Forms R3, R4, R5 & R7 Buyers Information

Before you buy a home there are a number of things that you should investigate and consider. Though it may not be obvious at the time, there could be matters that may affect your enjoyment of the property, the safety of people on the property or the value of the property.

The following questions may help you to identify if a property is appropriate to purchase. In many cases the questions relate to a variety of laws and standards. These laws and standards change over time, so it is important to seek the most up to date information. Various government agencies can provide up to date and relevant information on many of these questions. To find out more, Consumer and Business Services recommends that you check the website: www.cbs.sa.gov.au

Consider having a professional building inspection done before proceeding with a purchase. A building inspection will help you answer some of the questions below.

The questions have been categorised under the headings Safety, Enjoyment and Value, but all of the issues are relevant to each heading.

• Is there asbestos in any of the buildings or elsewhere on the property eg sheds and fences?
• Does the property have any significant defects eg cracking or salt damp? Have the wet areas been waterproofed?
• Is the property in a bushfire prone area?
• Are the electrical wiring, gas installation, plumbing and appliances in good working order and in good condition? Is a safety switch (RCD) installed? Is it working?
• Are there any prohibited gas appliances in bedrooms or bathrooms?
• Are smoke alarms installed in the house? If so, are they hardwired? Are they in good working order and in good condition? Are they compliant?
• Is there a swimming pool and/or spa pool installed on the property? Are there any safety barriers or fences in place? Do they conform to current standards?
• Does the property have any termite or other pest infestations? Is there a current preventive termite treatment program in place? Was the property treated at some stage with persistent organochlorins (now banned) or other toxic termiticides?
• Has fill been used on the site? Is the soil contaminated by chemical residues or waste?
• Does the property use cooling towers or manufactured warm water systems? If so, what are the maintenance requirements?

• Does the property have any stormwater problems?
• Is the property in a flood prone area? Is the property prone to coastal flooding?
• Does the property have an on-site wastewater treatment facility such as a septic tank installed? If so, what are the maintenance requirements? Is it compliant?
• Is a sewer mains connection available?
• Are all gutters, downpipes and stormwater systems in good working order and in good condition?
• Is the property near power lines? Are there any trees on the property near power lines? Are you considering planting any trees? Do all structures and trees maintain the required clearance from any power lines?
• Are there any significant trees on the property?
• Is this property a unit on strata or community title? What could this mean for you? Is this property on strata or community title? Do you understand the restrictions of use and the financial obligations of ownership? Will you have to pay a previous owner's debt or the cost of planned improvements?
• Is the property close to a hotel, restaurant or other venue with entertainment consent for live music? Is the property close to any industrial or commercial activity, a busy road or airport etc that may result in the generation of noise or the emission of materials or odours into the air?
• What appliances, equipment and fittings are included in the sale of the property?
• Is there sufficient car parking space available to the property?

• Are there any illegal or unapproved additions, extensions or alterations to the buildings on the property?
• How energy efficient is the home, including appliances and lighting? What energy sources (eg electricity, gas) are available?
• Is the property connected to SA Water operated and maintained mains water? Is a mains water connection available? Does the property have a recycled water connection? What sort of water meter is located on the property (a direct or indirect meter – an indirect meter can be located some distance from the property)? Is the property connected to a water meter that is also serving another property?
• Are there water taps outside the building? Is there a watering system installed? Are they in good working order and in good condition?
• Does the property have alternative sources of water other than mains water supply (including bore or rainwater)? If so, are there any special maintenance requirements?

Any person who intends to bid at an auction for residential property must register. Registering for an auction does not mean you must bid. Registering simply gives you the right to bid. You can register with the agent at any time before the auction, such as when you inspect the property, or on the day of the auction.

If you are bidding to buy the property jointly, for example, with a spouse or partner, only one person needs to register, however, only that person will be able to bid at the auction.

If you are bidding on behalf of another person you will need to provide that person’s name and present a copy of a document signed by that person that authorises you to bid on their behalf. Proof of identity

• Are there any illegal or unapproved additions, extensions or alterations to the buildings on the property?
• How energy efficient is the home, including appliances and lighting? What energy sources (eg electricity, gas) are available?
• Is the property connected to SA Water operated and maintained mains water? Is a mains water connection available? Does the property have a recycled water connection? What sort of water meter is located on the property (a direct or indirect meter – an indirect meter can be located some distance from the property)? Is the property connected to a water meter that is also serving another property?
• Are there water taps outside the building? Is there a watering system installed? Are they in good working order and in good condition?
• Does the property have alternative sources of water other than mains water supply (including bore or rainwater)? If so, are there any special maintenance requirements?

Apart from any conditions of auction that the agent also displays at the auction, the following prescribed standard conditions will apply to all auctions of residential land:

1. any person may bid in the auction in person, or by their proxy or representative, subject to the conditions of auction;
2. the vendor’s reserve price will be as recorded in the auction record;
3. to make a bid a person must be registered in the bidders register, having satisfied the requirements as to proof of identity and, if applicable, authority to bid as a proxy or representative;
4. the auctioneer will only accept a bid if the person making the bid displays a unique identifier (comprising a number, letter, colour, or some other identifying feature) allocated to the person by the auctioneer
5. the auctioneer will, when accepting a bid, audibly announce the unique identifier so displayed by the bidder;
6. the auctioneer may refuse a bid if of the opinion that it is not in the best interests of the vendor, and will not be obliged to give any reason for refusing a bid;
7. the auctioneer may make bids on behalf of the vendor but not more than 3 such bids and only for amounts below the reserve price; any such bid will be audibly announced by the auctioneer as a “vendor’s bid”;
8. bidding increments will be accepted at the discretion of the auctioneer;
9. the person accepted by the auctioneer as having made the highest bid at or above the reserve price will be the purchaser and that bid will be the purchase price;
10. the auctioneer will not accept a bid made after the fall of the auctioneer’s hammer;
11. unless otherwise agreed in writing by the purchaser and the vendor before the commencement of the auction—
    1. a contract for the sale of the property, in the form displayed by the auctioneer at the auction, will be completed and signed by or on behalf of the purchaser and the vendor immediately after the fall of the hammer; and
    2. the purchaser will pay a deposit immediately after the fall of the hammer, as specified in the conditions of auction*;
12. the auctioneer will have irrevocable authority, after the fall of the auctioneer’s hammer, to complete and sign the contract on behalf of the purchaser or the vendor, or both; completion and signing under that authority will be at the auctioneer’s discretion in the event of breach by the purchaser of any of the conditions of auction;
13. the cooling-off rights under section 5 of the Land and Business (Sale and Conveyancing) Act 1994 do not apply to a sale by auction or a sale on the day of auction to a person who has made a bid in the auction (whether in person or by their proxy or representative).

Section 24L of the Land and Business (Sale and Conveyancing) Act 1994 makes it unlawful to engage in collusive practices in relation to an auction of land or a business. Under that section a person must not do any of the following as a result of a collusive practice, or induce or attempt to induce another person by a collusive practice to do any of the following:

1. abstain from bidding;
2. bid to a limited extent;)
3. do anything else that might tend to prevent free and open competition.

The maximum penalty for committing such an offence is $20 000.

* “Collusive practice” is defined in section 24L(4) of the Act. If you are intending to bid at an auction and are unsure whether your activity constitutes a collusive practice, it is advisable to seek independent legal advice.

A land agent or sales representative who provides financial or investment advice to you in connection with the sale or purchase of land or a business is obliged to tell you the following —

You should assess the suitability of any purchase of the land or business in light of your own needs and circumstances by seeking independent financial and legal advice.