Importance of a Pre-Settlement Inspection

The excited purchasers have found the property and the deed is done – the agreement is signed. They know they are signing up for the property as it is on that date. Not everything is able to be seen or known at that date. However, they know what they have seen, and what has been represented to them. Their initial questions can be clarified through conditions in the agreement. The Agreement says what chattels are to remain and those chattels must be (where relevant) in working order, fair wear and tear excepted. A settlement date looms. The last opportunity presents itself to check that what you signed up for is consistent with what you shall pay for. It is called the pre-settlement inspection. You cannot revisit matters that you had not covered prior to signing the agreement, but you can check everything is the same and in order. Either the vendor or their agent arrives with a key and stays with the purchasers during the inspection. It happens in the last few days before settlement date.
Any queries must be with the vendor’s solicitors prior to the actual settlement date. Aspects that have changed, or not been rectified as agreed, or are now not in working order, may be queried. Settlement is not able to be held up, but compensation or the retention of funds on the day to cover rectification is possible.
The pre-settlement inspection is very important, so continue to keep your lawyer in the picture at that time of the transaction.