An often overlooked but important part of buying a home is the inspection prior to settlement date. I hope this short blog enlightens and reminds those who have just purchased/sold or are looking to purchase/sell. 3.2 in the general terms of sale states:
If the property is sold with vacant possession, then subject to the rights of any tenant of the property, the vendor shall permit the purchaser or any other 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 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.
Important to note “prior to the settlement date”. You cannot go through a property ON the settlement day and raise any issues found. It must be at least the day before. An ideal time to undertake a pre settlement inspection is when the home has been vacated (if possible). Often an owner will be vacating a property on settlement day meaning that an inspection with an empty home is not an option.
Often a purchaser will want more than one visit to the property. This may be for the purpose of measuring up in anticipation of purchasing furniture or to make a plan for a renovation post settlement date. This can be done, but obviously only with the access being granted by the owner. Occasionally I have had purchasers ask if possessions can be moved into an empty property prior to settlement date or even if work can be started prior to settlement date. You should always to wait until the property is settled before any of this is undertaken. If anything is outside the scope of a standard settlement, solicitors need to be consulted and any variations should be clarified clearly in the contract.
A pre settlement inspection is particularly pertinent if there has been an agreement for work to be done by the seller prior to settlement date. You will want to make sure (a) the work has actually been completed and (b) the work has been completed to a satisfactory standard.
What are we supposed to look for and do at a pre settlement inspection? Essentially you want to make sure the property is in the same condition as when you purchased it. Chattels should be checked to make sure they are in proper and good working order (unless stipulated on the sale and purchase agreement). Fixtures such as lights should also work. Make sure there has been no damage to the property from natural events like flooding or earthquakes. Ensure there was no damage done by tenants moving out. Rubbish should be removed. This can also be a great time to check on keys, remotes and security alarm codes.
If anything untoward is found, contact your solicitor who will outline your options and can negotiate with the seller’s lawyer to rectify the situation. This is where viewing the property with ample time to rectify anything needed is important.
Here is to happy house hunting and faultless pre settlement inspections.
