Buying a house in Tasmania
Navigating a Tasmanian real estate contract, here's are a few handy tips!
The Tasmanian Real Estate Contract Defect Limit
Try to keep the defect limit on the contract to a minimum of around 1% or no greater than $10,000
It was 1% on every contract prior to May 2017 and still can be 1% or a $ figure.
The problem with a high defect limit, let's say 5% and the house is selling for 1 million that’s $50000 and I find quite a few defects, you then get quotes to repair and they come back at $40000, you are going wear that $40000 on-top of the purchase price of the house because it's less than the defect limit. or if its over 50k, To certify $50000 defects you will need quotes as I had an agent ask to prove it recently and on top of that, trying to get trades to come and quote is very hard to do in the time frame as trades are so busy here in Tasmania, it can becomes very stressful real quick as the building inspection clause is usually only 10 -14 days max
A few way around it is to use the 3 day cooling off period on the contract and make sure you line up your building inspector and get it done in those 3 days, Get a building inspection before you sign the contract or just say NO!
Get a good lawyer or conveyancer:
If you do it yourself and make a mistake, you could suffer a loss as a result and will be unable to get financial compensation.
The buyer becomes liable for damages to the property once contracts are exchanged. I've seen a house that was unoccupied and someone broke in and lit a fire on the timber floor after the contract was signed.
Make sure you have the building inspection clause and the 3-day cooling-off period, In the contract:
Plus a minimum of 7-10 days period to get the building inspection done. (Christmas time longer, 21 days)
Don’t use a real estate recommended Building inspector!
Would you buy a car from a used car salesman and get it checkout by his mechanic or your own!
Get a fully licensed and insured local building inspector and research him:
You're about to spend your life savings.
Check to see if he is a licensed builder with the Department of Justice Tasmania
Ask to see a copy of his PI insurance
Because without PI insurance a building inspector can't certify the defects if there is a problem.
Try to line up the building inspector early
To take advantage of the 3-day cooling-off period.
Not getting a building inspection is like playing Russian roulette with your life savings!
I get people ringing every month with sad stories about how they brought a house without getting a building inspection, it's got major issues, and can I come and have a look!