How A Pre-Settlement Inspection Saves You Time And Money

pre-settlement inspection house magnifying glass

Our Client 

Our client was a couple who were purchasing their very first investment property. They planned to rent out the property after settlement and made sure to complete their pre-settlement inspection. 

The Challenge 

Prior to settlement, our client inspected the property and noticed that the vendor had left a large pile of hard rubbish on the nature strip which hadn’t been there when the Contract of Sale was signed. Our client was concerned that some of the items left behind, including bricks and car doors, wouldn’t be eligible for a hard rubbish collection and that they would be left with the hassle of disposing of the rubbish. This would cost them both time and money after settlement. They were also worried that if the rubbish remained, neighbours would begin to add more to the pile, leaving more for them to take care of.  

The Solution 

One of the first things we did was direct some settlement funds to our trust account to be held after settlement until the rubbish was disposed of by the vendor.  

We contacted the Council to confirm that the vendor had scheduled a hard rubbish collection, and to confirm that the rubbish items would actually be eligible for the collection..  

Before settlement could go ahead, we required that the vendor attend the property to pick up the items which were not eligible for the scheduled hard rubbish collection. A vendor is obligated to remove any non-fixtures of a property before settlement occurs. 

The Win 

We confirmed that the hard rubbish collection had indeed been booked, and ensured that the vendor had removed the items which wouldn’t be collected by council before settlement 

Our client was able to move ahead with settlement as planned, with peace of mind that they wouldn’t be facing any hassle to take care of the vendor’s rubbish left on the property. If the rubbish had been left on the property and settlement had occurred before its removal was negotiated, our client would have had no leverage and would have been left to deal with the rubbish left behind. The hard rubbish collection occurred within a few days of settlement, and our client didn’t face any extra costs or hassles.  

The Lessons 

  • Always complete your pre-settlement inspection to make sure the property is in the condition you purchased it in – as it was when you signed the Contract of Sale. For issues like the one our client encountered here, your conveyancer relies on you fulfilling your role in the process, like doing a pre-settlement inspection and letting them know if you think there is anything amiss. 
  • Don’t be afraid to ask questions and raise concerns with your conveyancer – doing so will allow your conveyancer to take care of issues like the one our client faced before they become a problem.  

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