Property in Western Australia is sold in the state and condition it was in when you first inspected it, unless the contract provides otherwise. The property checks before you sign are the title searches and the local government enquiries. Termite and building inspections normally come after signing, pursuant to a special condition.
What the contract does not promise you
A seller is not generally required to give a buyer information about the property and the standard form contract used in WA does not include extensive promises by the seller about its state and condition. What you can rely on is what you have checked. Beyond that, the only promises you have are the ones written into the contract.
Strata purchases work differently, because a seller of a strata lot carries disclosure obligations that a seller of a green title property does not.
What to check before you sign
The checks most buyers make before signing are:
- Landgate searches of the certificate of title, the survey diagram and any encumbrances;
- a Landgate property interest report;
- the gas, electrical, plumbing, reticulation and pool fixtures and fittings, with a term in the contract requiring them to be in working order at settlement; and
- enquiries with the local government, to see the building plans and check that every structure on the property including any alteration was built with the approvals it needed.
What happens after you sign
The termite and building inspections normally happen after the contract is signed pursuant to a special condition that makes the contract subject to a satisfactory report. This is the usual order in WA and is practical, as it means that a buyer doesn’t have to pay for an inspection on a property they have not yet secured. A special condition only works if the seller accepts it, but conditions of this kind are common.
What a special condition has to get right
A special condition is only as good as its detail. There are three important things to consider in relation to your special conditions: the date by which the report or the approval has to be obtained, who decides whether the result is satisfactory and what happens if it is not. A condition that leaves any of those to be worked out later is a condition you may not be able to rely on.
| Check | Done before you sign? | Covered by a special condition? |
|---|---|---|
| Landgate title, survey diagram and encumbrances | Yes | No reason to leave it |
| Property interest report | Yes | No reason to leave it |
| Termite inspection | Not usually, it comes after signing | Yes, and this is the normal route |
| Building inspection | Not usually, it comes after signing | Yes, and this is the normal route |
| Local government approvals for structures and alterations | Yes | Possible, if the seller accepts it |
| Fixtures and fittings in working order | Inspect before signing | Yes, as a term of the contract |
Frequently asked questions
Can I get out of the contract if the building inspection is bad?
Only if the contract lets you. A special condition making the contract subject to a satisfactory building inspection gives you a way out on the terms that condition sets. Without a condition, a bad report does not release you.
When should I get the termite and building inspections done?
After the contract is signed, within the time the special condition allows. Put the condition in the offer, then book the inspections once the seller has accepted.
What is a property interest report?
A property interest report is a Landgate report bringing together interests and notifications affecting the land that do not appear on the certificate of title.
Can I inspect the property again before settlement?
Yes. The standard contract gives a buyer a right to inspect the property before settlement. See I wasn’t happy with the first inspection, can I inspect again?
Talk to us before you sign
We act for buyers and sellers on Perth property settlements. We can review a draft contract before you commit to it. Call the settlements team on (08) 9220 4430. Our fixed prices are published, so you know what it costs before we start. See real estate settlements.
Related: The offer and acceptance contract in WA: what buyers need to know.
This article is general information and not legal advice. Every property transaction turns on its own facts.
