Getting a Home Loan in Australia if you're living overs...
29 Nov 2023
To avoid any unexpected surprises before receiving the keys to your new home, it’s important to complete a pre-settlement inspection to ensure the property is in the same state as when you signed off contracts with the seller.
Generally the property settlement period is anywhere between 30 to 90 days, however you shouldn’t simply assume that the property is in the same condition in the week leading up to settlement as when you exchanged contracts.
If the property is in a worse condition than when you exchanged contracts, for instance, there’s a new hole in the wall, broken window or burst water pipe, you can request the seller to make repairs before settlement.
The pre-settlement inspection can be completed by yourself, the buyer, alongside a witness such as a real estate agent. It’s important to note that as the property is not yet yours, you must organize the inspection in-advance at a time that suits the seller.
In order to ensure everything is accurate, the pre-settlement inspection should include:
If you walk away from the pre-settlement inspection with a frown, you should immediately inform your real estate agent, conveyancer or solicitor. In doing so, they may be able to renegotiate the conditions of settlement to ensure both you and the seller are satisfied.
If a specific problem may have to be fixed before settlement which may then require another inspection, the seller may agree to reduce the sale price factoring in repairs to be completed post-settlement.
A pre-settlement inspection is an essential step in purchasing a new home. Considering all the hard yards from searching, attending inspections to putting in a number of offers is now complete, taking the extra time to ensure everything is in order both aesthetically and structurally will provide you an insight as well as save potential hits to the back-pocket immediately following settlement.
Looking for a competitive home loan rate to make your new home dreams a reality? Check out our range of competitive home loan options available today or chat to one of our lending specialists.
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