Posted on May 01, 2017
We have recently experienced examples of confusion as to what exactly a “final inspection” prior to settlement of a sale/purchase of a property means.
So we thought we would clarify. And also set out what we believe to be the role of the agent in the “final inspection” process.
Firstly, what it is not. A final inspection is not an opportunity for a buyer to present their shopping list of changes, additions and refurbishments they would like made to the building.
And it is not a time for the buyer to identify repairs they may wish to be made. With exceptions.
Yet we have had this. Just recently, the day before settlement a buyer presented their list of minor defects they wanted corrected.
But this is not the role of the “final inspection”.
In simple terms, the final inspection is an opportunity to ensure that the property is still in the same condition, fair wear and tear excepted, as when the agreement to purchase the property was signed.
Examples might be:
1) If there was a hole in the carpet when the agreement to purchase was signed, then there is no obligation on the vendor to repair.
2) If a window was broken between the time the agreement was signed , and settlement, then there is an obligation on the vendor to repair.
So, what is the role of the agent in this process? Our view is that as the vendor’s agent, it is the role of the agent to guide the purchaser through the process. If necessary the agent needs to educate the purchaser that the final inspection is not the time to produce their Christmas wish list. It is not simply the role of an agent to prepare an agreement, get it signed, take a commission and wash their hands of everything else. Guiding the sale to conclusion, and through the “final inspection” is an integral part of the sale process.