People buying a house or unit in NSW, mainly Sydney, are being offered a building report by the real estate agent. This practice has become more evident over the last 12 months. While some of these reports are reasonable, a prospective buyer of a property should be aware of what is being offered. There are a few companies now specialising in providing a vendor building report. The real estate agent will provide a referral to the vendor who has the inspection carried out and a report is then made available.
It has been our experience that there can be limited reliance on some of these reports. Most will provide a disclaimer in that the report is for their client, who is the vendor, and cannot be relied upon by a third party (a buyer). For that reason if there are any omissions, then the company cannot be held liable by a purchaser for any omissions in inaccuracies.
The other consideration when seeking a building report on a property is to remember that the inspectors who carry out property inspections are not required to have a licence and are not required to have Professional Indemnity Insurance.
To obtain a building report you can rely upon, it is advisable to ask your solicitor or conveyancer for a referral.