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Caveat Emptor

Caveat Emptor

Caveat Emptor is a Latin term meaning “buyer beware”. In the compliancy age we now live in, there are rules or laws for just about everything to protect the interests of consumers and buyers alike. Amendments to the Sale of Land Act include the introduction of the cooling off period, Vendor statements, check lists, bidding and an outright war on under quoting to just name a few.

The end result is a reluctance from agents to assist buyers with their enquiries other than what is contained in the documentation. What a nightmare! and given that t the agent’s primary duty of care is to the vendor don’t expect the agent to highlight defects, faults and any other negative aspects other than what that they are legally required to disclose. This is not the agent’s fault. For example, if the heating system for the swimming pool is not in working order and there was no representation written ( advertising ) or otherwise by the vendor or the agent, then it is the responsibility of the buyer to satisfy themselves that what they are buying is what they bargained for at the time of the sale. Caveat Emptor? Absolutely! Whilst it would be reasonable to assume that all fixtures, fittings and equipment are in working order, the vendor can argue that the defect already existed. Here are some tips on what to look out for:

  1. Check for title defects, particularly in regard to where the existing boundary line fences are located. Recently, I heard of a property owner being required to remove a brick retaining wall because it was built across the next-door neighbour’s boundary line.
  2. Ensure the fixtures, fittings & equipment are in working order. If in doubt call in an expert.
  3. Is the property located in an area known for termite infestation?
  4. Do I need to engage the services of an architect? Remember it is what you can’t see that could be crucial. Often structural issues will be obvious to the trained eye but what if the property has had a “face lift”, what then? Don’t accept the standard response that the property is over 100 years old and is not about to fall down!
  5. Has your solicitor approved the documentation you have been asked to sign? Particularly scrutinise the special conditions.
  6. Try and find out who your neighbours are, particularly if you are buying a flat. Vendors have been known to sell their homes purely because they live next door to “the neighbour from hell” so don’t expect the agent to tell you.
  7. Are there any future planning issues that may affect the property which are not contained in the disclosure statement. The best place to start is by contacting the council or somebody you know that lives in the area. Often, planning changes are initiated by vigorous public discussions which are not included in the documentation but could have serious implications if approved at some later date and I am not just talking about what is proposed for the run down house next door but statutory changes to housing density such as multi storey re-developments in your neighbourhood where there are currently existing single & double storey homes.
So, you thought buying a property was easy? This check list is by no means exhaustive but highlights the care you need to take buying real estate. Will you be the next “horror story”? Probably not, but the stakes are high so why not engage an advocate.

Rob's Blog