DOING YOUR HOMEWORK

One of the most important aspects of buying a home, is doing your due diligence.

This is the time for you to do your homework and make sure the home does not have any hidden defects or issues.

Below we have listed various reports that you should consider getting. Remember, talk your lawyer first!

 

Builder’s report

It is important to check that the home is structurally sound and what maintenance may be required either immediately, or in the future. Depending on the age of your home, your insurance company may want to see the builder report. Some banks may also ask for a copy of the report. A moisture test is also important to avoid buying a leaky home. This will check for high moisture levels in certain rooms, and for potential leaks.

 

LIM report

LIM Reports provide details of all information held by the council in regards to the home and land. This includes rates, consents, plumbing, drainage, water reticulation plans, zoning, proposed local developments, flooding or subsidence, licences and permits, any requisitions and weathertightness issues that may have been brought to the attention of the council. It’s important to check the LIM report and plans of the home held by the council, to ensure that no work has been carried out on the home without the council knowing. We always recommend you get one – better safe than sorry!

 

Electrical Report

Many older homes have wiring that is now considered to be dangerous. You don’t want to move in, only to discover you have to pay to get the place re-wired! Your insurance company may also want to see this report.

 

Engineer’s report

You might want an engineer’s report too, depending on where your home is situated.

 

Plumbing or Drainage Report

A Builders Report might not include a report on the condition of the plumbing and drainage in and around the home. Many older homes can contain plumbing material that is now known to create issues! This is yet another cost you’d want to avoid when you move into your new home.

 

P Test

Unfortunately, this is quite a common problem in New Zealand. It is important to check that methamphetamine has not been used or manufactured in the home. This test is particularly important if the house has been used as a rental property before!

 

Doing your “homework” is the smart thing to do – be clued up on the home you want to invest in. You want it to be a worthwhile investment, safe to live in, and free of any issues.

For more information, check out our free app Easylaw and of course, call us before you out pen to paper!