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Importance of a Pre-Settlement Inspection

The excited purchasers have
found the property and the deed
is done – the agreement is
signed. They know they are
signing up for the property as it
is on that date. Not everything is
able to be seen or known at that
date. However, they know what they have seen, and
what has been represented to them.
Their initial questions can be clarified through
conditions in the agreement. The Agreement says
what chattels are to remain and those chattels must
be (where relevant) in working order, fair wear and
tear excepted. A settlement date looms. The last
opportunity presents itself to check that what you
signed up for is consistent with what you shall pay
for. It is called the pre-settlement inspection.
You cannot revisit matters that you had not covered
prior to signing the agreement, but you can check
everything is the same and in order. Either the
vendor or their agent arrives with a key and stays
with the purchasers during the inspection. It
happens in the last few days before settlement date.
Any queries must be with the vendor’s solicitors
prior to the actual settlement date.
Aspects that have changed, or not been rectified as
agreed, or are now not in working order, may be
queried. Settlement is not able to be held up, but
compensation or the retention of funds on the day to
cover rectification is possible.
The pre-settlement inspection is very important, so
continue to keep your lawyer in the picture at that
time of the transaction.

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