Articles: Conveyancing Articles
"Do I Really Need to Go Through the Cost and Trouble of Securing a LIM before Committing to Purchase a Property?" - by Miles Agmen-Smith
© Copyright ASCO Legal June 2013
If you are in doubt whether there is any need to secure a LIM or building report before purchasing a property, yet another court case has showed just how expensive NOT getting one can be.
In this court case, the purchasers were found to be negligent for not securing a LIM or an inspection from a certified building inspector on a property which was later found to be a leaky home. This was despite the fact that the Council should never have issued the Code Compliance Certificate (“CCC”) in the first place.
The court found that purchasers may be negligent if they fail to secure a LIM and inspect the Councils records prior to purchasing a property. This also applies to the need for engaging a certified building inspector to conduct a pre-purchase inspection and provide a report on a property. The court said purchaser cannot blindly rely on the fact that a Council has issued a CCC as proof that a building is not leaky or that there are no irregularities with the work done.
Because of this, plus some other factors, the court reduced the award in favour of the purchasers by 75%, so they only received one quarter of their claim and lost about $1,5 million dollars as a result.
Purchasing a property is probably the largest single investment you will ever make. Contact us for free guides to purchasing property or any other related advice.
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