What To Do At A Final Inspection Prior To Settlement

What to Do During Your Final Property Settlement

The final settlement is a crucial step when purchasing a property. It gives you a chance to inspect the property and ensure it's in the same condition as when you agreed to buy it, which could be one, two, or even three months prior. The longer the settlement period, the higher the chance that something might have changed, and you want to avoid paying for repairs or removals that aren't your responsibility. Here's a breakdown of what to look for and do during your final settlement inspection.

1. Document the Property's Condition at Purchase

Your preparation for the final inspection starts when you first purchase the property. Make sure to take detailed notes or photos of the property's condition at that time. Most agents will allow you to take additional photos, and a building inspection often provides thorough documentation as well. These photos and notes will serve as evidence when comparing the state of the property during the final inspection.

Make sure to go beyond just visual records—note the condition of key items like the hot water system, kitchen appliances, or other essential fixtures. You'll use this information to verify that nothing has broken or been removed between the purchase and settlement.

2. Schedule the Final Inspection at the Right Time

Timing is key. Do not schedule your final inspection until the current owners have fully moved out and cleaned the property. This ensures that you can assess the property without clutter or distractions. You can ask the real estate agent to confirm when the property is vacant and cleaned.

While it may cut close to the settlement date, even completing the final inspection the day before settlement allows enough time to raise issues with your conveyancer or solicitor. If you schedule the inspection too early, you may face promises from the seller like "we'll take care of that before settlement," but there's no guarantee that they will follow through.

Also, request that utilities like gas and electricity stay connected until your final inspection. This will allow you to test appliances and ensure everything is in working order.

3. Inspect the Property Thoroughly

When the time comes for the final inspection, take your time to look around the property carefully. You should focus on identifying things that have changed since the purchase. These changes might include:

- Items left behind: Sellers may leave old junk in attics, garages, or sheds. If they don't clear these items, it becomes your responsibility to remove them after the settlement.

- Missing items: Some sellers might take things that were agreed to be included in the sale. Check that any chattels (e.g., wall brackets, built-in appliances) that were part of the contract are still present.

4. Look for Damage Beyond Wear and Tear

Check for any damage that wasn't there when you agreed to the sale. This is especially important for new builds or recently renovated properties, which may have sustained damage while the sellers were still living there. Look for:

- Cracks in tiles or walls

- Broken fixtures (like gates or handrails)

- Malfunctioning appliances

- Water damage

- Issues with doors, windows, or locks

Also, test all major appliances and systems (hot water, heating, cooling) to ensure they still function as they did at the time of sale. It’s much better to catch these problems before you move in rather than dealing with them afterward.

5. Raise Concerns with Your Conveyancer

If you notice anything wrong—whether it's leftover rubbish, missing items, or damage—contact your conveyancer or solicitor. In many cases, a portion of the settlement funds can be withheld to cover the cost of resolving these issues. For example, if the seller fails to remove old furniture or debris, your solicitor might withhold $500 from the settlement to cover rubbish removal. This way, you don’t have to delay the settlement, but you still have a means to address outstanding issues.

Conclusion

Your final inspection is a critical step to ensure you're getting the property you paid for, without any unwanted surprises. By preparing ahead of time, scheduling the inspection at the right moment, and thoroughly checking the property, you can avoid unnecessary costs or hassle. If there are any concerns, your conveyancer can help you resolve them without delaying the settlement process.

When you approach your final property settlement with care and attention, you’ll have peace of mind knowing that everything is in order as you move into your new home.