When in the purchasing process do we get the pest and building inspection done? It’s a really common question…
Being located on the border between states comes with a whole set of “life issues”. It’s not just about Daylight Savings Time -and State of Origin – one big issue is the difference between purchasing property north or south of that line. Purchasers often wonder when it’s appropriate to get their building inspection done. I’ve put together a table that quickly explains where we come in as Building Inspectors from state to state.
|QUEENSLAND – Purchase Process||NEW SOUTH WALES – Purchase Process|
|View property||View property|
|Make an offer||Make an offer||You can get a pest and building inspection done here if you aren’t sure what you want to offer|
|In QLD there is no possibility of gazumping taking place however you can’t get a pest and building inspection done until the contract is agreed||In NSW you can gazumped at any stage until the contract becomes unconditional so there is an advantage to an unconditional contract – if you get your inspections done early you are a step ahead|
|Real estate agent puts together the contract for sale
*At this stage adds the Special Conditions including pest and building inspection – beware of wording used
|Purchaser should go see a solicitor to review the contract at this point||Sales agent negotiates price and terms|
|Term and price are 100% agreed and contract signed||Sales advice is sent to solicitors with price and terms, solicitor completes contract and signatures are exchanged|
|You have XX days (per contract) to complete your due diligence||Pest and building inspection happens now||You have XX days (per contract) to complete your due diligence||Pest and building inspection happens now|
|Accept or negotiate||Accept or negotiate|
THIS is also a very interesting and informative video by Bryce Holdaway – a buyers advocate from Empower Wealth. They are a company based in Victoria, however he makes a few very good points about your rights as a buyer. He also addresses a couple different situations that you might find yourself in while negotiating a purchase.
Get Professional Advice
It’s hard to say exactly which state’s regulations favour which party because there are pros and cons to each. Timing on the building inspection obviously isn’t the only difference in buying over the border. If you’re not familiar with the process please do your research, get professional advice and start on the right foot. Once you’re in the process it’s hard to work out what you don’t know until after you’ve made a mistake. When property is involved, mistakes can cost a lot.