“I would like to take this opportunity to acknowledge Surety (particularly Brendan, Richard and Jacqui) for the valuable inspection work and advice. I am happy to recommend my friends who are going to knockdown and rebuild their houses to use your service.”
Jinglong, ACT New Construction Package Client
NSW Fair Trading is urging consumers to do their homework before signing a residential home-building contract, following complaints about builders demanding thousands of dollars in unexpected additional payments.
“We are hearing from consumers who thought they had entered into a ‘fixed price’ contract with a builder, only to find this wasn’t the case, and this scenario is causing them extreme emotional and financial stress,” NSW Fair Trading Commission Rod Stowe said.
“Some builders are applying penalty costs for delayed commencement of construction work, even if the delays were outside the consumer’s control. They are also demanding payment for things thought to be covered by the contract, such as site clearance, structural steel beams, and council fees and charges.”
Fair Trading has also received complaints from consumers who were expecting a specific final-payment amount, only to find it was higher than expected, and sometimes a substantial proportion of the total contract price.
“Furthermore, if the consumer does not pay the increased final payment the builder refuses to hand over the keys, essentially holding the customer to ransom,” Mr Stowe said.
“In some instances, a builder will offer the consumer a reduction in the final payment if they agree to sign a deed of release, preventing them from making adverse comments and indemnifying the builder from any further claims.”
Consumers have also complained about having to pay a non-refundable fee of up to $15,000 to enter into a pre-tender agreement with a builder.
“Before signing anything, consumers should seek independent legal advice to ensure they fully understand the terms of a pre-tender agreement, and any special conditions attached to their building contract, and how these factors could affect their final payment,” Mr Stowe said.
“This may cost you more up front, but it could save you tens of thousands of dollars in the long run, and protect your biggest financial investment.”
NSW Fair Trading recommends the use of its plain English home building contracts, which can be downloaded for free from the Fair Trading web site: fairtrading.nsw.gov.au.
Many Canberrans are shocked to learn the ACT has a growing termite problem, and it’s one that should not be ignored.
A major termite flight took place inside a Canberra home, with the termites determined to find a place to build a new nest.
Swarms of termites invading a house from which they have come through an internal wall as part of a termite flight
The CSIRO recommends that houses be inspected for termites at a minimum annually. These pests—the most destructive in the world—can quickly and quietly munch through a house causing many thousands of dollars’ worth of damage. An annual termite inspection costs as little as $270 to $350 and can save owners a small fortune.
Termites are increasingly active in Canberra. They are frequently found when inspecting Canberra homes, with many owners distressed to learn their house, fences or landscaping timbers are affected. The change in weather patterns over time in the ACT has contributed to a rise in termite activity every year since at least 2005.
In one recent incident, a property manager called a reputable inspector after an alarming call from a tenant who thought they had a bunch of bugs flying in their house. It ended up being a huge flight of termites that had burst through an internal wall and had damaged the structure.
Termites dead in bathtub after termite flight
Termites breaking through a wall during a termite flight
So how do you get on top of a potential termite problem?
The only way to be sure is to use a professional termite specialist who has a trained eye. Termites are very hard to see and can be difficult to find, but in as little as three months they can severely damage almost all the timber in a property. You need ongoing annual checks to keep on top of matters. In some instances, inspections should be carried out more frequently depending on the risks associated with the property, and its location.
Here are some signs of termite infestation:
With a professional inspection, make sure you ask how the inspection will be performed and remember that it should take any quality inspector a minimum 1.5 hours to work carefully through a three-bedroom home with a subfloor.
This is not a process that should be rushed. You need the inspector to assess current termite activity, any damage, the history of activity and risks. You may also need a detailed management plan to deal with identified risks.
Most importantly take the time to chat with the inspectors after the inspections and determine what you can do to reduce your overall risk and learn what you can to watch your property between regular inspections.
The unfortunate truth about termites is that it is often too late when you find them.
There are a number of real situations of locations you may not often visit or explore in your home and garden, only to find out later that termites are silently doing damage.
One elderly woman who doesn’t frequent a downstairs area was left surprised to find her bookcases had been infested with active termites and termite mud. Of course, termites love wood, and of course, that means paper.
These termites had made themselves at home and ate the pages out of over 70 per cent of the books in this bookcase. Now while the termites haven’t eaten the home, some of these books had sentimental value and have been lost.
The second part of this hidden surprise is that behind the bookcase the termites are eating out the skirting. Lucky for this property it is double brick, and limited damage has occurred apart from the sentimental value of the books
Significant termite mudding
The whole bookcase is encased
Termite mud on skirting behind
The second hidden hotspot, and probably the most common hidden area is the subfloor. Who frequents a subfloor other than someone who needs to do work there? This problem was found in one case while conducting a building and termite inspection for a buyer.
This subfloor had pooling water, which created a perfect environment for termites. These termites were already into the wall and floor frames and starting on the floor itself.
This is a significant case of termite tunnels and mud; we have them going up the piers and across floor frames. This is an extremely active environment, and the owner never knew what was going on.
This is not the only pier in the property which termites are tracking up and down.
This problem requires improvement of the ventilation, drainage and treat the termites.
Termite mudding tracking up and down the piers and frames
Termite mudding tracking up and down piers and frames
Sneaky little termites are also causing damage to floorboards under your feet. Good inspectors will lift carpet, especially in areas of concern or if a wall adjoins a bathroom and especially if that wall is displaying moisture.
The photo below shows the termite mud on the underside of the carpet; you really do need to know what you are looking for in order to notice this, as it could be confused with dirt.
Termite mud on the underside off the carpet
Another hidden spot is garden beds built up against the house. If the soil is covering the weep holes, the termites have a hidden entry point and can enter the subfloor and go up the piers and track into the floorboards.
Raised garden beds against brickwork
Regular inspections – yearly at a minimum – will keep on top of termites causing damage. The Australian Standards recommends annual inspections in all areas across Australia except the very lowest point of Victoria and Tasmania.
The concern is that termites are out of mind and out of sight. If a clients sees spiders, they want them gone, but they don’t feel the same about termites until the damage is done and then they want them gone! You don’t see termites until it is too late. Unfortunately, we as humans put our head in the sand and think that if we can’t see anything, everything is fine.
As the above examples show, that just isn’t the case. Don’t worry about the spiders; worry about the termites.
This house has a significant termite infestation. Bruce will expose the termites from behind the skirting watch the video. Make sure you listen out for the chatter between the termites. Bruce will explain this further.
Termite monitoring stations can be installed when a property currently has a termite infestation, or they can be installed as a system to monitor any future infestations.
On behalf of a buyer in a rural area around Canberra, a buyers building and pest inspection test was conducted. At that time, there was no reason for concern identified. However, the property was considered high risk and required six monthly termite inspections.
After a second follow-up termite inspection, the client indicated they would like to install monitoring stations as he was going overseas for work and he didn’t want his wife to have to worry about any termite issues while he was away. This, despite the fact that there were still no termites at this follow-up inspection.
Bait stations were installed between two and four metrers around the perimeter of the house.
Once installed, a timber insert was placed in the station. Every two months, the stations were monitored to see if any termites had infested the timber. To those who might ask why you would put timbers in the stations and attract the termites, they are inserted not to attract termites but rather to detect any termites which are close to the home. If termites enter the stations, they are obviously foraging for a food source. If they don’t have the timber insert to feast on, they could go after the timbers in the house.
Within eight months of installing a program, one of the stations had active termites within.
Termite mud and active termites eating the timber inserts
Timber in monitoring station eaten out by termites
Once the termites enter the stations, It’s time to take some action and place some bait in the station itself. These stations are not only monitoring stations; they are also the bait station. It is important to leave the timber insert in place as it’s important not to disturb the termites. A bait which is non-toxic to humans and animals but palatable and potent to termites can then be administered.
Termites over a period eat the bait and slowly become sick. Termites are social and share their food. This process allows acting toxicants (the bait) to be transferred to the colony. It is important that the action of the bait is slow enough to allow the termites to feed, travel back to their nest, and share before taking effect. It can take several months for this to affect and eliminate the whole colony. This is called colony elimination.
The installation of a monitoring system has saved this family a significant financial loss and stress.
Because these owners took a proactive position on termite management, they have been able to stop major damage in what is already a high-risk location.
The news of a rise in the number of homes testing positive for methamphetamine should concern authorities and the wider community.
The increase in the use of the drug ice has been well publicised nationally and Canberra is not immune to the scourge.
Across Australia, the number of methamphetamine seizures has increased by 22.2 per cent over the past financial year. There are an estimated 268,000 users across the country.
In the ACT, there were 342 cases of methamphetamine seizures between January and October, and 67 people were charged with dealing and supplying the drug – up from 43 last year.
The fact that national clean-up companies are getting more work in the capital is a concern as it points to a potential rise in drug use.
While it could be that greater awareness about the dangers of the drug is leading to more requests for testing, this is unlikely to be the sole reason for the increase.
That people receive positive test results and then opt not to pay for decontamination because of the huge cost is another concern.
The dangers of ice are well documented – both using and producing it.
Chemicals such as sulfuric and hydrochloric acid, and ingredients similar to nail-polish remover and drain cleaner used to make it, are extremely hazardous to inhale.
These chemicals leach into homes and stay there, possibly continuing to affect the people living in them for years.
The traces of the drug have been found in so many Canberra homes should be a warning to home owners and renters.
The territory is still reeling from the Mr Fluffy loose-fill asbestos scandal but at least the homes affected by that were known.
This evidence points to another issue that Canberrans need to be aware about as we are not immune to the ramifications of an ice problem.
ACT Policing is rightly targeting those producing and dealing the drug within our borders but the ACT government must now examine the risks of living in these homes.
We are often told in our business WOW you are so thorough we wouldn’t use you again for a Sellers Report but definitely would use for a Buyers Report. Really!
Unfortunately, this is just human nature and even the most honest, trustworthy Seller will say the same thing. As a Seller’s intention is to move on and hand over a property which may contain possible problems to some else – it just happens this way. So what can a Buyer do to ensure they aren’t buying a lemon and how can they look out for themselves just as the Seller will?
Take off the rose coloured glasses. Remove the emotion I know it’s hard, but there is always another property if this one isn’t right the first time.
As a Buyer, you need to look after yourself because the Seller or Real Estate agent are not there for you as we know the agents are paid by the Seller and their obligation is to the Seller. So who is looking out for the Buyer? No one other than if they surround themselves with a team of buyers advocates? Like a highly respected property inspection company who receives work from other like-minded professionals or word of mouth. You also want to surround yourself with quality Solicitors, Mortgage Brokers, Valuers and any other parties that have 100% the interests of the Buyer at heart.
However closely you look at the property and think it has been well maintained the problem is in our emotional attachment – love at first sight. We have had builders engage our services for a property inspection; they want to remain at arm’s length and not let their emotions get in the way of their own buying decisions.
Look through the Sellers offering and make your own informed decisions.
In most cases I would have to say no; however, there is probably 1% I would say yes. Our own experience in providing Sellers Reports has been tainted. Especially in the Canberra market by which Sellers Reports are a legislative requirement. Predominately these reports are compromised, limited and disclaimed reports without real clear detail. When the agent and Seller have to organise a report that a Buyer can rely on, what is going to be the behavioural motive lets just get a report that meets the requirements but not really uncover anything too scary. And of course, if the inspection company carries out their job as a Buyer should expect they don’t get any more work from that agent or Seller. Compromised!
Why would you risk your biggest investment of your life in a building and pest report provided by the Seller or a re-sold report to save a few hundred bucks? You tell me!
She rejected the franchise reports commissioned by the agents because “firstly I didn’t know who did the report and I didn’t feel I could ask that person questions. Secondly you don’t get the benefit of a building inspector taking you through the property and showing you all the defects.”
Instead, Lau commissioned her own pre-purchase reports on four properties in Sydney’s Bondi Beach from experienced building consultant Chris Dyce, director of Informed Building Reports. “I was very glad I decided to use him.”
Dyce reported that the rear extension of one house had subsided. “When I approached the real estate agent about this, he was really upset that I had brought up the fact it had subsided.” The agent said there was no mention of it in the building inspection report they had commissioned and “denied it absolutely”. Lau decided not to bid on the house, which sold for about $3.5 million.
She ended up buying a different property, “fully aware” that she needed to spend about $300,000 to fix the wiring and plumbing and renovate. “That had a bearing on the price I was willing to pay.”
Dyce, president of the Australian Society of Building Consultants, recommends buyers select only experienced building inspectors, who are properly qualified, have worked in the building industry and are insured. He says a pre-purchase report is absolutely worth the money if you get the right inspector. “But it’s a waste of money if you get an idiot… It can be very expensive if they don’t actually identify the issues.”
At the top level are building and pest inspectors who are highly specialised architects, engineers and builders, according to Dyce. But at the lowest level, people without relevant building experience or qualifications and no insurance, are putting up their hands and claiming to be inspectors.
Dyce says these unqualified people think “all I’ve got to do is walk through the house, kick a few walls and say ‘she’ll be OK’ and make money, charge whatever I want to charge”.
He explains that while the Australian Standard 4349.1 – 2007 specifies that a person doing pre-purchase residential building inspections needs to be “competent” and have “experience”, there are no regulations to enforce this in NSW. Since the industry was deregulated by the state government in 2009, building and pest inspectors are no longer legally required to be licensed builders or to have professional indemnity insurance.
Apart from Queensland, most other states have a similar lack of regulation when it comes to enforcing the standard for building inspectors doing pre-purchase reports. The Queensland Building and Construction Commission website says only a registered architect or a “completed residential building inspector” (the official Queensland term) can do pre-purchase building inspections.
John Coghlan, director of Buildspect Consulting, says in Victoria, building inspectors doing mandatory inspections in terms of the Building Act 1993 during the building of new homes or extensions are required to be registered and have specific qualifications and experience.
But Coghlan says this registration does not apply to people offering pre-purchase inspections in the state. Anyone can advertise themselves as a building inspector and do pre-purchase inspections.
“The difficulty for consumers is that typically their decision is price driven and they try to get the most inexpensive pre-purchase report,” Coghlan says. “That sways people more than who is doing the job and all their experience and age.”
Dyce cautions against buying reports commissioned by sellers or agents. If the purchaser does not have a contract with the building inspector, there may be no legal comeback if the report is incorrect or misses something.
John Reid, a council member of the NSW division of the Australian Institute of Conveyancers, says while there is no legal requirement for building and pest inspections from the conveyancing side, practitioners recommend it for their clients’ protection.
The contract to purchase a property relies on caveat emptor – buyer beware. The pest and building report identifies visible problems and helps buyers decide whether to proceed.
He does not know of any legal action by a purchaser against a company that does building reports. “The only situation where that might happen is where the reporting company or person has missed something, which they [the purchaser] has discovered later”. Even then, Reid thinks the building inspector is protected by legal disclaimers that the commissioning client has to accept.
Sean O’Connell, managing director of Doric Property Inspections, says by the time people buy, they may have paid for several reports. “If you are spending $3000 for five or six inspections, that’s nothing for a $1 million purchase.”
A building consultant with the Master Builders Association, a licensed builder and clerk of works, O’Connell maintains it is equally vital for people to get building inspections before they make the final payment on brand new builds.
Among major issues buyers should be concerned about are “significant structural cracking due to poor footings and foundations, or where there is possibly poor drainage or just poor construction.” This often happens where “builders cut corners”.
He recommends buyers commission their own reports rather than rely on ones made available through an agent or seller. O’Connell says some inspectors do a lot of work and are paid lots of money by agents, “so those reports are going to be questionable”.
Sarah Pickette, features editor of Australian House & Garden, says having an experienced building inspector on her side was “invaluable” when she and her partner bought their first home in 2014. They used O’Connell, who was “brilliant”.
She commissioned building reports on two houses in the inner west of Sydney in the $850,000-$900,000 bracket and in both he found “massive problems”. Pickette fell in love with the first, a charming house in Belmore. But the consultant found “there was termite damage right through and it would cost about $200,000 to fix that”. Among repairs needed was a new roof.
In the second, O’Connell also found “very expensive problems” caused by termite damage to the footings of the house, the kitchen and elsewhere.
Pickette ended up buying a newer home in Sutherland Shire, where the owners provided a building report as part of the marketing. She relied on this report after running it by O’Connell to “make sure it was completely legit” and chatting with the seller’s building inspector.
Pickette says: “As a layperson, you have no idea about things like evidence of termites or structural damage. With all of these very technical, invisible things, you really need an expert on your side… The building inspector is the only ally you’ve got and that’s why you need a really good one.”
Recently Surety Property was interviewed by Jho Mendoza from Before You Build. In Part 1 Jho asks me specifically what is the difference between a Building Certifier (engaged by the builder) and a private building consultant from Surety Property (engaged by the buyer) when someone is having a new house built. A very important question and one worth understanding if you are in the process of building your new home.
Part 2 of our interview with Jho Mendoza Director of Before You Build. This interview Jho specifically asks me about the different levels of services we offer throughout the building stage. For example Pre-slab inspection, Frame and Brickwork inspection and Final Handover inspection.
In this final interview, We discuss a true story of a homebuyer who benefited from hiring our services at the final handover stage. Without this advice, homebuyers might have settled for a sub-par quality home. I also discuss the difficulties of buying off the plan and getting inspections done.
