Three Quick Tips

Recommending Building Inspectors…  Who to choose?

It has become common practice for agents to recommend building inspectors to both vendors and purchasers. 

Agents should be careful when giving these recommendations.  The REAA has recommended that agents give details of building inspectors who have professional indemnity insurance and who carry out work in accordance with NZ Property Inspection Standards.

It would be helpful to have a list within your agency of building inspectors that meet the criteria set out above.  Ideally you would give details of 2-3 building inspectors to a vendor or purchaser.

Titles…  What information do you need to provide?

When providing a copy of a title to a prospective purchaser, an agent should point out to the purchaser the interests that are registered on that title. 

For example, there could be a land covenant restricting the way in which the property can be used or there could be a shared right of way.

An agent is not expected to explain the details of what these restrictions are, more that they exist and that a purchaser should obtain legal advice in this regard.

When to Disclose…?

A recent decision from the Real Estate Disciplinary Tribunal states that an agent must be open from the beginning of the sale process and to disclose as soon as any defect is known.  The Tribunal considers this means that the information relating to known defects should be available at every open home, in writing.

If defects are later discovered then those defects must be notified in writing immediately to all known potential purchasers and in writing to any subsequent purchaser.