What will the property look like on the settlement day?

By |2022-06-29T12:02:56+10:004-5-15|

You’ve found the property you want to buy, but you have some concerns about the level of cleanliness, the gear stored in the shed and the mound of grass clippings heaped in the front garden. You are ready to make an offer to buy the house, but what about these issues?

Beware – don’t assume that the seller is obliged to remove the junk, tidy the gardens or clean the house before settlement occurs!

Under the standard terms of the REIQ contract for the sale of residential property, which is most commonly used for real estate transaction in Queensland, the seller is required to provide the buyer with the house and improvements and any included chattels, such as pool equipment or an outdoor setting if they are expressly stated in the contract. Similarly, there is an obligation on the seller to remove all other chattels which are essentially the things that are not fixtures forming part of the land and improvements.

The seller must repair any damage that happens when they take their possessions out of the house, but there is no contractual obligation to clean the house or gardens, or specifically address the state and condition which the property is to be in at settlement. There is no obligation on the seller to maintain the property in the condition it is in when the contract is signed, which is a particular risk for longer term contracts. The seller is only required to use the property reasonably, and must not significantly alter it in a way that may result in expense to the buyer.

Seek advice before you sign the contract and consider adding conditions which will protect you against these matters becoming an issue.

Before you sign a contract, think about what you expect to receive on the settlement date. Some points to consider:

  1. Do you want your offer to be conditional on these issues being sorted out before settlement i.e. removal of garden waste or landscaping material in the yard, or clearing out the shed? If you are worried about it, then make it an express obligation of the seller
  2. Perhaps require that the sellers carry out a ‘bond clean’ before settlement
  3. Are the pool equipment and garden ornaments included or excluded from in the sale?
  4. If there is a tenant in the property:
    1. Are they in breach of their lease?
    2. What condition was the property in when their lease started?
    3. When they leave, what are they likely to hand back over to you?
    4. Ask for a copy of the entry condition report.

The key is to think about these aspects before you make your offer. If the seller will not agree to include terms such as cleaning and removal of rubbish then ensure that you are happy that the price you offer reflects any expense to you in doing those things after settlement occurs. We can help with drafting special conditions in the contract to deal with these things and avoid any nasty surprises when you carry out your final inspection on settlement day.

If you would like to discuss any of the above issues, or property issues more generally, please call Nick Prove on (07) 3226 3944 or email njp@nicholsons.com.au.

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5 Comments

  1. Buyers Agent Sydney February 3, 2022 at 11:19 am - Reply

    Great tips! Thanks for sharing your article.

  2. Ryan February 14, 2022 at 4:30 pm - Reply

    These are good to know facts when you happen to be buying a home in Queensland.

  3. Buyers Agent in Sydney March 21, 2022 at 10:34 am - Reply

    Thank you for sharing this blog. I love it.

  4. Buyers Agent Sydney March 21, 2022 at 2:26 pm - Reply

    Well-written and informative blog. Thank you for sharing.

  5. houses in south philadelphia April 20, 2022 at 5:35 pm - Reply

    Well, cleanliness is a major issue when it comes to settlement day! A buyer wants everything perfect if you are mentioning maintenance and cleanliness points in the contract. And the most important if terms like cleaning and trash collection are not included then the buyer is happy with the price is a must. I like the way you explain things!

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