Checking out a listing you like? Experts explain what to look out for when inspecting a first home

Real estate agents are skilled in making a property look attractive and generating a sense of hype and fear of missing out. It’s a good idea to take your time to make sure the property is right for you. Inspecting it more than once, and at different times of day, can help build a more accurate picture. This article is part of The Conversation’s series on buying a first home. 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? At the inspection, agents will usually provide a copy of the contract of sale, along with information that is required to be disclosed by law. Typically, this includes information about known defects in the property, as well as issues or restrictions that apply. 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) 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 (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 Mandatory seller disclosure does not tell you everything you need to know about the property. Additional inquiries will depend on the information provided by the seller and the way you intend to use the property. If you are going to live in the property, investigating anything that may impact the property’s value is critical. Key questions include: Are there any structural defects in the building? Obtain a building and pest inspection report from an independent and qualified person. 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 of the property, such as future transport proposals. Are there any environmental contamination issues? Are there disputes with neighbours 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 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 You have decided this is the property for you – how do you make an offer? If it is an auction, your bid at the auction is an offer to buy on the terms of the contract provided by the seller’s agent. You will not be able to add conditions to the contract and no cooling off period will apply. 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 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 may apply. Key takeaways Don’t rush. Take time to research the property, read the information disclosed by the seller and read the contract of sale carefully before you make an offer. If your contract is made subject to obtaining finance or carrying out building and pest inspections, make sure there is enough time to get this finance or information. Getting professional advice early is vital to understanding your legal rights and obligations. Disclaimer: This 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. Authors: The Conversation

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