Final Inspections

The Technical Stuff

General condition 22 of the standard contract of sale gives buyers the right to a final property inspection. It states:

“The purchaser and/or another person authorised by the purchaser may inspect the property at any reasonable time during the 7 days preceding and including the settlement day.”

This allows buyers to conduct the final property inspection, at any reasonable time during the week, leading to and including, the settlement date. It is advisable to conduct the final property inspection as close as possible to the settlement day.

The contract of sale requires the seller to hand over the property in the same condition as when it was sold. If, during the final pre-settlement inspection, you find that something is damaged or not working as it was on the day the property was sold, you can request a repair.

But what does that mean?

The buyer is given the opportunity to make sure the property is how it was the day of purchase.

Common things to look out for include: 

•  Ensuring there has been no damage to the property since the contract of sale was signed and the date of  the original inspection.

• Checking that all appliances, fittings, electrical, plumbing and any other functions of the property are in working condition, or otherwise as originally inspected.

• Ensuring all of the inclusions listed in the contract of sale remain in the property and have not been removed.

• Ensuring that no waste, rubbish, building materials or bulky furniture is left in the house, or on the property, and that the house has been left in a reasonably clean state for handover.

• Checking that the garden and landscape are in order.

Concerns with the final property inspection

If you have any concerns after the final property inspection, your options are:

• If there has been some damage to the property, this does not give you the right to delay settlement or withhold any funds at settlement. Contact your conveyancer so they can clarify whether this damage to the property is a contravention of the contract of sale. Your conveyancer may be in a position to communicate with the seller’s conveyancer, and relay your concerns to them for rectification.

• If the damage is more than the anticipated ‘fair wear and tear’, you are only entitled to take action after the property has been settled. The buyer is not allowed to delay settlement, but may be entitled to compensation following settlement.

• If there is substantial damage to the property, the seller is in breach of the contract and the buyer can ask the seller to fix the damage before settlement.  In this situation, a seller cannot rescind or claim penalty interest if settlement is delayed. 

Also, something to note is that the vendor does not have to have power on at the property at the time of the final inspection, nor does the property have to be vacant to inspect at the final inspection.

Did you know?

Not in every state do you automatically get a final inspection!!

Each state has different laws regarding pre-settlement inspections. Some, like Victoria, stipulate that buyers are entitled to inspect the property at any reasonable time during the week before settlement; others, like South Australia, stipulate that buyers are only entitled to one if they specifically stated in the contract that the sale was subject to one.  

Any questions please let us know!