By Julia Thermos

13 September 2015

One of the most important steps in purchasing a new home or investment property is often overlooked by purchasers ... and it can be a costly mistake!

General Condition 22 of the Contract of Sale provides that the purchaser or another person authorised by the purchaser may inspect the property at any reasonable time during the seven days preceding and including the settlement day.

It is important to note that a lot can happen in seven days, including damage to the property when furniture is removed, excess rubbish being left on the property or even an accidental fire a couple of days prior to settlement. We therefore recommend that the final inspection is carried out as close to the settlement date as possible. This reduces the risk of any issues arising after the final inspection. It is always easier to negotiate a solution prior to funds being handed over and often after settlement it is too late, leaving the purchaser with the added expense of rectifying the issue at their own cost.

So, how do you know what to look for at your final inspection? Basically, the property must be in the same condition as it was on the day of sale (the day you signed the Contract of Sale) save and except for fair wear and tear.

A few questions to consider are as follows:

  1. Is there any damage (except for fair wear and tear) that wasn’t there when you first inspected the property?
  2. Are all of the goods listed in the Particulars of Sale still in the property?
  3. Has an excessive amount of rubbish been left on the property?
  4. Is everything that was working on the day of sale still operating? i.e. oven, alarm system, dishwasher
  5. Has the house burnt down?

If any issues arise in relation to your final inspection please contact your solicitor immediately to discuss your options.

TIP: It is also very important that you carry out a thorough inspection of the property prior to signing the Contract of Sale so that you are aware of the condition of the property as at the day of sale. If any issue is identified at the initial inspection we strongly recommend that a special condition addressing the issue is inserted into the Contract of Sale prior to signing.

 

For more information or advice please contact Julia Thermos or a member of our Property Law team.

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