Property Inspection on Settlement day

[NewAge]

Hi Everyone,
The settlement of my property is on Friday. Last Thursday, I was able to take my property manager through the property. Then vendor was then packing. They would have moved out on the weekend.

My question : should I arrange to inspect the property on the day of settlement, maybe a few hours before settlement ?

What if after settlement, I find lot of rubbish there? The property is already on the rental market and we have said that it will be available from 22nd (which is Monday).

Can someone advice me of my rights prior to and on settlement ?

Thanks a lot

 

[wylie]

Just my opinion, but we have never done an internal pre-settlement inspection because if they leave rubbish, we would rather get a skip and get rid of it than have the hassle of holding up settlement with the risk involved with doing that.

Having said that, mostly we have bought vacant houses so in the event of buying a rented house I suppose if they decide to punch holes in all the walls or something like that, you need to know prior to settlement.

Why not have a chat to your conveyancer or solicitor and see what they advise.

Wylie

 

[The Y-man]

Our conveyancing solicitor tells us to go and inspect a day or 2 prioir to settlement Check for chattels (things that are supposed to be left behind), cleanliness, damage (try out the stove, hot water unit etc if possible, and power / water is still connected)

Our solicitors have adjusted the settlement amounts for charges for repairs/removal on some of our properties based on this.

Cheers,

The Y-man

 

[Jacque]

I recommend inspecting 1-2 days prior to settlement, as this enables you to then have time for any necessary recourse if things are not quite right.

The property should be in a similar state (given fair wear and tear over the period) with all inclusions as they were when you agreed to purchase. Remember too that vacant possession means just that, so should there be unwanted chattels or goods (rubbish etc) left behind you are entitled to have such items removed from the premises.

 

[dave99]

I think it is wise to check, not for rubbish or anything minor, but just that major items like stove and floor coverings are still there and there is no heavy damage. Once you have settled, there is little hope of getting this stuff fixed.

- Dave99

 

[NewAge]

Thanks everyone!!!

After a lot phone calls, I have been able to arrange an inspection of the property tommorrow afternoon. I went to see the property from outside today afterwork (its on the way to my home). I noticed that one of the glass windows just next to the door has a crack. The crack looks fresh. I am pretty sure it was not there when I first saw the property. It seems to have happened when the vendor was moving out over the weekend.
The vendor also had surround speakers installed in the ceiling in the lounge. He would have removed it. I am just wondering how he would have fixed the ceiling after removing the speakers.

I talked to my conveyancer today. She said I would not be able to hold the settlement for minor stuff.

I need to know from experts on this forum as to what my options are. The settlement would be around lunchtime on Friday and I am inspecting the property together with the REA tommorrow after lunchtime.

Thanks a lot.

 

[dave99]

Hi NewAge,

It all depends on the cost for fixing these problems. It is up to you to determine whether the cost is worth delaying the settlement. Remember it is a bit of a hassle to delay the settlement, so weigh that against the cost to repair the glass for instance.

If there are big holes in the ceiling, I would tell the vendor to fix it up before settling. Remember you are the client of the conveyancer - they must follow your instructions. I think the vendor would be motivated enough to fix the problem if they need the cash for their next purchase...

- Dave99

 

[The Y-man]

If you can get a cost for repairing, get your conveyancing lawyer to adjust the settlement amount (i.e. you get this amount "discounted" off the agreed price of the property)

I think the vendor agreed and allowed $50 or something for a broken oven door once.

Cheers,

The Y-man

 

[fernfurn]

With our first PPR, it took me 3-4mths to realise the vendor had substituted the expensive fancy taps for plain chrome ones. Then there was the vendor who even took the curtains with her

 

[sailor]

I wish the vendor had taken the snake in the garage roof with her. Now I have to get the pest guy to remove it!

 

[Syvergy]

With our first PPR, it took me 3-4mths to realise the vendor had substituted the expensive fancy taps for plain chrome ones. Then there was the vendor who even took the curtains with her

The house I just bought is completely bare - I think the only reason there is carpet is because otherwise noone would buy it

 

[NewAge]

I inspected the property yesterday. There weren't any major issues. The glass window is cracked but it can stay as it is although I have asked the REA to see if the vendor can get it fixed. The speaker wires have been neatly trimmed from the ceiling and wall. Maybe it can be used by future tenants, so I am not much fussed about it. Otherwise, the property is in an excellent condition for tenants to move it. So far so good.

Thanks everyone for your help.

 

[wish-ga]

..........Remember too that vacant possession means just that, so should there be unwanted chattels or goods (rubbish etc) left behind you are entitled to have such items removed from the premises.

I know it is done and dusted for you New Age (Congratulations!) but I just wanted to say that I would photograph things left behind before getting rid of them. That way if the prev people try and hit you up to replace the fridge they left you can show it was delapidated and rusted through and not the shiny newie they claim.

 

[lobboroz]

Make sure you check all the windows for cracks, we only did a quick check of the windows found one with a large crack and got that fixed but when we moved in we realised there were around 3 - 4 windows with small cracks in them. These were the bottom windows which we didnt take as much notice of. They left us some car seats in the shed which we assumed they would remove. Next time im going to make sure i ask whats staying and going cause i could not throw those seats away during hard rubbish days but lucky i needed a skip for a reno so it got removed in the end.
We couldnt check the ovens cause there was no gas or electricity connected we found out once it was connected it didnt work properly! but lucky it only needed a clean and it was ok. The back where the gas came out was all clogged so it didnt work properly.

 

[NewAge]

During the inspection yesterday, I could not test any of the electrical installations (lights etc), or the gas stove or the taps because all the services were disconnected. You really have plan these inspections. For me, the first time the vendors was there, the 2nd time - nothings connected.

I would like to know from others as to the best practical way to do these inspections - esp the final one.

 

[lowb]

*with unconditional offers, if you find these sorts of damages before settlement, do you still have a right to negotiate?

*for interstate purchases, visiting the property before settlement can be time consuming -are there other alternatives?

cheers

 

[Jacque]

*with unconditional offers, if you find these sorts of damages before settlement, do you still have a right to negotiate?

*for interstate purchases, visiting the property before settlement can be time consuming -are there other alternatives?

cheers

Hi LowB

You have a right to recourse in the form of compensation which may well be a reduction in the agreed price of the home. For example, if a wall was extensively damaged by a removalist and this is evident upon the inspection, then the vendor may agree to a reduction. If not, then you have the right to delay settlement. Keep in mind, however, that delays invariably cost money (with solicitors charging higher fees for the added time) and sometimes it may not be worth it for something minor.
If, however, a fitting or fixture is missing that was an inclusion on the contract or something is now not working that previously was (pool pumps, appliances, auto garage doors etc) then recourse should be sought. Commonsense prevails, really.

If you are interstate, then having a friend or colleague to inspect on your behalf is the next best thing, in my opinion. Ensure, however, that they have a copy of the front page of the contract to check off the inclusions and (if possible) pictures of the property as it was when the offer was accepted/exchange occurred. There have been many wily vendors who have substituted items such as light fittings and window coverings, in the hope of not being discovered. Unfortunately, post-settlement, you have very little chance of getting such issues rectified.