All Topics / Help Needed! / Damaged Property

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  • Profile photo of IronladyIronlady
    Participant
    @ironlady
    Join Date: 2010
    Post Count: 27
    June 9, 2011 - 2:07 am

    Hi All

    We Want to purchase a property in regional / rural NSW which is vacant and run down, We will then renovate and rent out
    Before we start we will secure all doors and windows, fence and tidy yard
    The question is at what stage during purchase do we become responsable for damage that may uccure from vandals and the like
    EG brocken glass, fire etc. What steps can we take to protect us from that or is the risk just a part of buying such a property
    Can anyone please give advice or tell me where there is a topic allready on this subject

    Thanks Ironlady

    Profile photo of Solomon10Solomon10
    Participant
    @solomon10
    Join Date: 2010
    Post Count: 135
    June 9, 2011 - 6:40 am

    Hi Ironlady, you would become responsible for any damage etc to the property from the settlement date, before this date i think your contract would specify that the property would be in the same condition on settlement date as the purchase date. You will need to insure the building to cover any losses,most likely just building insurance as opposed to home and contents, unless you plan to leave a lot of expensive tools inside. When the reno is finished and ready to be rented you will want Landlords insurance.
    Hope this helps!

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099
    June 9, 2011 - 8:28 am

    Depends which state your in and also your contact.

    I know some ( not all ) VIC contract – the buyer is responsible after 10%
    NSW – the seller

    But end of the day it’s really contract dependent- hence why we need a good lawyer to check the docs :)

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of IronladyIronlady
    Participant
    @ironlady
    Join Date: 2010
    Post Count: 27
    June 9, 2011 - 8:56 am

    Thanks Solomon 10

    Spoke with agent and we can get access to secure property as soon as we agree on a price and put deposit. Can clean yard and that sort of stuff, but wont do to much incase he changes his mind
    Will have to check property just before exchange of contracts
    With permition this would be a good time to secure the property with proper grills etc
    Deal is all but done, just waiting for comfirmation, but you problably allready know what can happen
    Hopefully I can keep everyone here posted if it happens, good or bad

    Thanks again Ironlady

    Profile photo of IronladyIronlady
    Participant
    @ironlady
    Join Date: 2010
    Post Count: 27
    June 9, 2011 - 9:02 am

    Thanks Michael

    Will stress that point when we talk to lawyer

    Thanks Ironlady

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