Can building inspections while buying a house be influenced by the real estate agents? Can agents make the inspectors hide the structural damages? Is there a way to avoid this situation and maintain integrity?
One of my friends bought a property in VIC, western suburbs and he was told everything was ok but within a year realised structural damages? It seems the building inspectors are not legally answerable once the report is out. Is that true ?
Can Building Inspection Be Influenced by RE Agents?
chrismatt on 09/09/2022 - 03:44
Comments
Building inspectors should be loyal to the buyer as they the ones paying. On my recent house purchasing experience we had a defect limit of $10k and the report came back as $10,700 so we cancelled the contract.
We were afraid the REA and seller would find another inspector to counter the original report but they thankfully let it slide.
Aren't the inspectors liable for any faults down the track though? If you buy a place and there are severe structural problems that they missed I'm pretty sure you can sue.
Check out the building inspection contract you signed as it will let you know that you have NO recourse if you find any faults down the track.
Just make sure you select your own building and pest inspector and you should be fine.
Don't use the one recommended by the selling agent as they tend to be a bit more lenient as the agent sends work their way, it is in their interest not to piss them off otherwise the referral's stop coming.
The RA cannot get the building inspector to lie or remove bad bits of the report, but REA will get inspectors that they know will produce reports favorable for selling a house.
Looks like you have never gotten a building inspection report. You sign the contract that says in summary "all care, but we take no responsibility for missing anything at the time of the inspection".
Never use the REA recommended building inspector and always get your own.
A building inspection isn’t 100% accurate. They give a report on what they can see but don’t do any invasive inspections. All of their reports will state ‘to the best of my inspection’ and ‘no liability for unseen items’ and terms like that.
I think there’s a guide onwhat is expected to be checked by a building inspector.
As others have said, get an inspector recommended by someone other than the sellers agent. Although it’s illegal to be in cahoots, not everyone is honest unfortunately.
Every l report I’ve ever seen has been extremely negative and exhaustive over even small stuff.
The most likely reason for a problem a year later is the problem developed over that year.Meth users are positively influenced by Dan!
The fine print will clearly mention that they can't inspect what they can't see. They will not find structural damage if it isn't visible behind the walls, and they aren't exactly cutting off the gyprock to inspect
It seems the building inspectors are not legally answerable once the report is out. Is that true ?
No, not at all. But they/their insurers will deny, deny, deny, so you better have good evidence if you are going to go after them.
If the RE agent greased the palms of the inspector then the inspector won't be able to turn the doorknobs and inspect every room, so it's not unfeasible.
Haha 😂. And take the inspector out for a big meal beforehand so he's too fat to fit through the manhole.
Building inspectors are really the best industry to be in.
Literally can give something the tick of approval and not be liable.
Imagine charging for work and having no recourse if it was completely wrong.
That's literally their industry in a nutshell.They arent in cahoots with the RE, they are simply doing what is in their own best interest. Even the best building inspector is not right 100% of the time.
Not only is noone perfect, but people have bad days, aren't necessarily motivated, not enough caffeine, you name it, there are many variables that can affect a persons job performance. Or they just didn't pick it up on the day of. Shit happens.
Yes they can, if you've ever read a report you'll understand how.
A building and pest inspector can not move any objects or furniture in the house to inspect, or any parts of the structure itself. So a REA could easily tell a vendor to 'put a rug over this, paint over that leak stain' etc prior to placing the house on the market.
An inspector won't be able to pick up things if they are physically blocked from accessing them or visually blocked by furniture.
However an REA can't tell the inspector to omit X and Y from the report.
What sort of inspectors are you using? They sound like crap!
have you ever read a report? I've read dozens from different inspection firms, they all operate the same way with the same disclaimers.
Never seen any that say they can't move things before like a rug. If a building inspection can't be done correctly, then it isn't really a building inspection is it.
@JimmyF: Yeah they absolutely will not move a rug, nor a painting on a wall. They won't even move a cardboard box if it's up against the wall for example. It's a non-invasive inspection which means nothing is touched, aside from doors/windows opened etc
it isn't really a building inspection is it.
Yeah that's kinda my point
The other issue is the REA can always get a second inspection if the first one turns up 'more than expected.'
I know of a report from an inspection that found something which appeared….. like it might not last a significant period. The [buying] REA then got another inspector to report, which presumably did not find this issue. (The first inspector got paid, but assume it might have been out of REA's pocket, and not from settlement)
It seems the building inspectors are not legally answerable once the report is out. Is that true ?
Yep, read the T&Cs, it is all care and no responsibility for these reports.
Whoops we missed that your house is being eaten out of termites, my bad. Sorry about that.
Can Building Inspection Be Influenced by RE Agents?
Yes/No, if you use a REA provided one, then maybe there is some influence over the report. but at the end of the day, the REA doesn't really care that much they just want the sale. So if the report is bad, and the price gets knocked down $50k, then meh.
I'd doubt the RE agents could do that legally, they would have to be in cahoots with the inspector and given the hot market there would be no benefit to either of them. More likely the case of a dodgy inspector, perhaps a solicitor could help but as far as I know inspectors can't be held liable for their work. Hopefully I'm wrong.