Why you should arrange a Pre-Settlement Inspection
Purchasers are not always aware that they are entitled to a pre-settlement inspection under a standard REIQ contract.
The purpose of a pre-settlement inspection is to ensure the property has not been damaged by the seller since the purchaser entered into the contract, and also to ensure the seller has made any variations agreed upon during the conveyancing process. This is especially important where people have been living in the property during this time.
The inspection is organised through the real estate agent (or the seller if it is a private sale) and is conducted as close to settlement as possible, or on the day of settlement.
What to look for during the inspection?
- Vacancy of the property – if the tenant is not remaining after settlement
- Fixtures either remain, or have been removed, in accordance with the contract
- No significant damage
- Any special conditions such as cleaning the property have been fulfilled
What if you are unsatisfied?
The purchaser must notify their solicitor or conveyancing clerk of the outcome of the inspection, so that settlement can proceed if they are satisfied.
If the Seller has breached their obligations, their solicitor or conveyancing clerk can negotiate with the seller to reach an outcome such as a price reduction or rectification – before settlement proceeds.
Do you have to do an inspection?
No – conducting an inspection close to the settlement date is a right of the purchaser, rather than an obligation.
However, it is highly recommended in order to ensure peace of mind before settlement is finalised.