Buying an Older Perth Home? The Property Checks Buyers Shouldn't Ignore
There is something appealing about an older Perth home.
Established gardens, bigger blocks, mature trees and character that is difficult to replicate in a new build all have their appeal. Many older homes have also been renovated, extended or adapted over the years to suit changing lifestyles.
But before you fall in love with the kitchen renovation, backyard studio or huge patio, there are some important questions to ask. Does everything on the property actually match what is recorded and approved?
For buyers of older Perth homes, this can be an important part of understanding exactly what they are purchasing.
Older homes can have a history
A property that has been standing for decades may have undergone several changes over its lifetime. It might have started as a simple three-bedroom home and later gained:
An enclosed patio or alfresco;
A second bathroom;
A garage conversion;
An extension;
A pool or spa;
A shed or workshop;
A granny flat or ancillary dwelling;
A backyard studio;
Additional bedrooms; or
Renovated or relocated structures.
Some of these changes may have required approvals or other documentation. The important point for a buyer is that what physically exists on the property isn't necessarily the same as what appears on the original plans or property records.
That impressive backyard studio could raise questions
Imagine you're inspecting a property and discover a beautifully finished studio at the back. It has power, lighting, air conditioning and even plumbing. It looks like a fantastic addition.
But before assuming it is simply part of the house, a buyer may want to establish what it is, when it was built and whether the relevant approvals were obtained. The same applies to converted garages, enclosed patios, extensions and other structures. This doesn't automatically mean there is a problem.
It simply means the buyer should understand what they're buying.
What about pools?
Perth has plenty of established homes with swimming pools, particularly in older suburbs.
A pool can be a fantastic addition to a property, but buyers should consider more than whether the water looks inviting on inspection day.
Depending on the circumstances, relevant matters may include:
Pool fencing and safety requirements;
Approvals and compliance;
The age and condition of equipment;
Pumps, filters and other equipment;
Reticulation and surrounding landscaping;
Access to equipment;
Easements or other restrictions affecting the property; and
Who is responsible for any outstanding work.
A settlement agent can deal with the conveyancing and settlement aspects of the transaction, but a buyer should understand that a settlement agent is not a building inspector or local government compliance officer.
Different professionals have different roles.
Renovations can tell you a lot
A beautifully renovated bathroom or modern kitchen can make an older property very attractive. But when buying an established property, it is worth looking beyond the finishes.
Ask questions about significant renovations or additions, particularly where they have changed the structure or use of the property.
For example:
Was a wall removed?
Was an extension added?
Was an existing room converted into another use?
Was a garage converted into living space?
Was a patio enclosed?
Was another dwelling or habitable space added to the property?
These questions can help identify matters that may warrant further investigation before you commit to the purchase.
Don't forget the title
The physical property isn't the only thing buyers need to consider. The Certificate of Title contains important information about the property, including interests and restrictions that may affect it.
Depending on the property, there may be:
Easements;
Covenants;
Notifications;
Caveats;
Restrictions on the title; or
Other interests affecting the land.
An easement, for example, can affect how part of the property is used. This can be particularly relevant when you're planning future improvements such as a pool, extension, shed or patio. The fact that an easement isn't obvious when you're standing in the backyard doesn't mean it isn't there.
What should a buyer actually check?
There isn't one universal checklist for every older Perth property. The appropriate investigations will depend on the property, its age, location, improvements and your plans for it. However, before purchasing an established property, consider whether you need to investigate:
1. The Certificate of Title
Understand the registered owner and any interests, restrictions or other matters recorded on the title.
2. Plans and property information
Where relevant, investigate whether the property's physical layout and improvements correspond with available records.
3. Building and structural condition
A professional building inspection can identify issues that aren't necessarily visible during a standard property viewing.
4. Pest issues
Termites and other timber pests can be a particular consideration with established homes. A suitably qualified pest inspector can assess the property.
5. Renovations and additions
Ask questions about major additions, alterations and conversions, particularly where approvals may have been required.
6. Pools and outdoor structures
Consider the condition, compliance and history of pools, sheds, patios, studios and other structures.
7. Future plans
If you are buying because you want to renovate, extend or add a pool, understand whether anything recorded on the title or affecting the property could impact those plans.
Who checks what?
One of the biggest misconceptions in property transactions is that one professional checks everything. In reality, buying a property involves several different areas of expertise.
Your settlement agent deals with the legal and conveyancing aspects of the transaction and settlement process.
A building inspector assesses the building and its physical condition.
A pest inspector looks for evidence of termites and other timber pests.
Local government is responsible for matters within its relevant approval and regulatory framework.
Your lender and broker deal with finance requirements.
Depending on the property, you may also need advice from other appropriately qualified professionals.
Understanding these different roles is important because a settlement agent cannot provide every type of inspection or guarantee that every physical feature of a property complies with every requirement.
What if you discover something after signing?
This is where timing matters.
If you discover a potential issue after signing an Offer and Acceptance, your options will depend on the circumstances and the terms of your contract. You shouldn't assume that discovering an unapproved structure automatically gives you the right to cancel the contract.
Similarly, don't assume that a settlement agent can simply remove an issue from the contract.
If you discover something you're concerned about, raise it as soon as possible and obtain appropriate advice about your particular circumstances. It is generally much easier to investigate and resolve potential issues before they become a settlement-day problem.
Don't let an older home's charm distract from the details
Buying an established Perth home can be an exciting experience. The established garden, renovated kitchen, enormous backyard or quirky studio might be exactly what attracted you to the property in the first place. But before signing, take the time to understand the property beyond what you can see at the home open.
What is on the title?
What has been added or changed?
Are there structures that require further investigation?
Are there restrictions or easements that could affect your plans?
Have the appropriate inspections been carried out?
Knowing the answers can give you a much clearer picture of what you're actually purchasing.
At Adaptive Settlements, we believe property settlement should be about simplicity and efficiency, without unnecessary jargon.
If you're buying an established Perth property and have questions about the settlement process, we're here to help you understand what happens next and coordinate the conveyancing process through to settlement.
This article is provided for general information only and does not constitute legal, building, planning, financial or tax advice. Approval and compliance requirements can vary depending on the property and circumstances. Buyers should obtain appropriate professional advice and undertake any inspections or enquiries they consider necessary before entering into a contract.
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