It is common knowledge that you are legally/contractually permitted to visit a home you have purchased once before settlement day. It is written into the general terms as follows:
3.2 If the property is sold with vacant possession, then subject to the rights of any tenants of the property, the vendor shall permit the purchaser or any person authorised by the purchaser in writing, upon reasonable notice:
(1) to enter the property on one occasion prior to the settlement date for the purposes of examining the property, chattels and fixtures which are included in the sale; and
(2) to re-enter the property no later than the day prior to the settlement date to confirm compliance by the vendor with any agreement made by the vendor to carry out any work on the property, the chattels and the fixtures.
So, if you didn’t know, now you know. You can always ask for other visits if you would like to measure up for furniture etc but this would be at the seller’s discretion.
It is always good to plan the pre settlement inspection at least a couple of days before the settlement date. That way, if anything needs to be fixed/sorted, there is time.
Ok, so I am at the home, now what?
I find the most often asked question at a pre settlement is “what am I supposed to look for?” Let me help provide some education.
Essentially, you want to make sure that the property is in the same condition as it was purchased. I often joke with people and say that they want to make sure there haven’t been any parties and holes kicked in the wall. Check the chattels and ensure that they are working. If any chattels are not working this should be documented in the sale and purchase. You may like to make sure that fixtures such as lights and curtains work too.
If a natural event has occurred since going unconditional, such as seismic events or the recent storms and heavy rainfall, it would be prudent to check for damage during this inspection. It is also the time to check and make sure that any pre settlement repairs or maintenance the seller has contractually agreed to has been undertaken.
My experience is that 9.5 out of 10 sellers leave a home in a very clean condition. I also find that most people who move into a home want to run through with at least their own basic clean. You could always stipulate that a commercial clean be done prior to settlement if this is important to you. Would I do it? No, but you could.
Use this opportunity to have a chat with the agent and gain an understanding of where you may meet on the settlement date for the handing over of keys. Once the agent obtains word from the sellers solicitor that settlement is completed keys will be able to be released. Also make sure garage door openers and all keys to the property will be made available.
What happens if issues are found during a pre settlement inspection?
Again, 9.5 times out of 10 a pre-settlement inspection will go smoothly. However I can recall instances where, due to the unforeseen, work has needed doing before settlement. If you do find damage that was not present when the sale and purchase agreement was signed or chattels are missing or damaged your next port of call is your solicitor. There are multiple courses of action including the seller agreeing to fix or remedy the issues before settlement date or the cost of fixing the issue being deducted from the final settlement payment. You can see why it is important to allow enough time for this all to happen.
This blog is not intended to replace any advice from your solicitor. However, hopefully this helps provide insight into the basics of a pre settlement inspection. I am always available if you have any further questions around this aspect of purchasing/selling a home.
