Checking out a listing you like? Experts explain what to look out for when inspecting a first home
- Written by: Sharon Christensen, Executive Dean, Faculty of Business and Law, Queensland University of Technology
Becoming a homeowner is exciting, but the process can be complex and daunting.
Perhaps you’ve found a home listing[1] you like, you have your deposit[2] and finances in order and you are going to check the place out at an inspection.
We’ve asked experts to unpack some of the biggest topics for first-home buyers to consider – from working out what’s affordable and beginning the search, to knowing your rights when inspecting a property and making an offer.
What information can you expect from the seller?
The purpose of disclosing this information is to promote transparency, fair dealing and informed decisions by buyers. In most states, a seller is required to provide: a copy of the title and registered plan details of interests (a legal right[7]) of third parties, such as easements for driveways and access rights for infrastructure, such as sewerage, electricity, telecommunications planning and zoning information government notices or orders (for example, is the property likely to be bought back by the government for the construction of a new road or rail line) affecting the property.
If you are buying a unit or townhouse, there will also be additional information disclosed, such as body corporate fees[8] (which cover things like maintenance of common areas) and insurance requirements. Avoid signing a contract without investigating the accuracy of disclosures and obtaining financial and legal advice. Other things to find out
Key questions include: Are there any structural defects in the building? Obtain a building and pest inspection report from an independent and qualified person[9]. Are there any encroachments from adjoining buildings? Check the boundaries by obtaining a survey.
Are building approvals current? If not, this may impact your future use of the property and insurance costs. Check if there are any issues adversely affecting the amenity[10] of the property, such as future transport proposals. Are there any environmental contamination issues? Are there disputes with neighbours[11] about overgrown trees? What are the potential impacts of flooding and bushfires? What are the future plans for development on adjoining properties that may affect your view? If you are buying a unit or townhouse, search the body corporate or owners’ corporation records to confirm there is no adverse financial liability to owners.
This is not an exhaustive list. Do not to assume you can get out of the contract if you discover something adverse after you sign the contract. Making the contract conditional[12] upon satisfactory inspections may provide you with time to carry out these inquiries, but ultimately may not protect you. Making an offer and signing a contract of sale
Doing your homework before the auction is critical. Upon the fall of the auction hammer, you are bound to buy the property. If it is a private sale, you can make an offer[13] to buy a property by signing a contract of sale. You can add conditions such as subject to finance. The seller can accept or reject these conditions. Once the seller signs the contract accepting your offer, you are bound to buy. A cooling off period[14] may apply.
Key takeaways
his article provides general information only and does not take into account your personal objectives, financial situation, or needs. It is not intended as financial advice. All investments carry risk. References^ found a home listing (theconversation.com)^ deposit (theconversation.com)^ property prices continue to rise (www.abc.net.au)^ making a property look attractive (theconversation.com)^ fear of missing out (theconversation.com)^ buying a first home (theconversation.com)^ a legal right (assetconveyancing.com.au)^ body corporate fees (www.canstar.com.au)^ independent and qualified person (www.abc.net.au)^ amenity (www.investopedia.com)^ disputes with neighbours (www.lawreform.vic.gov.au)^ contract conditional (www.investopedia.com)^ make an offer (www.qld.gov.au)^ cooling off period (moneysmart.gov.au)
