Buying a property in NSW? Find out what a survey report is, what it can reveal and whether you need one before exchanging contracts.
Welcome to another video in our series on buying residential property in NSW.
In this video, Alexandra explains survey reports, what they show and why they can be important when you are considering buying a property.
A survey report is one of several pre-purchase property reports your lawyer may recommend before you exchange contracts, depending on the type of property you are buying.
What Is a Survey Report?
A survey report can help you understand the physical boundaries of the property you are considering buying.
It can also identify buildings, structures and other features in relation to those boundaries.
This information can help you identify potential issues before you commit to the purchase.
In NSW, survey plans play an important role in defining land boundaries. The NSW Registrar General provides information about survey plans and the NSW land title system.
What Other Pre-Purchase Reports Might You Need?
A survey report is one of several reports your lawyer may recommend before you exchange contracts.
Depending on the property, these may include:
- Building report: to identify potential defects or problems with the building.
- Pest report: to identify evidence of termites and other pest-related issues.
- Building Information Certificate: to provide information about certain building work and its relationship with council requirements.
Each report serves a different purpose. You should discuss the appropriate searches and inspections with your lawyer before you exchange contracts.
Does the Vendor Have to Provide a Survey Report?
Some contracts may include a survey report provided by the vendor.
If a survey report comes with the contract, check that it is current before relying on it.
An older survey may not accurately reflect the property as it exists today.
If the vendor has not provided a survey report, you may wish to obtain one yourself before exchanging contracts.
This can be particularly relevant when you are buying vacant land or a property with a house that does not form part of a unit or community title scheme.
Why Is a Survey Report Important?
1. It Can Confirm the Property Boundaries
A survey can help identify the boundaries of the land you intend to purchase.
This may sound straightforward. However, the physical appearance of a property does not always show its legal boundaries.
For example, a fence may sit in a different position from the actual boundary.
This can make a property appear larger or smaller than the land shown on the relevant plan.
There can also be a risk of confusion when buying land in a subdivision.
An agent may refer to lots using numbers that differ from the lot numbers shown on the deposited plan.
Extra care can therefore be important when you buy a subdivision of relatively featureless land.
2. It Can Identify Encroachments
A survey can also identify buildings or structures that cross a property boundary.
For example, a fence may sit in the wrong position. A neighbour’s garage may also extend onto the property you want to buy.
The reverse can happen too. A structure on the property you are buying may extend onto your neighbour’s land.
These issues can create significant legal and practical problems.
Alexandra has also encountered a situation where part of a backyard swimming pool extended across a neighbour’s land. As you can imagine, that raised a number of issues for the parties involved.
3. It Can Help Identify Issues With Restrictions on the Land
A survey can help identify whether structures on the property comply with restrictions or covenants affecting the land.
For example, a covenant may impose requirements about the type of materials used for a structure or its appearance.
You should also ask your lawyer to review the title and contract documents for any relevant restrictions, covenants or other interests affecting the property.
4. Your Lender May Have Specific Requirements
Your lender may have requirements about property searches or reports before settlement.
Always check with your lender before exchanging contracts so you understand what they require.
Why Should You Get a Survey Before Exchanging Contracts?
Timing matters when you buy property.
It is important to identify potential problems before you exchange contracts whenever possible.
If you discover a boundary issue or encroachment after exchange, you may have limited options.
Depending on the terms of the contract and the circumstances, you may still have to complete the purchase.
That is why it is important to investigate the property before you commit to the contract.
The NSW Government’s guidance on buying property also recommends that buyers understand the contract and obtain appropriate professional advice before committing to a purchase.
Do You Need a Survey Report for a Building Information Certificate?
A survey report can also become important if you want to apply for a Building Information Certificate.
Depending on the property and application, the relevant council may require a current survey report and plan showing the property boundaries and buildings or structures on the land.
Service NSW explains the requirements for applying for a Building Information Certificate, including when supporting documents such as a survey report and plan may be required.
Remember that a Building Information Certificate is different from a building inspection report.
We have separate videos covering these different pre-purchase property searches.
What Can a Survey Report Reveal Before You Buy?
A survey report may help identify:
- where the property’s boundaries sit;
- whether fences appear to follow the boundaries;
- whether buildings or structures encroach across a boundary;
- whether neighbouring structures extend onto the property;
- potential issues affecting a subdivision; and
- information you may need when considering a Building Information Certificate.
Should You Get a Survey Report Before Buying Property?
There is no one-size-fits-all answer.
Whether you should obtain a survey report will depend on the type of property, the available documents and your circumstances.
A survey can provide useful information about boundaries and structures before you commit to the purchase.
If you are buying vacant land, a house or another property where boundary issues could arise, discuss whether you should obtain a survey with your lawyer before exchanging contracts.
It is much easier to investigate a potential problem before exchange than after you have committed to the purchase.
Need Help With Your Property Purchase?
Buying property involves more than simply inspecting the home and making an offer.
Pre-purchase searches can help you identify potential issues before you commit to the contract.
If you are buying residential property in NSW and would like advice about the contract or appropriate property searches, contact LEDA Lawyers to discuss your circumstances.
Disclaimer: This video and article provide general information only. They do not constitute legal advice and should not be relied upon as legal advice. You should obtain advice about your individual circumstances before entering into a property contract.