Sales and Purchase Agreement Two years on
Well two years on since the introduction of the changed Sales and Purchase agreement, prospective purchasers are still grappling with the term a ‘suitably qualified building inspector’ and what this means to them.
As a result of the change there was, and still is an explosion of inspection companies and service providers, but are they all working in accordance with accepted principles and methods? From the legal action that has occurred, not really.
However the key thing two years on is that the professionals within the market now have a firm grip on the differences between inspectors, their qualifications, and their ability to provide full and comprehensive reports. In addition Banks are no longer accepting reports from builders and non-professional companies or reports that are scant on detail using only tick boxes and lacking in costing’s of repair. The overall message is that standards of inspections are lifting as those not up to the mark get left behind.There is still confusion about who is suitably qualified. It can be hard for house purchasers to identify the difference between qualifications, professional competency exams and organisation memberships. It is often easier to identify who lacks the qualifications to provide a clear and informative inspection report. Here some easy filters to help:
Are they independent?
Let’s start with the key factor, are they independent i.e. try to avoid family and friends. They have the best of intentions but they also want you to be happy. This emotional link can be a problem as it can cloud judgement or stop them saying what they think.
Are they experienced?
For many years New Zealand has relied on the local builder to give the property the once over. Their knowledge is normally good around the particular aspect of their trade, such as; carpenter, electrician, plumber, roofer. However if you ask a plumber to look at the cladding or foundation they will have only a basic knowledge about what the possible problems are and the potential risk and costs in the future.
Are they providing a comprehensive report?
It is essential for an inspector to undertake not just a review of the building but also LIM and Title. These documents provide context of what is being inspected and also are a glimpse into the history of the property and its current format. Your inspector should be able to determine land and environmental risks of the property as well as the risk of un-consented works. Also a comprehensive report must contain costs and timing of repairs. This is essential for you to understand your (and the banks) total financial commitment to the property and its upkeep.
Are they insured?
The final big hurdle is the level of protection that the inspection provider can offer. Most members of your family and builders do not have Professional Indemnity Insurance (the insurance that covers them if their advice is wrong). In this scenario you would have to re-claim damages or costs from them personally… not good for the family relations and possibly ineffective against a builder.
Alternatively contact us at Home Buyers Reports Ltd. HomeBuyers Reports are independent chartered building surveyors and specialists in professional pre-purchase and pre-sale inspections and reports for residential property owners. Our staff are Members of the Royal Institute of Chartered Surveyors and New Zealand Institute of Building Surveyors, we have held professional indemnity insurance from the start.
We are able to assist you in the inspection and reporting of your potential purchase, providing you with peace of mind through our clear and comprehensive property information reports that will enable you to make the right decision during the sale and purchase process.