You’ve found the perfect home, the offer has been accepted, and settlement day is approaching. Before the keys officially become yours, it’s crucial to conduct a pre-settlement inspection. This final walkthrough is your last opportunity to catch any potential issues, verify that agreed-upon repairs have been completed, and ensure the property is in the same condition as when you first saw it.
As part of the sale, it’s crucial to organise a thorough inspection, verifying against accurate inspection reports to ensure that everything is in order. Every part of the property, from the interior and exterior to the structural and documentation, needs to be first inspected to make sure that any special conditions are fulfilled. If there is any damage, ask the vendor to fix it before settlement.
In this blog, we have provided you the checklist which not only protects your investment but also provides peace of mind, ensuring that your new home is ready for a smooth transition.
What is a Pre-Settlement Inspection?
A pre-settlement inspection, also known as a final walkthrough, is a crucial step in the home-buying process that occurs just before the settlement date. This inspection lets home buyers confirm that the condition of the property is the same as mentioned in the sales contract.
It is the buyer’s final chance to verify that all repairs have been finished, all fixtures and appliances are present and functional, and that the property has not suffered any new damage since the first viewing. While house inspection is not mandatory, it is highly recommended to protect your investment.
Buyers should do the inspection themselves, along with a witness, such as the real estate agent. They should schedule the appointment in advance at a time that suits the vendor. To make sure the vendor is prepared for the final inspection, you must give them a fair amount of warning. As an alternative, you might ask the real estate agent to set up a time that works for everyone. If it’s a private transaction, you can make these arrangements with the vendor directly.
When should you do the pre-settlement inspection?
The pre-settlement inspection should ideally be conducted a few days or a week before settlement date, typically within five to seven days. This timing allows enough room for any last-minute issues to be resolved without delaying the settlement process. Conducting the inspection too early might mean some final repairs or cleaning haven’t been completed, while doing it too late might not leave enough time to address any discovered issues.
Don't Settle for Less—Build Excellence with Dhursan
Importance of inspecting the property
The pre-settlement inspection is crucial for several reasons:
- Verification of Condition: It ensures that the property is in the condition promised by the seller. Any discrepancies can be addressed before the sale is finalised.
- Confirmation of Repairs: It allows the buyer to confirm that any agreed-upon repairs or modifications have been completed to a satisfactory standard.
- Functionality Check: It gives the buyer the opportunity to test all appliances, fixtures, and systems to ensure they are working correctly.
- Avoiding Surprises: It helps prevent any unwelcome surprises after moving in, such as undisclosed damage or missing fixtures.
- Negotiation Leverage: If issues are found, the buyer can negotiate with the seller for repairs or financial compensation before the final settlement.
Looking for a complete home building solution? With our turnkey service, you’ll have a dedicated team, ensuring that each phase of your project runs smoothly and efficiently. Contact us today.
Pre-Settlement Inspection Checklist for Your New Home
As you approach the final stages of your home buying journey, this inspection ensures that the property is in the agreed-upon condition before you take ownership. Here’s a checklist divided into categories to guide you through this important process.
Interior Inspection:
1. Verify Agreed Repairs and Inclusions
- Ensure all repairs specified in the contract have been completed to your satisfaction.
- Check that all included items (appliances, fixtures, etc.) are present and in working order.
2. Check Plumbing
- Turn on all faucets and showers to check for water pressure and leaks.
- Flush all toilets to ensure they work properly.
- Make sure the water heater is functioning and there are no leaks.
3. Test Electrical Systems
- Test all electrical outlets and light switches to ensure they are operational.
- Turn on all lights to check for functionality.
- Inspect the fuse box or circuit breaker panel for any signs of damage or wear.
4. Evaluate Appliances
- Test the stove, oven, refrigerator, dishwasher, and microwave to ensure they work.
- If included, test the washer and dryer.
5. Assess Heating and Cooling Systems
- Turn on the heating and cooling systems to verify they are working correctly.
- Check and replace filters if necessary.
6. Review Doors and Windows
- Check for smooth operation by opening and closing all doors and windows.
- Ensure all locks and latches are functional.
- Inspect for any cracks or damage.
7. Confirm Cleanliness and General Condition
- The interior property should be clean and free of rubbish.
- Inspect carpets, tiles, and other flooring materials for stains or damage.
- Check for any marks, stains, or damage on walls and surfaces.
Exterior Inspection:
- Examine the property’s exterior for damage to siding, roofing, or windows.
- Check gutters, downspouts, and drainage systems.
- Inspect the driveway, and walkways.
- Verify the condition of fences, gates, and outdoor structures.
- Examine landscaping, including trees, shrubs, and lawns.
- Check the pool and spa filters to ensure they are clean and operational.
Structural Inspection:
- Look for any cracks, leaks, or signs of water damage on walls, ceilings, and floors.
- Check for any visible issues that could indicate foundational problems.
- Inspect for signs of water damage, mould, or pests on attic and basement.
- Ensure there are no sagging beams or other signs of roof structural damage.
- Check for cracks, leaks, or other signs of wear and tear on chimney.
Documentation:
- Double-check that all agreed-upon repairs have been completed.
- Ensure that utilities are in working order and transferred to your name.
- Bring a copy of the contract of sale.
- Have a checklist or camera to document findings.
Should a House be Empty for Pre-Settlement Inspection?
Ideally, yes. An empty house allows for a thorough inspection. With an empty house, you can easily check everything clearly for any damages hidden by furniture or other personal items. You can verify the condition of appliances and assess the overall state of the property without obstructions. Additionally, it also makes it easier to check for any damage that might have occurred during the move-out process.
However, the seller may not always be able to vacate the property before settlement. In such cases, it’s essential to be extra vigilant during the inspection.
Transform Your Vision into Reality with Dhursan Construction
What to do if an issue is found during the final inspection of the home?
Don’t panic. It’s the seller’s responsibility to fix issues before you move in. Ask the vendor or seller to repair any broken windows or hole in the walls, You can also inform your solicitor or conveyancer immediately, as they’ll negotiate with the vendor’s legal team to find a solution.
If the proposed solution doesn’t satisfy you, let your solicitor know to negotiate a better outcome. Possible solutions include having the issue fixed before settlement or receiving compensation to cover the repair costs once you move in.
To ensure repairs are done properly, you might request a second pre-settlement inspection. This is especially important for significant repairs. Remember, addressing issues prior to settlement is easier than after the sale is finalised. Additionally, having a building inspection conducted by a qualified professional before purchasing can help identify potential problems early.
How many pre-settlement inspections can you do?
As a buyer, you can only conduct one pre-settlement inspection. This inspection takes place shortly before the contract of sale is finalised. However, the situation can become more complex if specific conditions or repairs were agreed upon when contracts were exchanged.
Conclusion
A pre-settlement inspection is your final call to check that your new property is in the condition promised when you signed the contract. By following the provided checklist, you can fix any issues prior to settlement, ensuring a smooth and successful transfer into your new house. Arrange all inspection reports to keep a complete record of the property’s condition.
Remember that being diligent and paying attention to detail throughout this examination will save you from future headaches and unforeseen charges. Inspect each room meticulously, verifying that all agreed-upon repairs have been completed to your satisfaction. Document everything thoroughly, taking notes and photos if necessary, to support any claims should disputes arise.
