Due diligence for residential property buyers refers to the process of investigating and evaluating a property prior to making a purchase. It involves conducting extensive research and inspections to identify any potential risks, issues, or defects that may affect the property’s value or suitability.
Due diligence is an important step for anyone thinking about buying a home because it can help avoid costly mistakes, reduce risks, and ensure a successful transaction. This article aims to provide an informative starting point for those looking to understand the significance of due diligence when buying a home.
Due Diligence for Prospective Purchasers of Residential Property
Prior to entering into a contract, prudent purchasers of residential property will undertake all enquiries of the property necessary to satisfy themselves in relation to the purchase.
Generally speaking, after a purchaser enters into a standard contract for the purchase of property in Victoria or New South Wales, they will have no recourse if they discover, for example, a building defect or pest infestation.
At a minimum, prospective purchasers should consider the following enquiries prior to signing the contract:
A pest inspection by a suitably qualified professional will determine the pest activity, if any, on the property. For example, termites may be causing internal damage to the structure of the house or other buildings.
A building inspection by a suitably qualified professional will provide insight into the structural integrity of the buildings on the property.
A survey of the property will identify the legal boundaries of the property and the location of any easements. A survey might also reveal that buildings on the property are encroaching on neighbouring land or vice versa.
A building certificate provides comfort to a purchaser that, in the next seven years, the Local Council will not make any orders directed at the owner of the property to undertake building works such as repairs, demolitions, or alterations. When a building certificate is issued by the Local Council, the purchaser can be assured that the building assets on the property are safe, in good condition, and have the appropriate council approvals.
How Burt and Hanke Legal Can Help in Any Conveyancing and Property Law Matters
For further advice in relation to conveyancing or any property law matter, do not hesitate to contact the lawyers at Burt & Hanke Legal who service the Albury and Wodonga Region.
[Important note: this post is not intended to be legal advice and it should not be relied upon by others as such. No responsibility is accepted by Burt & Hanke Legal and its directors for any errors in the content, including errors arising from omission or negligence. Persons seeking legal advice should contact Burt & Hanke Legal for an appointment.]