging to prevail in court.
Protect your investment – hire a reputable building inspector
Before investing in a property, take time to do your research and partner with a reputable building inspector with a track record of thorough and transparent inspections. Whilst reading the fine print is always recommended, better still, seek clarification on any ambiguous or concerning clauses and ask questions. Enquire about what is covered, and what isn’t. When you work with independent inspectors rather than those recommended by real estate agents, this can further reduce potential conflicts of interest.
