73 098 755 385...73 098 755 385 CLIENT: BLUE MOUNTAINS CITY COUNCIL WORK ORDER NUMBER: #216591 RE:...

73 098 755 385

CLIENT: BLUE MOUNTAINS CITY COUNCIL

WORK ORDER NUMBER: #216591

RE: STRUCTURE AT: SHOP 1 - CIRCUS 172 174 LEURA MALL LEURA NSW 2780

DATE OF THE INSPECTION: 6TH OCTOBER 2015

Phone: 02 4577 7910 Fax: 02 4577 7960

Friendly reliable service from someone you can trust

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You should read and understand the following important information. It will help explain what is involved in a termite inspection, the difficulties faced by a termite inspector and why it is impossible to guarantee that a property is free of termites. It also details important information about what you can do to help protect your property from termites. This information forms an integral part of the report. If you do not understand any part of this report then please ask the inspector to explain.

IMPORTANT INFORMATION Any person who relies upon the contents of this report does so acknowledging that the following clauses, and information throughout this report defines the Scope and Limitations of the inspection, and forms an integral part of the report.

1. THIS IS A VISUAL INSPECTION ONLY in accord with the requirements of AS 3660 Inspection of buildings Part 3: Timber pest inspections. Visual inspection was limited to those areas and sections of the property to which reasonable access (See definition on page 7 of this report) was both available and permitted on the date of Inspection. The inspection DID NOT include breaking apart, dismantling, removing or moving objects including, but not limited to, foliage, mouldings, roof insulation, sisalation, air conditioning units and ducts floor or wall coverings, sidings, ceilings, floors, furnishings, appliances or personal possessions. The inspector CANNOT see inside walls, between floors, inside skillion roofing, inside the eaves, behind stored goods in cupboards, in other areas that are concealed or obstructed. The inspector DID NOT dig, gouge, force or perform any other invasive procedures. An invasive inspection will not be performed unless a separate contract is entered into. In an occupied property it must be understood that furnishings or household items may be concealing evidence of Timber Pests which may only be revealed when the items are moved or removed.

2. SCOPE OF REPORT. This Report is confined to reporting on the discovery, or non-discovery, of infestation and/or damage caused by subterranean and damp wood termites (white ants), present on the date of the Inspection. The Inspection did not cover any other pests and this Report does not comment on them. Dry wood termites (Family: KALOTERMITIDAE) were excluded from the Inspection, but have been reported on if, in the course of the Inspection, any visual evidence of infestation happened to be found.

3. LIMITATIONS. Nothing contained in the Report implies that any inaccessible or partly inaccessible areas or sections of the property being inspected by the Inspector on the date of the Inspection were not, or have not been, infested by Timber Pests. Accordingly this Report is not a guarantee that an infestation and/or damage does not exist in any inaccessible or partly inaccessible areas or sections of the property. Nor is it a guarantee that a future infestation of Timber Pests will not occur or be found.

4. DETERMINING EXTENT OF DAMAGE. This Report does not and cannot state the extent of damage. It is NOT a structural damage report. We claim no expertise in structural engineering. If any evidence of Timber Pest activity or damage is Reported, then it must be assumed there may be some structural damage and a qualified person such as a Builder, Engineer, Architect or other qualified expert in the building trade should be asked to determine the full extent of the damage, if any, and the extent of repairs that may be required. This firm is not responsible for the repair of any damage whether disclosed by this report or not.

5. POSSIBLE HIDDEN DAMAGE. If Timber Pest activity and/or damage is found, within the Structures OR the grounds of the property, then damage may exist in concealed areas, eg framing timbers. An INVASIVE INSPECTION is strongly recommended in this case. Damage may only be found when wall linings, cladding or insulation are removed to reveal previously concealed timbers.

6. CONSUMER COMPLAINTS PROCEDURE. In the event of any controversy or claim arising out of, or relating to this Visual Termite Inspection Report, either party must give written Notice of the dispute to the other party. If the dispute is not resolved within ten (10) days from the service of the Notice then the dispute shall be referred to a mediator nominated by the Inspector. Should the dispute not be resolved by mediation then either party may refer the dispute to the Institute of Arbitrators and Mediators of Australia for resolution by arbitration.

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BRIEF DESCRIPTION OF STRUCTURE INSPECTED

The property is a single storey premises used for commercial purposes. It is constructed from

weatherboard and fibrous board sheeting on stone footings. It has an iron roof. The flooring is timber with concrete areas.

AREAS INSPECTED:

Interior Roof Void Wall Exterior Posts

Only structures, fences & / or trees within 50m of the building but within the property boundaries were inspected. When a building, or part of a building is constructed on a concrete slab it is always more susceptible to concealed termite entry.

Areas / Areas* NOT inspected and / or Area / areas* to which REASONABLE ACCESS for inspection was NOT AVAILABLE and the reason / reasons why. These include area / areas* in which visible inspection was obstructed or restricted:

Roof Void

The roof void was obstructed by roof insulation. It is possible that these areas may be harbouring timber pest activity and / or damage.

Sub Floor

The building has been constructed too low to the ground and therefore was only visually inspected via one floor trap and where floorboards have been removed; so most areas could not be inspected. It is possible that the non-inspected areas may be harbouring timber pest activity and / or damage.

* Since a complete inspection of the above areas was not possible, termite activity and / or damage may exist in these areas. No Inspection was made, and no report is submitted, of inaccessible areas. These include, but may not be limited to, concealed frame timbers, eaves, areas concealed by concrete floors, wall linings, soil, landscaping, rubbish, floor coverings, furniture, pictures, appliances, stored items, insulation, hollow blocks/posts, etc. Furnishings, furniture & stored items were not inspected.

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HIGH RISK AREA(S) to which Access should be gained, or fully gained, since they may show evidence of Timber Pests or damage:-

The subfloor is a high risk area to which access should be gained because the building has been constructed too low to the ground and there is no access available. It is possible that these areas may be concealing timber pest activity and / or damage.

Was the property furnished at the time of inspection?

NO

SUBTERRANEAN TERMITES

At the time of inspection were active termites (live insects) present?

NO

A termite nest was found in (state location):

NO TERMITE NEST WAS LOCATED

At the time inspection was visible evidence of subterranean termite workings and/or damage located:

NO

Termite damage and / or workings were found, but not limited to:

NIL FOUND

IMPORTANT. If no live termites were noted but visual evidence of termite workings and/or damage or other signs of termites are reported then there may be active termites in concealed areas. Termites may still be active in the immediate vicinity and may return to cause further damage. In most cases it may not be possible, without the benefit of subsequent inspections to ascertain whether an infestation is active or inactive. Active termites may simply have not been present at the time of inspection due to a prior disturbance, climatic conditions, or they may have been utilising an alternative feeding source. Continued, regular, inspections are essential. Unless written evidence of a termite management program in accord with "Australian Standard 3660" is provided, a treatment should always be considered to reduce the risk of further attack.

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The following evidence of a possible previous termite treatment was found:

NIL FOUND

Was a durable sign located in the meter box indicating a barrier system has been installed?

NO

It indicates that a physical, chemical or a combined chemical and physical barrier has been installed. This firm can give no assurances with regard to work that may have been previously performed by other firms. The firm which treated the property must be contacted for treatment and warranty information. In many cases re-treatment may be required.

SUBTERRANEAN TERMITE TREATMENT RECOMMENDATION: A management program in accord with AS 3660 to protect against subterranean termites is considered to be

STRONGLY RECOMMENDED

If you would like to discuss further the termite management options for this building, please call our office.

TERMITE SHIELDS (ANT CAPS) should be in good order and condition so termite mud tubes are exposed and visible. This helps stop termites gaining undetected entry. Joins in the shielding should have been soldered during the installation. Whenever it is observed that the joins in the shielding have not been soldered then the shielding must be reported as inadequate. It may be possible for a builder to repair the shielding or a chemical barrier may need to be installed to provide a barrier to replace the use of the shielding. Missing, damaged or poor shields increase the risk of infestation.

Whilst not a builder it appears that termite shields are generally:

INADEQUATE (bearers and joists are sitting directly on soil or stone footings)

If considered inadequate a builder or other building expert should be consulted. NB: Physical barrier systems installed in wall cavities etc are not visible to inspection and no comment is made on such systems.

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WOOD ROT:

At the time of the inspection was visible evidence of wood decay fungi (rot) found?

YES THERE IS QUITE SUBSTANTIAL WOODROT THROUGHOUT THE BUILDING.

SUBFLOOR TIMBERS

WALL TIMBERS ON THE LHS

INTERIOR WINDOW FRAMES

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EXTERIOR TIMBERS AND FASCIA BOARDS

Wood decay fungi is conducive to subterranean termites. You should consult a builder or other building expert to find out what must be carried out to prevent further decay (such as repairing of drainage, leaks and / or sealing the timber) and to repair the damage.

OTHER AREAS AND/OR SITUATIONS THAT APPEAR CONDUCIVE TO (MAY ATTRACT) SUBTERRANEAN TERMITE INFESTATION AND THE DEGREE OF RISK ARE:

There are structural timbers of the building that are in direct contact with the soil Please note - There may be conditions in the subfloor that are conducive to termite infestation, however, as we were unable to access most of this area, we cannot comment.

AT THE TIME OF THE INSPECTION THE DEGREE OF RISK OF SUBTERRANEAN TERMITE INFESTATION TO THE OVERALL PROPERTY WAS CONSIDERED TO BE:

HIGH

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ENVIRONMENTAL CONDITIONS THAT ARE CONDUCIVE TO TIMBER PESTS

DRAINAGE: Poor drainage, especially in the subfloor, increases the likelihood of Timber Pest attack. Whilst not a plumber, it appears that drainage is generally:

INADEQUATE

Areas where drainage should be attended to by a plumber and why

The gutters have rusted which allows water to drain against the building. This will be contributing to the wood rot and could attract termites to the area

WATER LEAKS: Water leaks, especially in or into the sub floor or against the external walls, increases the likely hood of termite attack. Leaking showers or leaks from other wet areas also increase the likelihood of concealed termite attack. Whilst not a plumber, it appears that water leaks are:

NOT PRESENT

at time of report.

Where drainage is considered inadequate or water leaks are reported, then a plumber, builder or other building expert should be consulted.

VENTILATION:

Ventilation, particularly to the sub-floor region is important in minimising the opportunity for termites to establish themselves within a property. Whilst not a builder the ventilation appears to be generally:

INADEQUATE

Where ventilation needs to be improved, discuss with us how we can assist in this area. We supply and fit a large variety of sub-floor vents systems, including solar powered.

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SLAB EDGE EXPOSURE:

Where external concrete slab edges are not exposed there is a high risk of concealed termite entry. In some buildings that have been built since July 1995, the edge of the slab forms part of the termite shield system. In these buildings an inspection zone of at least 75 mm should be maintained to permit detection of termite entry. The edge should not be concealed by render, tiles, cladding, flashings, adjoining structures, paving, soil, turf or landscaping (etc). Where this is the case, you should arrange to have the slab edge exposed for inspection. Concealed termite entry may already be taking place but could not be detected at the time of the inspection. This may have resulted in concealed timber damage.

Does the slab edge inspection zone fully comply?

NOT APPLICABLE

Where this is the case, you should arrange to have the slab edge exposed for inspection to confirm whether concealed termite entry is possible. It may be possible to install a termite barrier instead of exposing the slab edge. Please ask the inspector to advise you on this issue.

Note: A very high proportion of termite attacks are over the slab edge. Covering the slab makes concealed entry easy. This is particularly true of infill type slab construction. Termite activity and / or damage may be present in concealed timbers of the building. We strongly recommend frequent regular inspections in accordance with AS 3660.2.

WEEP HOLES IN EXTERNAL WALLS: It is very important that the soil, lawn concrete paths or pavers do not cover the weep holes. Sometimes they have been covered during the rendering of brickwork. They should be clean and free flowing. Covering weep holes in part or in whole may allow undetected termite entry.

Were the weep holes clear allowing the free flow of air? :

NOT APPLICABLE

ENVIRONMENTAL, OTHER CONDITIONS AND/OR GENERAL INFORMATION

The left hand side of the building has its bottom plates in direct contact with the ground. This is contributing to the wood rot issues with the building and places it at extreme risk of being attacked by termites. Major building repairs would need to be carried out to rectify the wood rot issues and reduce risk of termite attack. We would not be able to provide any termite protection to the building in its current state.

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IMPORTANT:

This Report is provided solely for the benefit of the Client named on the front of this report. Any third party relying on this report either wholly or in part does so at their own risk. We accept no liability whatsoever to any third party relying on this report.

Filled areas, areas with less than 400 mm clearance, damp areas, leaking pipes, form work timbers, scrap timbers, tree stumps etc either in the subfloor or adjoining, or close to the building are conducive to termite infestation. All leaks or drainage problems must be repaired. All form work, scrap / or stumps must be removed from under and / or around the buildings

This is an inspection only. No treatment or replenishment of any existing chemical termite barriers has taken place. Termites may still enter the buildings or other structures at any time. You acknowledge this fact and agree that Childs Pest Services Pty Ltd is not liable for any termite entry, or for any damage that may result. Modern termite chemical barriers are designed to degrade. This means that the length of life of these barriers is limited. It is important that the property is inspected at least annually.

REASONABLE ACCESS

Only areas to which reasonable access is available were inspected. AS 3660 refers to AS 4349.3 which defines reasonable access as areas where safe, unobstructed access is provided and the minimum clearances specified in the Table below are available or, where these clearances are not available, areas within the consultant s unobstructed line of sight and within arm s length. Reasonable access does not include removing screws and bolts to access covers. Reasonable access does not include the use of destructive or invasive inspection methods. Nor does reasonable access include cutting or making access traps, or moving heavy furniture or stored goods.

AREA ACCESS HOLE CRAWL SPACE HEIGHT

Roof interior 450 x 400mm 600 x 600mm Accessible from 2.1m step ladder or 3.6m ladder placed against a wall.

Subfloor 500 x 400mm Vertical clearance

Timber floor: 400mm to bearer, joist or other obstruction.

Concrete floor: 500mm

Roof Exterior Accessible from a 3.6m ladder.

A MORE INVASIVE PHYSICAL INSPECTION IS AVAILABLE AND RECOMMENDED

As detailed above, there are many limitations to this visual inspection only. With the permission of the owner of the premises we WILL perform a more invasive physical inspection that involves moving or lifting: insulation, stored items, furniture or foliage during the inspection. We WILL physically touch, tap, test and when necessary force/gouge suspected accessible timbers. We WILL gain access to areas, where physically possible and considered practical and necessary, by way of cutting traps and access holes. This style of report is available by ordering with several days notice. Inspection time for this style of report will be greater than for a VISUAL INSPECTION. It involves disruption in the case of an occupied property, and some permanent marking is likely. You must arrange for the written permission of the owner who must acknowledge all the above information and confirm that our firm will not be held liable for any damage caused to the property. Price available on request.

CONCRETE SLAB HOMES

Homes constructed on concrete slabs pose special problems with respect to termite attack. If the edge of the slab is concealed by concrete paths, patios, pavers, garden beds, lawns, foliage, etc then it is possible for termites to effect concealed entry into the property. They can then cause extensive damage to concealed framing timbers. Even the most experienced inspector may be unable to detect their presence due to concealment by wall linings. Only when the termites attack timbers in the roof void, which may in turn be concealed by insulation, can their presence be detected. Where termite damage is located in the roof it should be expected that concealed framing timbers will be extensively damaged.

With a concrete slab home it is imperative that you expose the edge of the slab and ensure that foliage and garden beds do not cover the slab edge. Weep holes must be kept free of obstructions.

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No property is safe from termites! Termites are the cause of the greatest economic losses of timber in service in Australia. Independent data compiled by State Forests shows 1 in every 5 homes is attacked by termites at some stage in its life. Australia s subterranean termite species (white ants) are the most destructive timber pests in the world. In fact it can take as little as 3 months for a termite colony to severely damage almost all the timber in a home .

How Termites Attack your Home The most destructive species live in large underground nests containing several million timber-destroying insects. The problem arises when a nest matures near your home. Your home provides natural shelter and a food source for the termites. The gallery system of a single colony may exploit food sources over as much as one hectare, with individual galleries extending up to 50 metres to enter your home, where there is a smorgasbord of timber to feast upon. Even concrete slabs do not act as a barrier; they can penetrate through cracks in the slab to gain access to your home. They even build mud tubes to gain access to above ground timbers. In rare cases termites may create their nest in the cavity wall of the property without making ground contact. In these cases it may be impossible to determine their presence until extensive timber damage occurs.

Termite Damage Once in contact with the timber they excavate it often leaving only a thin veneer on the outside. If left undiscovered the economic species can cause many thousands of dollars damage and cost two to five thousand dollars (or more) to treat.

Subterranean Termite Ecology These termites are social insects usually living in underground nests. Nests may be in trees or in rare instances they may be in above ground areas within the property. They tunnel underground to enter the building and then remain hidden within the timber making it very difficult to locate them. Where timbers are concealed, as in most modern homes, it makes it even more difficult to locate their presence. Especially if gardens have been built up around the home and termite barriers are either not in place or poorly maintained. Termites form nests in all sorts of locations and they are usually not visible. There may be more than one nest on a property. The diet of termites in the natural environment is the various hardwood and softwood species growing throughout Australia. These same timbers are used in buildings. Worker termites move out from their underground nest into surrounding areas where they obtain food and return to nurture the other casts of termites within the nest. Termites are extremely sensitive to temperature, humidity and light and hence cannot move over ground like most insects. They travel in mud-encrusted tunnels to the source of food. Detection of termites is usually by locating these mud tunnels rising from the ground into the affected structure. This takes an expert eye.

Termite barriers protect a building by forcing termites to show themselves. Termites can build mud tunnels around termite barriers to reach the timber above. The presence of termite tracks or leads does not necessarily mean that termites have entered the timber though. A clear view of walls and piers and easy access to the sub-floor means that detection should be fairly easy. However many styles of construction do not lend themselves to ready detection of termites. The design of some properties is such that they make the detection by a pest inspector difficult, if not impossible.

The tapping and probing of walls and internal timbers is an adjunct or additional means of detection of termites but is not as reliable as locating tracks. The use of a moisture meter is a useful aid for determining the presence of termites concealed behind thin wall panels, but it only detects high levels of activity. Older damage that has dried out will not be recorded. It may also provide false readings. Termite tracks may be present in the ceiling space however some roofs of a low pitch and with the presence of sisalation, insulation, air conditioning ductwork and hot water services may prevent a full inspection of the timbers in these areas. Therefore since foolproof and absolute certain detection is not possible the use of protective barriers and regular inspections is a necessary step in protecting timbers from termite attack.

TIMBER DECAY FUNGI

The fruiting bodies of wood decay fungi vary in size, shape and colour. The type of fungi encountered by pest controllers usually reside in poorly ventilated subfloors, below wet areas of the home, exterior timbers and in areas that retain water in the soil. The durability and type of timbers are factors along with the temperature and environment. Destruction of affected timbers varies with the symptoms involved. Removal of the moisture source usually alleviates the problem. Fungal decay is attractive to termites and if the problem is not rectified it may well lead to future termite attack.

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IMPORTANT INFORMATION

There is no warranty given or implied as a result of the inspection or this report. The report can only give details of what was found on the day and at the time of the inspection. Termites can gain entry to the structures at any time.

General remarks: A more thorough INVASIVE INSPECTION is available. Where any current visible evidence of Timber Pest activity is found, it is strongly recommended that a more invasive inspection be performed. Trees on the property up to a height of 2m have been visually inspected, where possible and practicable, for evidence of termite activity. It is very difficult, and generally impossible to locate termite nests since they are underground and evidence in trees is usually well concealed. We therefore strongly recommend that you arrange to have trees test drilled for evidence of termite nests.

Important Maintenance Advice regarding Integrated Pest Management for Protecting against Timber Pests.

Any structure can be attacked by Timber Pests. Periodic maintenance should include measures to minimise possibilities of infestation in and around a property. Factors which may lead to infestation from Timber Pests include situations where the edge of the concrete slab is covered by soil or garden debris, filled areas, areas with less than 400mm clearance, foam insulation at foundations, earth/wood contact, damp areas, leaking pipes, etc; form-work timbers, scrap timber, tree stumps, mulch, tree branches touching the structure, wood rot, etc. Gardens, pathways or turf abutting or concealing the edge of a concrete slab will allow for concealed entry by timber pests. Any timber in contact with soil such as form-work, scrap timbers or stumps must be removed from under and around the buildings and any leaks repaired.

You should endeavour to ensure such conditions DO NOT occur around your property.

We further advise that you engage a professional pest control firm to provide a termite management program in accord with AS 3660 to minimise the risk of termite attack. There is no way of preventing termite attack. Even AS 3660 advises that A complete termite barrier system constructed in accordance with this Standard cannot prevent termite attack, as barriers can be bridged or breached. Where termites bridge barriers the evidence can be detected during inspections.

DISCLAIMER OF LIABILITY: No liability shall be accepted on account of failure of the Report to notify any Termite activity and/or damage present at or prior to the date of the Report in any areas(s) or section(s) of the subject property physically inaccessible for inspection, or to which access for Inspection is denied by or to the Licensed Inspector (including but not limited to any area(s) or section(s) so specified by the Report).

DISCLAIMER OF LIABILITY TO THIRD PARTIES: Compensation will only be payable for losses arising in contract or tort sustained by the Client named on the front of this report. Any third party acting or relying on this Report, in whole or in part, does so entirely at their own risk

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It is strongly recommended that a full Inspection and Report be carried out every 6 months.

Regular inspections DO NOT stop timber pest attack, but are designed to limit the amount of damage that may occur by detecting problems early.

AS 3660 and AS 4349.3 both recommend at least a 12 monthly inspection but strongly advise more frequent inspections.

ADDITIONAL INFORMATION:

If you would like to discuss this report in more detail, please call Glenn on 0414 277788

The Inspection and Report was carried out by: GLENN CHILDS

State Licence No: 15

003618 - 004

Insurance Termite Accreditation Number: TP0158

Dated: 7th October, 2015

SIGNED for and on behalf of: __ _ CHILDS PEST SERVICES PTY LTD

s14(2) T 3(a) personal information

73 098 755 385

CLIENT: BLUE MOUNTAINS CITY COUNCIL

WORK ORDER NUMBER: #216591

RE: STRUCTURE AT: SHOP 2 WAYZGOOSE 172 174 LEURA MALL LEURA NSW 2780

DATE OF THE INSPECTION: 6TH OCTOBER 2015

Phone: 02 4577 7910 Fax: 02 4577 7960

Friendly reliable service from someone you can trust

2 14

You should read and understand the following important information. It will help explain what is involved in a termite inspection, the difficulties faced by a termite inspector and why it is impossible to guarantee that a property is free of termites. It also details important information about what you can do to help protect your property from termites. This information forms an integral part of the report. If you do not understand any part of this report then please ask the inspector to explain.

IMPORTANT INFORMATION Any person who relies upon the contents of this report does so acknowledging that the following clauses, and information throughout this report defines the Scope and Limitations of the inspection, and forms an integral part of the report.

1. THIS IS A VISUAL INSPECTION ONLY in accord with the requirements of AS 3660 Inspection of buildings Part 3: Timber pest inspections. Visual inspection was limited to those areas and sections of the property to which reasonable access (See definition on page 7 of this report) was both available and permitted on the date of Inspection. The inspection DID NOT include breaking apart, dismantling, removing or moving objects including, but not limited to, foliage, mouldings, roof insulation, sisalation, air conditioning units and ducts floor or wall coverings, sidings, ceilings, floors, furnishings, appliances or personal possessions. The inspector CANNOT see inside walls, between floors, inside skillion roofing, inside the eaves, behind stored goods in cupboards, in other areas that are concealed or obstructed. The inspector DID NOT dig, gouge, force or perform any other invasive procedures. An invasive inspection will not be performed unless a separate contract is entered into. In an occupied property it must be understood that furnishings or household items may be concealing evidence of Timber Pests which may only be revealed when the items are moved or removed.

2. SCOPE OF REPORT. This Report is confined to reporting on the discovery, or non-discovery, of infestation and/or damage caused by subterranean and damp wood termites (white ants), present on the date of the Inspection. The Inspection did not cover any other pests and this Report does not comment on them. Dry wood termites (Family: KALOTERMITIDAE) were excluded from the Inspection, but have been reported on if, in the course of the Inspection, any visual evidence of infestation happened to be found.

3. LIMITATIONS. Nothing contained in the Report implies that any inaccessible or partly inaccessible areas or sections of the property being inspected by the Inspector on the date of the Inspection were not, or have not been, infested by Timber Pests. Accordingly this Report is not a guarantee that an infestation and/or damage does not exist in any inaccessible or partly inaccessible areas or sections of the property. Nor is it a guarantee that a future infestation of Timber Pests will not occur or be found.

4. DETERMINING EXTENT OF DAMAGE. This Report does not and cannot state the extent of damage. It is NOT a structural damage report. We claim no expertise in structural engineering. If any evidence of Timber Pest activity or damage is Reported, then it must be assumed there may be some structural damage and a qualified person such as a Builder, Engineer, Architect or other qualified expert in the building trade should be asked to determine the full extent of the damage, if any, and the extent of repairs that may be required. This firm is not responsible for the repair of any damage whether disclosed by this report or not.

5. POSSIBLE HIDDEN DAMAGE. If Timber Pest activity and/or damage is found, within the Structures OR the grounds of the property, then damage may exist in concealed areas, eg framing timbers. An INVASIVE INSPECTION is strongly recommended in this case. Damage may only be found when wall linings, cladding or insulation are removed to reveal previously concealed timbers.

6. CONSUMER COMPLAINTS PROCEDURE. In the event of any controversy or claim arising out of, or relating to this Visual Termite Inspection Report, either party must give written Notice of the dispute to the other party. If the dispute is not resolved within ten (10) days from the service of the Notice then the dispute shall be referred to a mediator nominated by the Inspector. Should the dispute not be resolved by mediation then either party may refer the dispute to the Institute of Arbitrators and Mediators of Australia for resolution by arbitration.

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BRIEF DESCRIPTION OF STRUCTURE INSPECTED

The property is a single storey premises used for commercial purposes. It is constructed from

weatherboard sheeting with a concrete slab extension at the right hand side. The flooring is timber with concrete areas.

AREAS INSPECTED:

Interior Wall Exterior Garden

Only structures, fences & / or trees within 50m of the building but within the property boundaries were inspected. When a building, or part of a building is constructed on a concrete slab it is always more susceptible to concealed termite entry.

Areas / Areas* NOT inspected and / or Area / areas* to which REASONABLE ACCESS for inspection was NOT AVAILABLE and the reason / reasons why. These include area / areas* in which visible inspection was obstructed or restricted:

Interior - The interior was obstructed by furniture, fixtures & floor coverings. It is possible that these areas may be harbouring timber pest activity and / or damage.

Roof Void

The roof void was not able to be inspected due to the shelving underneath the manhole. It is possible that these areas may be harbouring timber pest activity and / or damage.

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Sub Floor

The access to the sub floor was obstructed by the placement of storage and

a fridge. It is possible that these areas may be harbouring timber pest activity and / or damage.

* Since a complete inspection of the above areas was not possible, termite activity and / or damage may exist in these areas. No Inspection was made, and no report is submitted, of inaccessible areas. These include, but may not be limited to, concealed frame timbers, eaves, areas concealed by concrete floors, wall linings, soil, landscaping, rubbish, floor coverings, furniture, pictures, appliances, stored items, insulation, hollow blocks/posts, etc. Furnishings, furniture & stored items were not inspected.

HIGH RISK AREA(S) to which Access should be gained, or fully gained, since they may show evidence of Timber Pests or damage:-

The subfloor and roof void are both high risk areas to which access needs to be gained because there was no access to these area and as there is timber in contact with the soil, so the possible presence of termites in these areas needs to be excluded

Was the property furnished at the time of inspection?

YES *

*Where a property is furnished at the time of the inspection then you must understand that the furnishings and stored goods may be concealing evidence of Timber Pest Activity. This evidence may only be revealed when the furnishings and stored goods are moved. In this case, a further inspection of the property is strongly recommended.

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At the time of inspection were active termites (live insects) present?

NO

A termite nest was found in (state location):

NO TERMITE NEST WAS LOCATED

At the time inspection was visible evidence of subterranean termite workings and/or damage located:

NO

Termite damage and / or workings were found, but not limited to:

NIL FOUND

IMPORTANT. If no live termites were noted but visual evidence of termite workings and/or damage or other signs of termites are reported then there may be active termites in concealed areas. Termites may still be active in the immediate vicinity and may return to cause further damage. In most cases it may not be possible, without the benefit of subsequent inspections to ascertain whether an infestation is active or inactive. Active termites may simply have not been present at the time of inspection due to a prior disturbance, climatic conditions, or they may have been utilising an alternative feeding source. Continued, regular, inspections are essential. Unless written evidence of a termite management program in accord with "Australian Standard 3660" is provided, a treatment should always be considered to reduce the risk of further attack.

The following evidence of a possible previous termite treatment was found:

NIL FOUND

Was a durable sign located in the meter box indicating a barrier system has been installed?

YES

It indicates that a physical, chemical or a combined chemical and physical barrier has been installed. This firm can give no assurances with regard to work that may have been previously performed by other firms. The firm which treated the property must be contacted for treatment and warranty information. In many cases re-treatment may be required.

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SUBTERRANEAN TERMITE TREATMENT RECOMMENDATION: A management program in accord with AS 3660 to protect against subterranean termites is considered to be

STRONGLY RECOMMENDED

If you would like to discuss further the termite management options for this building, please call our office.

TERMITE SHIELDS (ANT CAPS) should be in good order and condition so termite mud tubes are exposed and visible. This helps stop termites gaining undetected entry. Joins in the shielding should have been soldered during the installation. Whenever it is observed that the joins in the shielding have not been soldered then the shielding must be reported as inadequate. It may be possible for a builder to repair the shielding or a chemical barrier may need to be installed to provide a barrier to replace the use of the shielding. Missing, damaged or poor shields increase the risk of infestation.

Whilst not a builder it appears that termite shields are generally:

NOT ABLE TO COMMENT

If considered inadequate a builder or other building expert should be consulted. NB: Physical barrier systems installed in wall cavities etc are not visible to inspection and no comment is made on such systems.

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WOOD ROT:

At the time of the inspection was visible evidence of wood decay fungi (rot) found?

YES EXTERIOR TIMBERS DOOR AND WINDOW FRAMES

Wood decay fungi is conducive to subterranean termites. You should consult a builder or other building expert to find out what must be carried out to prevent further decay (such as repairing of drainage, leaks and / or sealing the timber) and to repair the damage.

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OTHER AREAS AND/OR SITUATIONS THAT APPEAR CONDUCIVE TO (MAY ATTRACT) SUBTERRANEAN TERMITE INFESTATION AND THE DEGREE OF RISK ARE:

Air-conditioner needs to be fitted with a drip tray and the condensation collected be drained away from the edge of the building

Please note - There may be conditions in the subfloor that are conducive to termite infestation, however, as we were unable to access this area, we cannot comment.

AT THE TIME OF THE INSPECTION THE DEGREE OF RISK OF SUBTERRANEAN TERMITE INFESTATION TO THE OVERALL PROPERTY WAS CONSIDERED TO BE:

HIGH

ENVIRONMENTAL CONDITIONS THAT ARE CONDUCIVE TO TIMBER PESTS

DRAINAGE: Poor drainage, especially in the subfloor, increases the likelihood of Timber Pest attack. Whilst not a plumber, it appears that drainage is generally:

INADEQUATE

Areas where drainage should be attended to by a plumber and why

The gutters are rusted which allows water to drain against the building, which contributes to the wood rot and could attract termites to the building

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WATER LEAKS: Water leaks, especially in or into the sub floor or against the external walls, increases the likely hood of termite attack. Leaking showers or leaks from other wet areas also increase the likelihood of concealed termite attack. Whilst not a plumber, it appears that water leaks are:

NOT PRESENT

at time of report.

Where drainage is considered inadequate or water leaks are reported, then a plumber, builder or other building expert should be consulted.

VENTILATION:

Ventilation, particularly to the sub-floor region is important in minimising the opportunity for termites to establish themselves within a property. Whilst not a builder the ventilation appears to be generally:

INADEQUATE

Where ventilation needs to be improved, discuss with us how we can assist in this area. We supply and fit a large variety of sub-floor vents systems, including solar powered.

SLAB EDGE EXPOSURE:

Where external concrete slab edges are not exposed there is a high risk of concealed termite entry. In some buildings that have been built since July 1995, the edge of the slab forms part of the termite shield system. In these buildings an inspection zone of at least 75 mm should be maintained to permit detection of termite entry. The edge should not be concealed by render, tiles, cladding, flashings, adjoining structures, paving, soil, turf or landscaping (etc). Where this is the case, you should arrange to have the slab edge exposed for inspection. Concealed termite entry may already be taking place but could not be detected at the time of the inspection. This may have resulted in concealed timber damage.

Does the slab edge inspection zone fully comply?

NO

not required as it is an infill slab (extension) NOT APPLICABLE (main building)

Where this is the case, you should arrange to have the slab edge exposed for inspection to confirm whether concealed termite entry is possible. It may be possible to install a termite barrier instead of exposing the slab edge. Please ask the inspector to advise you on this issue.

Note: A very high proportion of termite attacks are over the slab edge. Covering the slab makes concealed entry easy. This is particularly true of infill type slab construction. Termite activity and / or damage may be present in concealed timbers of the building. We strongly recommend frequent regular inspections in accordance with AS 3660.2.

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WEEP HOLES IN EXTERNAL WALLS: It is very important that the soil, lawn concrete paths or pavers do not cover the weep holes. Sometimes they have been covered during the rendering of brickwork. They should be clean and free flowing. Covering weep holes in part or in whole may allow undetected termite entry.

Were the weep holes clear allowing the free flow of air? :

NOT APPLICABLE

ENVIRONMENTAL, OTHER CONDITIONS AND/OR GENERAL INFORMATION

There is no access to the subfloor and only one floor trap which even though it was not accessed, only gives a visual inspection to a limited section of the subfloor. The building requires major building works to rectify the wood rot issues and reduce the risk of termite attack. There is only a limited area we could offer some termite protection to (bait stations in the gardens along the right hand side) which will not provide adequate cover to the entire building.

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IMPORTANT:

This Report is provided solely for the benefit of the Client named on the front of this report. Any third party relying on this report either wholly or in part does so at their own risk. We accept no liability whatsoever to any third party relying on this report.

Filled areas, areas with less than 400 mm clearance, damp areas, leaking pipes, form work timbers, scrap timbers, tree stumps etc either in the subfloor or adjoining, or close to the building are conducive to termite infestation. All leaks or drainage problems must be repaired. All form work, scrap / or stumps must be removed from under and / or around the buildings

This is an inspection only. No treatment or replenishment of any existing chemical termite barriers has taken place. Termites may still enter the buildings or other structures at any time. You acknowledge this fact and agree that Childs Pest Services Pty Ltd is not liable for any termite entry, or for any damage that may result. Modern termite chemical barriers are designed to degrade. This means that the length of life of these barriers is limited. It is important that the property is inspected at least annually.

REASONABLE ACCESS

Only areas to which reasonable access is available were inspected. AS 3660 refers to AS 4349.3 which defines reasonable access as areas where safe, unobstructed access is provided and the minimum clearances specified in the Table below are available or, where these clearances are not available, areas within the consultant s unobstructed line of sight and within arm s length. Reasonable access does not include removing screws and bolts to access covers. Reasonable access does not include the use of destructive or invasive inspection methods. Nor does reasonable access include cutting or making access traps, or moving heavy furniture or stored goods.

AREA ACCESS HOLE CRAWL SPACE HEIGHT

Roof interior 450 x 400mm 600 x 600mm Accessible from 2.1m step ladder or 3.6m ladder placed against a wall.

Subfloor 500 x 400mm Vertical clearance

Timber floor: 400mm to bearer, joist or other obstruction.

Concrete floor: 500mm

Roof Exterior Accessible from a 3.6m ladder.

A MORE INVASIVE PHYSICAL INSPECTION IS AVAILABLE AND RECOMMENDED

As detailed above, there are many limitations to this visual inspection only. With the permission of the owner of the premises we WILL perform a more invasive physical inspection that involves moving or lifting: insulation, stored items, furniture or foliage during the inspection. We WILL physically touch, tap, test and when necessary force/gouge suspected accessible timbers. We WILL gain access to areas, where physically possible and considered practical and necessary, by way of cutting traps and access holes. This style of report is available by ordering with several days notice. Inspection time for this style of report will be greater than for a VISUAL INSPECTION. It involves disruption in the case of an occupied property, and some permanent marking is likely. You must arrange for the written permission of the owner who must acknowledge all the above information and confirm that our firm will not be held liable for any damage caused to the property. Price available on request.

CONCRETE SLAB HOMES

Homes constructed on concrete slabs pose special problems with respect to termite attack. If the edge of the slab is concealed by concrete paths, patios, pavers, garden beds, lawns, foliage, etc then it is possible for termites to effect concealed entry into the property. They can then cause extensive damage to concealed framing timbers. Even the most experienced inspector may be unable to detect their presence due to concealment by wall linings. Only when the termites attack timbers in the roof void, which may in turn be concealed by insulation, can their presence be detected. Where termite damage is located in the roof it should be expected that concealed framing timbers will be extensively damaged.

With a concrete slab home it is imperative that you expose the edge of the slab and ensure that foliage and garden beds do not cover the slab edge. Weep holes must be kept free of obstructions.

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No property is safe from termites! Termites are the cause of the greatest economic losses of timber in service in Australia. Independent data compiled by State Forests shows 1 in every 5 homes is attacked by termites at some stage in its life. Australia s subterranean termite species (white ants) are the most destructive timber pests in the world. In fact it can take as little as 3 months for a termite colony to severely damage almost all the timber in a home .

How Termites Attack your Home The most destructive species live in large underground nests containing several million timber-destroying insects. The problem arises when a nest matures near your home. Your home provides natural shelter and a food source for the termites. The gallery system of a single colony may exploit food sources over as much as one hectare, with individual galleries extending up to 50 metres to enter your home, where there is a smorgasbord of timber to feast upon. Even concrete slabs do not act as a barrier; they can penetrate through cracks in the slab to gain access to your home. They even build mud tubes to gain access to above ground timbers. In rare cases termites may create their nest in the cavity wall of the property without making ground contact. In these cases it may be impossible to determine their presence until extensive timber damage occurs.

Termite Damage Once in contact with the timber they excavate it often leaving only a thin veneer on the outside. If left undiscovered the economic species can cause many thousands of dollars damage and cost two to five thousand dollars (or more) to treat.

Subterranean Termite Ecology These termites are social insects usually living in underground nests. Nests may be in trees or in rare instances they may be in above ground areas within the property. They tunnel underground to enter the building and then remain hidden within the timber making it very difficult to locate them. Where timbers are concealed, as in most modern homes, it makes it even more difficult to locate their presence. Especially if gardens have been built up around the home and termite barriers are either not in place or poorly maintained. Termites form nests in all sorts of locations and they are usually not visible. There may be more than one nest on a property. The diet of termites in the natural environment is the various hardwood and softwood species growing throughout Australia. These same timbers are used in buildings. Worker termites move out from their underground nest into surrounding areas where they obtain food and return to nurture the other casts of termites within the nest. Termites are extremely sensitive to temperature, humidity and light and hence cannot move over ground like most insects. They travel in mud-encrusted tunnels to the source of food. Detection of termites is usually by locating these mud tunnels rising from the ground into the affected structure. This takes an expert eye.

Termite barriers protect a building by forcing termites to show themselves. Termites can build mud tunnels around termite barriers to reach the timber above. The presence of termite tracks or leads does not necessarily mean that termites have entered the timber though. A clear view of walls and piers and easy access to the sub-floor means that detection should be fairly easy. However many styles of construction do not lend themselves to ready detection of termites. The design of some properties is such that they make the detection by a pest inspector difficult, if not impossible.

The tapping and probing of walls and internal timbers is an adjunct or additional means of detection of termites but is not as reliable as locating tracks. The use of a moisture meter is a useful aid for determining the presence of termites concealed behind thin wall panels, but it only detects high levels of activity. Older damage that has dried out will not be recorded. It may also provide false readings. Termite tracks may be present in the ceiling space however some roofs of a low pitch and with the presence of sisalation, insulation, air conditioning ductwork and hot water services may prevent a full inspection of the timbers in these areas. Therefore since foolproof and absolute certain detection is not possible the use of protective barriers and regular inspections is a necessary step in protecting timbers from termite attack.

TIMBER DECAY FUNGI

The fruiting bodies of wood decay fungi vary in size, shape and colour. The type of fungi encountered by pest controllers usually reside in poorly ventilated subfloors, below wet areas of the home, exterior timbers and in areas that retain water in the soil. The durability and type of timbers are factors along with the temperature and environment. Destruction of affected timbers varies with the symptoms involved. Removal of the moisture source usually alleviates the problem. Fungal decay is attractive to termites and if the problem is not rectified it may well lead to future termite attack.

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IMPORTANT INFORMATION

There is no warranty given or implied as a result of the inspection or this report. The report can only give details of what was found on the day and at the time of the inspection. Termites can gain entry to the structures at any time.

General remarks: A more thorough INVASIVE INSPECTION is available. Where any current visible evidence of Timber Pest activity is found, it is strongly recommended that a more invasive inspection be performed. Trees on the property up to a height of 2m have been visually inspected, where possible and practicable, for evidence of termite activity. It is very difficult, and generally impossible to locate termite nests since they are underground and evidence in trees is usually well concealed. We therefore strongly recommend that you arrange to have trees test drilled for evidence of termite nests.

Important Maintenance Advice regarding Integrated Pest Management for Protecting against Timber Pests.

Any structure can be attacked by Timber Pests. Periodic maintenance should include measures to minimise possibilities of infestation in and around a property. Factors which may lead to infestation from Timber Pests include situations where the edge of the concrete slab is covered by soil or garden debris, filled areas, areas with less than 400mm clearance, foam insulation at foundations, earth/wood contact, damp areas, leaking pipes, etc; form-work timbers, scrap timber, tree stumps, mulch, tree branches touching the structure, wood rot, etc. Gardens, pathways or turf abutting or concealing the edge of a concrete slab will allow for concealed entry by timber pests. Any timber in contact with soil such as form-work, scrap timbers or stumps must be removed from under and around the buildings and any leaks repaired.

You should endeavour to ensure such conditions DO NOT occur around your property.

We further advise that you engage a professional pest control firm to provide a termite management program in accord with AS 3660 to minimise the risk of termite attack. There is no way of preventing termite attack. Even AS 3660 advises that A complete termite barrier system constructed in accordance with this Standard cannot prevent termite attack, as barriers can be bridged or breached. Where termites bridge barriers the evidence can be detected during inspections.

DISCLAIMER OF LIABILITY: No liability shall be accepted on account of failure of the Report to notify any Termite activity and/or damage present at or prior to the date of the Report in any areas(s) or section(s) of the subject property physically inaccessible for inspection, or to which access for Inspection is denied by or to the Licensed Inspector (including but not limited to any area(s) or section(s) so specified by the Report).

DISCLAIMER OF LIABILITY TO THIRD PARTIES: Compensation will only be payable for losses arising in contract or tort sustained by the Client named on the front of this report. Any third party acting or relying on this Report, in whole or in part, does so entirely at their own risk

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It is strongly recommended that a full Inspection and Report be carried out every 6 months. Regular inspections DO NOT stop timber pest attack, but are designed to limit the amount of damage that

may occur by detecting problems early.

AS 3660 and AS 4349.3 both recommend at least a 12 monthly inspection but strongly advise more frequent inspections.

ADDITIONAL INFORMATION:

If you would like to discuss this report in more detail, please call Glenn on 0414 277788

The Inspection and Report was carried out by: GLENN CHILDS

State Licence No: 15 003618 - 004

Insurance Termite Accreditation Number: TP0158

Dated: 7th October, 2015

SIGNED for and on behalf of: _______________________________ CHILDS PEST SERVICES PTY LTD


Members Instituteof Strata Management

Level 5, 203 New South Head Road, Edgecliff, 2027Phone: 9369 2787, Fax: 9388 [email protected]

Building Consultants Licence BC211

Members MasterBuilders Association

N.S.W. MASTER BUILDING INSPECTORS

ABN 89 098 140 197www.buildinginspectors.com.au

172 - 174 Leura Mall, Leura

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Members Instituteof Strata Management


Building Consultants Licence BC211

Members MasterBuilders Association

N.S.W. MASTER BUILDING INSPECTORS

ABN 89 098 140 197www.buildinginspectors.com.au

STANDARD BUILDING INSPECTION REPORT

25/6/2015DATE:

Daniel Johnston <[email protected]>EMAIL:

47 80 5535TELEPHONE:

Locked Bag 1005 Katoomba NSW 2780 ADDRESS:

Blue Mountains City CouncilCLIENT:

DryWEATHER CONDITIONS ON

DAY OF INSPECTION:

Buildings of varying styles and agesNEIGHBOURING

PROPERTIES:

Appears to be approximately 110 years oldAGE OF PROPERTY:

This building comprises two adjoining shopsACCOMMODATION:

Timber framed weatherboard building constructed on timber andconcrete floors exhibiting severe termite damage, corrosion of theroof, unsafe wiring and requiring considerable other repairs asdetailed

GENERAL DESCRIPTION

OF PROPERTY:

OWNER'S NAME:

172-174 Leura Mall, LeuraADDRESS OF PROPERTY:

2

SUMMARY SHEET

FAULTS

1. Considerable repairs are required to the roof:

i. The corrugated iron roof above the restaurant section of 174 Leura Mall is severelycorroded and requires replacement. (Photo 8)

ii. The corrugated iron roof elsewhere is infirm and requires restoration and securinginto position to prolong its life and to prevent rainwater seepage through the roof orreplacement will be necessary.

iii. Screws securing the metal roof into position are corroding and require restorationbut this is a relatively small repair for a painter or local handy person with costsbeing in the order of $400.

iv. Gutters and downpipes are rusted and require at least partial replacement.

v. The downpipe collecting rainwater from the gutter at the rear of 172 Leura Mall isnot connected into the stormwater system, discharging its contents along the surfaceof the ground contrary to Council and Water Authority Regulations. (Photo 7)

vi. The enclosure to the skylight is corroded and replacement of the enclosure is nowrequired to prevent rainwater seepage through the skylight. (Photo 9)

vii. Timber fascia boards are rotted and require reconstruction in large areas.

A number of repairs are now required as soon as possible to prevent rainwater seepagethrough the roof with costs being in the order of $30,000 depending on the extent of roofreconstruction taken and quality of workmanship performed.

2. Considerable repairs are also required to the exterior of the building:

i. Timber weatherboards are rotted and some panels require replacement while otherscan be restored.

ii. The exposed timber wall frame at the front side of 172 Leura Mall is severelytermite damaged. (Photo 3)

iii. Timber windows are in poor condition and require replacement in sections andrestoration at other locations.

iv. The timber door at the rear of 172 Leura Mall is deteriorated and requiresreplacement.

v. The metal security door at the rear of 172 Leura Mall is corroding and requiresrestoration to prolong its life or replacement will soon be necessary.

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Repairs to the exterior of the building should now be undertaken to prevent waterpenetration through the walls and into building with costs involved being in theorder of $10,000 for the areas exposed to view, however, the presence of termitedamaged timbers on this property presents a substantial risk that termite damagemay also have occurred in the concealed timber floor, wall and roof framing notexposed to view and should termite damage be present in these areas, costs involvedin rectification can be in the order of tens of thousands of dollars if not in excess of$100,000.

3. The floors are in poor condition:

i. Extensive evidence of past termite infestation is visible along the main timber floorbeams.

ii. Considerable deterioration is present in the floorboards in 172 Leura Mall due totermites.

iii. Some of the brick piers below the building contributing to the support of the floorsare irregular and require reinforcement but bodily access is not readily availablebecause the floor has been constructed very close to the ground.

iv. The floors in most rooms in this building are sloping out of level due toirregularities in the subfloor structure.

v. The floors in this building have been constructed very close to the ground, acondition that can result in further deterioration of the timberwork due to damp ortermites.

vi. Ventilation in the subfloor below this house is poor and the installation of additionalvents in the exterior walls should be undertaken.

vii. Rubble under the house should be removed.

viii. No antcaps have been installed on top of the brick piers in the subfloor below thishouse for proper termite identification, however, bodily access to the subfloor is notreadily available for the installation of antcaps because the floor has beenconstructed very close to the ground and this property will always be at high risk oftermite attack, infestation and damage.

Repairs to the floors as detailed above will necessitate the reconstruction of large sectionsof the floors with costs being in the order of $30,000 or $40,000 depending on the extent offloor reconstruction taken and quality of floorboards selected.

4. Electric cables in the ceiling cavity have been installed across the ceiling joists in an unsafemanner and contrary to standard wiring practice, a condition that presents a safety and firerisk. Repair should now be undertaken by an electrician with costs being in the order of$1,000, at which time further investigation of the wiring would be recommended todetermine whether any other electrical defects are present. (Photo 3)

5. The following conditions were noted in relation to the interior of both shops:

i. The ceilings in several rooms are sagging due to the weak timber roof framing andreinforcement is required.

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ii. The internal wall linings are damaged, rotted, cracked and irregular.

iii. Timber wall panelling in 172 Leura Mall is termite damaged in various locations.

iv. Floor tiles at the base of the fireplace in 172 Leura Mall are cracked and requirereplacement.

Repairs to the interior of the building as detailed above will involve costs in the order of$10,000 and it should be undertaken as soon as possible for safety purposes.

6. The following conditions were noted in relation to the rear courtyard:

i. Pavers are irregular and should be restored to prevent any further damage fromoccurring.

ii. Timber fences are weathered and require restoration to prolong their life.

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STRUCTURAL DEFECTS

1. The roof is weak due to fire damage and partial reconstruction at least is required.

2. The ceilings in various rooms are sagging and irregular and extensive restoration shouldnow be undertaken as soon as possible to prevent these ceilings from dislodging away from the supporting timber framework and presenting a safety risk to the occupants.

3. Termite damage is present in the floors which require at least partial reconstruction.

4. Termite damage is present in the walls which require at least partial reconstruction.

5. Should termite damage be present in the concealed timbers in this house, reconstruction ofthe damaged areas will be necessary and costs involved can be substantial.

6. Repairs to the electrical wiring should now be undertaken as soon as possible for safetypurposes.

Definition

Home Building Regulation 2004

71 Meaning of “structural defect”

(1) For the purposes of section 103B (2) of the Act, structural defect means anydefect in a structural element of a building that is attributable to defective design,defective or faulty workmanship or defective materials (or any combination ofthese) and that:

(a) results in, or is likely to result in, the building or any part of the buildingbeing required by or under any law to be closed or prohibited from beingused, or

(b) prevents, or is likely to prevent, the continued practical use of thebuilding or any part of the building, or

(c) results in, or is likely to result in:

(i) the destruction of the building or any part of the building, or

(ii) physical damage to the building or any part of the building, or

(d) results in, or is likely to result in, a threat of imminent collapse that mayreasonably be considered to cause destruction of the building or physicaldamage to the building or any part of the building.

(2) In subclause (1):

structural element of a building means:

(a) any internal or external load-bearing component of the building that isessential to the stability of the building or any part of it, including thingssuch as foundations, floors, walls, roofs, columns and beams, and

6

(b) any component (including weatherproofing) that forms part of theexternal walls or roof of the building.

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DAMP

Damp penetration into this building may occur at the following locations:

1. Damp meter readings taken about the surfaces of the internal walls in 172 Leura Mallrevealed a high level of moisture in the walls consistent with the presence of damp ortermite infestation. Further investigation should be undertaken to determine whether termiteinfestation is present in the concealed timber framework by way of thermal imaging.*(Photo 4)

*Thermal imaging is a non-intrusive process that uses a specialised camera that may detecttermite infestation in concealed timbers. www.thermalimage.com.au

2. Ventilation in the subfloor below the house is poor and seepage may accumulate on theground during wet weather periods.

3. A number of repairs are required to the roof to prevent rain water seepage through the roofas detailed in an earlier section of this report.

4. Considerable repairs to the exterior walls are required to prevent damp penetration throughthe walls and into the building.

5. Repairs and replacement of the windows and doors in this property is required to preventrainwater seepage through the windows and doors.

6. A section of this building has been constructed on a concrete floor very close to the ground,a condition that can result in damp entry internally during certain wet weather conditions.

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Photo 1.

View of the timber roof frame.

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Photo 2.

Electric cables in the ceiling cavity are unsafe because they have been installed across the

ceiling joists contrary to standard wiring practice.

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Photo 3.

Termite damage is present in the timber wall frame at the front side of 172 Leura Mall.

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Photo 4.

Damp meter readings taken along the surfaces of the walls in 172 Leura Mall revealed a high

level of moisture in the walls.

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Photo 5.

The floor has been constructed very close to the ground in 172 Leura Mall.

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Photo 6.

The exterior walls are rotted in areas.

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Photo 7.

The downpipe collecting rain water from the roof at the rear of 172 Leura Mall is not

connected into the stormwater system, discharging its contents onto the ground contrary to

Council regulations.

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Photo 8.

The metal roof is severely corroded above the restaurant section of 174 Leura Mall.

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Photo 9.

The enclosure to the skylight is corroded.

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Photo 10.

Termite damage is present in the timber floorboards at the rear of 172 Leura Mall.

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ASBESTOS

No asbestos-containing materials EXTERIOR GROUNDS:

No asbestos-containing materials SUBFLOOR:

Fibro walls at rear EXTERIOR:

No asbestos-containing materials ROOF:

Fibro walls and ceiling KITCHEN:

Interior fibro walls at rear of 172 Leura Mall LIVING/DINING ROOM:

No asbestos-containing materials ENTRY:

Please note carefully that this Building Inspection Report is not an Asbestos InspectionReport. The building inspector is not an asbestos inspector. The table above has beencompiled by the Building Inspector by taking in consideration where asbestos is likely to beand the age of the property.

It is not possible to positively determine whether asbestos is present in any section of the property without laboratory analysis of the building materials. We therefore take no responsibility for asbestos matters and any comments regarding asbestos must be read subject to these exclusions and this disclaimer of liability.

Please note carefully that we do not accept any responsibility for the presence of asbestoscontaining materials on the property or for the cost of removal of any asbestos containing materials.

An important note about Mr Fluffy. A large number of homes, mostly in the ACT but also in NSW,have been demolished because insulation that has been installed in the ceiling contains asbestos.Please note carefully that it is not possible to determine whether any insulation that may be presentin the ceiling of your property contains asbestos without laboratory analysis of the materials. Wetherefore take no responsibility for the presence of asbestos in any insulation in the ceiling andaccept no liability should your house be demolished.

If you are concerned about the presence of any asbestos containing materials you should contact an occupational hygienist at www.asbestosinspections.com.au

If you are contemplating any alterations or additions to the property, most Councils will requireyou to undertake an asbestos inspection before work commences so that any sections of thebuilding that contain asbestos can be identified and removed to eliminate a health risk to theowners and the building contractors. For further information about asbestos seewww.asbestosinspections.com.au

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THESE NOTES FORM PART OF THIS REPORT AND ARE SPECIFIC TO THIS PROPERTY

1. This building inspection has been performed in accordance with the Australian StandardsAS4349.0-2007 Inspection of Buildings Part 0: General Requirements and AS4349.1-2007Inspection of Buildings Part 1: Pre-purchase Inspections— Residential Buildings.

2. The Australian Standard AS4349.1 Part 1: Pre-purchase inspections— buildings states insection 2.2 Purpose of Inspection that the purpose of the inspection is to provide adviceregarding the condition of the property at the time of the inspection. The purpose of theinspection is not to advise the purchaser how repairs should be undertaken, when repairs arerequired or predict if any repairs may be necessary in the future. The purpose of theinspection is also not to advise the prospective purchaser whether they should purchase theproperty since there are other important factors which should be considered before thisdecision is made. These factors are not the concern of a building inspection report but mayinclude the price of the property, the location of the property and the suitability of theproperty to the purchaser.

3. This building inspection has been performed in accordance with the Australian StandardsAS4349.0-2007 Inspection of Buildings Part 0: General Requirements and AS4349.1-2007Inspection of Buildings Part 1: Pre-purchase Inspections— Residential Buildings, andaccordingly we have not:-

(a) tested or checked the operation and condition of appliances and fixtures, including ovens, stoves, dishwashers, exhausts, air conditioners, ducted vacuum systems, garagedoors, fireplaces, chimneys or any other electrical or mechanical appliances or fixtures thatmay be present, including whether these appliances are correctly ducted or un-ducted. Werecommend you ask your solicitor or conveyancer to check if the vendors still have currentwarranties for these which can be assigned to you; and

(b) determined whether the ground on which the building rests has been filled, is liable toslide, is subject to landslip, earthquakes, tidal inundation or if it is flood prone and we takeno responsibility for any damage to the building or loss suffered due to any of these conditions or resulting from any of these causes.

4. It is not a requirement in the Australian Standard AS4349.1 Part 1: Pre-purchase inspections toprovide estimates of repair costs. The inspector may provide estimates of repair costs at hisdiscretion. Any estimates of repair costs stated in this Report should be used as a guide onlyand cannot be relied on. For accurate costings, quotes must be obtained from a number ofsuitably qualified tradesmen or builders.

5. This building Report must be read in conjunction with the information and conditions in thesection contained in the report and headed "Important Conditions Which Form Part of ThisBuilding Report."

6. NSW Office of Fair Trading states the following in their publication titled "PropertyInspections, Pre Purchase Property Reports"

"Most properties will have minor defects such as blemishes, corrosion, cracking,weathering, general deterioration, and unevenness and physical damage to materials andfinishes. If you want the consultant to report on minor defects and imperfections you willneed to ask for a ‘special–purpose’ property report."

Accordingly, you should be aware and note that this inspection does not report on minorfaults and irregularities that are consistent with a property of this age and type ofconstruction.

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7. This Report will not disclose defects in inaccessible areas or areas that are not reasonablyvisible, defects which are only apparent in weather conditions different to those at the timeof this inspection and latent defects which have not yet manifested themselves, and noresponsibility is taken for defects of these kinds.

8. Our inspection is only of areas which are readily accessible and readily visible. Accordinglywe take no responsibility and accept no liability for any damage that may be present in theconcealed timber wall, floor and roof framing.

9. This Report is based only on the condition of the building at the time of the inspection. TheAustralian Standard AS4349.1 Part 1: Pre-purchase inspections— buildings states insection 2.2 Purpose of Inspection that the purpose of the inspection is to provide regardingthe condition of the property at the time of inspection. Accordingly, this Report is a Reporton the condition of the property at the time of the inspection and we accept noresponsibility for any defects that may appear at any time in the future. Therefore, thisCompany will not accept responsibility and cannot be held liable and for any defects thatmay appear at any time after three months from the date of this report.

10. The interior and exterior walls in this building were carefully examined for cracking in thewalls. Any cracks that were present at the time of the inspection were noted and their extentand severity explained. Because of changes in the weather, the amount of moisture in thesoil is continually varying causing the ground to expand and contract. This condition cancontribute to movement of the footings that support the walls and can result in cracking inthe walls. Cracks may appear in the internal and external walls in this building at any time.It is not possible to predict whether cracks will appear in the walls or whether any cracksthat are present at the time of our inspection will increase in extent and severity. Please notecarefully that we accept no responsibility for any cracking in the walls that may appear inthe future or any increase in the extent or severity of any cracks that were present at thetime of the inspection.

11. This Report was not compiled by copying and pasting of any text in the Report. The reasonthat the description of some rooms may appear similar is because there is often a uniformityin the construction and finishes in the rooms of most properties.

12. We strongly recommend that you engage a licensed plumber to check whether flexiblewater supply hoses have been used in the kitchen, bathroom and laundry since flexiblehoses can burst at any time and cause extensive water damage to the property.

13. The presence of termite damage to the readily visible timbers in this property indicates thatthere is a substantial risk that termite activity is present in these areas and that damage dueto termites has also occurred in the concealed timber floor, wall and roof framing. As theseare concealed and not exposed to view we are unable, in a visual inspection, to inspect andreport on these non- readily visible areas and accordingly we can take no responsibility forany termite damage or termite infestation to timbers in these areas.

14. Because of the age of this property there is a risk that it may have been painted using leadbased paints, a condition that can present a health risk and can involve substantial costs inremoval or repainting. It is not possible to test whether the paint contains lead during thecourse of an inspection of this kind and we therefore accept no responsibility if it isdiscovered that the paint does in fact contain lead.

15. An inspection of the ceiling cavity revealed the presence of dust which may contain lead, acondition that can pose a health risk, and removal of the dust is recommended.

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16. Some rooms inside this property are full of personal effects which should be removed sothat a proper inspection of the areas concealed by the personal effects can be completed.The removal of the personal effects and re-inspection of the areas concealed by personaleffects should be undertaken before the purchase proceeds.

17. Glass installed in some windows and doors in this property extends close to the floor andshould be safety glass. A glazier should be engaged to determine whether safety glass ispresent. If safety glass has not been used, replacement with safety glass should beundertaken.

18. The fireplace was not tested but this fireplace should not be used until a fireplace expertconfirms that the building will not catch on fire if a fire is lit.

19. Although the plumbing in this property is working sufficiently, there is some risk that thesewerage pipes may be old and damaged in which case modernisation may be necessaryand costs involved can be thousands of dollars if not tens of thousands of dollars.

20. The roots of trees on this property can cause damage to paths, fences, retaining walls,plumbing pipes and the building itself and should be monitored carefully at all times. ThisCompany will accept no responsibility for any damage caused by trees and an arborist (treespecialist) should be contacted to determine whether tree roots on this property pose adanger to damaging the property.

21. It is a State Government’s requirement that asbestos register should be present on thisproperty as required for all workplaces (see www.asbestosinspections.com.au)

22. The hot water tank may be at the end of its warranty which is often only 1 to 5 years andshould replacement be required, costs involved in the supply and installation of a new hotwater tank can be in the order of $1,800.

23. As a section of this building has been constructed on a concrete slab it is at extremely highrisk of termite infestation and damage because termites can enter through minor cracks inthe concrete and into the concealed timber wall and floor framing in the house withoutbeing detected. For this reason, before this purchase proceeds, further investigation shouldbe undertaken to determine whether termite infestation is present in the concealed timberframework by way of thermal imaging*.

*Thermal imaging is a process that uses a specialised camera that may detect termite infestationin concealed timbers. This method is non-intrusive and therefore more preferable than aboroscope inspection. www.thermalimage.com.au

The cost involved in the above procedure is in the order of $400 to $500.

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DETAILED DESCRIPTION OF PROPERTY

INTERIOR

174 LEURA MALL

ENTRY/SHOP

In satisfactory working orderPOWERPOINTS:*

SatisfactoryNATURAL LIGHT:

In satisfactory working orderLIGHT FITTINGS:

Timber windows weatheredWINDOWS & DOORS:

Timber boards and fibro walls soundWALLS:

The floorboards are scratched and irregular with gaps presentbetween the floorboards and sanding and polishing is required. Thetimber floor is also sloping out of level.

FLOORS:

Timber boards satisfactory CEILING:

Door lock satisfactoryDOOR LOCKS:

Timber door in satisfactory order and conditionFRONT DOOR:

* An electric meter is used to test the correct wiring of powerpoints.

RESTAURANT

In satisfactory working orderPOWERPOINTS:



Timber windows weathered. Doors in satisfactory working order WINDOWS & DOORS:

Timber boards satisfactory WALLS:

Ceramic floor tiles cracked and replacement of some tiles requires.The timber floor feels firm

FLOORS:

Fibro ceiling satisfactoryCEILING:

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KITCHEN



In satisfactory working orderLIGHTING:

The commercial exhaust was not testedEXHAUST:

Satisfactory for hot and coldWATER PRESSURE:

Working satisfactorily. Copper water supply pipes and PVC wastepipes and connections all secure

PLUMBING:

The sink is satisfactorySINK:

Commercial gas stove not testedOVEN/HOTPLATE:

Stainless steel commercial cabinetry satisfactory CUPBOARDS:

NilWINDOWS & DOORS:

Ceramic wall tiles are exhibiting wear and tear. Fibro walls soundWALLS:

Vinyl floor covering in poor condition. The timber floor feels firmFLOOR:

Fibro ceiling satisfactoryCEILING:

Commercial kitchen GENERAL DESCRIPTION:

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172 LEURA MALL

ENTRY/FRONT ROOM

In satisfactory working orderPOWERPOINTS:*



Timber windows weatheredWINDOWS & DOORS:

Wall linings cracked and deteriorated in large areasWALLS:

The floorboards are deteriorated in sections and the timber floor isout of level. Floor tiles at the base of the fireplace are deteriorated

FLOORS:

Timber boards saggingCEILING:

Door lock satisfactoryDOOR LOCKS:

Timber door in satisfactory order and conditionFRONT DOOR:

* An electric meter is used to test the correct wiring of powerpoints.

ROOMS BEHIND ENTRY




Timber window in poor condition. Door deterioratedWINDOWS & DOORS:

Timber wall boards rotted, partially due to termites and replacementof large area is required. Fibro walls satisfactory

WALLS:

Timber floorboards deteriorated, partially due to termites and thefloor is out of level. Concrete floor at rear satisfactory. Carpet floorcovering in poor condition.

FLOORS:

Timber boards sagging and irregularCEILING:

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CEILING CAVITY

Inevitable through the roof which requires considerable repairs.Cables have been installed across the ceiling joists

WATER ENTRY:

Fibre batts satisfactory INSULATION:

Satisfactory BATTENS:

Fire damagedRAFTERS:

Fire damagedBEARERS:

Timber roof framing fire damaged in large areas. Timber roofframing to sloping roof not exposed to view. No partition wallconstructed to separate the two shops

GENERAL DESCRIPTION:

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EXTERIOR OF PROPERTY

CLADDING

NilDAMPNESS:

Not visible DAMP COURSE:

Not visible in this type of constructionLINTELS:

Timber doors deteriorated and require replacement at some locationand restoration at others

DOORS:

Timber windows deteriorated and require replacement at somelocations and restoration at others

WINDOWS:

Exterior timber weatherboards rotted and replacement of large areais required. Exposed timber wall framing at side of 172 Leura Mallis termite damaged. Fibro walls at rear satisfactory

WALLS:

ROOF

Timber eaves and fascias deteriorated in large areasEAVES:

Some downpipes rusted and not connected into the stormwater at therear of 172 Leura Mall

DOWNPIPES:

Some gutters rustedGUTTERING:

Corrugated iron above restaurant section of 174 Leura Mall severelycorroded. Corrugated iron elsewhere infirm and securing screwscorroding

ROOF COVERING:

Pitched and sloping roofCONSTRUCTION TYPE:

SUBFLOOR (Area Under the Floor)

Nil but ventilation is poor and seepage may accumulate on thesurface of the soil during certain weather conditions. Rubble on theground should be removed.

DAMPNESS:

NilANTCAPS:

Brick piers irregularPIERS:

Floorboards are deteriorated due to rot and termitesFLOORING:

Evidence of termite infestation is visibleBEARERS:

Limited visibility only available to subfloor below house becausefloor has been constructed very close to the ground

GENERAL DESCRIPTION:

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ELECTRICAL SYSTEM

Cables have been installed across the ceiling joistsCONDITION OF WIRING:

Installed but not testedSMOKE DETECTOR:

All in satisfactory working orderPOWERPOINTS:

All in satisfactory working orderLIGHTS:

Satisfactory FUSE BOX:

PLUMBING SYSTEM

Generally satisfactory in sections exposed to view but the conditionof concealed pipes not visible

CONDITION OF PLUMBING:

All securePLUMBING CONNECTIONS:

Satisfactory for hot and coldWATER PRESSURE:

Copper water supply pipes and PVC waste pipes satisfactory wherevisible

HOT & COLD WATER PIPES:

AIR CONDITIONING/HEATING SYSTEM

CONDITION:

TYPE:

Electric air conditioner was not testedMAKE:

HOT WATER SYSTEM

Appears satisfactory but may be at the end of its warranty which isoften one to five years

CONDITION:

InstantaneousCAPACITY:

Mains pressure gas system TYPE:

Rinnai at exterior wallMAKE:

BACK YARD

Appears satisfactory away from the property where the level of theinternal floor is above the ground

WATER DRAINAGE:

Not locatedTAPS:

Timber fencing exhibiting wear and tear and requires restoration toprolong its life

FENCING:

Pavers irregular and require repairPATHS:

Paved yardGENERAL DESCRIPTION:

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IMPORTANT CONDITIONS WHICH FORM PART OF THIS BUILDING REPORT

1. AUSTRALIAN STANDARD: This Report must be read as subject to the Australian StandardAS4349.0-2007 Inspection of Buildings Part 0: General Requirements 1.2 APPLICATION and theAustralian Standard AS4349.1-2007 Inspection of Buildings Part 1: Pre-purchase Inspections—Residential Buildings 1.2 LIMITATIONS OF STANDARD which say that a Report prepared inaccordance with these Standards is not a certificate of compliance of the property within therequirements of any Act, regulation, ordinance, local law or by-law, or as a warranty or an insurancepolicy against problems developing with the building in the future.And,That the Standard does not include the identification of unauthorized building work or ofwork not compliant with building regulations. The Standard also assumes that the existinguse of the building will continue.

Accordingly, this Report does not warrant that any section of the building or property complies with the Building Code of Australia or any Australian Standards. Any section ofthe Report that comments on the compliance or non-compliance of this building or propertymust be read subject to these exclusions and this disclaimer of liability.

2. COMPLIANCE: The houses, units and building we inspect vary widely in age and type ofconstruction. Please note carefully that it is not the purpose of this Report to determine whetherthese buildings comply with the current building codes, regulations, Australian Standards or Councilrequirements. Accordingly, we accept no responsibility for any aspect of this building that may notcomply with current building codes, regulations, Australian Standards or Council requirements andaccept no responsibility for the repair or upgrading of any section of this building so that it doescomply with current building codes, regulations, Australian Standards or Council requirements.

3. PURPOSE OF INSPECTION: The Australian Standard AS4349.1 Part 1: Pre-purchase inspections— buildings states in section 2.2 Purpose of Inspection that the purpose of the inspectionis to provide advice to a prospective purchaser or other interested party regarding the condition of the property at the time of inspection. Accordingly, this Report is a Report on the condition of theproperty at the time of the inspection and we accept no responsibility for any defects that mayappear at any time in the future.

4. SAMPLE OF REPORT: In accordance with the Australian Standard AS4349.0 Part 0: Generalrequirements Section 2 Inspection Agreement, 2.1 General, C2.1, you confirm that you, or yourSolicitor or Conveyancer, have seen a sample of our Report on our website, or elsewhere, andacknowledge that you are satisfied with the aspects covered in the Sample Report and the extent ofreporting in the Sample Report which is similar to the Report you have received.

5. INSPECTION AGREEMENT: In accordance with the Australian Standard 4349.0 Part 0: General requirements Section 2 Inspection Agreement, 2.1 General, C2.1, you confirm that you have not signed an Inspection Agreement as time was not available for the signing of an Inspection Agreement.

6. ASBESTOS: Please note carefully that this inspection Report is not an asbestos inspection Reportand does not include an inspection of asbestos. The inspector is not qualified to inspect for asbestos.We therefore take no responsibility for asbestos matters and any comments on asbestos must be readsubject to these exclusions and this disclaimer of liability. Asbestos containing materials, includingfibro, were in common use in buildings that are fifteen years or more old. There are a large numberof buildings in Australia that contain asbestos but without specialised testing, which is outside ourarea of expertise and the scope of this report, and having access to parts of the building not readilyvisible, it is difficult to accurately determine whether asbestos is present in a building and we aretherefore unable to reliably state whether or not this building contains asbestos. Nevertheless, thegeneral consensus in the building industry is that buildings with asbestos that is in good conditionpose no danger to their occupants unless the material that contains asbestos is disturbed. You shouldbe aware that removal of building materials containing asbestos such as corrugated asbestos cementroofing or internal or external fibro wall sheeting will almost certainly involve substantial costsbecause of stringent safety rules in relation to handling of asbestos imposed by Governmentauthorities. For further information about asbestos see www.asbestosinspections.com.au

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Accordingly, this Company will not accept responsibility and cannot be held liable for thepresence of any asbestos containing materials or the removal of any asbestos containing materials.

7. ASBESTOS INSPECTION: If you are contemplating any alterations or additions to the property,most Councils will require you to undertake an asbestos inspection before work commences so thatany sections of the building that contain asbestos can be identified and removed to eliminate a healthrisk to the owners and the building contractors. For further information about asbestos see www.asbestosinspections.com.au

8. PLUMBING & ELECTRICAL: The Australian Standard AS4349.1-2007 Inspection of BuildingsPart 1: Pre-purchase Inspections— Residential Buildings states that the inspector is not required tocheck the adequacy of the plumbing or electrical installation. We therefore take no responsibility forthese matters and our Report on the plumbing and electrical installation must be read subject tothese exclusions and this disclaimer of liability.

9. HOT WATER TANK: The condition of the hot water tank and its adequacy is not part of a prepurchase inspection and Report in accordance with the Australian Standard AS4349.1-2007Inspection of Buildings Part 1: Pre-purchase Inspections— Residential Buildings which states thatthe inspector is not required to check the adequacy of any section of the plumbing. Additionally, theDepartment of Fair Trading states the following on their website - "Property Inspections, ThingsNot Included - plumbing." We therefore take no responsibility for the condition of the hot watertank. Should the inspector mention the hot water tank in the Report, its condition and adequacy mustbe read subject to these exclusions and this disclaimer of liability.

10. PLUMBING BLOCKAGES: An inspection of the plumbing in this building has been made byexamining the exposed plumbing pipes, testing the water pressure at all the taps and flushing thetoilets if the water supply is on. Blockages in sewer lines can sometimes be identified by handbasins that do not drain quickly when filled or toilets that do not drain quickly when flushed butoften this condition only becomes apparent after continual use over a period of time and in thesecases blockages in sewer and stormwater pipes cannot be identified during the course of aninspection. Blockages in sewer and stormwater pipes can also occur at any time because of treeroots entering into sewer and stormwater pipes below the ground. For these reasons we cannotaccept responsibility if there are, or if there develops, any blockages in sewer and stormwater pipesand this Company cannot be held liable for any repairs made necessary by such blockages.

11. STORMWATER: It is not permissible to allow downpipes collecting rainwater from the gutters todischarge into the sewer system. It is impossible to determine simply by a visual inspection whetherthe downpipes are connected into the sewer pipes. This can only be determined by smoke testingusing specialised equipment which is outside our area of expertise and accordingly outside the scopeof this Report. This Company therefore takes no responsibility for the cost of rectification wheredownpipes discharge into the sewer or into the ground.

12. SHOWERS: Shower enclosures are examined for evidence of seepage but it is not possible todetermine whether a waterproof membrane has been installed or it’s condition because themembrane is not exposed to view. Should seepage through the bathroom walls or floors appear, replacement of the tiles and renewal of the membrane will be necessary, and in some cases damageto the timber wall and floor framing can occur. Leaking showers and damage to the timber wall andfloor framing is therefore outside the scope of this Report and this Company cannot be held liablefor repairs to leaking showers or damage to the timber wall and floor framing.

13. SHOWER DRAINAGE: There is no provision in the Australian Standard AS4349.0-2007Inspection of Buildings Part 0: General Requirements 1.2 APPLICATION and the AustralianStandard AS4349.1-2007 Inspection of Buildings Part 1: Pre-purchase Inspections— ResidentialBuildings for testing whether water on the floor of a shower discharges into the drain in the shower.Therefore, our Inspectors do not test whether the water in the shower discharges into the drain.Accordingly, this Company will not accept responsibility and cannot be held liable for anywater that does not drain into the shower and any repairs that may be necessary to the shower for thedrainage of water.

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14. EXCLUSIONS: The client acknowledges that this Report does not deal with the following items inaccordance with the Australian Standard AS4349.1-2007 Inspection of Buildings Part 1:Pre-purchase Inspections— Residential Buildings:

(a) Footings below ground.(b) Concealed damp-proof course.(c) Electrical installations, operation of smoke detectors, light switches and fittings, TV,sound and communications and security systems.(d) Concealed plumbing.(e) Adequacy of roof drainage as installed.(f) Gas fittings and fixtures.(g) Air conditioning.(h) Automatic garage door mechanisms.(i) Swimming pools and associated filtration and similar equipment.(j) The operation of fireplaces and solid fuel heaters, including chimneys and flues.(k) Alarm systems.(l) Intercom systems.(m) Soft floor coverings.(n) Electrical appliances including dishwashers, incinerators, ovens, ducted vacuumsystems.(o) Paint coatings, except external protective coatings.(p) Health hazards (e.g., allergies, soil toxicity, lead content, radon, presence of asbestos orurea formaldehyde).(q) Timber and metal framing sizes and adequacy.(r) Concealed tie-downs and bracing.(s) Timber pest activity.(t) Other mechanical or electrical equipment (such as gates, inclinators).(u) Soil conditions.(v) Control joints.(w) Sustainable development provisions.(x) Concealed framing-timbers or any areas concealed by wall linings/sidings.(y) Landscaping.(z) Rubbish.(aa) Floor cover.(bb) Furniture and accessories.(cc) Stored items.(dd) Insulation.(ee) Environmental matters (e.g., BASIX, water tanks, BCA Environmental Provisions).(ff) Energy efficiency.(gg) Lighting efficiency.

15. PEST INSPECTION: This Building Inspection Report is not and should not be confused with aPest Inspection Report. This Company is not responsible for and cannot be held liable if there is anyinfestation of termites, borers or any other pests in the property or for any damage that suchinfestation may cause.

Furthermore, please note that the NSW Office of Fair Trading states the following in its publication,Pre-purchase building inspections: A home buyer’s guide: "It is also useful to get a separate pestinspection report before you buy the property."

16. OTHER PESTS: This Company is not responsible for and cannot be held liable if there is anyinfestation of other pests in the property including, but not limited to, possums, birds, cockroaches,rats, mice, wasps, bees, fleas, ants snakes and spiders, or for any damage that such pests may causeto the property.

17. CONCEALED TIMBERS: No liability will be accepted for any damage whatsoever that may bepresent in areas in this property where the timber wall, floor and roof framing is not exposed to viewand this Company cannot be held responsible for any damage to concealed timber wall, floor androof framing.

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18. ACCESSIBILITY: Only the readily accessible and readily visible areas of this building wereinspected and reported on. The Report therefore does not extend to any areas where there werephysical limitations which inhibit or prevent access and inspection, including but not limited tofixed ceilings, wall linings, floors covered by floor coverings, fixtures, fittings and furniture, clothesand other stored articles/materials in cupboards or elsewhere, insulation, sarking, pipe/duct work,and areas covered by or containing builders debris, vegetation, pavements or earth. Any section ofthe building that is not readily accessible, such as garages, laundries, sheds, other rooms, manholesto ceiling cavities, trapdoors to subfloor areas or any other areas that are locked or not readilyaccessible, including concealed hot water tanks, cannot be reported on and no responsibility willtherefore be taken in respect of defects that may be present in these parts of the building. The clientwill be charged an additional fee to inspect these areas if access becomes available at a later date.

19. RIGHT OF ENTRY: In accordance with the Australian Standard AS4349.1 Part 1: Pre-purchase inspections— buildings, please note that Section 2.3.2 Areas for inspection says that the inspection covers accessible areas only. The Australian Standard also states that the client must arrange right of entry, facilitate physical entry to the property and supply necessary information to enable the inspector to undertake the inspection and prepare the report. The inspectoris not responsible for arranging entry to the property or parts of property. Areas where reasonable entry is denied to the inspector, or where reasonable access is not available, are excluded from, and do not form part of the inspection. Accordingly, any areas of the building that are not accessible willbe excluded from the Report and the client will be charged an additional fee if those areas become accessible at a later date and an inspection of those areas are requested.

20. SAFE ACCESS: The Australian Standard AS4349.1-2007 Inspection of Buildings Part 1:Pre-purchase Inspections— Residential Buildings states that Reasonable Access is defined as areaswhere safe unobstructed access is provided. Reasonable access does not include removing screws orbolts to access covers. Reasonable access does not include destructive or invasive inspectionmethods nor does it include cutting or making access traps or moving furniture, floor coverings orstored goods. Access to any areas of the building as detailed above must be made by the owner. Werecommend you arrange for us to gain access to any areas of the building that were not accessible todetermine whether any repairs are required in these areas. However, we advise that this will requirea second visit to the property at an additional fee.

21. REASONABLE ACCESS: The Australian Standard AS4349.1-2007 Inspection of Buildings Part1: Pre-purchase Inspections— Residential Buildings states that Reasonable Access constitutesaccess from a ladder no higher than 3.6 metres, manhole access to the ceiling cavity no smaller than450mm x 400mm, crawl space in the ceiling cavity no less than 600mm x 600mm, manhole accessto the subfloor no less than 500mm x 400mm and vertical clearance in the subfloor not less than400mm to the underside of the bearers. Special arrangements will be required for access to any ofthe above areas that are outside these dimensions.

22. RESTRICTED ACCESS: Our inspectors are not authorised to move any items on the propertieswe inspect including but not limited to furniture, fittings, floor coverings, white goods, debris,vegetation or any personal effects. These items can sometimes conceal access to the subfloor belowthe property, access to the manhole into the ceiling area and access to other areas of the property.Accordingly, the client will be charged an additional fee to inspect these areas if access becomesavailable at a later date as a result of the movement of these items.

23. FURTHER ACCESS: Where we recommend that further access to sections of the property bearranged for us, you should urgently arrange for such further access to be provided so that furtherinspections of those sections can be carried out BEFORE you proceed with the purchase of thisproperty. No inspection of any areas concealed by furnishings or household items was made for thepurposes of this Report.

24. OBSTRUCTIONS: Where we state that areas of the property are concealed by certain itemsincluding, but not limited to furniture, person effects, stored goods, building materials, foliage anddebris, those items should be removed so that an inspection of the concealed areas can beundertaken before the purchase of the property proceeds.

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25. VISIBILITY: Where we state in our Report that a section of a property is "satisfactory as far asvisible", that section of the property that is not visible must be made accessible so that it becomesvisible and can be inspected before the purchase proceeds. Please note carefully that we take noresponsibility for any defects that are present or any repairs that are required to any section of theproperty that we state is not visible and that is not made accessible for inspection before youpurchase the property.

26. MINOR DEFECTS: The Australian Standard AS4349.1 Part 1: Pre-purchase inspections— buildings states Section C4.2.8 says that minor defects are common to most properties and may include minor blemishes, corrosion, cracking, weathering, general deterioration, unevenness, and physical damage to materials and finishes, such as de-silvering of mirrors. It is expected that defects of this type would be rectified as part of normal ongoing property maintenance. It is neither intended nor expected that the Report will include details of specific minor defects.

Accordingly, this Report does not report on minor defects or matters unlikely to significantly affectthe use or value of the property or which it would be reasonable to expect would be repaired orreplaced during the course of regular and prudent maintenance of the property including, but notlimited to, minor blemishes, corrosion, cracking, weathering, general deterioration, unevenness, andphysical damage to materials and finishes, such as de-silvering of mirrors, the quality of paint workand normal wear and tear.

27. COMPARISON OF BUILDINGS: The inspection and Report compares the inspected buildingwith a building that was constructed in accordance with the generally accepted practice at the timeof construction and which has been maintained so that there has been no significant loss of strengthand durability.

28. ALTERATIONS & ADDITIONS: This Building Report is the result of the inspection of thereadily accessible and readily visible areas of this building only. Please note carefully that shouldyou undertake any alterations or additions to this property and discover any other defects that werenot noted in the Report, we will accept no responsibility for the presence of these defects or for therepair of the defects.

29. OCCUPIED PROPERTIES: If the property to be inspected is occupied then you must be awarethat furnishings or household items may be concealing defects which may only be revealed whenthe items are moved or removed. Where the Report says the property is occupied you agree to:

a) Obtain a statement from the owner as to

i. any Timber Pest activity or damage to the property; ii. timber repairs or other repairs to the property; iii. alterations and additions to the property;iv. any other work carried out to the property v. any Timber Pest treatments to the property; vi. any paperwork, invoices or accounts issued and the details of all work carried out; vii. any other problems to the property known to them.

b) Indemnify the Inspector from any loss incurred by you relating to the items listed inclause a) above where no such statement is obtained.

30. MOVEMENT OF OBJECTS: We cannot, as part of our inspection, dig, gouge, break apart,dismantle, remove or move any objects including but not limited to furnishings, floor and wallcoverings, insulation, appliances, foliage and personal possessions. Accordingly, we will accept noresponsibility for the presence of any defects or for the repair of any defects that may becomeapparent when any of the actions stated above take place as is often the case when former occupantsof the property vacate the property.

31. CONCEALED DEFECTS: You agree that we cannot accept any liability for our failure to report adefect that was concealed by the owner of the building being inspected and you agree to indemnifyus for any failure to find such concealed defects.

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32. EXISTING USAGE: The Report is prepared and presented, unless stated otherwise, under the assumption that the existing use of the building will continue in its current usage.

33. ELECTRICAL HAZARD: Please note carefully that when we state that there is insulation presentin the ceiling area, we strongly recommend that you engage an electrician to check that theinsulation has not been placed over lights or electric cables since this condition can present asubstantial fire risk.

34. INSULATION: Where we state in our Report that insulation is present in the ceiling, that insulationshould be removed and the ceiling re-inspected since the insulation is severely restricting our abilityto inspect the timber ceiling beams and timber top wall plates. Please note carefully that we acceptno responsibility for any damage that may be present in the timber ceiling beams or timber top wallplates if the insulation is not removed so that we can undertake a proper and thorough inspection ofthese timber members.

35. SAFETY GLASS: Glass installed in the windows and doors in this property may not be safetyglass. A glazier should be engaged to replace any glass in the windows and doors which is not safetyglass since glass which is not safety glass can cause serious injury to persons if broken.

36. GUTTERS: The gutters in this building were inspected in relation to their condition. Any corrosionof the gutters was noted in the report, however, we did not inspect the gutters in relation theadequacy of the fall of the gutters towards the downpipes or whether the gutters overflow duringcertain weather conditions. Accordingly, we do not accept any responsibility for water damage tothe property that may have occurred in the past or that may occur in the future as a result ofincorrectly graded gutters or gutters that overflow due to the faulty design of the gutters or incorrectinstallation of the gutters. Should you observe that the gutters or downpipes in this property are notfunctioning properly you should engage a suitably qualified contractor to immediately repair thegutters and downpipes and any damage that the gutters and downpipes may have caused.

37. ENCROACHMENTS: This Report is not concerned with the position of any buildings on the landin relation to the boundaries. Accordingly, this company accepts no responsibility for anyencroachments that may exist or any buildings that have been constructed too close to theboundaries in contravention of Local Government, State Government or Federal GovernmentRegulations. We strongly recommend that a survey of the property should be obtained by a qualifiedsurveyor to confirm that no encroachments are present and no Regulations have been contravened.

38. NSW OFFICE OF FAIR TRADING: The NSW Office of Fair Trading states the following intheir publication "Pre-purchase building inspections: A home buyer’s guide,"

a) The report is not a guarantee that the building complies with current standards or building codes or that the building will not develop problems in the future.

b) A building inspection report shouldn’t be seen as an all-encompassing report dealing with every aspect of the property. Rather it should be seen as a reasonable attempt to identify any significant problems visible at the time of the inspection.

c) A building inspection report will usually not include:• parts of the property that weren’t or couldn’t be inspected.• matters outside the consultant’s expertise.• an estimate of repair costs.• a full description of minor defects.• termite detection.

d) A building inspection report shouldn’t be seen as an all-encompassing report dealing with every aspect of the property. Rather it should be seen as a reasonable attempt to identify anysignificant problems visible at the time of the inspection.

e) The consultant normally wouldn’t check things such as:

• footings• concealed damp-proofing• electrical wiring and smoke detectors• plumbing• drainage (including site drainage)

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• gasfitting• air conditioning• garage door locks and door mechanisms• swimming pools and pool equipment• watering systems• fireplaces and chimneys• alarm systems• intercom systems• carpet and linoleum• appliances such as dishwashers, insinkerators, ovens, ducted vacuum systems, hot plates and range hoods

f) While the report will give you valuable expert advice, it won’t cover every detail about the property. Pre-purchase building inspections do not include:

• paint coatings• hazards eg. the presence of lead or asbestos• every opening window• television reception• concealed framing, bracing, tie downs, etc.• environmental matters (basix and the like).• energy and lighting efficiency.

g) With strata scheme and company title properties, the consultant will only inspect and assessthe condition of the interior and immediate exterior of the unit you are thinking of buying. You should contact the Secretary of the Owners’ Corporation or Company to ask about the history and cost of repairs to other units and the common property. This information is important as the cost of repairs and maintenance to common property can sometimes be substantial. Owners normally share the cost of these repairs.

h) It is up to you (or your representative) to arrange access to the property for the inspection to take place.

Accordingly, we take no responsibility for the inspection or condition of any areas noted above. Should we make note of any of the above areas in our Report, those areas of the Report must be read subject to these exclusions and this disclaimer of liability.

39. FIREPLACES: The condition and operation of fireplaces and chimneys is outside the requirementsof the Australian Standard AS4349.1-2007 Inspection of Buildings. Please note carefully thatshould a fireplace be present on your property, a fireplace expert must be engaged to determine thecondition of the fireplace before it is used. Accordingly, this company accepts no responsibility forthe operation of fireplaces and cannot be held liable for any damage cause by the use of a fireplaceincluding damage as a result of a fire.

40. RECOMMENDATIONS: Where we have made recommendations in the Report in relation to anyaspects of the property, these recommendations must be undertaken BEFORE the purchaseproceeds. Should you not complete ALL the recommendations made in this Report, our Companywill not responsible for and cannot be held liable for any defects that become apparent as a result ofthe recommendations not being undertaken or any costs of repairs as a result of therecommendations not being undertaken.

41. VERBAL REPORT: This Report overrides any verbal report provided by our inspectors or anyconversation that may take place between our inspectors and the Client. In accordance with theAustralian Standards noted in this Report, we strongly recommend that you do not exchangecontracts on the strength of a verbal report with the inspector and that every section of the Report isthoroughly read before the purchase proceeds.

42. DISPUTES: In the event of any dispute or claim arising out of, or relating to the Inspection or theReport, or any alleged negligent act or omission on our part or on the part of the individualconducting the Inspection, either party must give written Notice of the dispute or claim to the otherparty. If the dispute is not resolved within 21 days from the service of the Notice then thisCompany will refer the dispute or claim to a Mediator nominated by Us. Should the dispute or claimnot be resolved by mediation then this Company will refer the dispute or claim to the Institute ofArbitrators and Mediators of Australia who will appoint an Arbitrator who will resolve the dispute

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by arbitration. The mediation and arbitration fees will be shared equally by the Company and theClient. The Client is required to forward half of the cost of the mediation and arbitration fees to theCompany before the mediation and arbitration is commenced. The Arbitrator will also determinewhat costs each of the parties are to pay. Please note carefully that no repairs to the property can beundertaken before any dispute is resolved.

43. VEXATIOUS CLAIMS: You must read every section of the Report before you consider making aclaim against our Company. A vexatious claim is defined by the Courts as a claim that is withoutmerit, ill conceived and/or fraudulent. Should we categorise your claim as being without merit, illconceived and/or fraudulent, please note carefully that our response to your claim will incur a cost.

44. REPAIRS: It is not part of our engagement to undertake any repairs of any defects that have beenidentified in this Report.

45. RELIANCE ON REPORT: In the event of any dispute or claim arising out of, or relating to theInspection or the Report, or any alleged negligent act or omission on our part or on the part of theindividual conducting the Inspection, you may rely on the Report to make a claim, however, you arerequired to rely on every part of the report and you cannot be selective in the parts of the Report thatyou rely on.

46. ACCEPTANCE OF REPORT: The Client agrees that they accept the report with all theconditions stated therein. Should the Client not agree to any condition in this Report, a writtenNotice must be received in the Company's registered office within 7 days of the date of the Report.

47. DISCLAIMER OF LIABILITY TO THIRD PARTIES: This Report is made for the use andbenefit of the Client named on the front of the Report and no liability or responsibility whatsoever isaccepted to any third party who may rely on the Report, wholly or in part. Any third party seeking

to rely or acting in reliance on this Report, whether in whole or in part, does so at their own risk .

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N.S.W. PRE-PURCHASE PEST INSPECTIONS

ACN 137 865 617

www.buildinginspectors.com.au

VISUAL TIMBER PEST INSPECTION AND REPORT

EXECUTIVE SUMMARY

Inspection revealed NON-ACTIVE TERMITE DAMAGE to timberflooring and timber wall linings in left side shop and exposed timberwall studs at left side of building. Damage is moderate to severe.NON-ACTIVE TERMITE MUDDING to bearers and joists insubfloor. No damage visible. Considerable damage due to wood rot isvisible to timber wall linings in left side shop, underside of flooring andto bearers and joists where they are supported on foundations andexternal timbers in this building. Minor damage due to wood rot isvisible to rear timber fences.

SUMMARY:

25/6/15DATE:

Single storey weatherboard building. Metal roof. Timber and concretefloors.

DESCRIPTION OF

PROPERTY:

VENDOR:

170-174 Leura Mall LeuraADDRESS OF

PROPERTY:

Blue Mountains City CouncilLocked Bag 1005 Katoomba NSW 2780

CLIENT:

IMPORTANT: The above summary is strictly a brief summary only, supplied to allow aquick overview of the inspection results. It is NOT the report. It MUST NOT be reliedupon and must be read in conjunction with the Detailed Property Report AND Notes whichfollow. If there is a discrepancy between the information provided in this summary andthat contained within the body of the report, the information in the body of the reportoverrides the summary.

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DETAILED PROPERTY REPORT

Visual inspection revealed NO EVIDENCE of active Timber InsectPests.

TREES AND STUMPS:

Visual inspection revealed NO EVIDENCE of active Timber InsectPests. Minor damage due to wood rot is visible to rear timber fences.

FENCING:

Visual inspection revealed TERMITE DAMAGE, non-active at thistime to exposed timber wall studs in left side of building. Damage issevere. Garden beds and paved areas are abutting exterior walls ofbuilding and are above the level of the internal floors( base timberweatherboards are in contact with the ground) and the edge of theconcrete slab is not exposed to view, highly undesirable conditionswhich may allow concealed termite entry and water penetrationinternally. Dense vegetation abutting exterior walls of building andtrees overhanging roofline may conceal termite entry. Considerabledamage due to wood rot is visible to external timbers in this building.This house is in close proximity to dense bushland and is at high risk ofTermite attack.

EXTERIOR:

Very poor flow through ventilation. Soil is dry. Insufficient vents inexterior walls.

VENTILATION:

Visual inspection revealed TERMITE MUDDING, non-active at thistime to bearers and joists. No damage visible. Concrete slab on groundto rear storeroom in left side shop may conceal termite entry or termitedamage and exterior walls should be kept clear of all bridging materials.Severely limited access to subfloor areas due to insufficient space.Considerable damage due to wood rot is visible to underside of flooringand to bearers and joists where they are supported on foundations. Noantcaps and absence of antcapping may conceal termite entry andtermite damage. Because damage due to termites is present inside thisbuilding and because there is evidence of Termite infestation in thesubfloor there is an extremely high risk that termite and/or borer activityand damage is present in the concealed, inaccessible and any othertimber members in this building and further investigation is required.

SUBFLOOR:

(Area under

the floor)

Visual inspection revealed NO EVIDENCE of active Timber InsectPests or damage. No inspection of timbers and areas concealed by thickdust and fibre batt insulation, which may be concealing termite and/orborer activity and damage. No access to eaves. Fire damaged timbersvisible in roof cavity.

ROOF CAVITY:

Visual inspection revealed TERMITE DAMAGE, non-active at thistime to timber flooring and timber wall linings in left side shop.Damage is moderate to severe. Considerable damage due to wood rot isvisible to timber wall linings in left side shop. No inspection of timbersand areas concealed by wall coverings, floor coverings, furniture,fireplaces.

INTERIOR:

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Remove dust in ceiling and re-inspect. Remove insulation in ceiling andre-inspect. Remove furniture and re-inspect. Further investigation isrequired to the timber framing in areas not exposed to view by way ofthermal imaging as detailed on the last page of this report, to determinewhether termite activity is present. All the recommendations noted above must be undertaken beforethe purchase proceeds. All the recommendations noted below mustbe undertaken after you purchase the property.Replace Termite damaged timbers in building. Remove loose timberson ground in subfloor. Install antcaps. Install adequate vents in exteriorwalls. Lower grounds abutting exterior walls of building to below thelevel of the internal floors and the base timber waetherboards andexpose the edge of the concrete slab. Remove dense vegetation abuttingexterior walls of building and fencing. Trim overhanging trees.Re-inspect in six months. This premises has conditions highlyconducive to termite attack. We recommend preventative treatment tosubfloor and foundation perimeter by a licensed pest controller.Preventative treatments can cost $3,500 to $5,000 depending on the areaof the property and type of treatment. (www.home-safe.com.au). Riskof concealed termite activity and termite damage is extremely high dueto the many inaccessible areas in this building and due to the presenceof Termite damaged timbers on this property. Risk of imminent attack isextremely high.

RECOMMENDATIONS:

No access to timber wall framing in this building. No access to eaves.No access to all areas stated above. All inaccessible areas may concealtermite activity and termite damage.

INACCESSIBLE

AREAS:

Not applicable.OUTBUILDINGS:

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PLEASE NOTE CAREFULLY:

This property has conditions that present a substantial risk that termite infestation andtermite damage is present in the structural timber framework. Furthermore, this reporthas identified a number of conditions that are attractive to the presence of termiteinfestation and termite damage and ALL the recommendations listed in theRecommendations box in this report, including a thermal imaging test (see last page of thisreport) must NOW be completed BEFORE the purchase proceeds to identify anyconcealed termite infestation and termite damage, and reduce the risk of termite entry andtermite damage. This company will not accept any responsibility and cannot be held liablefor any termite infestation or termite damage that may be present in any concealed orobstructed timbers in any section of this property because the inspector CANNOT seeinside walls, between floors, inside skillion roofing, under dust in the ceiling, inside theeaves, under air conditioning, behind stored goods in cupboards, or other concealed orobstructed areas. Furthermore, the inspector DID NOT dig, gouge, break apart, dismantle,remove or move any objects including but not limited to furnishings, floor and wallcoverings, insulation, air conditioning ducts, appliances, foliage and personal possessions.

Where recommendations are made for further access to be gained, such access ANDfurther inspections subsequent to access being gained must be carried out BEFORE thispurchase proceeds.

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IMPORTANT NOTES WHICH FORM PART OF THIS PEST REPORT

1. AUSTRALIAN STANDARD. This Inspection and Report have been undertaken andprepared strictly in accordance with the Australian Standards AS4349.3-1998 InspectionOf Buildings Part 3. Timber Pest Inspections, AS4349.0-2007 Inspection of BuildingsPart 0: General Requirements and AS4349.1-2007 Inspection of Buildings Part 1:Pre-purchase Inspections— Residential Buildings

2. THIS REPORT IS CONFINED to reporting on the discovery, or non discovery, ofinfestation and/or damage caused by subterranean termites (white ants) and borers of dryseasoned timber (hereinafter referred to as "Timber Pests") present on the date of theinspection. It is based solely upon a visual inspection of those areas of the propertyreadily visible and fully accessible to the inspector on the date of the inspection. Theinspection does not cover any other pests or insects and this report does not comment onthem. Dry wood termites (Family: Kalotermitidae) are excluded from this inspection.

3. THIS REPORT IS A VISUAL TIMBER PEST INSPECTION REPORT which reports onthe existence of Timber Pest infestation and Timber Pest caused damage in the visuallyobservable and readily accessible parts of the property. This Company will not acceptany responsibility and cannot be held liable for any Timber Pest infestation or TimberPest caused damage that may be present in any concealed timbers or non- readilyaccessible sections of the property. The inspector CANNOT SEE and accordinglyCANNOT REPORT on Timber Pest infestation and Timber Pest caused damage in theareas inside walls, between floors, inside skillion roofing and inside the eaves; areasbehind or concealed by fixed ceilings, wall linings, floor coverings, fixtures, fittings,furniture, clothes, stored articles/materials, insulation, sarking, pipe/duct work, buildersdebris, vegetation, pavements or earth; areas accessible only through manholes andtrapdoors where these are locked or otherwise not readily accessible and areas located inrooms such as garages or laundries which are locked or also otherwise inaccessible at thetime of our inspection. The Client will be charged an additional fee to inspect these areasif access becomes available at a later date. We cannot, as part of our inspection, diggouge, break apart, dismantle, remove or move any objects including but not limited tofurnishings, floor and wall coverings, insulation, air conditioning ducts, appliances,foliage and personal possessions. Accordingly, even where we report that no evidence ofTimber Pests infestation or Timber Pests caused damage was identified, this should no betaken as warranting or representing that no such infestation or damage exists in the partsof the property not readily visible or readily accessible at the time of our inspection.

4. CONCEALED TIMBERS. It is possible to examine concealed timber floor, wall and roofframing by thermal imaging (see www.thermalimage.com.au). Examination using thistechnique is outside the scope of this Report. As this building has concealed timber areaswhich cannot be visually inspected, we strongly recommend that a thermal imaginginspection be undertaken (see explanation last page of Report).

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5. FURTHER ACCESS. Where we recommend that further access to sections of theproperty be arranged for us, you should urgently arrange for such further access to beprovided so that further inspections of those sections can be carried out BEFORE youproceed with the purchase of this property. No inspection of any areas concealed byfurnishings, air conditioning ducts or household items was made for the purposes of thisReport.

6. TERMITE DAMAGE: Where we report that termite damage has been discovered in anysection of the property, even in a fence or a piece of scrap timber, the risk that termitedamage and termite infestation is present in other sections of the property, includinginside the building, is extremely high, and we therefore accept no responsibility andcannot be held liable for the presence of termite damage or termite infestation.

7. EXTENT OF DAMAGE. Where damage in a visually observable and readily accessiblearea caused by Timber Pests exists, the existence of that damage is noted but the Reportis NOT a structural damage Report. We claim no expertise in building matters and anyinexpert opinion we give on timber damage cannot be relied upon. The Report will notstate the full extent of any timber pest damage. The Report will state timber damagefound as 'minor', 'moderate', moderate to severe' or 'severe'. This information is not theopinion of an expert. If any evidence of Timber pest activity and/or damage resultingfrom Timber Pest activity is reported, either in the structure or the grounds of theproperty, then you must assume that there may be concealed structural damage within thebuilding and you should arrange for a qualified person such as a structural engineer orother qualified expert to carry out a structural inspection and to determine the full extentof damage, the extent of repairs required and the likely costs of the repairs required.

8. OUR ABILITY TO VISUALLY INSPECT built in timber store spaces such as kitchen,bathroom, linen and laundry cupboards is limited by the contents stored in thosecupboards which we do not have permission to move. The report relating to cupboardsmust be understood as limited to those areas observable without moving the contents ofthe cupboards. This Company accepts no responsibility for any Timber Pests damage tothe above areas.

9. IT IS NOT PART OF OUR ENGAGEMENT to undertake any treatment where TimberPests infestation is found and it is not part of our engagement to undertake any repairswhere damage caused by Timber Pests is discovered.

10. PREVIOUS TREATMENT DOCUMENTATION. Where we report that there is evidenceor grounds for believing that there has been a previous treatment for Timber Pests, westrongly recommend that you obtain all documents relating to that treatment includingany warranties and advice regarding maintenance or continuity of the treatment. If such documents cannot be obtained, or if evidence that the recommended maintenance or continuity of treatment cannot be obtained, we recommend you assume that the pest infestation is still active in the property.

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11. PREVIOUS TREATMENT AND THE DISCOVERY OF TERMITES: Where we reportthat there is evidence or grounds for believing that there has been a previous treatmentfor Timber Pests, you must assume that the previous treatment was undertaken as a resultof the discovery of termite infestation and termite damage in the property.

12. PREVIOUS TREATMENT AND PRESENCE OF TERMITE DAMAGE: Where we reportthat there is evidence or grounds for believing that there has been a previous treatmentfor Timber Pests, you must assume that the damage caused by termites is still present inthe property.

13. APPLICATION OF A TREATMENT. When we report that there is evidence of a previous treatment for Timber Pests, you must assume that the treatment was applied as a curative measure and not as a preventative measure. You should obtain a statement from the owner detailing any treatments that have been undertaken to the property, the reason why the treatments have been undertaken and any Timber Pests damage that was or still is present to the property.

14. THIS REPORT HAS IDENTIFIED a number of conditions that present a substantial riskthat termite infestation is present in the property and ALL the recommendations listed inthe Report must be undertaken before this purchase proceeds.

15. ALTERATIONS AND ADDITIONS: We have categorised this property as being of highrisk that termite damage or infestation may be present in the timber floor, wall and roofframing not exposed to view. Please note carefully that should you undertake anyalterations or additions to this property and discover any termite damage or infestation,we will accept no responsibility for the presence of the termite damage or infestation.

16. VALIDITY OF REPORT: This report relies on Timber Pests infestations and TimberPests caused damage of the visually observable and readily accessible parts of theproperty at the time of the inspection and no warranty can be given that pest infestationwill not occur in the future. Please be aware that termites can attack, infest and causestructural damage to a property in a very short period of time, often in a matter of weeks,and for this reason this Visual Timber Pest Inspection and Report is only valid for 6weeks from the date on the Report.

17. PLEASE NOTE CAREFULLY that where we state that non-active termite damage ispresent in any section of this property, the likelihood that active termites are also presentin this area or other areas of the property is extremely high, and you must assume thatactive termites are present in the property.

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18. REASONABLE ACCESS: The Australian Standard AS4349.1-2007 Inspection ofBuildings Part 1: Pre-purchase Inspections— Residential Buildings states thatReasonable Access is defined as "areas where safe unobstructed access is provided".Reasonable access does not include removing screws or bolts to access covers.Reasonable access does not include destructive or invasive inspection methods nor doesit include cutting or making access traps or moving furniture, floor coverings or storedgoods. Access to any areas of the building as detailed above must be made by the owner.We recommend you arrange for us to gain access to any areas of the building that werenot accessible to determine whether any repairs are required in these areas. However, weadvise that this will require a second visit to the property at an additional fee.

19. OBSTRUCTIONS: Where we state that areas of the property are concealed by certainitems including, but not limited to furniture, person effects, stored goods, air conditioningducts, building materials, foliage and debris, those items should be removed so that aninspection of the concealed or obstructed areas can be undertaken before the purchase ofthe property proceeds.

20. INSULATION: Where we state in our Report that insulation is present in the ceiling, thatinsulation should be removed and the ceiling re-inspected since the insulation is severelyrestricting our ability to inspect the timber ceiling beams and timber top plates. Pleasenote carefully that we accept no responsibility for any termite damage or other damagethat may be present in the timber ceiling beams or timber top plates if the insulation isnot removed so that we can undertake a proper and thorough inspection of these timbermembers.

21. ACCESS DIMENSIONS. The Australian Standard AS4349.1-2007 Inspection ofBuildings Part 1: Pre-purchase Inspections— Residential Buildings states thatReasonable Access constitutes access from a ladder no higher than 3.6 metres, manholeaccess to the ceiling cavity no smaller than 450mm x 400mm, crawl space in the ceilingcavity no less than 600mm x 600mm, manhole access to the subfloor no less than 500mmx 400mm and vertical clearance in the subfloor not less than 400mm to the underside ofthe bearers. Special arrangements will be required for access to any of the above areasthat are outside these dimensions.

22. MOULD. Mildew and non wood decay fungi is commonly known as mould and is notconsidered a Timber Pest. However, mould and their spores may cause health problemsor allergic reactions such as asthma and dermatitis in some people. No inspection formould was carried out at the property and no report on the presence or absence of mouldis provided. Should any evidence of mould happen to be noticed during the inspection, itwill be noted. If mould is noted as present within the property and you are concerned asto the possible health risk resulting from its presence then you should seek advice fromyour local Council, State or Commonwealth Government Health Department or aqualified expert such as an Occupational Hygienist.

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23. NOT A GUARANTEE. Nothing contained in the Report implies that any inaccessibleareas or sections of the property being inspected by the Inspector on the date of theinspection were not, or have not been, infested by Timber Pests. Accordingly, this Reportis NOT A GUARANTEE that an infestation and/or damage does not exist in anyinaccessible or partly inaccessible area or section of the property, nor is it a guaranteethat a future infestation of Timber Pests will not occur or be found. The AustralianStandard for Termite Management Part 2: In and Around Existing Buildings AndStructures, AS 3660.2-2000, recommends that properties should be inspected at leastevery 12 months but more frequent inspections are strongly recommended.

24. OTHER PESTS: This Company is not responsible for and cannot be held liable if there isany infestation of other pests in the property including, but not limited to, possums, birds,cockroaches, rats, mice, wasps, bees, fleas, ants snakes and spiders, or for any damagethat such pests may cause to the property.

25. PLEASE NOTE CAREFULLY that the only way to protect a property from being attackedby Timber Pests is to have a complete preventative treatment carried out in accordancewith Australian Standard AS3660. Non-active Timber Pests can re-infest at any timeunless a treatment is carried out regularly and in accordance with the Australian Standardby a reputable Pest Control firm.

26. RECOMMENDATIONS: Where we have made recommendations in the Report inrelation to any aspects of the property, these recommendations must be undertakenBEFORE the purchase proceeds. Should you not complete ALL the recommendationsmade in this Report, our Company will not responsible for and cannot be held liable forany defects that become apparent as a result of the recommendations not beingundertaken or any costs of repairs as a result of the recommendations not beingundertaken.

27. VERBAL REPORT: This Report overrides any verbal report provided by our inspectorsor any conversation that may take place between our inspectors and the Client. Inaccordance with the Australian Standards noted in this Report, we strongly recommendthat you do not exchange contracts on the strength of a verbal report with the inspectorand that every section of the Report is thoroughly read before the purchase proceeds.

28. DISPUTES: In the event of any dispute or claim arising out of, or relating to theInspection or the Report, or any alleged negligent act or omission on our part or on thepart of the individual conducting the Inspection, either party must give written Notice ofthe dispute or claim to the other party. If the dispute is not resolved within 21 days fromthe service of the Notice then this Company will refer the dispute or claim to a Mediatornominated by Us. Should the dispute or claim not be resolved by mediation then thisCompany will refer the dispute or claim to the Institute of Arbitrators and Mediators ofAustralia who will appoint an Arbitrator who will resolve the dispute by arbitration. Themediation and arbitration fees will be shared equally by the Company and the Client. TheClient is required to forward half of the cost of the mediation and arbitration fees to theCompany before the mediation and arbitration is commenced. The Arbitrator will alsodetermine what costs each of the parties are to pay.

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29. VEXATIOUS CLAIMS: You must read every section of the Report before you considermaking a claim against our Company. A vexatious claim is defined by the Courts as aclaim that is without merit, ill conceived and/or fraudulent. Should we categorise yourclaim as being without merit, ill conceived and/or fraudulent, please note carefully thatour response to your claim will incur a cost.

30. RELIANCE ON REPORT: In the event of any dispute or claim arising out of, or relatingto the Inspection or the Report, or any alleged negligent act or omission on our part or onthe part of the individual conducting the Inspection, you may rely on the Report to makea claim, however, you are required to rely on every part of the report and you cannot beselective in the parts of the Report that you rely on.

31. ACCEPTANCE OF REPORT: The Client agrees that they accept the report with all theconditions stated therein. Should the Client not agree to any condition in this Report, awritten Notice must be received in the Company's registered office within 7 days of thedate of the Report.

32. DISCLAIMER OF LIABILITY TO THIRD PARTIES: This Report is made for the useand benefit of the Client named on the front of the Report and no liability orresponsibility whatsoever is accepted to any third party who may rely on the Report,wholly or in part. Any third party seeking to rely or acting in reliance on this Report,whether in whole or in part, does so at their own risk.

WARNING:- This building has conditions that present a considerable risk that termitedamage and termite infestation is present in the concealed timber floor, wall and roofframing that is obstructed or not exposed to view. This Report has been compiled at thecompletion of a Visual Timber Pest Inspection. This means that we have inspected alltimber members exposed to view. We did not, and could not inspect any concealed timbers.For this reason, and because we have categorised this property as being of high risk ofconcealed termite damage and termite infestation, we strongly recommend that beforeyour purchase proceeds it is important to examine these timbers by inspecting them with athermal imaging camera (see www.thermalimage.com.au and the explanation on the lastpage of this Report). Alternatively, the internal or external enclosures that conceal thetimbers in this property should be removed to determine whether any Timber Pestsinfestation or Timber Pests caused damage is present. Please note carefully that thiscompany will accept no responsibility and cannot be held liable for any Timber Pestsinfestation or Timber Pests caused damage that may be present in sections of the propertynot readily visible and readily accessible at the time of our inspection.

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TIMBER INSECT PESTS

TERMITES

Description: Termites, commonly known as White Ants, vary in size and colour depending on thespecies. The majority encountered as timber pests in Sydney appear white/transparent to brown in colourand range from 3mm to 7mm long in the soldier cast. Unlike common ants, Termite workers havebeaded antennae rather than elbowed, no eyes and two obvious body segments as compared with three.

Habits: Subterranean Termites operate from a central colony (nest) explained in four categories: aboveground moulds, below ground, arboreal nest (in trees above ground), and in the root crown and trunks oftrees and tree stumps. Depending on the species, they radiate out from this central colony up to fifty (50)meters through tunnels in the ground, usually in the first 20cms of the soil to reach a source of food.They then construct earthen mud shelter tubes up vertical surfaces (e.g. foundation walls and piers). Oncein contact with the timber they excavate it leaving only a thin layer on the outside intact. The establishedTermites, if undiscovered can cause tens of thousands of dollars of damage and costs $3,500 to $6,000 totreat.

Non-chemical Prevention: Poor subfloor ventilation accompanied by a high level of soil moisture areforerunners of wood decay and Termite attack. Large subfloor ventilators are recommended and themaintenance of plumbing and shower recess leakage's vital. Leftover building materials such as off cutsand forming timbers should be removed and regular inspections should be undertaken every 6-12 monthsby an experienced person in the field of Termite detection. In the instance of buildings constructed onconcrete foundations, the external perimeter walls and slab edge should not be bridged by garden soils,landscaping timbers, stored goods, paths, pavers or foliage growth.

Chemical Prevention: Subterranean Termites make their tunnels underground from the nest or colony,often over 50m to a food source. Subterranean Termites must pass through the soil or fill at the base ofpiers, foundation walls and under suspended floors to reach the timber of the main structure. From thesoil, shelter tubes are constructed to timbers. By treating the soil or fill immediately adjacent to verticalsurfaces, access to the main part of the building is prevented, thus isolating structural and interior joinerytimbers from Termite attack.

Treatment: Treatment to active Termite infestation to existing buildings takes in both non-chemical andchemical preventative measures as well as the technique or eradication by the application of toxic dustsinto the active woodwork or shelter tubes with the intention of coating the active Termites in the hope oferadicating the entire nest by means of Termite grooming and cannibalism traits.

ANOBIUM BORERS (Furniture Beetle)

Description: The adult Anobium Borer is 2mm to 5mm in length and brown in colour with a thick body. The larvae (the stage of life is when the damage is caused) is approximately the same size and white incolour (similar to a grain of rice). The exit holes left in the outer surface of the timber are 1mm to2mmin diameter.

Habits: The Anobium Borer is the Borer that has been responsible for instances of flooring collapseoften triggered by a heavy object being placed on the floor. Pine timbers are favoured by this Borer andwhile the sapwood is preferred, the heartwood is also entered. Attack by the Anobium Borer is usuallyobserved in timbers that have been in service for over 20 years and mostly involves flooring and timberwall paneling. The dust from the flight holes (faeces and chewed wood) is fine and gritty and muchcoarser than that caused by the Lyctus Borer. Wood attacked by the Anobium Borer is oftenhoneycombed.

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Non-Chemical Prevention: Use of naturally resistant timbers, e.g. hardwoods, white cypress pine orAmerican redwood.

Chemical Prevention: The use of pre-treated and preserved timbers.

Treatment: The most common treatment applied to this type of infestation is by the application of anabsorbent insecticide sprayed on the underside of floor boards taking in three treatments annually.Replacement of Anobium Borer affected timbers is also an option depending on the extent of damage.

LYCTUS BORER (Powder post beetle)

Description: The Lyctus Borer is 2mm to 5mm in length, brown in colour with a narrow body. Thelarvae is white, 2.5mm in length with an enlarged spiracle on the 2nd last abdominal segment. The exitholes are 1mm to 2mm in diameter. This type of Borer usually attack only the sap wood edge or sides ofhardwood timbers. Damage is often minor but sometimes warrants replacement of the affected timbers.

Habits: As only the sapwood is destroyed, larger dimensional timbers such as rafters supporting the roofand bearers and joists supporting the floors are seldom weakened significantly to cause collapse but this isnot always the case and in some instances the timbers are damaged sufficiently to warrant reconstruction.

Non-Chemical Prevention: The use of naturally resistant timber e.g. true pines (conifers) or heartwoodof hardwood.

Chemical Prevention: A reputable pest controller should be engaged to apply a chemical treatment.

TIMBER DECAY FUNGI

Description/habits: The fruiting bodies of wood decay fungi vary in size, shape and colour. The type offungi encountered by pest controllers usually resides in poorly ventilated subfloors below wet areas of thehome and in areas that retain water in the soil. The durability and type of timbers are factors along withthe temperature and environment. Destruction of affected timbers varies with the symptoms involved.

Prevention: Larger subfloor ventilators or the installation of subfloor fans. Eliminate moisture fromleaking shower recesses. Poor/unmaintained plumbing pipes and gutters and the reduction of naturalwater flow from below the building.

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Thermal Imaging

Since this property has been categorised as having conditions that present a high risk thatconcealed termite infestation or damage may be present in the timber framework notexposed to view, we strongly recommend that thermal imaging is undertaken as detailedbelow, before the purchase proceeds:

Thermal imaging is a process that uses an infrared camera that may detect termite infestation inthe concealed timbers. The thermal imaging procedure is non-intrusive and non-destructive.

Costs involved in undertaking thermal imaging of a property are in the order of $400 to $500. See www.thermalimage.com.au

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20th August 2015

The General Manager. B.M.C.C.Locked Bag 1005.KATOOMBA 2780

Structural Adequacy Report on Wayzgoose Cafe and Adjacent Building at

170 – 174 Leura Mall, Leura. Client: BMCC.

Dear Sir,

As requested, we have inspected the above-mentioned property on the 13th August 2015, for the structural adequacy of the buildings to be determined for a period of a further 3 months from the date of inspection. Our comments are set-out below.

1. Inspection Observations and Comments:

Methodology for the completed inspection was:

Completing a visual inspection of the roof space.

Removing wall linings and skirting/ architraves in areas common to both buildings toexpose vulnerable timbers and members.

Removing floor boards to visually inspect sub floor members and sub floor spaces.

The overall condition of the structure was deemed adequate to continue to withstand currently applied loads and forces, however the building was in a poor condition due in part to an infrequent and sub-par maintenance regime and the dated construction methods including lack of termite protection, moisture barriers and sub floor ventilation.

The condition of the structure would not pass, nor meet, any current standards or codes, as is the case with most buildings of its age. There was evidence of termite damage, though this appeared isolated and restricted to floor members of 170 Leura Mall. Due to the continued operation of 174 Leura Mall, floor members were not disturbed as the condition of the floor appeared in reasonable condition and it is unlikely that any termite damage in the floor would contribute to structural integrity of the building being compromised. There was no evidence of significant structural termite damage in the walls or roof at the time of inspection.

There was evidence of fire damage in the partition walls between the two buildings and in the roof space, however it was deemed that the damage was localised and would not compromise the structural integrity of the buildings in the short term.


The skillion roof over the eating area of the Wayzgoose Café could not be inspected within the roof cavity due to lack of space. There did not appear to be any indication that the roof was inadequate to work as intended and should remain structurally sound for the required period. The building on 170 Leura Mall appeared to be in a more dilapidated state than the Wayzgoose Café at 174 Leura Mall, however its condition did not pose a risk to the Wayzgoose Café in terms of structural adequacy, nor would its condition restrict normal operation of the café. We hereby certify that the structures built on 170 – 174 Leura Mall, Leura are adequate to withstand the currently applied loads imposed on them for a period of a further 3 months from the date of inspection.

2. Recommendations: It is recommended that the tenants of the Wayzgoose Café are aware of the findings of this report. All due care and diligence was taken in coming to the conclusion that the structure will be adequate to resist the applied loads for a period of 3 months of continued normal use, however the tenants of the Wayzgoose Café should immediately contact the B.M.C.C if they notice any unusual defects or changes to the structure. Please feel free to call if you require any clarifications or wish to discuss further.

For and on Behalf Of, C.G. Hilder Pty Ltd,

Chris Hilder. (NPER No. )

Director



1st November 2016

The General Manager B.M.C.C.

Locked Bag 1005.

KATOOMBA 2780

Certificate of Structural Adequacy for

170 – 174 Leura Mall, Leura, NSW.

Dear Sir,

This to certify that we inspected the temporary works on the 1st November 2016 to the above-mentioned address and our comments are noted below:

The temporary timber framing to 170 Leura Mall will be structurally adequate to provide thenecessary support to the (dilapidated) northern wall and to the roof framing to allowoccupancy of the adjoining cafe for a period of 6 months from the date of this letter.

Please don't hesitate to contact us in the office if further information is required.

For and on behalf of, Ascent Consulting Engineers Pty Ltd

Chris Hilder CPEng MIE Aust NER No. Consultant

Doug McConnell MIE Aust. Director

Chris Coppard Director s14(2) T 3(a)

personal information


s14(2) T 3(a) personal information s14(2) T 3(a) personal information


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73 098 755 385...73 098 755 385 CLIENT: BLUE MOUNTAINS CITY COUNCIL WORK ORDER NUMBER: #216591 RE:...

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