When buying property, you’re entitled to perform a pre-settlement or final inspection of the property at least several days to a week before settlement day. The reason for this is to make certain that the seller has met any special conditions and that your new home is in the same state it was when you traded contracts.
What Happens During the Pre-Settlement Inspection?
This inspection is the last inspection after you have done all the other relevant searches and prior inspections. It’s your last opportunity to inspect every single nook and cranny of your new home and make sure that everything in it is in the exact condition it was in when you signed on the dotted line, explains a top conveyancing lawyer in Townsville.
For instance, is the property vacant? Did the previous owner or tenant remove all his or her possessions and rubbish? Likewise, if the property had a previous tenant or owner who didn’t want to leave, ensure that they didn’t damage the property.
You must also check if specific conditions included in your contract have been fulfilled, like repainting or thorough cleaning for instance. Check if all the included appliances and fixtures work. If the seller didn’t satisfy some or all of the conditions or you discover significant issues with the house, the seller would be in breach of contract. As the buyer, you’re entitled to delay the settlement until the seller fixes the issues.
What Happens If the Property Fails the Inspection?
You should have an inspection before purchasing, especially if the required repairs cost you more than what the property’s value is. You could request an extension of the settlement date from your agent, so you could weigh the pros and cons of going through with the purchase. Make certain that your sale contract is conditional upon the property passing crucial inspections, such as the building inspection and pre-settlement inspection, so that the seller would be legally obligated to either resolve the issues or else cancel the sale.
On the other hand, if the property doesn’t pass your pre-settlement inspection and the seller isn’t amenable to resolving the issue because they lack the funds, it would be up to you to decide whether or not to continue with the sale. If buying the property is worth it even if you have to shell out more cash for repairs, then you should inform your lawyers for your decision.