Due Diligence Checklist

What you need to know before buying a residential property

At Baku Homes, we understand that purchasing or building a new home is a major life decision. Before proceeding with a property purchase, it’s important to be aware of a range of factors that may affect the property, or place obligations and restrictions on you as the buyer.

This Due Diligence Checklist outlines key considerations to help you make an informed decision. For specific guidance, you may need to seek professional legal, financial, or planning advice.

Urban Living

Considering a home in an inner-city or high-density area? These areas often provide access to amenities, transport, and entertainment. However, they may also bring increased traffic, noise, and odour from local businesses and nightlife. Understanding the area’s lifestyle and activity levels will help you make the right choice for your expectations.

Owners Corporation

Is the property part of a strata or subdivision? If the home is part of a development with shared areas like driveways, gardens, or facilities, it may be subject to an owners corporation. This means you may need to pay body corporate fees and follow certain rules that could restrict property use, including renovations or pet ownership.

Growth Areas

Is the property located in a designated growth area? In some areas, you may be required to pay a Growth Areas Infrastructure Contribution (GAIC). Check with local authorities to confirm whether this applies.

Flood and Bushfire Risk

Is the property located in a flood-prone or bushfire zone? Properties near rivers, creeks, bushland or low-lying areas may face increased risk of flooding or fire. Consider how this impacts insurance, maintenance, and long-term land use.

Rural Properties

If you’re looking to purchase in a rural area, consider the following:

• Is surrounding land use consistent with your lifestyle? Farming activities may generate noise or odour.
• Are there limitations on clearing native vegetation?
• What are your obligations for managing weeds or pest animals?
• Are there restrictions on building new dwellings on the land?
• Does the land adjoin Crown land, have a water frontage, or carry any Crown land licences?

Mining and Earth Resource Activity

Is there any mining, quarrying or exploration activity near the property? You may wish to research whether there are existing or future permits, leases, or licences related to mineral extraction, petroleum, or geothermal energy in the area. This may affect future land use or property value.

Soil and Groundwater Contamination

Has past land use affected the quality of the soil or groundwater? Industrial, commercial or agricultural activity may have caused contamination that limits how the land can be used. Contaminated land may also require remediation before development.

Land Boundaries

Are the property boundaries clearly defined? Compare the title plan to existing fences and structures. If there is a discrepancy, you may need a licensed surveyor to verify the true boundaries of the land.

Planning Controls

Can the land be developed or altered in the way you intend? All land is subject to a planning scheme governed by the local council. Check the zoning, overlays, and any design or environmental guidelines that apply. These controls can affect:

• Building on vacant land
• Extending or modifying existing buildings
• Land use for commercial or residential purposes

There may also be encumbrances (legal restrictions on title), which are outlined in the Section 32 statement.

Planning Permits Nearby

Are there planning permits issued or proposed nearby? Contact the local council to find out if nearby properties have approvals for developments that may affect your property. Significant changes to the neighbourhood could impact traffic, noise, and the overall character of the area.

Building Safety and Compliance

Is the building safe, legal, and structurally sound? A professional building inspection can help uncover issues such as:

• Non-compliant building work
• Structural defects
• Presence of asbestos or termites
• Pool or spa fencing compliance
• Electrical and plumbing safety

Building Permits and Insurance

Have structures on the land been modified with the appropriate approvals? Ensure all extensions, renovations, or retaining walls are covered by valid building permits. Also ask whether any works are covered under:

• Owner-builder insurance
• Builder’s warranty
• Structural defect insurance

This is particularly important for recently built or renovated homes.

Utilities and Services

Are all essential services connected? Check the availability of:

• Water and sewerage
• Electricity and gas
• Internet and telephone

Some properties, especially in rural or newly developed areas, may not have immediate access to these services or may incur additional connection fees.

Know Your Rights as a Buyer

Do you fully understand your rights and obligations? Before committing to a property purchase, you should review the Contract of Sale and the Section 32 statement. These contain critical information about the property’s legal status, title, and any applicable restrictions.

If unsure, engage a conveyancer or property lawyer early in the process. Be aware of key terms such as:

• Cooling-off periods (for private sales)
• Auction conditions
• Off-the-plan purchase rules

Disclaimer

This checklist is intended as general guidance only. Baku Homes recommends seeking independent legal, financial, and planning advice before purchasing any property.