How Can a Caveat Emptor Impact the Sale of Your Property?

A ‘Caveat Emptor’, Latin for “let the buyer beware” means that purchasers of an item assume the risk that it may fail to meet certain expectations or could have defects. Before committing to acquiring a property, it is essential to consult a property lawyer to ensure there is no undisclosed information that could impact the value of your property in the present or near future.

What Purchasers and Property Lawyers Should Do Before Purchasing a Property

In retail, a faulty or defect item entitles purchasers to a full refund in most instances. However, this is not as easy in property law. To ensure your full rights are upheld and you receive what you are entitled to, it is therefore essential to engage property lawyers and actively take precautionary methods beforehand.

Due Diligence

Asking questions and enquiring about a property before committing to purchasing ensures all the bases are covered. Real estate agents are, for instance, required to notify potential buyers if there are any known defects surrounding a property. For instance, in the Australian case of Kadissi v Jankovic, the purchaser discovered cracks in the walls of the unit they had purchased. Although work had to be carried out to repair the foundation, the contract was not made void and the deposit was not returned. This is one of many instances whereby buyers “did not get what they paid for” and their request was overruled. This is indicative of the responsibility buyers and property lawyers have in assuring the property is up to the buyers standards, and going out of their way to do so.

Besides defects, it is also essential to look out for other impacting factors, such as zoning laws, any instances that may arise regarding the title of the land, building certificates, and additional terms and conditions of the contract. The onus is on the buyer. Purchasing a property is a large investment and taking the time to engage in the necessary prerequisites is essential.

Inspections

To minimise risk associated with a purchase or potential purchase, certain reports and certificates should be obtained to assess a property before proceeding with the purchase.

The reports and certificates should include the following:

• Building and strata reports to assure the condition of the building is up to standard and buyer is aware of strata terms and conditions

• Building certificates for buyers to be made aware of any future plans of construction, or in some cases, demolition

• Pest inspection reports

• Local and state government proposals such as potential changes to zoning laws or the development of infrastructure or resources that could impact the current living situation

Legal Assistance

It is essential to engage a property lawyer when conducting a transaction as important as the purchase of a property. Although some buyers may choose to go with a conveyancer or take matters into their own hands, a property lawyer has a greater understanding, more thorough knowledge and foresight to be able to advise on the necessary steps involved.

What else can a Property Lawyer assist with?

Alongside the purchase or sale of a property, our skills extend to:

• Conveyancing
• Reviewing and preparing contracts
• Stamp duty and property levies
• Reviewing contracts and agreements
• Reviewing zoning of property, often referred to a Section 149 Certificate
• Strata, company and Torrens titles, identifying easements and making enquiries with councils
• Effects of cooling off period and Section 66W
• Verifying your personal identity
• General property advice.

To find out more, contact us.