Conveyancing Process: Dilapidation Report

What is Dilapidation Report?

A Dilapidation Report is when a buyer makes a huge investment in buying a property, it is desired that the place be free from damages and any other health hazards. To ensure this, it is suggested that pre-sale inspections be made for the property during the process of conveyancing in Brisbane. There are several procedures in the conveyancing process and each of these processes is performed by expert professionals. Many times the buyer, when purchasing a property, asks for a dilapidation report. It is a report based on factual records of the condition of the building before and after any construction work taking place on an adjoining property that might affect the property being purchased.

Factors to consider before paying for a property

Several factors are to be considered before making a payment for a property. The buyer needs to make sure that the price being paid is equal to the actual worth of the property and not more than that. Sometimes there are construction works going on in the surroundings of the property, such as new building construction, renovations, road works or demolition. These may cause damage to the property being sold. To make the purchase more secure, a buyer needs to get a dilapidation report prepared. This is a written document prepared by property inspectors after a complete inspection of the property. This report is often supported by photographs to present the condition of the building. One inspection is carried out after the completion of the construction process and the two reports are compared to detect any signs of damages caused, such as cracking.

In case a dilapidation report is not undertaken it will not be easy to verify if the damage has been caused during the construction process on an adjoining property. Therefore, it will become difficult to claim for damages. This report will also benefit the buyer as there will be an identification of any prior damage that might be present in the building. In this case, the buyer will be able to receive some compensation from the seller.

Building consultants

To obtain a dilapidation report, specially trained building consultants need to be engaged. These consultants should have the license to operate. A dilapidation report is not to be confused with a defect report which is an entirely separate document. Since every property is different, the content of each dilapidation report will vary.

Those involved in conveyancing in Queensland make all efforts to protect the rights of buyers and sellers. Dilapidation reports are prepared to document any cracks or faults in the building as a result of adjoining construction works. This is done to facilitate future claims and legal action in case damage is found.

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Andrew Francey

B.Bus, GCAF, GAICD

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Andrew has over two decades experience in high growth fast moving consumer goods, agribusiness and professional services. Supporting the Ownit team to deliver on client expectations, and implementing processes to scale the organisation, is a key focus for Andrew.

Andrew is a C-Suite leader with Chairman and Board experience.  He has formal qualifications in Business, Applied Finance and AICD Company Directors Course.

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