What sellers and purchasers need to consider when completing a pre-settlement inspection
Under a sales and purchase agreement, the Purchaser has an opportunity to check that the property and chattels are in the same condition as when they signed the sales and purchase agreement.
What to look out for when inspecting the home?
All the same chattels listed on the Agreement are still in the property and are in reasonable working order (such as a heat pump; dishwasher)
All keys to the property including electronic door openers are available and are in working order
That any repairs or maintenance that the vendor has agreed to carry out prior to settlement, has been completed.
That there is no rubbish left on site
When should a pre-inspection be carried out?
We recommend carrying out a pre-settlement inspection at least two working days prior to settlement to allow for any such issues
What if there are issues with the property and/or chattels?
This doesn't enable a purchaser to cancel a contract but it does allow a right to compensation.
If there are issues/damage with the property and/or chattels upon the inspection, then the purchaser needs to advise their lawyer. The Purchasers lawyer will then serve notice on the Vendor before 5pm on last working day prior to settlement.
A few remedies may be considered between both parties such as:
The Vendor agrees (at their cost) to remedy the issues on or before settlement; or
The Vendor agrees to reduce the purchase price to enable you to remedy the issues post-settlement; or
An agreed amount is retained by the Purchaser’s lawyer on settlement until the issues have been remedied post-settlement.