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Garth Brown Endorsement
Hi
Garth - smooth and professional, and with one piece of advice alone,
you have saved us your fee. Can’t ask more than that.
Thank you again, cheers,
Paul
.
. . . . . . . . . . . .
Hi
Garth,
Just to let you know that we received our deposit back from the real
estate agent's office last week. Thank you for the service you provided
throughout the whole process (especially in helping to get the deposit
back a sap) - it was great, and really appreciated. We thank you again
and wish your business well.
Kind regards,
Lydia and Stephen - Artarmon
. . . . . . . . . . . .
Hi
Garth,
You are a champion!
Many thanks- I know it wasn't easy!
I'll be in touch on Monday.
Thanks again,
Bruce
Dr Bruce Schaefer
GEMOC, Earth and Planetary Sciences
Macquarie University
.
. . . . . . . . . . . .
Last month Garth was a Guest Speaker at National Australia
Bank discussing Conveyancing; buying and selling tips to
Home loan Brokers at North Sydney and Bondi Junction; Engagement pending
with Marrickville National Australia Bank as a Guest Speaker on Conveyancing.
He also met up with Vision Home loans where they started
working with and arranging a Guest speaker engagement.
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Brown
& Brown e-Newsletter
by
Garth Brown
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"Building & Pest Inspections, a costly necessity?"
At Brown & Brown Conveyancers we're often asked about Building & Pest Inspections: i.e. are they necessary? And should the prospective Purchaser or should the Vendor include Pest & Building Reports with the Contract of Sale?
The Current Situation:
ACT: Sellers provide a building and pest report to buyers, with buyers reimbursing them. This usually costs $710 to $900 and seems to work very well.
NSW and VICTORIAN jurisdictions: Purchasers are responsible to order their own ‘Pest & Building Reports’. This attempts to address “the independence and reliability of the reports” i.e. can they be trusted? of course there is always the risk of being outbid on numerous properties and being out-of-pocket for each Report generated but this is a calculated risk as most Purchasers agree they are necessary.
Q. How reliable are Pest & Building reports?
A. Inspectors are only liable for things that are reasonably visible to the eye.
They generally do not guarantee anything that has been concealed or is not readily accessible. Inspectors are not liable for damage that is caused after the report's creation by problems such as pressure from tree roots, soil movement and water build-up.
Please refer our April 2009 eNewsletter "Why Pest & Building Reports are essential for House and Town house Purchasers."
GOLDEN RULES:
1. Check qualifications: Ensure the Pest, Building and Strata Inspectors carry Professional indemnity insurance.
2. Inspect the house together: Some Inspectors will give on-the-spot advice about ballpark figures for repairs
3. What's included: It should grade problems from major structural to minor problems. It should cover the ceiling cavity and sub floor for damp.
The State of Play in NSW Vendor Contracts:
Interestingly we are encountering more and more Vendor contracts containing Building, Pest & Strata Reports and have found STRESS had been significantly been reduced for all parties involved.
Suggestion for Agents and Conveyancers to facilitate change - based on a recent experience my company had:
A new Client, who found my website through an internet search and came to me direct, asked my firm to act for a property on the upper North Shore. The house was going to Auction for approx $1.5 - $1.7 million and the first time I have ever struck it – the Vendor Auction Contract contained both a ‘Pest & Building Report’, I believe the Agent encouraged the Vendor to provide one in the Contract, this reduced so much pressure on all parties involved and overcame anxieties such as: should I (Purchaser) spend the money or not; am I going to be successful at Auction or do I lose the money; should I bid without ‘Pest & Building Reports’ – even though ‘P & B’ are visual reports and can’t detect what the eye cannot see (only God knows if there are termites or internal structural problems).
This experience really made me think it is probably now time for change to include 'Pest & Building Reports' in the Vendor Contract!!!
From Brown & Brown Conveyancers viewpoint Agents could incorporate the Pest, Building and Strata reports in their costs of advertising/ Commission agreements
Secondly the Vendor could be covered by inserting a Special Condition into the Contract whereby Vendor and Purchaser pay half costs at settlement to each other.
FIY: What's happenning around the world ... are Pest & Building Reports included by the "Vendor in the Contract of Sale"?
USA: Mr Neil Jenman, Real Estate expert says Australia should follow the system in the USA, where law changes are spreading across the states to make sellers provide reports.
UK: In the UK – the Contract is prepared as a property pack including Building reports and Government proposals searches.
Our
next eNEWS "How to negotiate when buying a home”
June 2010
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on
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Garth Brown Endorsement.
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you again for your valued custom.
License No: 1055854
We appreciate the referrals.
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