To state the obvious, your house purchase will probably be the biggest capital commitment of your lifetime. Hidden defects could cost you a fortune in the furture if you don’t have them revealed at this stage. Once as you have settled on the property, you are stuck with any latent defects & structural problems. It is caveat emptor (buyer beware).
What is the purpose of a building inspection?
A Building Inspector's job is to thoroughly check the integrity of the building structure and all its components, informing you of necessary or likely repairs in the short or medium term. The inspector should also be able to give you a reasonably accurate estimate of the cost to carry out these repairs. In this regard you could factor these repair costs into your offer for the property.
Doesn’t the Valuer do this?
The answer is NO. A Valuer is not professionally trained to carry out structural assessments. All valuation reports disclaim this element.
Do all properties have defects?
Absolutely, you are purchasing a second or third hand item which will have some wear and tear. As long as you bear this in mind and do not expect something new for a second hand price, you won’t be disappointed.
How do you pick a Building Inspector?
Herein lies the problem. Building inspectors come in all shapes and sizes including degrees of competency. There has been a move to formalise the building inspector’s qualifications to bring them in line with other property professionals.
However, to date, anybody can hang their shingle out and offer their services as a Building Inspector.
There are a couple of bodies in which membership gives some guarantee of formal qualification and ongoing training. These are the New Zealand Institute of Building Surveyors (NZIBS) & Building Officials Institute of New Zealand (BOINZ).
That is not to say that there are many competent ex-builders out there who can do a fine job.
What Standard should they meet?
If you are having a residential property inspected, you should insist that the building inspector at least meets NZS 4306:2005 Residential Property Inspection Standard. This is still a voluntary standard.
This standard covers the following:
Competencies required by inspectors to conduct an inspection in accordance with the Standard
Minimum requirements for the visual inspection of residential buildings and for the basic content of a property report.
A property report should be seen as a reasonable attempt to identify any significant defects identifiable at the time of the inspection.
The inspection should include an assessment of the condition of each of the following areas, where safe, unobstructed access is provided - site, subfloor, exterior, roof exterior, roof space, interior, services and identified ancillary spaces and buildings. It shall be clearly stated in a property report if no access was available, or access to limited areas only was available at the time the inspection was carried out.
A clear list of everything a professional inspector should be looking at when making the assessment, including identification of:
Construction defects (structural, instability, weather tightness, durability, workmanship)
Gradual deterioration
Deferred maintenance issues as well as other defects
Trade specific testing (or reference to) and assurance relating to infrastructure services (plumbing, gas, electrical etc)
A list of areas and items, which could be the subject of a special (additional) report. Such a report may be needed when items or areas are identified, which are outside the inspector’s area of expertise.