Prior to a buyer committing to purchase any property, it is important that all pre-purchase inspections and due diligence is completed. This relates back to the established caveat emptor/buyer beware legal adage which translates to the responsibility of being aware of what the buyer is purchasing, is on the buyer to investigate. There are, of course, exceptions to this rule where a seller knowingly misleads a buyer, but generally the state of repair of the property or strata related concerns, is the buyer’s responsibility to investigate.
A buyer should undertake a pest and building report to ensure there are no obvious building defects or infestation problems with the property.
A strata report details important information on the running of the owner’s corporation such as, the financial position, if any special levies have been struck or will be struck by the owner’s corporation, and to determine whether there are any issues that have been flagged by the owner’s corporation in respect of the property.
The strata inspector will usually review minutes of recent meetings of the owner’s corporation and provide a summary of any important items that have been raised at those meetings.
A buyer should do this investigation before an unconditional exchange of contracts or during the cooling off period.
