The final inspection is one of the last steps before settlement in the property transaction process.
The terms outlined in the Offer and Acceptance (O&A) contract are crucial, as they dictate the specific condition in which the property must be presented at settlement. This contract includes details on agreed-upon inclusions, exclusions, and any required repairs or maintenance, setting the standard for the property's condition at the time of handover.
The O&A also determines whether a final inspection can be conducted, specifying when and how the buyer is entitled to inspect the property before settlement. If a final inspection is allowed, it provides the buyer with an opportunity to ensure that the property meets the contract's conditions, and that any required repairs or inclusions are fulfilled. For sellers, it's an opportunity to make sure everything is in order for a smooth transition. Both parties must adhere to these terms, as deviations could affect the settlement timeline or lead to potential disputes.
Here are some practical tips for buyers and sellers to ensure a seamless final inspection and settlement process.
Tips for Buyers
Verify The Agreed Condition of the Property
The final inspection is about making sure the property matches the condition agreed upon in the contract. Be on the lookout for any damage or issues that weren’t there at the time of signing the contract. Look out for things like broken windows, damaged walls, or appliance malfunctions.
Check Appliances and Fixtures
Check that all appliances, such as ovens, stoves, dishwashers, and hot water systems, are functioning properly. In Perth, it's also a requirement that smoke alarms and RCD (residual current devices) are installed and functional for safety compliance.
Inspect Repairs and Inclusions
If the seller agreed to any repairs or inclusions (like leaving certain fixtures or appliances), confirm these are complete and as specified. Having a checklist of the items discussed in the contract can help ensure everything is accounted for during your walkthrough.
Take Photos or Videos for Documentation
Taking photos or videos during the inspection can be helpful for reference, particularly if there are any outstanding issues. Documenting the condition provides evidence in case there are discrepancies between what was agreed upon and the property's actual state.
Clarify Any Issues with Your Agent Promptly
If you notice any issues, inform your real estate agent immediately. If something needs fixing or clarification, raising it sooner can help avoid delays in settlement.
Tips for Sellers
Conduct Your Own Pre-Inspection
Before the buyer's final inspection, walk through the property yourself or with your real estate agent to identify any potential issues. This gives you the chance to fix small problems or touch up any areas that may need attention.
Make Sure Utilities Are Working
Ensure all utilities, including water, electricity, and gas, are fully operational for the inspection. The buyer will likely test these during their visit, so making sure everything is in working order is key.
Remove Personal Belongings (Unless Specified Otherwise)
Clear out all personal items unless they were specified as inclusions in the contract. Leaving the property clean, empty, and ready for the buyer demonstrates good faith and minimises misunderstandings.
Double-Check Repairs and Inclusions
If you agreed to make certain repairs or include specific items in the sale, double-check that these are done and in good condition. Completing agreed repairs can prevent potential delays if the buyer finds issues during their inspection.
Be Flexible with Timing
Buyers will want to inspect as close to the settlement date as possible, usually within the last few days. Accommodating a final walkthrough at a convenient time for the buyer helps keep the process moving smoothly.
Addressing Issues Before Settlement
If any problems arise during the final inspection, both parties can work through solutions with their agents. For example:
Minor Issues: Some buyers may agree to accept minor problems (like a broken light fixture) if the seller provides a discount or credit toward repairs.
Major Issues: If there is a significant issue, like a broken appliance that was supposed to be included, the settlement may be delayed while the issue is resolved. In such cases, clear communication between buyer, seller, and agents is critical.
Local Insight: Perth-Specific Considerations
In Perth, there are unique requirements that both buyers and sellers need to be aware of:
RCDs and Smoke Alarms: Western Australian law requires that properties be equipped with compliant smoke alarms and RCDs for electrical safety. Sellers should ensure these are installed and functioning before the final inspection.
Seasonal Factors: Due to Perth’s hot summers, buyers might want to double-check air conditioning and pool maintenance systems are in working order, while winter inspections should focus on heating and any water damage.
Final Thoughts
The final inspection is an important checkpoint for both buyers and sellers, giving each side peace of mind before the transfer of ownership. By being prepared, addressing any issues promptly, and maintaining open communication, both parties can help ensure the settlement process is as smooth as possible.
For more information on final inspections or to get help with your settlement process in Perth, contact our team at Adaptive Settlements. We're here to make your property transaction as seamless as possible!
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