I went and inspected a local house and noticed there was a large crack on the outside (brick) running from the roof, around a window, and to the ground. It was approx. 5-7mm wide so I know there is reason to be concerned for structural integrity. I asked the agent at the time whether or not a B&P would be supplied (every other auction I’ve ever been to in this area the seller provides B&P’s for auctions). The agent said that he wasn’t sure and that he’d get back to me after checking with the seller.
A couple weeks later I get a voice mail from him the day before the auction asking if I was keen to register as there were no registered bidders yet. I didn’t get back to him and later found out the property didn’t sell and is back up for another auction (no mention of the B&P).
The question is, if I was to query him about the crack (or even query him in general about the property), is he obligated to disclose any known (or obvious) structural faults such as this one? Or could I potentially buy this property blind and take all the consequences post-sale (buyer-beware)?
No. Buyer beware.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Why not send B&P guys to do an inspection for you ahead of the auction?
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Thanks Terry & Ethan.
If I was more interested in moving ahead with the property, I would have. But as I said it is very common for the seller to provide one at an auction, so I was a bit dubious. I just thought I would check my rights (of which I apparently have none :P)
King
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