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Caveat Emptor or buyer beware are often used expressions. But do you really know what this means?
Before buying, as a minimum, the following should be thoroughly checked. This includes:
1. Measuring the position of and the size of the land,
2. Checking the building for structure and for pests,
3. Checking your own finances – finance to purchase and finance to renovate,
4. Having the legal documents read to you.
You may want to also check other things such as, has the Council approved the use of that shop to sell fish and chips. Environmental and heritage concerns may also apply.
Cooling off period
The cooling-off period will not always save you, particularly when you are buying 3 days before or after an auction, industrial or commercial use property or a farm larger than 20 hectares. If you try to cool-off, you will lose some of the deposit. Many people try to cool-off after the 3 – day period has expired. There is usually no cooling-off period when buying a business.
The section 32 or section 52 disclosure statement doesn’t always tell you what you need to know. For a business, it is important to understand the business and ‘trial’ the business. Two weeks of takings are not usually representative of the turn-over of a business and can often be quite misleading. The existence of asbestos in building materials will not be evident in the disclosure statement.
Illegally constructed building extensions aren’t disclosed in the Disclosure Statement or in the Council’s building department’s report. If no one applied for a permit, then the building department will have no record of the building works. The Council inspector could well ask the Purchaser to demolish the illegal structure and pay a fine.
The Purchaser will inherit all of the responsibilities of the property from the day the Purchaser signs the Contract. When you are paying so much money, it is worth thoroughly checking. Even check the lights and water supply. It is important to retain and even improve the good-will of the business.