Long Saad Woodbridge
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The pre-settlement inspection

What happens at a pre-settlement inspection?

The standard conditions of the Contract allow for the purchaser to complete one inspection of the property within three days prior to the scheduled date for settlement. We would generally recommend that the purchaser undertakes the pre-settlement inspection, as close as possible to the date of settlement, preferably on the morning of settlement, so that the purchaser can be assured of the condition of the property as close as possible to settlement. At the pre-settlement inspection, the purchaser will be given access to the property by the agent. The purchaser will inspect the property to ensure that it is in the same condition and state of repair (subject to fair wear and tear), as at the time of exchange of the Contracts. If the Contract contained terms that the vendor will complete certain works prior to the settlement, then the purchaser will need to confirm at the pre-settlement inspection that the works have been completed.

What will happen after the pre-settlement inspection?

Following the pre-settlement inspection, the purchaser will need to inform our office as to the outcome of the inspection. If the inspection was satisfactory then arrangements will be made to proceed to settlement.

What happens if the pre-settlement inspection was not satisfactory?

If the purchaser has attended the pre-settlement inspection and is not satisfied with the condition of the property then the purchaser will need to advise our office urgently. If there has been a change to the condition of the property from the date of exchange of Contracts, the ability to make a claim under the Contract will be dependent on the terms of the Contract, and if the purchaser can substantiate that there has been a detrimental change.

Do pre-settlement inspections differ for off-the plan Contracts?

The Contract will stipulate how many pre-settlement inspections the purchaser is entitled to undertake for a property being purchased off-the plan. Subject to the terms of the Contract, at the pre-settlement inspection for an off-the plan Contract the purchaser will need to identify and collate a list of defects that may exist in the property. You can read more about off-the plan Contracts and the defects liability period by clicking here. Property tip: Prior to an exchange of Contracts it is important that the purchaser thoroughly inspects and completes due diligence on the property to ascertain its current state of condition and repair. We would recommend that any purchaser tests appliances and any special inclusions that are included in the sale to ensure that they are in working order. You should give particular attention to stoves, ovens, dishwashers, air-conditioners and security systems/alarms, as a few examples.



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