There are several different types of building reports available to property buyers. It is important that buyers commission the report that best fits the type of property they are considering.
The most common report requested by residential buyers is the pre-purchase building and pest inspection report. This report is useful when buying an established class 1a building i.e. detached houses, attached dwellings including terrace houses, townhouses or villa units.
The report has two sections, one that identifies building defects e.g. structural problems, condition of the roof and waterproofing faults. The other section covers the occurrence of pests including termite or borer damage as well as the presence of timber rot.
Many buyers do not obtain a building report when carrying out due diligence on class two dwellings. Class two dwellings are typically an apartment in a block of apartments. In this situation buyers should focus on examining the common areas as this is where most of the maintenance expense occurs. Speaking to the owner’s corporation manager is an important part of the process.
When contemplating buying an apartment, as an added safeguard it is prudent to engage a suitably qualified person such as a registered building practitioner to check the condition of common areas.
A relatively new type of property report tests for the presence of amphetamines inside the dwelling. The long term use or production of amphetamines can result in contamination within a dwelling. This can have detrimental effects to the health of occupants.
Another type of building report that is common in property transactions is what is known as a Section 137B Owner Builder Report. This particular report must be provided by an owner builder if they sell their property within 6 ½ years of issue of the certificate of occupancy.
Section 137B of the Victorian Building Act 1993 stipulates the necessity for this report. The report must be included in the vendor’s statement when the property is up for sale. It provides information regarding the condition of the building at the time the report was undertaken.
Another type of building report is the construction stage report. This report is useful for people who have engaged a builder either to carry out a substantial renovation or build a new home.
It is mandatory for owners to engage a building surveyor to check specified stages of construction. However building surveyors only check that basic building regulations have been followed, they don’t check the quality of the work. A suitably qualified and experienced building consultant can be engaged to make sure all work is carried out to a high standard at each stage of the construction process.
Another report that is commonly requested by buyers is a building defects report. This report is carried out on newly constructed dwellings e.g. purchases off the plan. The report is similar to a pre-purchase building report however there is extra attention given to the quality of finishes as the builder or developer is expected to deliver a brand new building.
Buyers should always seek independent advice as to the condition of the building before taking the plunge into property. A building report has two main functions. Firstly it will alert buyers as to the presence of any major or minor defects and the associated costs of rectification. These costs can be taken into account when offers are made to buy a property.
Secondly, a well prepared building report will form the basis of a maintenance plan for the property. The report will alert the new owner what areas of the building need to be replaced, repaired or serviced in the medium to long term.
A well-executed maintenance plan will not only save money it will keep your living environment safe and enhance the value of your property.
Most importantly buyers should only engage building inspectors who possess a building related qualification, have a long track record of providing high quality service and possess professional indemnity insurance.
