Final Inspection Before Property Settlement! Did You Get It Right
Introduction
How important is the final inspection before property settlement? If it has been a few months since you first exchanged contracts, anything could have happened in the meantime, especially if someone has been living in the property during this period. Imagine finding a hole in the wall, stains on the carpet, or leaking pipes—just the thought of it is heartbreaking for any buyer.
The Final Inspection Is Your Right!
As a buyer, you have the right to conduct a final inspection of your new property within a week before settlement. This ensures that the property’s condition matches what you saw during your initial viewing. If there are any discrepancies, you can request the seller to address these issues before settlement.
Ideally, you should have conducted a thorough inspection before signing the contract. During this initial check, your focus should have been on key areas like the hot water system, plumbing, electricity, appliances, air conditioning, locks, bolts, and even curtains and blinds. If you found any issues, you could have listed them as special conditions in the contract, requiring the seller to fix them before settlement.
The final inspection is your last opportunity to ensure that these conditions have been met, that any rubbish has been cleared, and that the property has been properly maintained. We recommend scheduling the final inspection around five days before settlement. This allows enough time to resolve any issues or renegotiate if necessary. If possible, try to conduct the inspection after the previous occupants have moved out.
Who Should Be Present During the Final Inspection?
Ideally, you should conduct the final inspection with your real estate agent.
If the property is being sold privately, you can also conduct the final inspection directly with the seller. This is a great opportunity for them to demonstrate how everything in the house works.
What Should You Check?
1. Any Major Damage
Walk through the interior and exterior of the property, checking for any damage that may have occurred since the contract was signed. For example, if you notice a broken window, you can request that it be repaired before settlement. If you're unsure about anything, ask your real estate agent to follow up with the seller.
2. Included and Excluded Items
When you exchanged contracts, you and the seller should have agreed on what items would be included and excluded from the sale.
For instance, dishwashers, built-in barbecues, and ovens are typically included, as well as curtains and light fixtures. The seller can only remove these items if they were specifically listed as exclusions in the contract.
Bring a copy of your purchase contract to the final inspection to cross-check included and excluded items.
3. Cleanliness
By this stage, your new home should be clean and tidy. Any piles of rubbish or garden waste should have been removed unless they were specifically included in the contract. If large pieces of furniture have been left behind, ask your real estate agent to confirm with the seller whether they will be removed before settlement.
4. Special Conditions
As mentioned earlier, you can negotiate special conditions when signing the contract.
For example, if a door lock was loose or broken, you could have added a condition requiring the seller to fix it before settlement.
If your contract includes any special conditions, ensure that they have been met before finalizing the settlement.
What If You're Not Satisfied?
If you are not satisfied with the final inspection, inform your lawyer or conveyancer immediately. They will negotiate with the seller’s lawyer to reach a fair resolution.
For example, the seller may be required to fix the issue before settlement, allow another inspection, or agree to reduce the final contract price to cover your repair costs.
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