Whether you are buying a home or an investment property, settlement day is the date that you legally become the owner of your new property. Settlement usually takes place 30-60 days after your offer on a property is accepted, and for everything to go through smoothly, all the paperwork needs to be completed, checked and double-checked.
The last thing you want to do is make an expensive mistake, so it’s important that you ensure everything is accurate, and there are no potential problems with the property well before your settlement date. If you are buying a property this usually means hiring a lawyer or property conveyancer to handle the paperwork, and organising the necessary pre-purchase property inspections.
Do I need a pre-purchase property inspection in Sydney?
No matter where you are buying or what type of property you are purchasing, it’s sensible to arrange a pre-purchase property inspection. Sydney properties in particular are generally selling at very high prices, so it’s extra-important that you take steps to make sure that your investment is a good one.
A pre-purchase property inspection can help you to be sure the property is in sound structural condition and make you aware of faults that may need. This is important because problems can cause a delay in settlement, along with increased legal and administrative costs.
What else can I do to help make sure settlement goes smoothly?
For most buyers, settlement day is highly anticipated. Delays can be frustrating and inconvenient, especially if you have made plans to move into your new property as soon as possible. Although you can’t plan for everything, there are a few things you can do to ensure that settlement goes as smoothly as possible without any preventable delays or hiccups.
- Order inspection reports well ahead of time. If a report does show up a potential issue, you may need to get further inspections or get cost estimates from professionals. Giving yourself as much time as possible means that you will be able to think about your decision carefully and get all the information you need without causing too many delays if you decide to go ahead.
- Arrange insurance. Check with your lawyer or conveyancers as to whether you need home insurance from the contract date, or settlement. In some states, the risk does not pass to the new owner until the settlement date. It’s best to be sure, and to be covered from the moment you are assuming any risk.
- Understand your expenses. It’s a good idea to go through rates and levies where applicable and take note of how much will be due. The seller will be responsible for paying all rates and levies up to and including the settlement date and you will be responsible after that. Getting to grips with the outgoings ahead of time reduces the chance there will be misunderstandings as to who is paying what at settlement time.
- Arrange a final inspection. You should take a final look at the property just before settlement is complete to ensure that it is still in the same condition it was when you bought it. It’s a good idea to go through the contract and check everything in it is correct before the settlement goes ahead.
With good planning and organisation, you can ensure you have the best chance that there will be no unforseen issues and settlement can go ahead without a problem. Getting the keys to your new property is an exciting moment and as long as you have made sure everything is in order you can enjoy your new home or investment property for a long time into the future.
It’s easy to arrange a pre-purchase property inspection in Sydney with Compare Inspections. We can provide new and existing property inspections for buyers within a few clicks. Make sure your new property purchase goes smoothly and protect your financial future with a pre-purchase property inspection.
By Darel McBride
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