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Only few days away from realizing your property dream? Congratulations!

But, have you planned your pre-settlement inspection yet?

As per law, home buyers are entitled to one pre-settlement inspection before making the final settlement for their purchase. Once a buyer has signed the offer agreement, it is important that no change occurs in the condition of the property when the buyer finally takes over the house. This is why it is important to inspect the house as close as possible to the settlement date (maybe 5 days in advance so that the seller has time to fix any loopholes, if required) to ensure you are getting what you signed up for.

“But I inspected the property before signing the offer letter…why should I inspect again?”

pre-settlement-inspection

Owner-occupiers are usually very meticulous about the pre-settlement inspection, checking every nook and cranny (and even power points at times) as they have to reside in the house themselves. Property investors tend to take this lightly, but mustn’t if they want immediate rental yield. A thorough pre-settlement inspection can ensure the house is tenant worthy for immediate occupation.

Why is pre-settlement inspection important?

1. To ensure that the condition of the property hasn’t changed since the original inspection.
2. To confirm that all contractual obligations have been met.
3. To check that all the fittings and fixtures are working and in order.
4. If tenants had previously occupied the house, to confirm it has been vacated and no substantial damage has been done to the house.
5. No rubbish is lying around in the house and the house can be taken over immediately (read boxes, cartons, heavy furniture, changes to the landscape and similar things).

In the main, it is a smart idea to check your future investment minutely before making the final payment to ensure no deviations have occurred from the time of the original inspection and signing of the offer agreement.

Top Tip: Make a detailed record of the condition of the building, fittings and fixtures in the offer agreement, as the seller is not liable to fix anything that is not covered in the first go.

Keep your eyes open for the following during the pre-settlement inspection:

1. Check if all electric appliances including hotplates and oven are working.
2. Check whether all taps are working, there is no leakage in the faucets and the flushes are functional.
3. Are there any signs of corrosion in the kitchen sink?
4. Check whether all doors and windows close properly (in each and every room).
5. Are there any signs of damage – Holes in the roofs? Broken windows? Do the cupboards open and close properly?
6. Is the heating and air conditioning working?
7. Is the garage door (if relevant) opening and shutting properly?
8. If you are buying an apartment or a house in a strata complex, this is also the time to enquire about the common areas and ensure that shared amenities such as lifts are working properly. (Wondering whether to buy a house or an apartment? Read here).

Remember, these may be small things, but can cost substantially to fix in the future. The main aim of a pre-settlement inspection is to make sure that the house is ready for takeover and immediate occupation, whether by yourself or tenants. So what are you waiting for? If you are already counting days to make the final settlement for your dream home, contact your seller’s agent or seller for a pre-settlement inspection to get the max from your investment, now!

Buying a property is one of the major financial decisions you would make in life. Let HashChing make it easier for you by offering you best rates (compare home loan deals here) in the market as well as online assistance for all your queries through expert mortgage brokers.

By Vidhu Bajaj

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HashChing is helping Australians by providing access to pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.

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