Caveat Emptor is a latin term for “buyer beware”. In the consumer age that we now live in, governments at both ends of the political spectrum have rolled out bundles of legislation designed to protect the interests of consumers and buyers alike. Amendments to the Sale of Land Act include the introduction of cooling off periods, disclosure statements, the abolition of “dummy bidding” and an outright war on under quoting.
The end result is “the code of silence” from the selling agent for fear of prosecution and or litigation. In other words, the less said the better and this mindset extends to providing any kind of advice albeit well meaning unless the agent is qualified to do so. What a nightmare ! and to make matters worse for the buyer, the agent’s primary duty of care is to the vendor so don’t expect the agent to highlight defects , faults and any other negative aspects that are not required to be contained in the disclosure statements or check lists provided by the vendor.
For example, if the heating system for the swimming pool doesn’t work and there was no representation written ( advertising ) or otherwise by the vendor or his agent, then it is the responsibility of the buyer to satisfy themselves that what they are buying is what they thought they were buying. Caveat Emptor ? Absolutely ! Whilst one could argue that a reasonable person could assume that by it’s existence the equipment should be in working order, are you going to take legal action once settlement has occurred ? Most unlikely and even then there is no guarantee you will be successful.
Here are some tips on what to look out for :
1. Minor title defects, the obvious being that the existing fences are on the wrong property. 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 that all 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. It is a good idea to try and find out who your neighbours are, particularly if you are buying a flat – remember the code of silence. 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 issues 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 let Domain Property Advocates help you through the process
If interested in learning more about this update please contact me today!
Tags: caveat emptor, check, code of silence, cooling off periods, disclosure statements, door, dummy bidding, equipment, property, Vendor
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