What is the Final Inspection for?

The final inspection, also known as the pre-settlement inspection, is a crucial step in the property buying process and allows the buyer to visually inspect the property to ensure it is in the agreed-upon condition as stated in the contract of sale. The purpose of the final inspection is to identify any issues or discrepancies that may have arisen since the initial inspection.

When will it be booked?

The final inspection should generally be conducted within 5 days of the anticipated settlement date and should be arranged by the selling agent, or the agent’s settlement team.

Planning the visit in advance and coordinating a suitable time with the selling agent and purchaser is a courteous and legally sound practice. Various states including Western Australia require it to be conducted during business hours between the hours of 9am and 4pm.

Who can attend?

There is no requirement for you to attend the final inspection, however, it has been specifically requested to by the purchaser, it should be considered.

Most states have rules around who can attend a final inspection, and it is generally accepted that it is only the purchaser, plus up to two witnesses. Bringing their entire family is not acceptable and can be very distracting for them. It is essential for purchasers to conduct the inspection themselves (or through an authorised representative), and with the real estate agent.

It is important to note that it is not legal for them to show up unannounced and demand entry to a property that is not yet under their ownership. Respecting your privacy and rights is not only a legal requirement but also a fundamental aspect of a smooth and respectful transaction process.

What will the purchaser check?

Working methodically, the purchaser will start at the front and work their way to the back of the block. They are ideally looking to see if the block is as described and if applicable, as inspected before they made the offer to purchase. The various points to check may include the following items:

Boundary Check – Verify the boundaries of the land to ensure they match the dimensions specified in the contract of sale. This may involve physically inspecting the perimeter or consulting survey plans.

Site Conditions – Assess the condition of the land, including any vegetation, debris, or potential hazards. Ensure the site is as described and is clear of any unauthorised dumping.

Services and Utilities – Confirm the availability and location of essential services such as water, electricity, gas, and sewage connections. Ensure these services are as described and accessible and functional, if applicable.

Easements and Restrictions – Identify any easements, covenants, or restrictions that may affect the use of the land are as described in the offer document.

Council Compliance – Check for compliance with the local council regulations and planning requirements. Have all council subdivision requirements been met.

Access and Amenities – Evaluate access to the property, including road access. Have the required access roadways been created as required.

Documentation Review – Review all relevant documentation, including the contract of sale, title deeds, and any special conditions. Ensure that the terms of the contract are met and that there are no discrepancies or outstanding issues.

What if something is wrong?

If you come across anything that is not right, the purchaser will make notes as they go. Once the inspection is complete, they will send an email to both the selling agent and their settlement agent /solicitor listing the items they believe require rectification according to the terms of the contract.

Their settlement agent / solicitor will then assess whether these issues are covered under the contractual terms. If they are, the necessary repairs must be conducted before the settlement. They may need to schedule a reinspection after the repairs are done to ensure their satisfaction before instructing the settlement agent to proceed with the final settlement.

This meticulous process ensures that any agreed-upon repairs are addressed before the property officially changes hands. 😀   

Final Inspection Checklist – Vendor