If you are planning to buy property, be it for residential or commercial purposes, you may have already come across the term 'pre purchase report'. A pre purchase report is an important prerequisite that every property buyer should know about, and possibly obtain, at the start of any conveyancing process. Read on to learn more.
What is a pre purchase report?
In conveyancing, a pre purchase report is a document that seeks to guide you as you evaluate whether to purchase a given property or not. The report informs you about the buying process and shines light on important considerations that every property buyer should pay attention to. A pre purchase report can be general in nature or it can be specific to the property you wish to buy.
What information does it contain?
A pre purchase report contains a lot of valuable information pertaining to land buying. Some of the topics covered include:
· Seeking valuation for the property
· Conveyancing process
· Land use and zoning
· Property inspection
· Survey report
· Tax information
· Contract terms
· Any potential red flags as far as the property or sale is concerned
How a pre purchase report helps you when buying property
A pre purchase report will help you in a number of ways:
It educates you on what to expect in the course of the buying process, e.g. the cooling off period, how long the process takes, what due diligence to undertake before the purchase, etc.
It alerts you of any hazards that you need to be wary of, e.g. very high prices, very low prices, title encumbrances, zoning restrictions, gazumping, etc.
It allows you to gather all the information you need before proceeding with the sale, e.g. title details, valuation report, survey report, tax report, pest report, etc.
It helps you avoid bad investments and thereby protects your hard-earned money from loss.
How to get a pre purchase report when buying property
Pre purchase property reports are available from most property lawyers. To get one, simply contact a lawyer of your choice and request to have one prepared for you. In most cases, these reports are obtained at a fixed fee. Make sure to specify if you want a general report or a property-specific report. General pre purchase reports are available immediately while property-specific reports will take a few days.
Considering that property purchases entail huge amounts of money, a simple pre purchase report can mean the difference between making a good investment or making a bad one.