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Welcome to The OMB Law Board, the podcast where legal insights meet practical advice. Hosted by Simon Bennett, Managing Partner at OMB Solicitors, this show delves into what you can expect when engaging with OMB Solicitors. Specialising in property law and commercial law, OMB also boasts dedicated teams for estate planning, contested estates, body corporate matters, litigation, and family law.
Each episode features in-depth discussions led by experienced team leaders, some with over 20 years of expertise. You'll gain valuable knowledge on initial consultations, cost assessments, timelines, and the importance of clear communication and confidentiality in legal matters.
Join us to break down barriers and navigate your legal journey with confidence. Tune in for expert advice, client stories, and tips on how to prepare for your legal needs. The OMB Law Board is your trusted source for all things legal.
Welcome to the OMB Law Board. I'm Simon Bennett, partner at OMB Solicitors. And today, I've got Erinda Nunn, property lawyer at OMB. Welcome, Erlinda.
Erlina:Thanks for having me, Simon.
Simon:Well, I wanted to talk to you about buying property and getting a building and pest inspection. When I get the report, what are the three things that make me run for the hills?
Erlina:Oh, the three biggest issues that I see in building and pest reports would definitely be water leaks, structural issues, and termites.
Simon:Okay. Well, let's go through some of those for a bit more context. What sort of water leak issues are really worry worrying you when you see these building and pest reports?
Erlina:So it could be anything from leaks from a shower, which might affect a subfloor in, say, a bathroom. It could be a pipe underneath the floorboard somewhere, which again causes some subsidence, which can then lead to structural issues in the property.
Simon:Yeah. Okay. So they're they're concerning and, obviously, leaking roofs and windows and things like that as well. Definitely. But it's important that our report and our inspector give us full details so we understand the breadth and the depth of of the issue.
Erlina:Yes. Of course. And in a report, it's always good to have photos of the issues that are found in the property as well.
Simon:Okay. And then the second one you mentioned?
Erlina:Structural issues.
Simon:Structural issues. Okay. Well, so tell us what sort of structural issues might come up in a report that we should be worried about.
Erlina:As you mentioned, things with roofs, if there are tiles or rusted gutters, battens which aren't securely screwed to the property, things of that nature. It could be anything like patios or verandas, which have holes in the floors or if the railings don't look up to scratch, they could be costly issues in the future.
Simon:And particularly, I think you mentioned earlier, subsidence issues, you know, where properties are moving and there's substantial cracking and things like that.
Erlina:Yes. And depending on the footings of a property as well, things could start sinking, things might not be where they should be, which again can cause many issues down the track, which could be very costly to a homeowner.
Simon:And finally?
Erlina:Termites.
Simon:Okay. Termites. So on the pest side of things, those nasty little critters.
Erlina:Those nasty little critters, which will just eat away through any timber structures, which again could cause structural issues. They're all kind of interconnected. Yeah.
Simon:So we're looking at past termite damage to a property, active termite infestation, and also the state of the barriers and the protections in the property.
Erlina:Yes. It's always good to make sure that any pest barriers are current or are done right before settlement.
Simon:Okay. So I understand when we get these building and pest reports that we'll get a written report. I've always found it beneficial personally when buying a property to get on the phone or be there when my inspector is doing the inspection so that I understand exactly what's in that report.
Erlina:I always agree. I recommend to most of my clients that they should be heading along to the building and pest inspections with the inspector. There might be things that the building inspector might not pick up or something that a client may not understand is an issue when they've gone to have a look through the property. Other things too, there might be furniture in the way when they go to look at things and there might be a hole behind a wall that they don't know about. So it's little things like that.
Simon:Yeah. And restricted access to roofing and and things like that. So that tells us about the reports and certainly three good watch outs to look for. What about the contract? What do we need in the contract to make sure we've got some remedies available?
Erlina:So we need to make sure that the contract is subject to building and pest. So it needs to say how many days from the contract date we have to complete the building and pest inspection. If we don't have that, then the contract won't be subject to it. So every bit in the reference schedule in relation to building and pest needs to be completed.
Simon:So when you say the contract's subject to building and pest, what does that mean?
Erlina:So it means that we can go out, get our own report, and if we get the report back and we discover that there are issues, we've got some rights and remedies available to us.
Simon:Okay. Let's go through those rights and remedies. What what are they?
Erlina:So if you're not satisfied with a building and pest inspection, you can terminate the contract. The keywords though are you must be acting reasonably. So things like a few scratches on tiles or a chipped cupboard may not give rise to an actual termination right under the contract, but if there are serious issues such as structural water leaks, things that might be too expensive or things that a client wasn't expecting when they were buying the property might will give rise to termination.
Simon:Okay. And if I terminate at that point, what happens to my deposit?
Erlina:It gets refunded to you.
Simon:Okay. That's fantastic. And another point that I've come across with people trying to terminate under Building and Pest is you have to actually get the report.
Erlina:Yes. And it's always recommended that you give that report to the seller as well so they can make a decision while a client might be thinking about rights of termination. There might be some scope for negotiation as well.
Simon:Okay. Let's touch on that. So I've got my report. There's some things that are wrong, but they're not substantial, and they're not enough for me to want to terminate my contract. What other options do I have?
Erlina:So you could ask the seller to attend to those couple of items before settlement. If the seller is agreeable to fixing those couple of things, I always recommend it's a good idea to get evidence that the works have been done, so receipts from trades people or photos of the rectification works. If a seller is not willing to attend to those things, you might be able to ask for a small price reduction.
Simon:Okay. Well, there's some good options, and certainly, I think our our viewers and our listeners have learned a lot about building and pest, the importance of having a clause in the contract, and maybe not just relying on the written report, but also getting along and having a look and a chat to the inspector. Well, thank you, Erlinda, for coming on and sharing your knowledge to our viewers and listeners today. We really appreciate your time.
Erlina:Thanks Simon.
Simon:And if you've got any comments or questions on building and pest or property related matters, make a comment below and please support us and hit our subscribe and like button and thanks for your time today.