When it comes to purchasing a property, it’s essential to conduct a thorough inspection to ensure that you’re making a sound investment. While many buyers rely on the valuation report provided by the lender, it’s crucial to understand that these reports are primarily concerned with the property’s value and may not uncover underlying defects. This is where the expertise of an engineer or surveyor becomes invaluable.

Understanding the “Caveat Emptor” Rule

The legal rule of “caveat emptor,” or “buyer beware,” applies to sales of buildings. It means that the vendor is not obligated to ensure that the property is free from defects. As a buyer, the responsibility falls on you to satisfy yourself that the building is sound and suitable for your needs. While there are exceptions to this rule, such as cases involving fraud or negligent misrepresentation, the general condition of the building is your concern, not the vendor’s.

The Financial Significance of Property Purchases

Purchasing a house or apartment is one of the most significant financial transactions in a person’s life. Given the substantial investment involved, it is essential to conduct a comprehensive inspection to make an informed decision. Every building, regardless of its age or condition, will have some defects. To protect your investment, it is crucial to thoroughly examine the property and identify any potential issues before finalizing the purchase.

The Limitations of Lender’s Valuation Reports

Some buyers may question the need for a second survey when the lender already carries out a property inspection. However, it’s important to note that the “valuation report” provided by the lender is primarily focused on determining the property’s value in relation to the proposed loan amount. These reports are often conducted by valuers who may not be experts in identifying defects or conducting in-depth surveys.

Even if an architect or engineer is involved in the lender’s valuation, the scope of their inspection is limited, and they may not be looking for the same issues as a surveyor appointed by the buyer. Lenders typically advise borrowers to get an independent survey for their own protection. It’s worth noting that there have been no reported cases in Ireland where a borrower successfully sued a lender’s surveyor for failing to identify defects in the property.

Choosing the Right Professional for the Survey

When it comes to selecting a professional to conduct a pre-purchase survey, it is essential to choose someone experienced in house surveying. While some buyers may consider using a friend or family member who is qualified as an architect, engineer, or surveyor, it’s crucial to ensure that they have the necessary experience in house surveying. Opting for a professional who not only possesses the required qualifications but also has years of experience can provide added assurance.

It’s important to note that different categories of surveyors exist, each with their own expertise. Architects, structural engineers, and building surveyors are typically the most suitable professionals for conducting property surveys. Their knowledge and experience enable them to identify potential issues and provide valuable insights into the condition of the building. Throughout this article, “the surveyor” refers to any of these professionals.

Factors to Consider in the Cost of a Pre-Purchase Survey

The cost of a pre-purchase survey can vary depending on several factors. Professionals who conduct these surveys typically charge based on their time and expertise. Their fees cover expenses such as office rent, rates, insurance, and other overhead costs. Traveling expenses may also be included if the property is located at a considerable distance.

The complexity of the survey can significantly impact the cost. A more detailed examination, including additional inspections with builders or contractors, may require a higher fee. For instance, an extensive survey of an older or valuable property may involve structural assessments and detailed inspections of services. On the other hand, a survey of a relatively straightforward suburban house may have a lower cost.

It’s worth noting that choosing the cheapest survey option may not provide the desired level of assurance. It’s important to consider the property’s condition and the specific factors discussed in this article when determining the appropriate budget for a pre-purchase survey. While it’s tempting to cut costs, it’s crucial to weigh the potential risks and expenses of rectifying defects against the initial investment in a thorough survey.

Checking Additional Services and Considerations

Apart from the general inspection of the property, it is prudent to consider checking additional services such as septic tanks and percolation areas. These checks may require additional time and can contribute to the overall cost of the survey.

However, it’s important to note that some aspects, like drainage, may not be thoroughly inspected during a standard pre-purchase survey. Due to accessibility constraints and time limitations, a surveyor might not be able to conduct an in-depth examination of all drainage systems. It’s essential to discuss the scope of the survey with the chosen professional to ensure your specific concerns are addressed.

The Value of a Pre-Purchase Survey

A pre-purchase survey should not be seen as an optional expense but rather as an essential investment. The cost of rectifying building defects can be substantial, and identifying these issues is not always easy. Sellers may attempt to conceal defects before putting a property up for sale, making it even more crucial to engage an engineer or surveyor to thoroughly inspect the building.

By engaging a professional for a pre-purchase survey, you can potentially save yourself from financial disaster. While a survey does not guarantee a defect-free property, a comprehensive inspection by an experienced surveyor increases the likelihood of identifying material defects. It’s important to remember that the more you invest in a survey, the better the chances of uncovering any hidden issues.

Conclusion

When it comes to purchasing a property, it is crucial to engage an engineer or surveyor to conduct a pre-purchase survey. The legal rule of “caveat emptor” places the responsibility on the buyer to ensure the property’s condition. Relying solely on the lender’s valuation report may not provide a comprehensive assessment of the property’s defects. Engaging a qualified professional who possesses the necessary experience in house surveying is essential.

The cost of a pre-purchase survey can vary depending on the complexity of the inspection and the property’s specific characteristics. While it may be tempting to opt for the cheapest survey, it’s important to consider the potential risks and expenses of rectifying defects against the initial investment in a thorough survey. Additional services and considerations, such as checking septic tanks and percolation areas, should also be taken into account.

By conducting a pre-purchase survey, you can mitigate the risk of purchasing a property with significant defects. While no survey can guarantee a defect-free property, engaging a professional with the expertise to identify material defects can save you from potential financial loss. Remember, investing in a comprehensive survey is an investment in your peace of mind and the long-term value of your property.