The final inspection before settlement NSW is also called a pre-settlement property inspection. The final inspection before settlement in NSW is extremely important.
This is because it is the final chance for purchasers to check the conditions of the house before settlement day. Settlement day refers to the day when the purchaser and vendor settle the sale of property.
The final inspection before settlement in NSW should be held many days before settlement day. In Australia, different states have different legislation around when the pre-settlement inspection should be conducted.
Ideally, the purchaser can carry out the pre-settlement inspection a week before settlement day. This gives the vendor sufficient time to make any repairs, if required.
Purchasers should not take the final inspection before settlement in NSW lightly. It is the only opportunity for the purchaser to check whether the property is in the same condition, as it was when the contract was signed.
A contract of sale can contain a variety of documents. According to Section 52A of the Conveyancing Act 1919 NSW, the following documents are included in the contract of sale:
- Planning certificate by local council;
- Property certificate;
- Drainage maps and diagrams; and
- Documents related to any restrictions on land, or any easements on that land.
Why Should You Attend The Final Inspection Before Settlement In NSW?
The settlement period is usually around 30 – 90 days after the vendor and purchaser have exchanged contracts. During this period of time, it is likely that there were people occupying the property.
Purchasers can check whether the house/property is in the same condition during the final inspection before settlement in NSW. When people have occupied a house, it is not uncommon for some damages to occur.
During the final inspection before settlement in NSW, purchasers can check:
- the condition of the property
- has the house been vacated properly?
- if all fixtures are in place, and
- has the vendor met all contract obligations dutifully?
What Should I Look Out For During The Final Inspection Before Settlement In NSW?
Before you attend the pre-settlement inspection, it is important to be aware of things that you need to look out for. The purchaser will need to pay the costs for repairing the damages, if they don’t notice it during inspection.
In this section we provide an outline of all the important things that you need to keep an eye out for during the pre-settlement inspection.
1. Damages
The first and the foremost thing to check for is damages. You need to check if there are any significant damages in the house or property. This can include things like a hole in the wall, broken window-panes, or damaged kitchen sinks.
Look carefully even for minor damages as this will be your only opportunity to do so.
2. Condition of the house
Purchasers must make sure that the house is neat and tidy. They should check for things such as waste disposal systems. For example, checking if the house has its own bins for general waste, as well as green waste.
3. Inclusions and exclusions as per contract
Inclusions and exclusions fall under “special conditions” of the contract. These refer to items that need to remain in the house, and items that need to be removed from the house respectively.
Inclusions can include things like TV units, and built-in wardrobes. Exclusions can include items like furnitures, lightings etc – depending upon the agreement that the purchaser and vendor have made.
These special conditions need to be met, and this must be checked properly by the purchaser during the pre-settlement inspection.
Importantly, for the purchaser to make sure if inclusions have been left behind and exclusions have been taken out, he/she must carry the contract of sale during the inspection.
List Of Items To Double Check During Inspection
Given below is a checklist of for purchasers to refer to when they attend the final inspection before settlement in NSW:
- All appliances in the house
- Doors and locks
- Lights and electronics
- Plumbing in the entire house – check for leaks
- Air conditions and heaters
- Water heaters in the washrooms
- Curtains
- Windows and window-pane
- If there are pest infestations
- Smoke alarms in every room of the house
- Pools and spa filters (for townhouse or bungalow style properties)
What Can I Do If I Find Issues During The Inspection?
Purchasers may find some issues or damages with the property during their inspection. In such circumstances, they must inform the the vendor, or their own solicitor.
The purchaser’s solicitor will then notify the vendor or their solicitor about the damages that they have come across.
It is the vendor’s responsibility to repair any damage before settlement day. The purchaser’s solicitor can negotiate with the vendor’s solicitor.
For example, if the vendor is unable to make the necessary repairs before settlement day, the purchaser’s solicitor may negotiate an agreement to reduce the sale price. The sale price may be reduced to compensate for the costs associated with making repairs.
Accordingly, if the purchase does notice damages or issues in the property, he/she may be entitled to a second pre-settlement property inspection. During the second inspection, the purchaser can check if all necessary repairs have been made.
Conveyancing Experts At JB Solicitors
At JB Solicitors, our property lawyers and conveyancers can represent both the purchaser, or vendor of a property.
Our expert lawyers can step up for purchasers who need help to negotiate the sale price. Similarly, we also have the experience of representing vendors of a property.
Conveyancing and buying property can be a stressful experience without the right guidance. Since different states have different laws and regulations, it is important for all parties to be well-aware of the laws that apply to their jurisdiction.
For this and all other purposes, you should seek legal guidance. If you have more questions about a pre-settlement property inspection, please do not hesitate to contact our team of lawyers.
Contact us today.