Essential Conveyancing Requirement: Dilapidation Report

Whenever investors purchase real estate, they want to ensure that the right price is paid for the property. This can only be determined after a careful inspection of the property to find out more about the actual condition of the property when it gets sold. Preparation of inspection reports by licensed inspectors is part of the conveyancing process. Before making payment for the property, the buyer should ask for a dilapidation report. This written document presents factual records of the condition of the property and shows any possible effects on the property as a result of construction works on an adjoining area.

Prior to spending a huge amount of money on a property, one will need to take into account a few important factors. 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. Such activities can reduce the value of the property due to damages that were not there before. It is necessary, therefore, that anyone interested on such properties will allot some time for the preparation of a dilapidation report. This is a written document prepared by property inspectors after a complete inspection of the property. Images of the house and surroundings usually support the report for a more accurate presentation of the building's current state. 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. Situations like these call for the seller to compensate the buyer for any reported loss.

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 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.