Due diligence checklistwhat you need to know before buying a residential property

Before you buy a home, you should be aware of a range of issues that may affect that property andimpose restrictions or obligations on you, if you buy it. This checklist aims to help you identify

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whether any of these issues will affect you. The questions are a starting point only and you mayneed to seek professional advice to answer some of them. You can find links to organisations andweb pages that can help you learn more, by visiting consumer.vic.gov.au/duediligencechecklist.

frConsumer AffairsVictoria

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Urban livingMoving to the inner city?High density areas are attractive for theirentertainment and service areas, but theseactivities create increased traffic as well as noiseand odours from businesses and people.Familiarising yourself with the character of the areawill give you a balanced understanding of what toexpect.

ls the property subject to an ownerscorporation?lf the property is part of a subdivision with commonproperty such as driveways or grounds, it may besubject to an owners corporation. You may berequired to pay fees and follow rules that restrictwhat you can do on your property, such as a ban onpet ownership.

Growth areasAre you moving to a growth area?You should investigate whether you will be requiredto pay a growth areas infrastructure contribution.

Flood and fire riskDoes this property experience flooding orbushfire?Properties are sometimes subject to the risk of fireand flooding due to their location. You shouldproperly investigate these risks and consider theirimplications for land management, buildings andinsurance premiums,

Rural propertiesMoving to the country?lf you are looking at property in a rural zone,consider:o ls the surrounding land use compatible with your

lifestyle expectations? Farming can create noiseor odour that may be at odds with yourexpectations of a rural lifestyle.

o Are you considering removing native vegetation?There are regulations which affect your ability toremove native vegetation on private property.

o Do you understand your obligations to manageweeds and pest animals?

. Can you build new dwellings?

. Does the property adjoin crown land, have awater frontage, contain a disused governmentroad, or are there any crown licences associatedwith the land?

ls there any earth resource activity such asmining in the area?You may wish to find out more about exploration,mining and quarrying activity on or near the propertyand consider the issue of petroleum, geothermal andgreenhouse gas sequestration permits, leases andlicences, extractive industry authorisations andmineral licences.

Soil and groundwater contaminationHas previous land use affected the soil orgroundwater?You should consider whether past activities, includingthe use of adjacent land, may have causedcontamination at the site and whether this mayprevent you from doing certain things to or on theIand in the future.

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IUConsumer AffainVictoria

,,Land boundariesDo you know the exact boundary of theproperty?You should compare the measurements shownon the title document with actual fences andbuildings on the property, to make sure theboundaries match. lf you have concerns about this,you can speak to your lawyer or conveyancer, orcommission a site survey to establish propertyboundaries.

Planning controlsCan you change how the propefty is used, orthe buildings on it?All land is subject to a planning scheme, run by thelocal council. How the property is zoned and anyoverlays that may apply, will determine how theland can be used. This may restrict such things aswhether you can build on vacant land or how you

can alter or develop the land and its buildings overtime.

The local council can give you advice about theplanning scheme, as well as details of any otherrestrictions that may apply, such as designguidelines or bushfire safety design. There mayalso be restrictions - known as encumbrances -on the property's title, which prevent you fromdeveloping the property" You can find out aboutencumbrances by looking at the section 32statement.

Are there any proposed or granted planningpermits?The local council can advise you if there are anyproposed or issued planning permits for anyproperties close by. Significant developments inyour area may change the local 'character'(predominant style of the area) and may increasenoise or traffic near the property.

Safetyls the huilding safe fo live in?Building laws are in place to ensure building safety.Professional building inspections can help youassess the property for electrical safety, possibleillegal building work, adequate pool or spa fencingand the presence of asbestos, termites, or otherpotential hazards.

Building permitsHave any buildings or retaining walls on thepropefty been altered, or do you plan to alterthem?There are laws and regulations about how buildingsand retaining walls are constructed, which you maywish to investigate to ensure any completed orproposed building work is approved. The localcouncil may be able to give you information aboutany building permits issued for recent building worksdone to the property, and what you must do to plan

new work. You can also commission a privatebuilding surveyor's assessment.

Are any recent building or renovation workscovered by insurance?Ask the vendor if there is any owner-builderinsurance or builder's warranty to cover defects in thework done to the propertY.

Utilities and essential servicesDoes the property have working connections forwater, sewerage, electricity, gas, telephone andinternet?Unconnected services may not be available, or mayincur a fee to connect. You may also need to choosefrom a range of suppliers for these services. Thismay be particularly important in rural areas wheresome services are not available.

Buyers'rightsDo you know your rights when buying apropefty?The contract of sale and section 32 statementcontain important information about the property,so you should request to see these and read themthoroughly. Many people engage a lawyer orconveyancer to help them understand the contractsand ensure the sale goes through correctly. lf you

intend to hire a professional, you should considerspeaking to them before you commit to the sale.

There are also important rules about the way private

sales and auctions are conducted. These mayinclude a cooling-off period and specific rightsassociated with 'off the plan' sales. The importantthing to remember is that, as the buyer, you haverights

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