Changes to Buyers Rights to re-inspect the Property Before Settlement

There has been a recent change to the General Conditions 2018 surrounding a Buyers right to re-inspect the property, when something was noticed to be not working, at the final of the pre-settlement inspection.    Under the previous wording of the General Conditions, there was no right for a Buyer to go back and re-inspect to make sure everything was rectified before settlement took place.  This inspection clause lacked protection for the Buyer to know whether or not the Seller had complied with the Contract and completed the works.  The Buyer was left with having to trust that the works had been carried out and proceed to settlement and then run the risk of finding the Seller haven’t in fact carried out the works satisfactorily.

Changes to the Joint Form of General Conditions 2018 –

INSPECTION

5.1. Right to inspect

(a)

The Buyer is entitled to inspect the property to check that the Seller has complied with the Sellers obligations under the Contract; and

The Seller must grant access to the property to enable the Buyer to inspect the property for that purpose on one occasion five (5) business days before possession date.

(b)

If following an inspection under clause (a) the Buyer identifies items that require rectification by the Seller under the Contract, the Buyer may give notice of those items to the Seller.

The Seller must grant access to the property to enable the Buyer to check those items.  (one occasion prior to possession date)

This change in effect gives the Buyer the right of inspection for the purpose of checking whether or not the Seller has complied with their obligations under the Contract is now coupled with the right for the Buyer to go back and check to see whether these items have been carried out.

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