When you’re purchasing property in NSW, conducting thorough pre-purchase inspections can save you from costly surprises down the track. From basic pest and building reports to more comprehensive due diligence options, understanding what’s available ensures you make informed decisions about your investment. Here’s your guide to the essential property reports and when the deeper inspections might be worth the investment.

Why Pre-Purchase Inspections Matter

In NSW, you’re buying property “as is”. This means once contracts become unconditional or your cooling-off period expires, any issues with the property become your responsibility. During the cooling-off period, however, you maintain negotiating power with the seller to address problems or adjust the purchase price.

The key is conducting these inspections before you’re locked into the deal, while you still have leverage to negotiate with the seller about any issues that need rectification.

Essential Property Reports You Should Consider

Pest and Building Report

This fundamental inspection is something most property buyers obtain, and for good reason. Professional inspectors assess the property for:

• Evidence of pest activity (including termite damage)
• Structural defects
• Water or moisture damage
• General maintenance issues ranging from minor (chipped tiles, loose handles) to serious problems

Remember, every property has defects – even brand new ones. A thorough report gives you a complete picture of the property’s condition.

Strata Report (For Unit Purchases)

If you’re buying a strata property, this report is essential. It provides insight into:

• Current strata levy amounts
• Financial reserves for maintenance and major works
• How the owners corporation spends money
• Any special levies you’ll be required to pay
• The overall financial health of the strata scheme

This information is crucial for understanding your ongoing financial commitments beyond the purchase price.

Advanced Due Diligence Options

For properties that warrant deeper investigation, several additional inspections are available:

Building Information Statement

Formerly known as a building certificate, this involves Council formally inspecting the property to verify what development is approved. Council guarantees they won’t take regulatory action for seven years after issuing the certificate.

Cost: $1,000-$2,000 depending on the council
Timeframe: 1-4 weeks
Best for: Properties where there’s concern about unapproved development

Sellers often resist this option because if unapproved development is discovered, it can create ongoing compliance issues for them.

Survey Report

A surveyor identifies exact boundary locations and checks whether structures encroach over boundary lines. They can also “peg out” boundaries to give you a visual reference.

Cost: Around $1,000
Best for: Properties where boundary disputes might be an issue

Many buyers skip this report, particularly for established residential properties where boundaries have been stable for years.

Planning Consultation

For buyers planning significant alterations or commercial use, planning consultants can assess whether your intended development complies with zoning and development controls.

Best for:

• Acreage purchases
• Commercial property investments
• Properties requiring significant development

Matching Due Diligence to Your Property Type

The extent of your due diligence should reflect the property type and your intended use:

Lower risk properties (like newer units in established complexes) may only require standard pest and building reports and strata checks.

Higher risk situations (acreage, commercial properties, or properties you plan to significantly alter) warrant more comprehensive investigations including building information statements and planning advice.

Get Expert Guidance on Property Reports

The range of available inspections can feel overwhelming, especially for first-time buyers. Every property purchase is different, and there’s no one-size-fits-all approach to due diligence.

As experienced property lawyers in Penrith, we understand the local market conditions and can recommend which reports make sense for your specific circumstances and budget.

Ready to discuss your property purchase? Contact Complete Legal today to talk through the type of property you’re considering and which reports we recommend for your situation. We’ll help ensure you have all the information you need to purchase with confidence.