If you are a first-time homebuyer, you may have come across several terms and procedures that you may not be familiar with. For example, when you get close to buying a particular property, you make you hear of the need to get a REIWA annexure. What is this, and why is it so important?
Crucial Part Of The Sale Process
Most sale contracts stipulate that a building inspection must take place before any sale can go ahead. This inspection has to be performed by a qualified building inspector, who must furnish a report in a particular way. The idea is to give a prospective buyer a clear indication of the property's condition before proceeding.
Prepurchase Inspection
In most cases, this inspection will be conducted in accordance with the REIWA Australian Standard Prepurchase Inspection for Major Structural Defects. This Is known as the REIWA annexure for short.
What's In The Report?
When the inspector has finished the report, they may include any faults that take away from the intended structural performance of the given element. In other words, they will highlight any defect if it's large enough to warrant action and rectification to avoid further deterioration, loss of use or unsafe condition. Bear in mind that this inspection does not look for any other defects that could be considered nonstructural.
What To Do When You Get The Report
As soon as you receive such a report, you will need to talk with your conveyancer and other advisers to determine what to do. You may decide to negotiate with the seller to see if they are willing to repair the defects in as short a time as possible to continue with the transaction.
You may also decide to get a few quotes of your own to see how much these repairs would likely cost. In some situations, you may decide that you can live with the defects and might decide to go ahead anyway.
Otherwise, the seller will only have a certain number of days from receipt of the notice to state their case. If they don't respond, then you, as a buyer, can give notice to the seller or their agent that you want to withdraw. The seller will then need to pay back any deposit you may have lodged.
Getting More Information
If you have any further questions about the REIXA annexure, discuss these with a conveyancer. They may also introduce you to other terms and conditions that you should be aware of before proceeding.
Share23 June 2022
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