Buying a house in Tasmania
Navigating a Tasmanian real estate contract, here's are a few handy tips!
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!
The Tasmanian Real Estate Defect Limit
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 $25000 is that if I find defects and you get quotes to repair that come back and say $20000, are you going to be happy to wear that $20000 because it's less than the defect limit. Plus an agent can ask for the quotes to prove it and getting quotes for repairs generally costs more money plus very hard to organise with such a small time frame
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.