Buyer Beware: Read Between The Lines

couple buying home

Here are three key points to consider when buying a home:

1. The Real Estate Agent works for the vendor, not YOU.

As a rule, real estate agents get paid a commission. They will generally only get paid if they can sell you the property. Some agents will refer you to Google to find a building and pest inspection company, while many will give you the business card of their preferred inspector. It’s recommended you seek an independant and unbiased inspector instead.

2. Building inspectors and companies that declare their income to be less than $300,000 per annum do not need to meet the Building Services Authority (BSA)’s Financial Licensing Requirements.

These companies/inspectors can also seek exemption from having Professional Indemnity Insurance on the grounds of financial hardship. This means that you, the client, will have no insurance in the event that a serious issue or defect is not identified by the inspector in the report. This could potentially cost you tens of thousands of dollars to rectify.

These same companies/inspectors spend tens of thousands on marketing, but will not spend any on Professional Indemnity Insurance. This insurance is your protection. If you are ringing around for a quote please ask if they are insured, and don’t be shy to request a copy of their certificate of currency. By law companies/inspectors must inform you in writing if they do not hold Professional Indemnity Insurance, prior to carrying out any inspection. However, this can be buried in tiny obscure print at the bottom of an email or in the terms and conditions.

3. Understand when engaging a building and pest inspector/company that their reports are not a guarantee or a warranty on the property.

The building inspection is an appraisal of the property’s condition on the day of the inspection. However, at Inspect My Home, we stand by our reports and our inspectors and we hold Professional Indemnity Insurance for your protection.

In New South Wales, effective 16 September 2009, building consultancy work is no longer regulated under the Home Building Act in NSW. This means anyone can work as a ‘consultant’ and there is no way the consumer can check for licences.

When buying a property it is important to get professional and independent advice. Make sure you choose advisors, inspectors and contractors wisely.

Book An Inspection

If you’re about to buy a property and are in need of a building and pest inspection, contact Inspect My Home. Call us on 1300 337 447 or make a booking online.

More Information:

No votes yet.
Please wait...