Property 101: New NSW pre-inspection laws looming

New laws relating to pre-purchase property reports (primarily building and pest inspection and strata reports) in take effect from Monday 15 August in NSW, following on from industry consultations held by Minister for Innovation and Better Regulation Victor Dominello earlier this year. 

Amendments to the Property Stock and Business Agents Regulation 2014 will enable greater access to pre-purchase property reports, with real estate agents now required to disclose information on all inspection reports conducted on a property up for sale.

Prior to drafting the amendments, Minister Dominello met with several figures from the NSW property industry in order to discuss the need for improved transparency, reduced duplication of inspection reports, and support for peer-to-peer services that offer discounts to consumers.

Rhys Rogers, CEO of beforeyoubid.com.au, a provider of building & pest inspections and strata reports through a shared-cost model, was invited by Minister Dominello to make recommendations.

Rhys Rogers, CEO of beforeyoubid.com.au says the new laws will create greater transparency within the property industry.

It mean that there is less chance for selling agents to exercise improper influence on the quality of reports. 

"We’ve seen instances where consumers have purchased homes with thousands of dollars’ worth of issues which have not been properly identified by inspectors engaged by the selling agent.

"By making it obligatory for agents to disclose the availability of multiple reports, and who commissioned the report, there are now measures in place to improve consumer protection.

"Through our shared-cost model, consumers can now get a report written for them and share the cost of the report with other buyers saving everyone money for what is important – making a bid at the right price.”

Rhys Rogers purchasing property reports for around five properties was the average.

"Through our cash-back model, this means people save close to $1,500 on building & pest inspections alone, which many find to be a rewarding silver lining when they’ve been unsuccessful at auction and need to continue their search.”

The amendments to the Property Stock and Business Agents Regulation 2014 can be found in clause 33A here.