Building & Pest report done by business run by vendor

Hey guys,

Just found ourselves in a situation where the vendor supplied a building & pest report for a house we're interested in that's going to auction in a couple of weeks. However, I've just discovered that the vendor practically runs this building inspection business. Anyone come across this much before?

So I've got a couple of immediate concerns... 1) obviously that it can't be deemed impartial, despite another employee of that business being the actual inspector, & 2) if the real estate knows this isn't it their duty to disclose? Surely this is dodgy... Or does this kind of thing happen more than you'd think?

Cheers!

 

Just get your own report if you have doubts.

 

Yeah we definitely will, but more concerned about whether it should have been disclosed or not?

 

Not really relevant as any vendor can make access difficult or follow any inspector around distracting them from area's of fault or concern.

I wouldn't be assuming any "provided" B&P report might be truthful or honest.

Part of doing your own Due Diligence to limit your risk would be to obtain your own.

Don't see that the rea should disclose the ownership, it's just another report from a B&P company to them.

Though you would be peeved if you engaged the property owners B&P company for a report and they didn't disclose...

 

I would never accept a report for a car dealer so I certainly would seek my own report for a building and pest. Use of someone elses report may mean there is no insurance. And then there is scope for blatant fraud in the report. The lack of transparency does signal a need for caution. I would ensure any inspector you send knows the vendor is in the industry so they look for what has been well disguised.

 

Thanks this is a really good point & I've now got to hope anyone I do send doesn't know the vendor, who's been in the game a while by the sounds of it. It's not a huge market here...

 

FYI have just been informed by another respected agent in the area that this is illegal practice as it breaks code of conduct from standard; AS 4349;

"A building inspector must not perform a home or building inspection where there is the potential for a conflict of interest, for example completing the report for a person selling a property whom they are a friend or family relation or a property they directly or indirectly own."

 

Though given that the report was done for the vendor..... do inspectors have a duty of care to anyone who relies on the report? Or just to the person who paid them (in this case the vendor)?

 

Just to add to this... the vendor rejected our pre-auction offer of 14% above listed guide price. That price has still not been changed on the listing a week later. We've been informed this is also illegal. Anyone know if this is true? I know auction guides are notoriously low to gather as much interest as possible, but if a big offer has been rejected are they not meant to change the guide?