Buyer Tips Pre-Settlement Inspection Checklist

As settlement approaches, discerning buyers inspect their new home or investment property to make sure there are no nasty surprises. Pre-settlement inspections, as opposed to pre-purchase inspections, are to make sure the property is in the same condition as when contracts were exchanged.

When should you do a pre-settlement inspection?

It's best to do this inspection close to when keys are handed over but with enough time (at least a few days) to allow for repairs, if necessary, as it may take time for the necessary work to be done.

What should be checked during this inspection?

 

• Lights and electronics

Test each room's light switch to ensure it's working. If it doesn't then be sure to follow up with the vendor to ask why. Electronics that are attached to the property, such as CCTV, in-room speakers etc should be tested also. Anything that's not attached, such as TVs and un-attached speakers, will generally be moved out before settlement (if the property is not being sold fully furnished).

 

• Plumbing

Turn on each tap and check that it's operating as it was when contracts were exchanged. Be sure that drains are clear and running free, if that's how they were previously.

 

• Water heaters

Test the water heater by making sure the hot taps and shower(s) are working normally.

 

• Air conditioners and heaters

Be sure that each heater and air conditioner is functioning and has a working remote, if required.

 

• Door handles and locks

Open and close each door to ensure they're in working order. Exterior door locks should also be functional if they were previously.

 

• Appliances

Appliances such as stoves and dishwashers come as part of the sale as they're considered fixed to the premises. Ensure anything that's staying is working as expected.

 

• Curtains and blinds

Blinds and curtains are considered part of the sale so make sure they're working as expected. If they're dirty or damaged (and they weren't previously) then you can request they be cleaned.

 

• Windows and glass

Ensure all windows and glass aren't newly broken or cracked and that windows that have a lock are working.

 

• Flooring

Ensure that there are no new stains on the carpets or damage to the flooring such as cracked tiles or holes in floorboards. The vendor isn't under any obligation to steam clean the carpets, as some renters are required to do when they leave, but they should be cleaned to a reasonable level.

 

• Smoke alarms

Ensure the property has adequate smoke alarms and that they're in working order.

 

• General cleanliness

Ensure that all rubbish has been removed including from sheds, under the property and in cupboards and wardrobes. The property should still be generally clean, tidy and free of additional damage.

 

What happens if there's a problem?

If you find something is broken or in a worse condition than it was during the first inspection, you should raise it with your conveyancer immediately. They will try to negotiate it as a special condition on the contract, which means the vendor must fix it before settlement. If it cannot be patched up in time, the sale price can be reduced to cover the cost of repairs.

 

You may be dying to move into your new property or to take over your new investment property, but it's best to stay clear-headed and carry out a pre-settlement inspection to ensure the property is in the same condition as when you first inspected it.

 

Disclaimer: This blog post is not to be considered legal advice. If you are seeking specific legal advice we suggest that you consult a legal professional before making any significant decisions in this regard.

References: Realestate.com.au