SCOPE AND LIMITATIONS OF THE INSPECTION AND THE REPORT

PURPOSE OF INSPECTION: The Inspection will be carried out in accordance with, AS4349.1-2007. The purpose of the inspection is to identify major defects, the incidence of minor defects and safety hazards associated with the property at the time of the inspection. The inspection and reporting is limited to Appendix C of AS4349.1-2007. Areas for inspection shall cover all safe and accessible areas.

GENERAL AREAS INSPECTED: Subject to safe and reasonable access (See Definitions below) the Inspection will normally report on the condition of each of the following areas:- Allotment, The house exterior, The subfloor, The roof exterior, The roof interior and The house interior.

THIS IS A VISUAL INSPECTION ONLY limited to those areas and sections of the property fully accessible and visible to the Inspector at the time and on the date of inspection. The inspection DID NOT involve any invasive inspection including cutting, breaking apart, dismantling, removing or moving objects including, but not limited to, roofing, wall and ceiling sheeting, ducting, foliage, mouldings, debris, roof insulation, sarking, sisalation, floor or wall coverings, sidings, fixtures, floors, pavers, furnishings, appliances or personal possessions and other areas that are concealed or obstructed. The Inspector CANNOT see inside walls, between floors, inside skillion roofing, inside eaves, behind stored goods in cupboards and other areas that are concealed or obstructed. The inspector DID NOT dig, gouge, force or perform any other invasive procedures. You agree that We cannot accept any liability for Our failure to report a defect that was concealed by the owner of the building being inspected and You agree to indemnify Us for any failure to find such concealed defects.

This Report does not and cannot make comment upon: defects that may have been concealed; the assessment or detection of defects (including rising damp and leaks) which may be subject to the prevailing weather conditions and may only become apparent in differing weather conditions; whether or not services have been used for some time prior to the inspection and whether this will affect the detection of leaks or other defects (eg. In the case of shower enclosures the absence of any dampness at the time of the inspection does not necessarily mean that the enclosure will not leak). Accordingly this Report is not a guarantee that defects and/or damage does not exist in any inaccessible or partly inaccessible areas or sections of the property.

REASONABLE ACCESS AND DISCLAIMER OF LIABILITY: No liability shall be accepted on account of failure of the Report to notify any problems in any area(s) or section(s) of the subject property physically inaccessible for inspection, or to which access for Inspection is denied by or to the Inspector (including by not limited to any area(s) or section(s) so specified by the Report). Only areas to which reasonable access is available were inspected. Areas where reasonable entry is denied to the inspector, or where safe and reasonable access is not available, are excluded from and do not form part of, the inspection. Those areas may be the subject of an additional inspection upon request following the provision or reasonable entry and access. The Australian Standard 4349.1 defines reasonable access as “the extent of accessible areas shall be determined by the inspector at the time of inspection, based on the conditions encountered at the time of the inspection. The inspector shall also determine whether sufficient space is available to allow safe access. The inspection shall include only accessible areas and areas that are within the inspector’s line of sight and close enough to enable reasonable appraisal.” Reasonable access does not include the cutting of access holes or the removal of screws and bolts or any other fastenings or sealants to access covers. Sub floor areas sprayed with Chemicals will not be inspected unless it is safe to do so.

Roof Void: the dimensions of the access hole must be at least 500mm x 400mm, and, reachable by a 3.6m ladder, and, there is at least 600mm x 600mm of space to crawl.

Roof Exterior: Must be accessible from a 3.6m ladder placed at ground level. In some instances access may be gained to roof areas higher than 3.6m dependent upon safe access and strictly at the discretion of the building inspector. Access to external roof areas may not be possible during inclement or hazardous weather conditions, steep roof pitch or due to fragile roofing materials etc.

INSPECTION CRITERIA: The Inspection and Report compares the inspected building with a building that was constructed in accordance with the generally accepted practice at the time of construction and which has been maintained such that there has been no significant loss of strength and durability.

REPORT DEFINITION: The Standard Property Report is not intended as a certificate of compliance of the property within the requirements of any Act, regulation, ordinance or by-law, or, as a warranty or an insurance policy against problems developing with the building in the future. This report is limited to a visual inspection of areas where reasonable access is available at the time of the inspection. This report is limited to (unless otherwise noted) the main structure on the site and any other building, structure or outbuilding specifically named within the report within 30 metres of the main building and within site boundaries including fences.

PEST INSPECTIONS: The inspection WILL NOT report on the presence or not of Timber Pest activity. You should have an inspection carried out in accordance with AS4349.3-1998 Timber Pest Inspections, by a fully qualified, licensed and insured Timber Pest Inspector. If timber pest damage is found then it will be reported. The inspector will only then report on the damage which is readily visible. There may be concealed damage in walls etc and we strongly recommend you arrange an invasive inspection to discover the full extent of the damage. If any evidence of timber pest damage is reported then timber pest activity may also be present. It is very important that you have an AS 4349.3-2010 Timber Pest Inspection carried out by a fully qualified, licensed and insured Timber Pest Inspector prior to purchase of the house.

SWIMMING POOLS: Swimming Pools/Spas are not part of the Standard Building Report under AS4349.1-2007 and are not covered by this Report. We strongly recommend a pool expert should be consulted to examine the pool and the pool equipment and plumbing as well as the requirements to meet the standard for pool fencing. Failure to conduct this inspection and put into place the necessary recommendations could result in fines for non compliance under the legislation.

ROOMS BELOW GROUND LEVEL: If there are any rooms under the house or below ground level (whether they be habitable or non-habitable rooms), these may be subject to dampness and water penetration. Drains are not always installed correctly or could be blocked. It is common to have damp problems and water entry into these types of rooms, especially during periods of heavy rainfall and this may not be evident upon initial inspection. These rooms may not have council approval. The purchaser should make their own enquiries with the Council to ascertain if approval was given.

ASBESTOS: No inspection for asbestos was carried out at the property and no report on the presence or absence of asbestos is provided. If during the course of the Inspection asbestos or materials containing asbestos happened to be noticed then this may be noted in the report. Buildings built prior to 1982 may have wall and/or ceiling sheeting and other products including roof sheeting that contains Asbestos. Even buildings built after this date up until the early 90’s may contain some Asbestos. Sheeting should be fully sealed. If concerned or if the building was built prior to 1990 or if asbestos is noted as present within the property then you should seek advice from a qualified asbestos removal expert as to the amount and importance of the asbestos present and the cost of sealing or removal. If asbestos is noted as present within the property then you should seek advice from a qualified asbestos removal expert as to the amount and importance of the asbestos present and the cost of sealing or of removal. Drilling, cutting or removing sheeting or products containing Asbestos is high risk to peoples’ health. You should seek advice from a qualified asbestos removal expert.

MOULD (MILDEW AND NON-WOOD DECAY FUNGI): Mildew and non-wood decay fungi is commonly known as Mould. However, Mould and their spores may cause health problems or allergic reactions such as asthma and dermatitis in some people. No inspection for Mould was carried out at the property and no report on the presence or absence of Mould is provided. If in the course of the inspection, Mould happened to be noticed it may be noted in the report. If Mould is noted as present within the property or if you notice Mould and you are concerned as to the possible health risk resulting from its presence then you should seek advice from your Local Council, State or Commonwealth Government Health Department or a qualified expert such as an Industry Hygienist.

ROOF VOID: If foil insulation is used within the roof void, we are not able to inspect the roof void as the foil insulation creates a potential health and safety risk because of the danger of electrocution and ceiling timbers being covered and it is dangerous to attempt to crawl over.

MAGNESITE FLOORING DISCLAIMER: No inspection for Magnesite Flooring was carried out at the property and no report on the presence or absence of Magnesite Flooring is provided. You should ask the owner whether Magnesite Flooring is present and/or seek advice from a Structural Engineer.

ESTIMATING DISCLAIMER: Estimated costs of repairs are not provided in this report. Any verbal estimates are merely opinions of possible costs that could be encountered, based on the knowledge and experience of the inspector and are not estimates in the sense of being a calculation of the likely costs to be incurred. Any verbal estimates are NOT a guarantee or quotation for work to be carried out. The actual cost is ultimately dependent upon the materials used, standard of work carried out and what a contractor is prepared to do the work for. It is recommended in ALL instances that multiple independent quotes are sourced prior to any work being carried out. The inspector accepts no liability for any verbal estimates provided, where they are given, you agree to obtain and rely on independent quotations for the same work.

OWNER STATEMENT: If the property to be inspected is occupied then You must be aware that furnishings or household items may be concealing evidence of problems, which may only be revealed when the items are moved or removed. Where the Report says the property is occupied You agree to:

a) Obtain a statement from the owner as to
i. any timber Pest activity or damage
ii. timber repairs or other repairs
iii. alterations or other problems to the property known to them
iv. any other work carried out to the property including Timber Pest treatments
v. obtain copies of any paperwork issued and the details of all work carried out.

b) Indemnify the inspector from any loss incurred by You relating to the items listed in clause a) above where no such statement is obtained.

STRATA TITLE: Where the property is covered by an Owners Corporation (Strata Title), we strongly recommend that an Owners Corporation search be conducted to ascertain the financial position, the level of maintenance and any other relevant information available through the conduct of such an inspection. Where the property is a strata or similar title, the inspector will only inspect the interior and immediate exterior of the particular unit requested to be inspected. The exterior above ground floor level is not inspected. The inspection will be as outlined in AS 4349.1-2007 Appendix B. Therefore it is advised that the client obtain an inspection of common areas prior to any decision to purchase. The complete inspection of other common property areas would be the subject of a Special Purpose Inspection.

ADDITIONAL INSPECTION TIME FRAME: Where Our report recommends another type of inspection including an invasive inspection and report then You should have such an inspection carried out prior to the building inspection clause within the contract lapsing. In some cases it may be necessary to obtain an extension to your building clause. If you fail to follow Our recommendations then You agree and accept that You may suffer a financial loss and indemnify Us against all losses that You incur resulting from Your failure to act on Our advice.

RESIDENTIAL PROPERTY: The Report is prepared and presented, unless stated otherwise, under the assumption that the existing use of the building will continue as a Residential Property.

DISCLAIMER OF LIABILITY TO THIRD PARTIES: Compensation will only be payable for losses arising in contract or tort sustained by the Client named on the front of this report. Any third party acting or relying on this Report, in whole or in part, does so entirely at their own risk. However, if ordered by a Real Estate Agent or a Vendor for the purpose of auctioning a property then the Inspection Report may be ordered up to (7) days prior to the auction, copies may be given out prior to the auction and the Report will have a life of 14 days during which time it may be transferred to the purchaser. Providing the purchaser agrees to the terms of this agreement then they may rely on the report subject to the terms and conditions of this agreement and the Report itself

Note: In the ACT under the Civil Law (Sale of Residential Property) Act 2003 and Regulations the report resulting from this inspection may be passed to the purchaser as part of the sale process providing it is carried out not more than three months prior to listing and is not more than six months old.

Prohibition on the Provision or Sale of the Report
The Report may not be sold or provided to any other Person without Our express written permission, unless the Client is authorized to do so by Legislation. If We give our permission it may be subject to conditions such as payment of a further fee by the other Person and agreement from the other Person to comply with this clause.

However, We may sell the Report to any other Person although there is no obligation for Us to do so.

Release
You release Us from any and all claims, actions, proceedings, judgments, damages, losses, interest, costs and expenses of whatever nature that the Person may have at any time hereafter arising from the unauthorised provision or sale of the Report by You to a Person without Our express written permission.

Indemnity
You indemnify Us in respect to any and all liability, including all claims, actions, proceedings, judgments, damages, losses, interest, costs and expenses of any nature, which may be incurred by, brought, made or recovered against Us arising directly or indirectly from the unauthorised provision or sale of the Report by You to a Person without Our express written permission.

SPECIAL PURPOSE PROPERTY REPORT: The inspection Will not cover or report the items listed in Appendix D to AS4349.1-2007. This Standard Property Report does not contain any assessment or opinion in relation to any item, which is the subject of a Special Purpose Property Report (as defined in AS4349.1), or any matter where the inspection or assessment of which is solely regulated by Statute. Special Purpose Property Reports include comment on the following: Estimating Report; Electrical; Plumbing & Gas; Pest; Structural Engineering; Common property areas; Boundary lines and encroachment measurements; Environmental matters such as aspect, geotechnical, sunlight, privacy, streetscape, views etc; Proximity of property to flight paths, railways and busy traffic or other neighbourhood issues; Noise levels; Health and safety issues including the presence of asbestos, lead, mould, or toxic soils etc; Hazards Inspection;; Heritage or security matters; Fire protection or safety; Analysis of site drainage apart from surface water drainage; Lift Hydraulics; Garage door mechanicals; Swimming pools and spas; Durability of exposed finish materials; Neighbourhood usage such as pests, closeness to mines, public transport, hotels, stormwater drains, public entertainment venues etc; Document analysis eg. sewer drainage, plans and diagrams, surveys, building approvals, detection of illegal construction and compliance etc; The operation of fireplaces, chimneys, alarm systems, intercom systems, data systems, electrical and mechanical appliances, air conditioning systems, smoke detectors and residual current devices have not been tested and are the subject of a Special Purpose Property Report. Should you require an inspection to be carried out on any item not specifically covered by this report, you should engage a specialist in each of these fields.

CONSUMER COMPLAINTS PROCEDURE: In the event of any dispute or claim arising out of, or relating to the Inspection or the Report, You must notify Us as soon as possible of the dispute or claim by email, fax or mail. You must allow Us (which includes persons nominated by Us) to visit the property (which visit must occur within twenty eight (28) days of your notification to Us) and give Us full access in order that We may fully investigate the complaint. You will be provided with a written response to your dispute or claim within twenty eight (28) days of the date of the inspection.

If You are not satisfied with our response You must within twenty one (21) days of Your receipt of Our written response refer the matter to a Mediator nominated by Us from the Institute of Arbitrators and Mediators of Australia. The cost of the Mediator will be borne equally by both parties or as agreed as part of the mediated settlement.

Should the dispute or claim not be resolved by mediation then the dispute or claim will proceed to arbitration. The Institute of Arbitrators and Mediators of Australia will appoint an Arbitrator who will hear and resolve the dispute. The arbitration, subject to any directions of Arbitrator, will proceed in the following manner.

(a) The parties must submit all written submissions and evidence to the Arbitrator within twenty one (21) days of the appointment of the Arbitrator; and
(b) The arbitration will be held within twenty one (21) days of the Arbitrator receiving the written submissions.

The Arbitrator will make a decision determining the dispute or claim within twenty one (21) days of the final day of arbitration. The Arbitrator may, as part of his determination, determine what costs, if any, each of the parties are to pay and the time by which the parties must be paid any settlement or costs.

The decision of the Arbitrator is final and binding on both parties. Should the Arbitrator order either party to pay any settlement amount or costs to the other party but not specify a time for payment then such payment shall be made within twenty one (21) days of the order.

In the event You do not comply with the above Complaints Procedure and commence litigation against Us then You agree to fully indemnify Us against any awards, costs, legal fees and expenses incurred by Us in having your litigation set aside or adjourned to permit the foregoing Complaints Procedure to complete.

CANCELLATION OF INSPECTION: We understand that sometimes contracts fall over due to finance approval not being obtained and other reasons outside your control. In these circumstances we ask for 24 hours notice of any cancellation. If less than 24 hours notice is given a cancellation fee of $200 will be payable.

PAYMENT OF INSPECTION: Payment is required on the day of the inspection, after the inspection has been carried out. Our policy is that reports are not released until payment has been made.

DEFINITIONS:

You should read and understand the following definitions of words used in this Agreement and the Report. This will help You understand what is involved in a property and building inspection, the difficulties faced by the inspector and the contents of the Report which We will provide You following the inspection.

Acceptance Criteria: The Building shall be compared with a building which was constructed at approximately the same time, using practices which were generally accepted as normal for that time and that the property has received maintenance to ensure that the intended strength and serviceability of the building have not significantly deteriorated over time.

Access hole (cover) means an opening in the structure to allow for safe entry to carry out an inspection.

Accessible area is any area of the property and structures allowing the inspector safe and reasonable access within the scope of the inspection.

Building Element means a part of a building performing a particular function either singularly or in conjunction with other such parts.

Client means the person(s) or other legal entity for which the inspection is to be carried out. If ordered by the persons(s)’s agent then it is agreed that the agent represents the person(s) and has the authority to act for and on their behalf. (See also “You/Your” below).

Defect means a variation or fault in material or a component or assembled element that deviates from its intended appearance or function.

Inspector means the company, partnership or individual named below that You have requested to carry out a Building Inspection and Report. (See also “Our/Us/We” below).

Limitation means any factor that prevents full achievement of the purpose of the inspection.

Major defect means a defect of such significance that without correction would not avoid Safety Concerns, loss of the intended practical performance of the building element or an additional decline in the existing condition of the property inspected.

Moderate defect means a defect where rectification is required in order to prevent more substantial deterioration of the property or loss of utility.

Minor defect means a defect other than a Moderate or Major Defect.

Our/Us/We means the company, partnership or individual named below that You have requested to carry out the property inspection and report.

Person means any individual, company, partnership or association who is not a Client.

Property means the structures and boundaries etc up to thirty (30) metres from the exterior walls of the main building but within the boundaries of the land on which the main building is erected.

Report means the document and any attachments issued to You by Us following Our inspection of the property.

Safe and Reasonable Access does not include the use of destructive or invasive inspection methods or moving furniture or stored goods.

Satisfactory The items inspected appear to be in a serviceable condition or were in acceptable condition considering the items and their age.

You/Your means the party identified on the face page of this agreement as the Client, and where more than one party all such parties jointly and severally, together with any agent of that party.