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Do I Need a Building Inspection Report Before I Purchase A Property?
Would you buy a large asset item like a car without test driving it or getting it assessed by an expert in that field e.g. AA vehicle testing? Would you buy a computer without checking out its specifications? If necessary would you talk to an IT guru to ensure the product will meet your needs?
When purchasing a property it is much harder to do this type of ‘pre-purchase’ testing however there are steps that you can put in place to protect your interests in the purchase of a home or investment property.
Remember buying a house is the biggest investment that most of you will make. There are many steps that you can take yourself to help make an informed decision that the property you really want is the right investment for you.
Ask questions
Ask both the real estate agent and the seller if there is anything that, as the buyer, you should be aware of with the house particularly weather tightness concerns. Is it is a modern designed dwelling, or have any additions been carried out especially since the early 1990’s (see Leaky Building Syndrome below). If it is a new home ask if the Code of Compliance has been issued. For older homes always ask whether any alterations have been carried out and if so was a building consent obtained, and has a Code of Compliance certificate been issued for the works. Ask the agent and vendor if the fence line or hedge surrounding the property is the actual boundary.
Undertake basic checks
These should always include – the roof, plumbing (including water pressure), electrical wiring, the piles (underfloor supports), insulation (underfloor, walls and ceiling space), fences, paving, driveways, evidence of house movement, any alterations that do not appear on the plans (these can be obtained from the local council for a small fee).
Check the property for potential signs of leaking including visible water damage, cracks in the external cladding, mould on the ceilings and internal walls, bulging or stained walls or skirtings, and balconies on upper floors without adequate fall or good drainage. Obtain a LIM Report from the local council
Obtaining a LIM (Land Information Memorandum) report is very common these days. A LIM report is more expensive than viewing the property file at the council offices and can take up to ten days to obtain; it is a valuable pre-purchase check to protect your investment.
Note that the LIM report will only tell you what the council knows. If work is done that the council is unaware of there will be no record on the LIM, however if they know there is a new by-pass going through the vacant lot next door in the future or if there were permits issued but no Code of Compliance issued for the work the LIM should identify that.
Leaky Building Syndrome Be aware of the “Leaky Building Syndrome” - this is the term given to a building that has not been designed or constructed to perform adequately under NORMAL weather conditions for New Zealand.
The problem affected homeowners rights across the country in many different property types, including apartments, townhouses, stand-alone houses, high spec homes and commercial buildings. Some of the problems that cause buildings to leak include the following: • Improper design techniques (e.g. flat roof, solid balustrades, and the trend towards Mediterranean style homes.
• Inappropriate materials being incorrectly installed particularly cladding (especially monolithic cladding, which is stucco plaster, plaster systems (Texture Coat) and fibre cement. It is a style of cladding that has an applied texture to appear seamless, often imitating concrete masonry or plaster.
The problems occurred in dwellings constructed in the 1990’s and happened in instances when more than one cladding system has been used, there is a lack of roof overhang or eves, the dwelling has a complicated roof design, balconies above internal rooms, internal gutters, wall claddings in contact with the ground, lack of flashings around windows and doors and parapets without sloping tops.
• The use of untreated timber has contributed to the problem. Until recently this use was acceptable by New Zealand building requirements, however if the untreated timber is exposed to moisture it rots and deteriorates which can cause the building to become unsafe and also create a health hazard because of the potential for the growth of mould and bacteria. A pre-purchase building inspection is advisable, however it is not only advisable but also essential for homes that may be at risk of leaking.
If the home has any potential signs for leaking and is built with monolithic cladding then engage an experienced building inspector to test the weather tightness and to visually assess the property (with monolithic claddings in particular, a property inspection prior to purchase should be a condition in any Sale and Purchase Agreement that you enter in to).
The same applies if the idea of checking all of the above is all too daunting for you, engage a building inspector to do all of the pre-purchase checks that have been covered in this article. The best advice is “be as informed as you can be prior to purchasing the property”. Remember that your Mortgage Broker can generally refer you to any professional that you may require in the process of purchasing a property.
By Niel Thomson, Thomson Jones Mortgage Brokers 1
