Pre-settlements inspections: what are my rights?

A pre-settlement inspection, also known as a final inspection, is a crucial step in the process of purchasing a property in Australia. It allows the buyer to inspect the property to ensure it is in the same condition as when the contract was signed and that any agreed-upon repairs or inclusions are present.

1. Right to Inspect the Property: As a buyer, you have the right to conduct a pre-settlement inspection to confirm that the property is in the same condition as when you agreed to purchase it. This inspection is usually carried out a few days before the settlement date.
2. Inspect for Agreed Repairs and Inclusions: You have the right to ensure that any repairs agreed upon in the contract have been completed satisfactorily. Additionally, you should check that all fixtures, fittings, and inclusions listed in the contract are still in place and in good working order.
3. Check for Damage or Changes: During the inspection, you can check for any new damage or changes to the property that may have occurred since the exchange of contracts. This includes checking for any structural damage, leaks, or missing items.
4. Request Repairs or Compensation: If you find that the property is not in the agreed condition, or if there are missing inclusions or fixtures, you may have the right to request that the seller rectify the issues before settlement. Alternatively, you may negotiate a reduction in the purchase price or seek compensation (if this Contract permits this option).
5. Professional Assistance: You may wish to bring a professional, such as a building inspector or a real estate agent, to assist you during the inspection. This can help ensure that any issues are properly identified and documented.
6. Multiple Inspections: If needed, you may have the right to conduct a subsequent inspections, particularly if there were issues that needed to be addressed after the initial inspection.

Tips for a Successful Pre-Settlement Inspection

• Schedule the Inspection Early: Arrange the inspection well in advance to give yourself time to address any issues that may arise.
• Use a Checklist: Create a checklist of things to inspect, including all agreed-upon repairs, fixtures, and fittings.
• Document Findings: Take photos and notes of any issues you find during the inspection for evidence if disputes arise.
• Communicate with Your Conveyancer or Solicitor: Keep your conveyancer or solicitor informed of any issues so they can negotiate with the seller’s legal team on your behalf.

By understanding your rights and responsibilities during a pre-settlement inspection in NSW, you can help ensure a smooth and satisfactory property purchase process.

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