Doing your homework on a property before buying

Often called ‘due diligence’, doing your homework on a property before you lock yourself into a deal ensures peace of mind.

Now that you’ve found the perfect home, it’s time to look seriously at what you are actually buying. Here are some key things to check out.

Obtain a LIM

Ask the vendor if they have a Land Information Memorandum available. If not, obtain one yourself (or through your lawyer) and check for any major issues pertaining to the site.

Check zoning

Look for zoning restrictions and any zone changes near your boundaries. The last thing you want is a factory going up next door!

Code of compliance

If previous owners have carried out any renovations, make sure the building has a council code of compliance.

Chattel inclusions

Establish exactly which chattels and fixtures will remain. There is nothing worse than looking forward to that lovely hot spa, only to find the previous owner has taken it with them!

Title details

Always check the title. You need to know if this is freehold, leasehold or cross lease etc. You also need to know if the vendor is still waiting on title to come through from council (often the case with new developments etc).

Site boundaries

Ask the vendor to show you the exact boundaries during your initial inspection to avoid any nasty surprises later on.

Terms of sale

In a private sale, there is a lot of flexibility to negotiate the terms of the contract so, as the buyer, look to create a ‘win-win’ situation for both parties. With a tender or auction, the vendors may also be open to considering an early offer.