Correct as at 18/04/2017
Pre Engagement Agreement – Building Inspection THE AGREEMENT 1. Definitions The relevant definitions listed in this Agreement are listed at the end of this Agreement. The Client’s Acknowledgments 2. The Client acknowledges that: a) The Inspector reserves the right to cancel the inspection and only the deposit, if any, will be reimbursed to the Client. b) The Inspector will inspect the Building Elements as outlined in Appendix C of AS4349.1-2007 except for Strata title properties where the inspection will be according to Appendix B of AS4349.1-2007. (AS Standards). A copy of the appropriate Standard with Appendices may be obtained from Standards Australia at your cost. The Client warrants that they have been given reasonable opportunity to peruse the relevant Australian Standards. c) The Inspection Report is also limited by the Restrictions on an Inspection, as well as any rights held by an Inspector to ensure their own safety and/or any other limitations set out in the terms of this Agreement. d) It is implicit that the Inspection Report is a subjective visual inspection. e) The Client will not rely on the report for valuation purposes or in their final decision to purchase the Property. f) The Inspection Report is for the Client’s exclusive use and not to be given to a third party without the Inspector’s written consent. g) The Scope of Inspection set out in this Agreement is only indicative as the Inspector is restricted by their ability to access any Area, which is subject to all safety considerations. The Client further acknowledges that the Inspector cannot breach the same to carry out an inspection. h) Some Restrictions on an Inspection are foreseeable while others are only known at the time of inspection. i) That the Inspector is the only person who can determine, at the time of the inspection, what they are restricted by during an inspection. j) The Inspector will carry out a visual and non-invasive inspection limited by access and restrictions. k) The Inspector is not liable for any Area not inspected due to Restrictions on an Inspection. l) That any claim for loss is limited to the cost of the inspection. m) That the Client has read all the terms and has not relied on any representations made by the Inspector or anyone else before entering this Agreement. n) That just because a defect is not visible at the time of the inspection does not guarantee that there is no defect affecting the Property. o) That the Client acknowledges acceptance of this Agreement and its terms through performance of this Agreement by way of payment of the agreed Inspector’s fee. p) The Client will not hold the Inspector liable for any losses suffered on relying on the Inspection Report considering the acknowledgments above and the terms of this Agreement. q) The Inspector does not report on latent defect in the property or in the title. r) That the Client acknowledges acceptance through performance of this Agreement by way of payment of the agreed Inspector’s fee, and confirming that the agreement and terms and conditions have read and understood by the client and / or as such ticking the appropriate check box when ordering on line. s) The Client will not hold the Inspector liable for any losses suffered on relying on the Inspection Report considering the acknowledgments above and all the terms of this Agreement. Scope of Inspection and Report 3. The report does not include an estimate of the cost for rectification of the Defects. The overall condition of this building has been compared to similarly constructed and reasonably maintained building of Approximate age. Areas for Inspection shall only cover what is deemed safe and accessible areas by the inspector. 4. The inspection will be a visual assessment of the items listed in Appendix C to AS4349.1- 2007 for the structures within 30 metres of the building and within the site boundaries including fences. 5. Subject to safe and reasonable access the Inspection will report on the condition of each of the following Areas and as follows: The Inspector will inspect (subject to the minimum requirements and the Restrictions on an Inspection) the accessible “Area”: a) The Interior of the Property; b) The Roof Space of the Property; c) The Exterior of the Property; d) The Sub-Floor Space of the Property; e) The Roof Exterior (subject to height and weather restrictions) of the Property; and f) The Property within 30m of the Building relevant to the Inspection. Restrictions on an Inspection 6. The Inspector is restricted by certain foreseeable and unforeseeable limitations during an inspection. 7. The Inspector’s foremost consideration is safety and reasonable access to an Area. Therefore the Inspector is restricted from inspecting any Area where it is unsafe to do so or cannot be reasonably accessed. 8. The Inspector cannot move any furniture or any other chattel or thing in order to access an Area. 9. The Inspector cannot conduct an inspection that is invasive and therefore cannot inspect: the inside of walls; between floors; behind any kitchen joinery/cupboards/wardrobes/chattels; inside flat roofing; and/or inside any eaves. This is not an exhaustive list. 10. The Inspector cannot cut access holes or remove screws and bolts (or any other fastenings) to access covers. 11. The Inspector cannot inspect an Area if the inspector determines that his access is obstructed. 12. The Inspector cannot carry out an inspection for: a) Any non-structural element; b) Any part of the Property that cannot be seen or that requires testing; c) Serviceability damp defects; d) Any common property that maybe under Strata Title or Company Title or any other form of Title unless explicitly stated in another signed Agreement; e) Asbestos; f) Magnesite; g) Mould; h) Anything listed on Appendix D of AS 4349.1-2007 attached to this document and marked Annexure ‘A’; and i) Any timber pest activity, pest infestation or damage caused by a pest infestation and/or anything pest related. j) No Inspection or comment will be made on any and not limited to plumbing conditions or any Electrical Wiring, Switches, Power Points or Electrical Appliances Including Air Conditioning Units, Heaters, or fire places. We strongly recommend You engage a suitably qualified tradesperson to inspect the above. k) Any single minor defect; l) Any cost or plan to rectify any defects and/or repair work; m) Comment on the appropriateness of: any structural design or construction; electrical works; swimming pools; or any electrical appliances; n) Whether fireplaces or chimneys are functional; o) Any biological risks such as toxic mould; p) Compliancy with any relevant building code or Act; q) Comment on any latent structural defect; and r) Provide a comment on any risk of flooding, earthquake and/or any other singularity cause by nature that my affect the structural integrity of the Property. s) This report is not a Swimming pool Safety report and the report will not include comment on Swimming Pools, Spas including pumps and equipment. 13. As outlined in Clause c4.2 (d) of As4349.1-2007. The inspection and report WILL NOT report on any defects which may not be apparent due to prevailing weather conditions at the time of the inspection including detection of rising damp and leaks. Such defects may only become apparent in differing weather conditions 14. The Inspector may cease an Inspection or not inspect an Area, upon encountering asbestos, mould, Magnesite or heavy timber damage, which causes the Inspector to have safety concerns. 15. The Inspection Report will be limited to the Extent of Reporting and will therefore only include information in relation to: a) The Area(s) inspected and/or not inspected with reasons; b) Any major defects being defined as defects that need to be rectified to avoid unsafe conditions and/or a defect that is a safety hazard or will likely be a safety hazard and/or an urgent and serious safety hazard; c) A general impression regarding the extent of minor defects; and d) A conclusion, which will address the incidence of major and minor, defects, relative to the average condition of a property similar to the Property being the subject of the inspection. The conclusion will only comment on the overall condition of the Property. 16. The Extent of Reporting is limited to a subjective visual and non invasive inspection only. 17. Further to the above, the Inspector will not include anything that is beyond the Extent of Reporting including, but not limited to, cost of rectification of any defects. 18. The Inspector is restricted by the following dimensions in relation to determining if an opening or height can be reasonably accessed: AREA ACCESS HOLE CRAWL SPACE HEIGHT Roof Interior 400 mm x 500 mm Min 600mm x 600mm From a 3.6m ladder off a level platform and only if it is safe to do so Roof Exterior – – From a 3.6m ladder off a level platform and only if it is safe to do so Subfloor Subject to Inspector's discretion as to safe and reasonable access Subject to Inspector's discretion as to safe and reasonable access Subject to Inspector's discretion as to safe and reasonable access 19. There may be further, unexpected limitations encountered by the Inspector, which can only be determined at the time of inspection. Inspector’s Fee 20. The Client will pay to the Inspector the sum as advised by the Inspector for an Inspection Report of the Property (detailed above in this Agreement) and the final report is subject to this acknowledgments, terms and recitals within this Agreement. Limitations And Exclusions 21. The Inspector will conduct a non invasive visual inspection which will be limited to those accessible Areas and sections of the property to which Safe and Reasonable Access is both available and permitted on the date and time of the inspection. 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 subject to another pre-inspection agreement on the same terms herein. 22. The Inspection WILL 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. a) Shower Recesses: Taps will be turned on in accord with AS4349.1-2007 to detect apparent leaks (if water is connected). The tests may not reveal leaks or show incorrect waterproofing if silicone liquid or masonry sealant has been applied prior to the inspection. Floor grading and fall ratios do not form part of this inspection and will not be reported on. We strongly recommend you have this checked by a suitably qualified tradesperson prior to a decision to purchase. 23. Any stored or scattered goods, stored items including boxes, parked cars and bikes, boats, trailers, A/C units and ducting and any external covering foliage, plants, vines, stored fire wood and timbers, vines clinging to external wall surfaces, trees covering areas will hinder the inspection process. 24. The Report is not a certificate of compliance that the property complies with the requirements of any Act, regulation, ordinance, local law or by-law, or as a warranty or an insurance policy against problems developing with the building in the future. 25. Warranties and quality 26. The Inspector warrants that they will do everything reasonable to inspect the above Areas thoroughly and responsibly subject to the requirements of the AS Standard and any foreseeable or unforeseeable restrictions. 27. The Inspector warrants that it will list all of the limitations encountered, restricting the Inspector within the Inspection Report. 28. The Client warrants that they will not hold the Inspector liable for any Area that the Inspector could not reasonably inspect due access and restrictions on an inspection. 29. The Client warrants that they will not rely on this report after a period of 7 days as this is a visual inspection condition may change between the day of inspection and the day of any defect being apparent such as, but not limited to, different weather conditions, removal of furniture, damage done by occupants, settling of the land, extreme weather damages or anything that could cause the visual effect of a defect to become known. Indemnity 30. The Client indemnifies the Inspector: a) Against any third party losses or claims for use of the Inspection Report. b) Against any claim as a result of purchasing a property that was not accurately valued. c) Against any major and/or minor defect that was not evident by visual assessment at the time of the inspection. d) Termination of this Agreement by the Inspector pursuant to Item 33 of this Agreement. COMPLAINTS PROCEDURE 31. 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. 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. Third party disclaimer 32. The Report will be made solely for the use and benefit of the Client. No liability or responsibility whatsoever, in contract or tort, is accepted to any third party who may rely on the report wholly or in part. Any third parties acting or relying on the report, in whole or in part will do so at their own risk. Default and Termination 33. The Inspector reserves the exclusive right to terminate this Pre-Inspection Agreement on 1 days’ notice due to weather constraints, non-payment of the Inspector’s Fee or any other safety concern. Only the Inspector may terminate the Agreement. 34. If the Inspector’s fee is refunded for any reason whatsoever then the Inspection Report provided (if any) will be deemed invalid and annulled. Severability 35. Any term within this Agreement that is deemed invalid in any jurisdiction is only invalid to the extent specified by the jurisdiction in that specific jurisdiction. It does not invalidate any other term of this Agreement. Furthermore if a term or terms are found to be invalid and thereby severed from this Agreement the Agreement and its surviving terms are not invalidated. Bar on claims 36. The Client is barred from making a claim against the Inspector by virtue of the Client’s Acknowledgments. Acknowledgement 37. You agree to contact the Inspector once You have read the report. By agreeing to this pre inspection agreement you confirm that You will read this Inspection Report in its entirety prior to purchasing the inspected property and agree to call, Text, SMS or email the Inspector if you have any further questions about this report. DEFINITIONS 1. Acknowledgment: means a thing that a person is intimately aware of and has taken full consideration of and accepts that piece of information unconditionally. 2. Area: means the area and/or areas listed in clause 5 only. 3. AS Standards: means AS 4349.1 2007 in this Agreement. 4. Client: means the person detailed as the same on the first page of this agreement only. 5. Client’s acknowledgments: means the items listed in paragraph 2 that the Client is intimately aware of and has taken full consideration of and accepts that piece of information unconditionally. 6. Defect means a fault or deviation from the intended condition of the material, assembly or component. 7. Inspection: reasonable and careful visual appraisal of the Property in order to comment on the visually detectable defects. 8. Inspector: means the organisation detailed as the same on the first page of this agreement only. 9. Inspector’s fee: means clause 20. 10. Limitation means any factor that prevents full achievement of the purpose of the inspection 11. Major defect: a defect that is significant enough to require rectification work in order to avoid unsafe conditions, loss of utility or cause further damage to overall quality of the Property. 12. Minor defect: any defect not classified as a major defect. 13. Property: means the property details listed in this Agreement. 14. Readily Accessible Areas means areas which can be easily and safely inspected without injury to person or property as defined in the clearance table listed in clause 18. Or where these clearances are not available, areas within the consultant’s unobstructed line of sight and within arm’s length. 15. Report: means the document and any attachments issued to the Client by the Inspector subject to the whole of this Agreement. 16. Restrictions on an Inspection: means paragraphs 6 to 19 of this Agreement. 17. Safe and Reasonable Access does not include the use of destructive or invasive inspection methods or moving furniture or stored goods. The Standard AS4349.1-2007 provides information concerning safe and reasonable access: Note: Only areas where reasonable and safe access is available will be inspected. No Inspection will be carried out where there are safety concerns, or obstructions, or the space available is less than outlined and tabled in Clause 18 of this agreement. Very Important If there is anything in this agreement that you do not understand, then prior to the commencement of the inspection, you must contact us by phone or in person and have us explain and clarify the matter to your satisfaction. Your failure to contact us means that you have read this agreement and do fully understand the contents.