When buying real estate, most people know to arrange a pest and building inspection. But there is another report that is just as important and far less commonly obtained: a survey report. This article explains what a survey report is, what it can reveal, and why skipping it could prove costly.
The Short Answer
Yes. You should get a survey report when buying property.
That is the unambiguous advice. The reality, however, is that most buyers do not.
Why Pest and Building Reports Get All the Attention
Almost every prudent buyer arranges a pest and building inspection before exchanging contracts. The reason is well understood: once you are locked into a purchase, you take the property as-is. Any defects present at the time of settlement become your problem.
The same principle applies to boundary and encroachment issues — yet survey reports are obtained far less frequently, despite the fact that boundary problems can be just as costly, and sometimes more so, to resolve.
What Is a Survey Report?
A survey report is a professional assessment conducted by a qualified surveyor. Its purpose is to identify the exact location of a property’s boundaries and to establish where any improvements — such as a house, garage, shed, pool or driveway — sit in relation to those boundaries.
A survey report can reveal:
- Where the boundary lines actually are
- Whether fences are positioned correctly
- Whether any structure on the property crosses over a boundary
- Whether a neighbour’s structure encroaches onto the land being purchased
- Whether there are easements or rights of way affecting the property
- In some cases, whether improvements appear consistent with applicable setback requirements or other restrictions
Why These Issues Go Undetected
Boundary and encroachment problems often remain hidden for years. They tend to surface only when a property is being developed or redeveloped, or when it changes hands. In many cases, the previous owner either did not know about the issue or had no reason to address it.
You might be surprised how frequently structures, fences, and even sections of land are not where they are supposed to be.
The Risks of Skipping a Survey
The consequences of purchasing a property with undisclosed boundary issues can range from frustrating to financially significant. Some examples include:
- A fence positioned several metres out of place, meaning the property is smaller than it appears
- A portion of what you believe to be your yard not forming part of the legal title
- A structure — a garage, for instance — sitting partly on a neighbour’s land, which can be an expensive problem to resolve
These are not hypothetical scenarios. They occur in real property transactions, and the costs of rectification fall on the buyer.
The Practical Barriers
Two factors commonly deter buyers from obtaining survey reports: cost and time.
A survey typically costs in the range of $1,000 to $2,000, and sometimes more depending on the size and nature of the property. In a competitive market, buyers may also feel pressure from tight timelines — cooling-off periods, auction conditions, or the pace of negotiations — that make thorough due diligence feel difficult to fit in.
These are understandable pressures. However, they do not change the underlying risk.
The Prudent Approach
Irrespective of what most buyers choose to do, the prudent legal advice is clear: a survey report should be part of your due diligence when purchasing property. This is especially so where the property has older improvements, irregular boundaries, or any visible signs that fences or structures may not be in their expected positions.
The cost of a survey is modest compared to the potential cost of discovering a boundary problem after settlement — at which point your options are limited and the expense is yours to bear.
If you are purchasing property in Western Sydney and would like advice on your due diligence obligations, our experienced conveyancing team is available to assist. Contact our experienced team to discuss your situation before you commit.
