The Importance of Pre-Settlement Inspections

It’s finally happened: you’ve bought your dream home and the contract has almost settled – congratulations! But there’s still one more thing you need to do: the pre-settlement inspection. A pre-settlement inspection is your opportunity to make sure everything in the property is in order before the final payment is made. This is your chance to make sure the property is in the same condition as when the contracts were exchanged and that the inclusions specified in the contract are still there. But if this is your first purchase, there may be a bit of confusion about the whole process and what you need to look for. We’re here to help clear things up for you.

Who Arranges It?

They are generally arranged by the real estate agent, and usually only take approximately 30 minutes, so it’s important to have a list of questions ready if you have any. In an ideal world, the pre-settlement inspection should be done alongside your real estate agent. If the sale was a private sale, pre-settlement inspections can be arranged between vendor and purchaser. If this is the case, it can be a good opportunity for the purchaser to ask the vendor practical questions such as how the air conditioning works. 

When Should It Happen?

The pre-settlement inspection is usually done the morning of the settlement but can also happen beforehand. When the pre-settlement inspection is taking place, it’s a good idea to have the contract of sale so everyone can make sure the inclusions are all still in the property and the exclusions have all been taken away. It also means you can check that any special conditions have been met, if there were any included in the contract. 

How Many Can I Have?

Only one pre-settlement inspection can take place. If there are any problems identified that need to be fixed, purchasers are allowed one further inspection to ensure the matter has been dealt with. 

Are There Mandatory Fixes?

There may be times when there is a problem. Don’t worry, these are easily solved, as long as you have a good understanding of the inclusions and exclusions on the contract. If there is a problem, it needs to be raised with the conveyancer. It’s important that you do not do this directly with the vendor as the conveyancer will negotiate it as a special condition added to the contract, meaning it needs to be fixed before settlement can continue. 

Can I Lower My Offer After the Inspection?

If a problem can’t be fixed, the conveyancer can negotiate on the sale price for the purchaser in order to cover the cost of any necessary repairs. Importantly though, these breaches of contract must be proven by the purchaser in order for settlement to be withheld and it must be shown that the deterioration or damage is not a result of general wear and tear. 

You’re on the home stretch now, but it’s important to take the time to do this inspection carefully and not rush through as it may save you a lot of trouble down the track. 

The Wayne Morgan Team is waiting to assist you. We offer you experience alongside excellent market knowledge that helps make the buying or selling process as smooth as possible. As Australia’s number one real estate brand, a little help from the team can prove invaluable when it comes to buying your home. Contact The Wayne Morgan Team TODAY! 

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