What are Pre-Purchase Inspection Reports?
A pre-purchase inspection report is also known as a building inspection report or standard property report. This written report contains relevant information about the property based on visual inspection. The purpose of which is to give the buyer a detailed overview of the condition of the property.
As the name implies, this report must be done before finalizing the property purchase – and depending on the contents of the building inspection report, the buyer may continue with the purchase or may back-out of the agreement if still within the cooling-off period.
In most cases, the conveyancing solicitor handles the pre-purchase inspection report (and other similar reports) However, it wouldn’t hurt to have a general idea of what are the contents of a standard property report.
Below are things / items commonly found on a standard property report:
>> Interior and exterior of the establishment
>> Walk paths and driveways
>> Roofing
>> Summary (a very important part of the report)
>> Date and scope of inspection
>> Name and address of the site inspected
Advantages of Pre-Purchase Inspections Reports –
The benefits of having a pre-purchase inspection report are not that hard to understand – the best of which is that it assists with cost negotiation.
Remember, a building inspection report contains a detailed overview of items that can be visually inspected. It contains information about major issues found on the property.
This report makes the buyer aware of faults discovered on the property during inspection. Obviously, these identified issues will affect the current value and final price of the property.
If a consensus cannot be reached between seller and buyer, the latter has the option to cancel the deal.
Another benefit of a pre-purchase inspection report is that an expert’s advice can be consulted if any identified problems today, will / can become a major concern in the future.
Who should do the pre-purchase inspection report?
It is never a requirement to sign anything on the spot. Be sure to consult and go over the contract details with your conveyancing solicitor. It is also recommended to ask your conveyancing solicitor if they could refer a reliable person to do the pre-purchase inspection report.
Since this report is of substantial value that may ultimately affect the financial aspect, it is important to hire the services of a suitable and qualified professional.
An experienced professional will know what things to look for, how to prepare the report, can even estimate the cost of repairs for any damage(s), and even spot cosmetic cover-ups trying to hide major faults in the property.