Jimmy Thomson - May 26, 2016
•Climate change inspections may join building inspections as prerequisites for buyers
•Companies hustle to become the Uber-X of property
•How much do building inspections cost?
The new regulations are due to come into force at the beginning of August.
Real estate agents in New South Wales face fines of up to $4400 if they don’t reveal details of property inspection reports conducted on houses and units they are selling, under new regulations due to come into force from August.
And, in a huge boost to property’s so-called “collaborative economy”, agents when asked must tell potential purchasers whether the report was commissioned by the vendor or a prospective buyer.
They will also have to reveal the contact details of the person or company that prepared the report to anyone requesting a copy of the contract of sale, and say whether the report is available for repurchase.
The changes in the regulations are contained in a draft issued by Minister for Innovation and Better Regulation Victor Dominello.
“We’ve heard from many consumers that they are sick and tired of paying for multiple building and pest inspection reports, at a cost of $200 to $600 each, in their search for the right property,” Mr Dominello told Domain. “This is an innovative reform that will help reduce this burden.”
A significant push for legislative change came from professional report-sharing agencies, part of the so-called collaborative economy that comes under Mr Dominello’s portfolio.
Two major players, Before You Bid and Eyeon, are already active in sharing reports, although with different approaches to the same issue.
Before You Bid starts with one potential purchaser paying $499 for a report and then offering a discount every time another buyer takes a copy, reducing the fee to $149 if four or more buyers chip in. Strata reports start at $249 and drop to $79 if enough buyers purchase one.
Under Eyeon’s system, the vendor pays a discounted fee to have all necessary reports done, which are then put on the company’s website for potential buyers for about about 20 per cent of the normal cost – $99 for house building and pest reports, and $69 for strata reports.
Alternatively, all buyers pay the full price for the same report where the vendor hasn’t contributed to the cost, but then those who don’t succeed in the purchase receive a rebate.
Taking a different tack entirely, Jim’s Building Inspections looks for properties hitting the market that are likely to have multiple bidders and then conducts its own reports, which it sells online for half the price to anyone interested in buying that property.
“It is great to see Minister Dominello putting a focus on this area and having a strong understanding of the importance of independence,” Before You Bid chief executive Rhys Rogers says. “This is a fantastic step in creating a fairer, more-affordable system for people completing their property due diligence.”
One of the government’s concerns was that, after losing out on properties several times, prospective buyers weren’t having reports done properly or at all, adding to the significant risk in house purchases.
“Having start-ups and disrupters compete in the property market and offer inspection reports is reflective of our 21st-century economy,” says Mr Dominello. “It also increases competition and reduces the price of these reports for potential buyers.”
The government clearly didn’t want to go down the ACT’s road of compulsory vendor-supplied reports after complaints that poorly trained inspectors were allegedly “ticking boxes” to the benefit of the sellers.
“This reform is a practical demonstration of the NSW government’s commitment to embracing the collaborative economy,” says Mr Dominello. “We want to encourage market disrupters whose business models rely on delivering better consumer experience and greater transparency, to flourish.”
This story has been brought to you by the Emerald Chamber of Commerce Inc.
(Ph: 07 4982 3444)
•Climate change inspections may join building inspections as prerequisites for buyers
•Companies hustle to become the Uber-X of property
•How much do building inspections cost?
The new regulations are due to come into force at the beginning of August.
Real estate agents in New South Wales face fines of up to $4400 if they don’t reveal details of property inspection reports conducted on houses and units they are selling, under new regulations due to come into force from August.
And, in a huge boost to property’s so-called “collaborative economy”, agents when asked must tell potential purchasers whether the report was commissioned by the vendor or a prospective buyer.
They will also have to reveal the contact details of the person or company that prepared the report to anyone requesting a copy of the contract of sale, and say whether the report is available for repurchase.
The changes in the regulations are contained in a draft issued by Minister for Innovation and Better Regulation Victor Dominello.
“We’ve heard from many consumers that they are sick and tired of paying for multiple building and pest inspection reports, at a cost of $200 to $600 each, in their search for the right property,” Mr Dominello told Domain. “This is an innovative reform that will help reduce this burden.”
A significant push for legislative change came from professional report-sharing agencies, part of the so-called collaborative economy that comes under Mr Dominello’s portfolio.
Two major players, Before You Bid and Eyeon, are already active in sharing reports, although with different approaches to the same issue.
Before You Bid starts with one potential purchaser paying $499 for a report and then offering a discount every time another buyer takes a copy, reducing the fee to $149 if four or more buyers chip in. Strata reports start at $249 and drop to $79 if enough buyers purchase one.
Under Eyeon’s system, the vendor pays a discounted fee to have all necessary reports done, which are then put on the company’s website for potential buyers for about about 20 per cent of the normal cost – $99 for house building and pest reports, and $69 for strata reports.
Alternatively, all buyers pay the full price for the same report where the vendor hasn’t contributed to the cost, but then those who don’t succeed in the purchase receive a rebate.
Taking a different tack entirely, Jim’s Building Inspections looks for properties hitting the market that are likely to have multiple bidders and then conducts its own reports, which it sells online for half the price to anyone interested in buying that property.
“It is great to see Minister Dominello putting a focus on this area and having a strong understanding of the importance of independence,” Before You Bid chief executive Rhys Rogers says. “This is a fantastic step in creating a fairer, more-affordable system for people completing their property due diligence.”
One of the government’s concerns was that, after losing out on properties several times, prospective buyers weren’t having reports done properly or at all, adding to the significant risk in house purchases.
“Having start-ups and disrupters compete in the property market and offer inspection reports is reflective of our 21st-century economy,” says Mr Dominello. “It also increases competition and reduces the price of these reports for potential buyers.”
The government clearly didn’t want to go down the ACT’s road of compulsory vendor-supplied reports after complaints that poorly trained inspectors were allegedly “ticking boxes” to the benefit of the sellers.
“This reform is a practical demonstration of the NSW government’s commitment to embracing the collaborative economy,” says Mr Dominello. “We want to encourage market disrupters whose business models rely on delivering better consumer experience and greater transparency, to flourish.”
This story has been brought to you by the Emerald Chamber of Commerce Inc.
(Ph: 07 4982 3444)
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