How to avoid major surprises on move-in day
Moving house can be very stressful, so the last thing you need on moving day is to show up with moving trucks to find something’s not quite right. From broken windows to holes in the floor, missing light fittings to whole gardens that have been removed, the horror stories are plenty.
However, a strategic pre-settlement inspection will ensure a smooth exchange and no shocks when calling your new property home.
I bought a house for a client in Queensland quite a few years back who fell in love with the property partly for the lush garden and gorgeous mature plants that lined the yard. When we did the pre-settlement inspection, we arrived to the horror of a dug-up garden, and all those lovely plants were gone!
By law, any plants in the ground are an inclusion, and those in pots are not. It turned out that the plants had been sneakily planted in pots submerged underneath the soil.
In the end, with a lawyer’s help, we won the battle, and the sellers had to return the garden to how it was at the contract exchange. The pre-settlement inspection turned out to be the difference between having a beautiful mature garden and moving into a property with a pile of dirt for a backyard.
When’s the best time to do a pre-settlement inspection?
A settlement period can range on average somewhere between 30 and 90 days, leaving a lot of time for things to change since contracts were exchanged.
I always insist that any buyer does the pre-settlement inspection when the vendor has moved out, and the property is empty. That way, you get the most accurate picture of the property's condition and won’t be stuck with any surprises should damage occur on move-out or the place left in an absolute state.
However, make sure to leave the seller enough time to make any required changes or fix any issues before you’re due to move in. Cutting it too fine can delay your move and leave you stranded should anything major need to be amended before you take the keys for good.
Here’s what to consider during your inspection…
Understand what is included in the sale. Your contract of sale is essentially your cheat sheet for your pre-settlement inspection. It will have all of the inclusions listed, including anything that isn’t typically included but was added as part of the negotiations. All permanent fixtures such as fixed cabinetry, flooring, handles, lighting and plumbing should be left untouched.
Don’t forget about what’s not included. Anything that’s not fixed to the walls or floor should be removed. You don’t want to shift heavy items or hang on to rubbish until the next council clean up. Also, thoroughly sweep the property, including the shed and attic. I found an old toilet in an attic during a pre-settlement inspection!
Unfortunately, an end-of-occupation clean isn’t required by the seller. Unlike rental properties where the place has to be left spotless, vendors don’t have to have the property professionally cleaned or make an effort to clean it themselves before they go. Thankfully, most leave it in a reasonably decent state. However, it’s valuable to know whether you need to have the place professionally cleaned before you unpack.
What should you do if you find a problem?
If you’re working with a Buyers Agent, they’ll be by your side during the pre-settlement inspection and will be able to spring into action if something’s not quite right. If you’re going it solo, you’ll need to contact your conveyancer immediately, who can raise it as an issue with the vendor's solicitor and you can ensure the vendor has to fix it.
Ideally, you’ll have given the seller enough time to patch things up before the settlement is finalised and you move in. Your conveyancer can withhold funds from the sale until everything has been sorted, or in some cases, you can negotiate the cost of repair off the sale price and have it fixed yourself. As a last resort you may choose to delay the settlement altogether until the issue has been resolved.
In all cases, being strategic about when and how you do your pre-settlement inspection can save you time, stress and often money. Please ask one of our team if you need any help buying a property.