Pre-settlement inspection of a property that under rent-back agreement

Discussion in 'The Buying & Selling Process' started by Matche, 10th Apr, 2017.

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  1. Matche

    Matche Active Member

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    Hi, we bought a unit and we agreed that the seller/vendor will rent back the unit and stay there for few months, settlement will be in 1 week time, what is the best time to have the pre-settlement inspection? I don’t think I can identify any major issue during the pre-settlement inspection as it’s still occupied. On the other hand, I already appointed the rental agent to manage the property, he will arrange for an ingoing inspection and keep a record of how the property looks like, he will also carry out an outgoing inspection when the tenant (now seller/vendor) move out by the end of lease term. Just wondering what is the best time to book for pre-settlement inspection? Thank you for any advice.
     
    Matche, 10th Apr, 2017
    #1
  2. Propertunity

    Propertunity Well-Known Member

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    Best time for a PSI is the afternoon before, or the morning of, settlement. Take your PM along to do his/her in-going at the same time.
     
    Propertunity, 10th Apr, 2017
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    Big Will likes this.
  3. Stu6161

    Stu6161 Member

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    Presumably you have had a building and pest inspection carried out already. If not, then get that done ASAP and the sellers need to provide you with access.
    Assuming the pre-purchase inspection has been done, then leave the PSI just before settlement as mentioned above, to capture any changes or variance from agreed inclusions.
     
    Stu6161, 15th Apr, 2017
    #3
  4. Wendy Chamberlain

    Wendy Chamberlain Well-Known Member

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    We generally arrange for the pre purchase inspection to be 7-10 days prior to settlement. That way, if there are any issues it allows time for the vendor to fix them up. It is rare to be able to stop a settlement, but if there are issues identified that have not been rectified, then monies can be withheld at settlement to fix whatever the issue may be.
     
    Wendy Chamberlain, 17th Apr, 2017
    #4
  5. Big Will

    Big Will Well-Known Member

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    Late afternoon before or morning of settlement, the closer the better.

    Make sure the entrance report the PM does is 100% as this is going to be what the tenants/ex vendor will be bound by and not the PSI/contract.
     
    Big Will, 18th Apr, 2017
    #5
    Propertunity likes this.
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