Tony Brazier
The Press - Wednesday 1 September 2010
Building Inspections
In this day and age of transparency and disclosure of all services provided it is a brave real estate licensee who offers advice on the quality and sturdiness of a structure about to be purchased. As discussed in previous articles, the requirement to disclose any actual, or even possible, defects which is imposed by the new REAA Code of Professional Conduct requires the licensees (salespeople) to be very wary of questions around the quality of a building.
Some solicitors and company Principal's have started recommending to their licensees to put a "Building Check" clause in each and every offer to purchase. This way the opportunity to take advice from a suitably qualified person is given to that purchaser. Whether they take advantage of this clause or not is a matter for each purchaser to decide and some, often after they discover the cost, choose to waiver the rights the clause may have given them.
Other company Principals and their licensees are not so keen to arm the purchaser with such an 'out' unless it is actually requested or shown that it is the best course of action to satisfy the questions being asked. The licensee's job is to make an enforceable contract not to provide a list of different reasons that a purchaser may use to withdrawn from an agreement, is their reasoning.
So how is it that some licensees are keen to put these building inspection clauses in everytime and others avoid them fervently, apart from when there are obvious troublesome types of construction or materials? The answer is in the evolution of the building inspection industry. Once upon a time it was good enough to get a 'mate' who was a builder to have a walk through and give the nod. But when a few too many of these 'mates' ceased to be mates because of what they missed a whole new industry, initially made up of retired builders and City Council inspectors, was borne.
A good building inspection report is as much about its presentation to the client as it is about the content, as it was found in the early days there were as many people being put off good suitable properties as there were being reassured that what they were buying was sound. The problem lies in the fact that when a statement is made it is always being compared to what is new and perfect. Ninety-five percent of what the licensee is trying to sell is not new and perfect and therefore adequate reference to the expectations of a property of a certain age must accompany broad brush comments like "infested with borer". My own house has borer. The correct term may be infested but that conjures up far too much panic for the reality of a few holes here and there.
As time has gone by the building inspection industry as a business partner has become very much more professional, especially as the words "Professional Liability" fill the air. Greater and greater demands on timeframes don't always allow for the luxury of a face to face report on what is found but the services provided have been extended to areas and companies of specialization like 'weather tightness". Moisture problems can beset any dwelling especially if occupiers don't ventilate, but 'leaky building syndrome' is a whole area of expertise.
Today, unlike your 'mate' the building inspector will clearly identify the scope of his work and the choices of short form or detailed terms of engagement. The best of these companies have the NZ Institute of Building Surveyors qualification or alternatively the Royal Institute of Chartered Surveyors (RIC) qualification. Without those qualifications it is difficult to get the Professional Liability Insurance cover required of such a position. Having said this, not all building Inspectors can be assumed to be appropriate for checking weather tightness (leaky buildings) either as they are best to be Accredited Weather Tightness Assessors, of which there are only about 10 in Christchurch. This is a whole new field. Some would say minefield.
When choosing your inspector make sure you know what is and what is not going to be included in the check, especially if you choose the cheaper option, as this may not include a property title check at the council or a drainage check. For the young home buyer and those lacking in any D.I.Y. experience insist upon your inspector telling you how your chosen property rates against others of a similar age and construction and not against a brand new home. This way you are less likely to be put off a property that, although it may have a few worts on it, could just be the ideal property for you at your stage of home ownership.
With good solid advice backed up by diligent scrutiny, and tempered with a touch of reality in its presentation, I suggest more and more real estate Principals will start suggesting a 'Building Inspection' clause be put in every agreement in the future.
Footnote:
Tony Brazier has worked in the property industry for 23 years and owns a real estate company selling and managing residential and investment properties.
This columns information is of a general nature only. Readers should seek professional advice before acting upon it.
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