Settlement next week - inspection advice please

W

Wise1InOz

Hi,
We're settling on our property that we purchased, this Monday. We've scheduled a pre-settlement inspection to take place this Saturday.

I have asked for the agent to have a complete set of keys to all doors, gates and windows including remotes (to the garage) ready during inspection.

I know that I am expected to overlook any issues relating to fair wear and tear. However, could you please tell how the following issues, if any, are normally handled? Am I right in presuming that my lawyer will instruct that we are holding back a small amount based on quotes received for repairing/fixing the problems?

e.g.
Burners on stove and oven,
Dishwasher
Lights
Toilet cisterns
Power points
Hot water
Ducted heating
Evaporative cooling
Burglar Alarm
Smoke Alarm
Doors and windows - opening and closing
Check all keys work there is key for each lock.

Thanks :)
 
The sole purpose of the pre-settlement inspection is to check that the property is in the same condition as when you bought it.

It is NOT another opportunity to check things out as in the list you gave. Those things should all have been checked before signing and any issues then could have been added as clauses to the contract.
Marg
 
Hi Wise

Best of luck with your impending settlement! You're more organised that the majority of buyers out there, who neglect to test electricals and other items and end up in a dispute come PSI time. Unfortunately Marg is right in that it is a case of "buyer beware" in ensuring you check everything out at agreeance time and then you're in a better position to argue should something NOT be working and/or missing. The old 'wear and tear' clause is a bit of a grey area so you need be mindful of this, as well as the fact that not all vendors will agree to hold funds should they or their soli consider your claim 'borderline'. Examples of this include garden upkeep, cleanliness and unwanted rubbish left at the property.

Please find below the checklist we use for our buyers at PSI time. Whilst it's not exhaustive, it at least provides you with a start to ensure you forget nothing. We also recommend taking pics at inspection time and bringing these to you (iPads are wonderful for this) at PSI time to double check inclusions are the same and condition is same/similar.


PRE-SETTLEMENT CHECKLIST
ALL INCLUSIONS AS PER CONTRACT- REFER TO PHOTOS IF AVAILABLE
CHECK WITH AGENT THAT ALL ELECTRICALS ARE IN WORKING ORDER AS PER INCLUSIONS:
SMOKE ALARMS (CHECK INDICATOR LIGHT IS ON), OVEN, COOKTOP, RANGEHOOD, DISHWASHER, AIR CONDITIONING UNITS, LIGHTS, GARAGE AUTO DOORS, SECURITY ALARMS, SOUND SYSTEMS, BATHROOM EXHAUST FANS, FIREPLACES, COOLING AND HEATING DEVICES, INTERCOM SYSTEMS ETC
PROPERTY TO BE IN SAME/VERY SIMILAR CONDITION AS PER INITIAL INSPECTION. CHECK FOR CLEANLINESS IN PARTICULAR IN CUPBOARDS, BATHROOMS, KITCHENS, SHED AND GARAGE AREAS, GARDENS AND GENERAL CONDITION AS PER INITIAL INSPECTION.

NO RUBBISH OR UNWANTED CHATTELS TO BE LEFT UNLESS AS AGREED TO BY BOTH PARTIES. THIS INCLUDES LEFTOVER FURNITURE, WHITEGOODS, TIMBER, ASBESTOS SHEETING, BUILDING LEFTOVERS, PAINT TINS AND CHEMICALS (CHECK SHEDS AND OUTDOOR STRUCTURES)

CHECK COUNCIL BINS ARE PRESENT AND INTACT

CHECK ALL KEYS/PADLOCKS AND AUTO REMOTES ARE AVAILABLE TO ALL DOORS AND WINDOWS , AUTO DOOR AND SECUIRTY SYSTEMS, GARAGE AND OUTDOOR STRUCTURES, GATES, LETTERBOX ETC

CHECK IF ANY MANUALS ARE AVAILABLE FOR ELECTRICAL DEVICES EG: DISHWASHER, OVEN, SECURITY ALARM, AIR CONDITIONING UNITS ETC AND LEAVE FOR PURCHASER OR HAVE AGENT MAKE COPIES FOR INGOING TENANTS AND RETAIN ORIGINALS IN LANDLORDS FILE.

IF ITEMS ARE MISSING, BROKEN OR UNWANTED CHATTELS AND RUBBISH ARE STILL ON THE PROPERTY, SEEK ADVICE FROM YOUR LEGAL REPRESENTATIVE BEFORE PROCEEDING TO SETTLEMENT.
 
Thank you so much. Am making an inspection checklist. The agent said she would give us 10 minutes as she had another OFI:rolleyes: Not that I plan to adhere to that. We will take our time and do a thorough check.

The front garden is very neat and well tended.... we drive by everyday to admire our soon to be new home:eek:
 
Jacque said:
Hi Wise

Best of luck with your impending settlement! You're more organised that the majority of buyers out there, who neglect to test electricals and other items and end up in a dispute come PSI time. Unfortunately Marg is right in that it is a case of "buyer beware" in ensuring you check everything out at agreeance time and then you're in a better position to argue should something NOT be working and/or missing. The old 'wear and tear' clause is a bit of a grey area so you need be mindful of this, as well as the fact that not all vendors will agree to hold funds should they or their soli consider your claim 'borderline'. Examples of this include garden upkeep, cleanliness and unwanted rubbish left at the property.

Please find below the checklist we use for our buyers at PSI time. Whilst it's not exhaustive, it at least provides you with a start to ensure you forget nothing. We also recommend taking pics at inspection time and bringing these to you (iPads are wonderful for this) at PSI time to double check inclusions are the same and condition is same/similar.


PRE-SETTLEMENT CHECKLIST
ALL INCLUSIONS AS PER CONTRACT- REFER TO PHOTOS IF AVAILABLE
CHECK WITH AGENT THAT ALL ELECTRICALS ARE IN WORKING ORDER AS PER INCLUSIONS:
SMOKE ALARMS (CHECK INDICATOR LIGHT IS ON), OVEN, COOKTOP, RANGEHOOD, DISHWASHER, AIR CONDITIONING UNITS, LIGHTS, GARAGE AUTO DOORS, SECURITY ALARMS, SOUND SYSTEMS, BATHROOM EXHAUST FANS, FIREPLACES, COOLING AND HEATING DEVICES, INTERCOM SYSTEMS ETC
PROPERTY TO BE IN SAME/VERY SIMILAR CONDITION AS PER INITIAL INSPECTION. CHECK FOR CLEANLINESS IN PARTICULAR IN CUPBOARDS, BATHROOMS, KITCHENS, SHED AND GARAGE AREAS, GARDENS AND GENERAL CONDITION AS PER INITIAL INSPECTION.

NO RUBBISH OR UNWANTED CHATTELS TO BE LEFT UNLESS AS AGREED TO BY BOTH PARTIES. THIS INCLUDES LEFTOVER FURNITURE, WHITEGOODS, TIMBER, ASBESTOS SHEETING, BUILDING LEFTOVERS, PAINT TINS AND CHEMICALS (CHECK SHEDS AND OUTDOOR STRUCTURES)

CHECK COUNCIL BINS ARE PRESENT AND INTACT

CHECK ALL KEYS/PADLOCKS AND AUTO REMOTES ARE AVAILABLE TO ALL DOORS AND WINDOWS , AUTO DOOR AND SECUIRTY SYSTEMS, GARAGE AND OUTDOOR STRUCTURES, GATES, LETTERBOX ETC

CHECK IF ANY MANUALS ARE AVAILABLE FOR ELECTRICAL DEVICES EG: DISHWASHER, OVEN, SECURITY ALARM, AIR CONDITIONING UNITS ETC AND LEAVE FOR PURCHASER OR HAVE AGENT MAKE COPIES FOR INGOING TENANTS AND RETAIN ORIGINALS IN LANDLORDS FILE.

IF ITEMS ARE MISSING, BROKEN OR UNWANTED CHATTELS AND RUBBISH ARE STILL ON THE PROPERTY, SEEK ADVICE FROM YOUR LEGAL REPRESENTATIVE BEFORE PROCEEDING TO SETTLEMENT.
Click to expand...
I just did a final inspection yesterday, what would you have recommend in my shoes??

I was made aware that the electricty had been turned off so none of the lights worked, the hot water wasnt hot as I assume it had been turned off, however the gas still worked
 
Property Meister said:
I was made aware that the electricty had been turned off so none of the lights worked, the hot water wasnt hot as I assume it had been turned off, however the gas still worked
Click to expand...

I haven't been told anything about electricity and hot water being disconnected. If that is the case, i'd hold back some amount, immediately get utilities connected and check for any problems with the cooling, ducted, hot water and electrical power-points. If all fine then release held back payment.

I have also obtained quotes from the locksmith, in case the agent does not hold full set of keys to all access doors outside.

Is this okay? Any thoughts?
 
Jacque said:
Hi Wise
Examples of this include garden upkeep, cleanliness and unwanted rubbish left at the property.
Click to expand...

There was a lot of building material/timber and assorted rubbish in the sub-floor. Took pictures and sent them off before signing contract, added as special condition to get it cleaned up or else we have it removed at their cost.
 
Wise1InOz said:
I have also obtained quotes from the locksmith, in case the agent does not hold full set of keys to all access doors outside.
Is this okay? Any thoughts?
Click to expand...

IMO, you'd want to have a locksmith replace all the keys and locks anyway as a security measure. You have no idea who has keys to this place - other of their family & friends??
 
Propertunity said:
IMO, you'd want to have a locksmith replace all the keys and locks anyway as a security measure. You have no idea who has keys to this place - other of their family & friends??
Click to expand...

True, we plan to that:)

In the event there is no electricity and I am unable to check the remotes to the 2 shutters to the garage, ducted evaporative cooling, power points/electricals etc then I will hold back some deposit. Is that ok or am I being unreasonable?
 
Wise1InOz said:
In the event there is no electricity and I am unable to check the remotes to the 2 shutters to the garage, ducted evaporative cooling, power points/electricals etc then I will hold back some deposit. Is that ok or am I being unreasonable?
Click to expand...

It won't wash.....sorry.

You don't know that they are not functioning - so you don't have the right to withhold $s.
 
Propertunity said:
It won't wash.....sorry.

You don't know that they are not functioning - so you don't have the right to withhold $s.
Click to expand...

In that case I will say they are not working when inspected - up to them to show me they work prior to settlement - so yes, settlement might have to be held up.
 
Propertunity said:
It will cost you something in fees to reset the settlement date.
Click to expand...

Good point - hadn't thought of this.

If I can't inspect and perform my checks then will contact solicitor and seek her advice. Not that it matters too much but given the issues I had with the vendor I am preparing for the worst.

I have set aside $5,000 in the event I have to make good damage/repairs without any dramas. If it is going to cost me more than this amount then I will definitely be witholding some deposit. Fingers x
 
Hi Wise

Difficult and tricky once the electricity is off and it may end up costing more in legal fees and penalties to pursue here. Best to inspect thoroughly at agreeance time and request that the electricity is kept on until PSI time. This is what we request, but with tenants and longer settlements it doesn't always happen. Happy moving!
 
Thanks :) Jacque - we only move at the end of March. Gives us enough time for minor renovations and repairs until then.

Not enough time to connect utilities in my name now. Will hope for the best.
 
Wise1InOz said:
Thanks :) Jacque - we only move at the end of March. Gives us enough time for minor renovations and repairs until then.

Not enough time to connect utilities in my name now. Will hope for the best.
Click to expand...

Why not? In Sydney I've had it put on straight away. I'd make the call.
 
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