Do I really need to do a final inspection prior to settlement? ?‍♀️

The General Conditions that apply to most standard REIWA contracts allow the buyer to undertake one final inspection within 5 business days before the Settlement Date (clause 5).

Whilst not mandatory, the intent of the final inspection is:

1️⃣ To ensure the property is in the same condition as when the offer was made
2️⃣ To ensure the seller has complied with the seller’s obligations under the contract

It is important to understand the difference between a condition and a warranty:

• If a condition of the contract is not met, the party that is in breach is arguably not ready, willing, and able to complete settlement. The “innocent” party is entitled to refuse to settle until such time as that breach is remedied.

• A breach of warranty will not entitle the “innocent” party to refuse to settle, or terminate the contract.

If your contract has a good working order clause, then below are some suggested items to check at the final inspection with your agent.

? Check all lights and light switches work
? Test all power outlets (with tester or hairdryer)
? Check all inbuilt appliances are functioning: oven/hot plates, air-conditioners, dishwasher, heaters, exhaust and ceiling fans, garage door, and security system

?‍♀️ Check the operation of bore/pool pumps (if applicable)
☀ Check the operation of solar panels (if applicable)
? Request copies of instruction manuals for stoves, dishwashers, security system (if available)

? Ensure that the hot water system is functioning – is the water from the tap hot?
? Turn on 2 or 3 internal taps and ensure sufficient pressure is maintained
? Ensure all toilets flush and refill properly
? Check all access devices (keys to doors) are available

If you have any questions regarding final inspections, feel free to give us a call!

Leave a Reply