What does ‘Subject to building inspection’ mean? It could mean the opportunity to negotiate a lower price for a property you’re hoping to buy; it could mean avoiding paying a fortune to repair undetected damages or risks for damage after you’ve already moved in.
While you’re still on the negotiation stage with a seller, you can include a ‘Subject to building inspection’ condition in your contract. This means that successful closing of the sale is contingent on a building inspection and an agreement over possible necessary repairs. This is especially important when purchasing older properties; brand new or newer homes may also have hidden issues that can only be detected by a standard building inspection.
When including a “Subject to building inspection” condition in your contract, be as broad and specific as you want with the wording used. You can hire a legal expert or other qualified professional to help you make sure that the special condition will be fair and favorable to you, the buyer, especially with regards to who will shoulder the repairs if any issues are detected. You may be able to renegotiate the seller’s price if the building inspector’s report reveals problems. And you should also still be allowed to back out of the sale if the defects and risks for future damage are unacceptable to you.
A standard building inspection will help you learn as much as you can about the overall condition of the property you’re intending to buy, and avoid problems and unexpected costs for damages that could show up months or even years later. The seller can only give you recommendations for qualified building inspectors; or you can find one independently.
A building inspection will include the following:
- Interior of the building: ceiling and roof space; inner and retaining walls; windows; wiring; plumbing and drainage; floors; HVAC system.
- Exterior of the building: roof exterior; under-floor space; external structures, such as the carport, garage, and garden shed; fencing; guttering; paths and driveways.
- Signs of asbestos and/or pest infestation may also be specifically requested, although these could mean added costs.
When you request for a “Subject to building inspection” pre-purchase Building Inspections condition, you will know in advance if the property has problems or if there are risks for future damages; you can use the information to negotiate a lower price with the seller; you can require the seller to shoulder the repairs prior to sealing the deal; and you will become more aware of the property’s overall condition and what you can expect in the future.
Needless to say, having a building inspection Melbourne done on your family’s potential future home will help you decide whether or not to go ahead with the purchase, or if you will keep looking for your dream home.