A lack of due diligence with no pre-purchase report ordered, has resulted in an Australian homebuyer uncovering more than $100,000 worth of damages to his Asquith property after settlement.
Subsequently, the nail went through the beam, exposing active termites. The man immediately ordered a pest inspection from Diamond, which would uncover severe damage to the structure of the house.
In a similar case, another Sydney homebuyer also discovered $100,000 of damages post settlement.
According to news.com.au, the buyer purchased a two-bedroom, one-bathroom 1920s terrace in St Peters in Sydney’s inner west last year for nearly $1 million.
A building and pest report provided by the selling agent, did not highlight any significant issues, but noted the building inspector had been unable to access parts of the property at the time of inspection.
A second potential buyer who at the time opted not to bid based on an additional independent pre-purchase report they ordered which uncovered “various areas have significant termite damage”.
This report would go unseen by the eventual buyer, who admits he should have taken the necessary steps.
Importance of due diligence
At a crucial stage in their lives, ensuring your clients are buying a house free of termites or structural damage will undoubtedly ease their nerves and stress, as well as help your business’ reputation in the process.
To make this a streamlined process for your conveyancing workflow, triSearch offers a comprehensive range of pre-purchase reports through its close partnership with Diamond.
With more than 30 years of service Diamond Property Inspections is Australia’s leading Home Report and Compliance service. They arrange every type and style of property inspection reports with more than 90 per cent of orders completed within 24-48 hours.
For more information about the advantages of ordering pre-purchase reports through the triSearch platform, book a free demonstration today.