A pre-settlement inspection is a vital step in the property purchasing process in Sydney, NSW. It ensures that the property is in the agreed-upon condition before final payment and ownership transfer. Traditionally, this inspection takes place within 72 hours of settlement, as outlined in the standard contract of sale.
For buyers, this is the last opportunity to identify any issues before settlement. Partnering with an experienced Buyer’s Agent can make all the difference in ensuring a smooth transition and avoiding costly surprises.
What is a Pre-Settlement Inspection?
A pre-settlement inspection allows buyers to walk through the property before settlement to confirm that everything is in order. This includes:
- Ensuring the property is in the same condition as when contracts were exchanged.
- Checking that all agreed-upon repairs and inclusions have been completed.
- Identifying any damage that may have occurred since exchange.
- Verifying that all fixtures, fittings, and appliances are present and functional.
- Confirming vacant possession (unless the property was purchased with tenants).
Key Reasons to Conduct a Pre-Settlement Inspection
1. Protect Your Investment
Real estate is a significant financial commitment, and a final inspection ensures your purchase is in the condition you expect. Overlooking this step can lead to unexpected repair costs and settlement delays.
2. Ensure Agreed Repairs Are Completed
If the contract required the seller to complete repairs, this is your chance to verify that the work has been done correctly. A Buyer’s Agent can assist by negotiating with the vendor or their agent if any issues arise.
3. Check for New Damages
From storm damage to accidental mishaps by tenants or movers, properties can sustain unforeseen damage. Conducting a thorough check ensures you’re not left with additional expenses after settlement.
4. Confirm Fixtures, Fittings, and Appliances
Sometimes, sellers or tenants may remove items that should remain. A detailed inspection ensures that everything included in the contract—such as light fittings, dishwashers, or air conditioning units—is still in place and functional.
5. Prevent Delays and Disputes
Identifying and addressing issues before settlement prevents last-minute surprises that could delay ownership transfer. If problems arise, a Buyer’s Agent can liaise with solicitors and the seller to find a resolution.
The Role of a Buyer’s Agent in a Pre-Settlement Inspection
An experienced Buyer’s Agent provides critical expertise during this crucial stage. Here’s how they help:
- Expert Eye for Detail: They know what to look for and can spot hidden issues that buyers might overlook.
- Negotiation Skills: If there are discrepancies, a Buyer’s Agent can negotiate with the seller’s agent to resolve concerns before settlement.
- Compliance Checks: Ensuring the vendor has met all legal and contractual obligations.
- Peace of Mind: Handling the inspection process allows buyers to focus on moving into their new property stress-free.
What Happens If Issues Are Found?
If problems arise during the pre-settlement inspection, your Buyer’s Agent and solicitor can:
- Request urgent repairs before settlement.
- Negotiate a financial adjustment to cover the cost of fixing issues.
- Delay settlement until issues are resolved (if necessary and contractually permitted).
- In extreme cases, reconsider the settlement terms.
Final Thoughts
A pre-settlement inspection is not just a formality—it’s a critical step in safeguarding your investment. Having a professional Buyer’s Agent by your side ensures that everything is in order, giving you confidence and peace of mind before you take ownership of your new property.
If you’re buying property in Sydney, working with a seasoned Buyer’s Agent can save you time, money, and stress. Their knowledge and expertise can be invaluable at this crucial stage, ensuring a smooth and successful property purchase.
Need Expert Guidance?
At Sp. Property Buyers, we help property buyers navigate every step of the process, from initial search to final settlement. Contact us today to ensure a seamless property purchase experience!
Marcus Gould LREA.
Director and Senior Buyers Agent.