Before settlement of a property, it’s imperative that an inspection be carried out to ensure the property is in the condition expected and as stated in the terms of the Real Estate Institute contract (REIQ in Queensland and REINSW in New South Wales).

The contract includes a provision for the seller to reasonably use the property until settlement but not to do anything to cause expense to the buyer.

Buyers can only conduct one pre-settlement inspection of the property so it’s advisable to arrange for this to be done close to the settlement date, no later than the morning of the settlement date.  This allows the buyer to check that any special conditions in the contract have been met.  For example, the seller may have agreed to fix a hole in a fence so it’s necessary to inspect that the repairs have been done and to a satisfactory standard.

We’ve put together a check list of what to look out for at your pre-settlement inspection.  Whilst everything on the list is necessary, the first four are essential:

1. Repairs agreed upon as per the contract of sale are satisfactorily completed.
2. Plumbing and Electrical – check all taps, drains, switches and appliances.
3. All rubbish, junk and furniture has been removed.
4. Any damage to property since initial inspection, eg caused by sellers moving out.
5. Fixtures and fittings agreed upon as per contract, eg curtains, oven remain.
6. Landscaping is maintained, plants and trees remain as per contract.
7. Swimming pool (if applicable) water is healthy and pump is operating correctly.
8. Rubbish bins are provided and in good condition.
9. Anything else as per the contract of sale.

The pre-settlement inspection is a very important part of the process of buying a property, and as a buyer, it’s your right.  Depending on the settlement term, it can be weeks and sometimes months since a buyer has seen the property, and anything could have happened in that time.

Once the property is settled, it is the buyer’s responsibility so to avoid any nasty surprises once you’ve moved in, take your time, take notes and photographs and advise your conveyancer immediately about any issues arising from the pre-settlement inspection.  Your conveyancer will guide you through your options.

bytherules is Australia’s leading conveyancing firm, delivering unparalleled customer service in the Conveyancing and Property Law industry. Our team has successfully assisted in the processing of over 60,000 settlements throughout Queensland and New South Wales. Let us expertly guide and protect you through the buying or selling process of your property.  We’d love to help!