In the ACT it is a requirement for the seller to have a building inspection done and included in the contract of sale before their property can be marketed. This is a little different from all other states where it is a requirement of the purchaser to organise a building inspection before an offer is made.
When looking at the bigger picture, the ACT’s system is fairer as the purchaser has all the information in front of them before they make a decision to purchase a property. Also, should they have their eye on several properties; they don’t need to fork out for several building inspections in order to choose the perfect property for them. Upon settlement of the property being sold, the seller is reimbursed the full cost of the building inspection by the purchaser.
The report is broken into several sections as outlined below:
A building inspection is the visual assessment of a property to check for defects. It is an indication of the overall condition of the property. It generally works room by room and summarises the condition of each. It also covers all electrical work, plumbing and drainage, condition of windows and doors, fittings and fixtures within the home, kitchen cabinetry, walls, underfloor space, the roof and roof space, driveways, retaining walls, outbuildings, guttering and drainpipes.
A significant factor and determinant of purchasing a home is to ensure that it is not infested or damaged by termites. Termites are extremely difficult to eradicate and damage is costly to repair. Pest inspections include timber in the roof and flooring of the house, outbuildings and also fencing. Timber pests can travel up to 50 meters through the ground so it is important to include fencing to ensure the report is thorough.
When building or adding onto your property you are required to seek development and building approval from the council. If approval is not granted, the construction becomes classified as an unapproved structure and risks being forcibly removed should an unforeseen circumstance arise. A compliance report looks at all the structures on the property and outlines whether approval has been granted and whether it is required.
Energy efficient rating measures the thermal performance of a home or the efficiency in which a home maintains its heating or cooling. This is displayed on a star scale of zero to six stars with zero being poor and six being very good. With advances in technology and a focus on being environmentally friendly, new buildings have gone beyond the six star rating and called for an eight star rating, applicable only to brand new developments.
Building reports are there to provide information to both the seller and the purchaser. It gives you a chance to fix any problems that might have been identified, before a potential buyer comes into contact with the house and buyers will be able to make an offer on your property with more confidence.
As always, if you’d like to have a chat to discuss your real estate needs, call us on 02 6171 2220. We look forward to helping you.