FAQ’s when buying property & Impacts of getting it wrong. Critical information you need to know
Insurance. My Insurance will cover me in any event, right?
Wrong. You are likely unaware that Insurance firms hold information on houses that you cannot access. They will assess all future building claims against what they know was damaged during the 2010/2011 earthquake events. Insurers have information you do not. And they have no requirement to share that information. A new claim will be assessed by a Loss adjuster. The Loss adjuster determines new damage compared to known, or obvious old historic damage, that may include incomplete repairs. or repaired not attempted. Driveways are pretty easy to assess old from new, therefore may not specifically be stated as excluded on your insurance cover, however be assured they will not be covered if they were previously damaged and not repaired, or just old tired cracked or broken. Don’t assume anything.
My building report didn’t highlight any major problems
Now, you may believe that the building inspection you got prior to buying will suffice in any future dispute. Sadly, that is not the case at all.
Insurers are fully aware of the low quality reports supplied to buyers from property inspection companies. We know because we have presented this evidence to the Insurers and Insurance Council, Banks and Lawyers. Yet, most reports are accepted on ‘face-value’ where the risk may be 100% yours when you lodge a claim for a future event. Re-read the previous comments in relation to new claims and Loss adjusters.
Are all building reports high quality
Nope, some have been proven to be incomplete, misleading, deliberately deceptive and therefore fraudulent.
Fact, most building inspections do not hold up to Risknet scrutiny. We are continually re-inspecting houses that others have passed as being OK. We review an alarming amount of damage and negligent reporting that angers the hell out of us as, these builders undertaking these reports seemingly have no regard for you, or your future financial security.
My Lawyer will pick up on Earthquake stuff, right?
No. Not unless you lawyer is prepared to join us during a site inspection.
Your conveyancing lawyer is not equipped to access site or assess whether Earthquake damage and repairs are adequate, as we are not equipped for conveyancing. I estimate 95% of lawyers in Canterbury now stipulate they do not check earthquake related documents, except for assignment of claims and monies to be passed over. Please do not assume anything. We are happy to work in with lawyers who are motivated to ensure their clients receive sound data.
What examples can you provide where buyers have got it terribly wrong?
Risknet represents you with a focus on gathering the important facts about the property. Whether you are looking to purchase, or sell it appears even though it is 2024, we are discovering an alarming amount of houses that have significant outstanding issues.
If your first thought when buying a property, is the lowest price inspection, please rethink that plan. Many others have gone down the budget path only to discover thousands of dollars of unrepaired damage when they come to sell. We charge relatively the same amount as others, but provide unmatched, reliable data and value.
We meet buyers all of the time with terrible stories of where they rushed in, only to discover major issues. Most bought at auction, and a lot of others failed to complete due diligence (getting their own reports not the vendors)
Some examples: $800,000 paid for a leaky, damp house. $740,000 paid for a structurally unsound house. $590,000 for an unrepaired house. $625,000 for a house with 130mm variance across the floors. $555,000 for a house with a 74mm tilt. $1.2m paid for a house with suspect engineering…these are real examples and only a fraction of the ones we know about.
Mitigate a Postquake™ Property nightmare.
Do you really need to rush the biggest financial decision of your life? The answer is NO.
The pressures placed upon you, the buyer to ‘Buy Now’, ‘Bid Now’ or ‘Put your best offer in now’ are simply not justified.
We suggest you slow down, take and breath and call us before you sign a contract to buy that house or sign that agency agreement with the realtor. We check before you commit.
No one should ever impulse buy a house!
We provide independent, comprehensive pre-purchase services. Post-Quake™ damage assessments, building inspections, specialist reports, Floor level surveys, Wall Verticality and EQC funds recovery.
The report you receive is the same as presented to finance, lawyers, private insurers and EQC.
Stuart Fletcher on 022 609 6026
Risknet Due Diligence