USEFUL INFORMATION & HELPFUL HINTS

Before you start

Make a checklist of what you want in a house, property and area.
Consult your lender to make sure you are well within your means before committing yourself financially.
Contact a competent Solicitor independent of the real estate agent, before signing a contract. Avoid using conveyancing firms, they are usually fine until something goes wrong.
Be aware your lender does not arrange or carry out inspections, they do valuation appraisals only. You must arrange building and pest inspections yourself.
Check rates available, repayment requirements and hidden costs also penalties for any changes made afterwards.
Look at variable and fixed rates and determine which is more suitable to your requirements.
Consult your solicitor, accountant or a qualified financial advisor for expert advice.

Before you sign a Contract

Never sign a contract before showing it to a competent solicitor acting on your behalf, not someone recommended by the real estate agent. Be aware that there are some clauses used in the industry that may bind you to a contract regardless of faults found by the inspectors.
Do not accept reports organized by the current owner or real estate agent, (often referred to as Vendors reports) they will more than likely be biased! You may not have any legal recourse against the inspector that has not been hired and paid by you if undisclosed problems are found after you have bought the property. Insurers usually demand a disclaimer be put in the report against third parties. Check with your legal advisor.
Do not under any circumstance sign a contract that says to the “Structural soundness” even if it says to your satisfaction. This clause is sometimes used to limit your chances of terminating a contract unless the building is falling to pieces before your eyes.
It is preferable to obtain inspections before signing a contract so you know the true condition of the property before putting a price on it.
Do not be bullied by the agent into using a building or pest control inspector they recommend and out of using someone of your choice. Agents often recommend inspectors that will give favorable reports so the sale can go through, if a sale falls through they will not recommend that inspector again.
Don’t be conned, by so-called “standard contracts” that have been drafted by the real estate industry with the blessing of the law society of whom both have an invested interest in a sale.

Before employing any Inspection service.

Be aware of the following:

Make sure the Inspector doing the Inspection for you is personally licensed and currently insured as well as the company to carry out building inspections. Do your own checking. Ask for license numbers and check with the Building Services Authority. Phone the BSA on 3225 2855, their website is www.bsa.qld.gov.au.
Having a builders license also being a member of the Master Builders Association and/or Institute of Building Consultants is not sufficient qualifications for an individual to carry out inspections. Before they do the inspection ask to see their License card and check the expiry date, it must have Completed Residential Inspection on it, if inspecting residential properties.
Request to see current dated documentation from the company and inspector’s insurer stating that they covered by indemnity insurance.

Ask to speak to the inspector that is going to do the inspection, not a receptionist or anyone else and ask them the following questions:

Do not pay for a building or pest control inspection before they carry out the inspection. If they have done what they said they would and have confidence and detail in their report they will not have a problem with this.
How many pages and how detailed is their report, does it include illustrations and indexed digital photographs of the main problems? Is the report just a checkpoint tick-box list and not specific? Or a computer generated report that is lacking in content and detail?
Is their report confidential and absolutely nothing disclosed with the real estate agent or current owner. This can seriously jeopardize you negotiating position also cause arguments with biased and unqualified people. Do they physically get on the roof also in the roof (PAST the access hole) also access all of the sub-floor area? If you cannot be there, request that photos be taken of areas they accessed for proof.
Ask your building inspector to take photos for proof of areas they accessed.
Do they have ladders, torch, moisture meter and a digital camera? these tools are basic requirements for inspectors that are serious about doing a decent inspection for you.
Do they specialize in doing inspections full time or part time. How long have they been doing inspections?
Ask if you can be there for the duration of the inspection, if they don’t want you there they usually have something to hide and may not access all areas, do not employ them.
How long is the inspection? Approximately 1½ on site is normal for an average size house (more time is required for larger houses also if more buildings are on the property), this does not include traveling time or chatting with the agent or current owner.
Request a copy of their disclaimer or scope of report so you know exactly what you are getting, what areas are access also what is not checked by the building Inspector.
Does the inspector do pest and building inspection combined, if so ask how long have they been running a legitimate pest control business and separate building business. Only use firms that are experienced experts in one field or the other, preferably from two totally different companies.
Do they do a defects report or a “structural only inspection”
Do they try and con you with guarantees that limit their liability?
Does the Inspector own and run the company or are they just an employee that is not responsible for the company. Employees can be hired and fired as they wish, also you do not know if they have the experience and qualifications.

During the Inspection and on Completion

If possible, be at the inspection for the duration to ensure the inspector accesses all areas, also so the inspector can point out the main problems on completion and give you a brief verbal summary before they send the report to you. If you cannot be there, request that photos be taken of areas they accessed and problems found.
Ask the inspector questions before they start or at the end, otherwise you will break their concentration during the inspection. Do not get involved in small talk about unrelated matters to the inspection, remember it is an inspection not a social event.
Make sure the inspector accesses all structures on the property, physically gets on the roof and in the roof past the access hole also all of the sub-floor area (where possible).
I have found over the years the majority of building or pest control inspectors disclose confidential information regarding the inspection with the agent or current owner, this can seriously jeopardize your negotiating position if any unforeseen significant problems are found in the inspection, especially if the property is going to auction, this also often causes arguments and confusion from unqualified people with biased opinions. Remember the inspector is there on your behalf not for the benefit of others that have not paid for the report and have an invested interest in the sale of the property.
On completion of the inspection it is not advisable to discuss the outcome with the real estate agent or the current owner until you have consulted the inspector then your solicitor and made your decision. Immediately after the inspection you have not received the report or had the time to fully comprehend all the information to make one of the biggest decisions of your life.

What to do when you receive the Report

When you have received the report if there is anything that you do not fully understand, contact the inspector immediately for their interpretation or clarification before making any decisions. Do not allow unqualified and biased people to misinterpret the report. Once you have made your decision contact your solicitor.
It is not up to the building inspector to give a pass or failure, the outcome of the report must be entirely up to your satisfaction not anyone else. If the inspection results do not satisfy you, that is your decision.

Things that may help you in making your Decision after the Inspection

Make a list of any significant problems also the items that have been replaced or rectified and weigh one against the other. The majority of buildings have problems to varying degrees, also take age and price into consideration when making your decision.
Determine what you expect from the house and whether it suits your requirements, after the inspection.
Always remember whatever problems found by the inspector may affect you when you resell the property unless they have been rectified at your expense !