Risks of property reports for vendors

Consultants’ reports for vendors of properties are fraught with risk. In my view, it is unwise for consultants to carry out property inspections and prepare reports on behalf of vendors. These types of reports could amount to representations by vendors that could be challenged by future purchasers leading to claims against the vendors and the consultants who prepared such reports for vendors.

In today's very litigious environment (especially in relation to the building industry in New Zealand), I think it is unwise for vendors to commission any reports. Any existing reports known to vendors, in my view, should be disclosed up front, on the basis that prospective purchasers satisfy themselves, without influence by vendors or their consultants, as to the suitability of properties being sold.

In disclosing these reports, the point should be made that prospective purchasers should commission their own reports as they see as being necesssary.

In summary, I think vendors should make full disclosure and take no steps themselves to contradict any existing reports. In my view, this is prudent advice nowadays to all vendors contemplating commissioning their own reports for the purpose of selling property.

This seems to fly in the face of the principles of the Home Information Packs (HIPs) that are in place in England and Scotland.