What Is The Purpose of a Dilapidation Report?
If you’re just purchasing your first home then your mortgage company will probably tell you what reports they need before they can release your funds and the sale can be completed.
One of the reports they need is a dilapidation report, although you can have this done at any time you own the property.
What Is A Dilapidation Report?
It’s a report that is put together by a professional surveyor. They will take a look at the condition of a property and record any known issues, damage, and any potential issues. It should take into consideration any impending construction work and how that may affect the property.
It’s normal to have a report on your building and neighboring ones if you’re about to undertake construction work. In essence, it assesses the likelihood of damage occurring to any of the properties because of work you’re undertaking.
It’s also normal to have a second report completed after the work has been finished. This will confirm any damage or issues that have arisen due to the work you’ve undertaken. By making a building defects report you’ll find it easier to defend your position if a neighbor says your building work has caused problems with their home.
What It Includes
There will be an array of notes and measurements, as well as a range of pictures. The aim is to give a clear view of the current situation and make sure that all parties are aware of the current condition. This is done by both parties signing off to confirm the inspection has been completed.
The aim of the report is to give an accurate picture of what each building is currently like, ensuring you’ll be aware of any changes caused by the construction process. This will allow you to rectify the issue without having to deal with expensive court action.
The Ultimate Purpose
The decision as to whether to have a dilapidation report comes down to how much work you’re intending on doing and how close your neighbors are. The closer they are the more likely it is that a report will be necessary.
However, it is worth noting that while the dilapidation report is not obligatory, it does give you a layer of protection. Put simply, it’s much harder for a neighbor to construct a lawsuit against you because the work has damaged their home.
If you have reports from before and after, then you can defend your position as you’ll know that any damage was an unfortunate event that happened to start at the same time as you started constructing.
The cost of the report will seem very small in comparison with the claim that you’ll have to pay if you don’t have a report done and there is a problem with the neighbor’s property.
It is always worth verifying with your local council whether a dilapidation report is a necessary requirement or not. The rules are different between states but, if in doubt, it is definitely better to err on the side of caution.