Strata Inspection Reports crucial when buying property

DUE DILIGENCE PROCESS

David Gardiner

Journalist

Email David
Last updated:
Strata property buyers urged to get Inspection Reports done. Pic: Tourism Port Douglas

Douglas Shire and other far north property owners have been reminded about the critical importance of ensuring a Strata Inspection Report is conducted when buying a home unit or similar strata property.

The caution comes after the Western Australian Supreme Court ruled that a buyer had the right to cancel a property purchase due to the presence of a particularly nasty and belligerent neighbour.

The home seller had failed to disclose that the neighbour’s conduct had the potential to materially affect the buyer’s use or enjoyment of a property in a strata scheme, and after rescinding the contract, the buyer is seeking compensation of more than $0.5-million.

Ray Ellis, network CEO of First National Real Estate said a Strata Inspection Report can be critically important in the process of due diligence when buying a property.

“Such reports reveal all manner of material facts about the building you are considering,” Mr Ellis said.

“Buyers can expect to see minutes of Owners’ Corporation meetings, where disputes between neighbours are likely to be discussed, as well as other concerns like building defects, drainage problems or upcoming special levies.”

A Strata Inspection Report, Mr Ellis said, is like the equivalent of a pest and building inspection when buying a house, and it could have helped the young Western Australian woman avoid the legal dispute that has led to the compensation claim.

“Real estate agents have a duty to disclose any material fact that they believe a purchaser might want to know, but agents can’t always be sure a homeowner has told them everything they should know about a property.

“Homeowners, as the WA case reveals, might withhold information detrimental to the value of their property, but they do so at a substantial risk.

In this case, a simple $250 report might have helped the buyer avoid the neighbour’s irrational and unacceptable behaviour ruining her dream home, and the home seller the loss of their sale plus a half million dollar plus compensation claim.”

Thank you!

Newsport thanks its advertising partners for their support in the delivery of daily community news to the Douglas Shire. Public interest journalism is a fundamental part of every community.

Got a news tip? Let us know! Send your news tips or submit a letter to the editor here.

* Comments are the opinions of readers and do not represent the views of Newsport, its staff or affiliates. Reader comments on Newsport are moderated before publication to promote valuable, civil, and healthy community debate. Visit our comment guidelines if your comment has not been approved for publication.