Buying a New or Renovated Property? Tips to Look Out for in the S32

The Section 32 or S32 can be an overwhelming document at first glance, however towards the end of the document there is some valuable information aimed at protecting the consumer.

When it comes to buying a new or recently renovated property, the S32 should contain;

·         Any building permits issued over the last 7 years. Building Permits are required for construction works such as pergolas, verandas, decks, additions (ie extensions), removal of load bearing components, structural alterations, and re-blocking to name a few.

 ·         Domestic Building Insurance (DBI). If the recent works involved multi-trades and the contract price of works exceeded $16,000. Only a Registered Building Practitioner can obtain DBI, and only a Registered Building Practitioner can issue a Domestic Building Contract. The DBI certificate will list the dollar value of the building works so it is a good way of finding out how much the construction cost was of the new build or renovation.

 ·         A 137b Inspection Defects Report and DBI. Should the vendor or title site be subject to an Owner Builder project, and result in a new home or renovation over the value of $16,000, then a 137b report must be included in the S32. The 137b defects inspection report should be not more than six months old, be performed from a registered building practitioner such as an architect, surveyor, inspector, or engineer, and pertain to all work including, but not limited to, extensions, renovations, garages and verandas.

BUYER BEWARE!

 Potential investors or buyers should be wary of new construction works that do not contain important paperwork such as that highlighted in this blog, have not been carried out by Registered Building Practitioners, are being ‘flipped’ by vendors that do not understand building regulations, or performed by un-licenced trades.