Pre settlement inspection. When buying a property off the plan, you have a contractual right to take a look at what you’ve purchased before you exchange the purchase at settlement.
What is a pre settlement inspection?
The pre-settlement inspection is your opportunity to take a look at the newly completed property before you own it and accept they keys. It is your legal right as a purchaser to check the property meets your expectations and to identify any major defects. For owner occupiers, you may want to size the rooms before buying the furniture.
During the inspection you will be given a condition report to checklist and complete any defects that you may find. This is then provided to the builder or site supervisor so they can address and rectify the issues.
When is a pre settlement inspection carried out?
Once the property reaches practical completion the buyer will be provided with a day/time to attend the property. In 99% of cases, this is conducted during the week between 9am – 3pm. This is on the basis that a work supervisor must be onsite for insurance purposes. Don’t mix the inspection with a bank valuation. When buying off the plan, you’ll be given a separate date to see the property with your own eyes. The valuer will attend the property at another time. This is often offered after the pre settlement inspection.
Who can you bring to the inspection?
Prior to covid-19, there was more flexibility in this regards. Since coming out of major lockdowns, in most cases if its a couple that purchased, they can bring one-two more people. If its a property to occupy, a friend or family member may attend the inspection for support. In relation to property investors, they usually have their property manager attend or a photographer. Having a property manager or photographer helps fast track your marketing campaign to lease the property. At Crest Property Investments, we always come to the inspection to add support and to ensure you’re satisfied. Our concierge service is an important policy to our office to make sure we are with you the entire way.
We recommend employing a building inspector to also attend. As specialists in construction, having an expert to identify defects is a trusted partner to help ensure you property is ready to occupy and/or lease out.
What if you are unable to attend the pre settlement inspection?
We have met many property buyers and investors who are overseas, located interstate or unable to attend the pre-settlement inspection due to family and/or work commitments. If it is in your case, you can use our concierge service and authorise one of our senior members to conduct the inspection on your behalf. We can film a walk through or conduct a live video call to show you through the property. Again, its always recommended to employ a building inspector to identify any defects.
What is next?
Once the defects have been recorded in the conditional report, the builder/developer will have up 90 days post settlement to fix all the defects in your property. Having a well-planned pre settlement inspection is important, but not as important as finding a trustworthy builder. A good builder will deliver a much better product with little to no defects. We often do our own independent due diligence on both the builder and developer before presenting a recommendation. If you are looking to employ a builder to construct a home, please take a look at our blog on “How to choose the right builder”
Want to buy a home?
At Crest Property Investments, we specialise in sourcing brand new and off the plan properties for buyers. We have been working with many buyers from first home buyers, owner occupiers and savvy investors purchase a suitable property to suit your personal needs If you’d like some assistance in buying the right property, please don’t hesitate to contact us. We welcome the opportunity to help you make the best property decision.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
May 2022
