The pre-settlement inspection of the property, chattels and fixtures is generally one of the last boxes a purchaser will tick off on their checklist when purchasing a property.  However, a purchaser should be aware of and check the condition of the chattels at the time of signing the sale and purchase agreement as this could affect their rights (and expectations) at the pre-settlement inspection.

 

What are the chattels?

Chattels are moveable items that are not permanently fixed or attached to the property. These items are only included in a sale if they are specifically listed in the sale and purchase agreement. Standard chattels include the stove, dishwasher, blinds, curtains and heat pumps.


Condition of chattels

When an agreement is signed, a purchaser is agreeing to purchase the chattels and fixtures in the condition they are in at the date of the agreement (but at a bare minimum in reasonable working order, fair wear and tear accepted). This means that a purchaser may purchase old or rundown chattels, provided that those chattels are in working order.

The vendor should disclose to the purchaser any chattels that are not in working order to avoid ambiguity, however if defective chattels have not been disclosed and the purchaser only discovers the defects at the pre-settlement inspection, this could lead to a possible dispute between the parties before settlement. It may prove difficult for a purchaser to assert that a chattel should be fixed by the vendor if they did not check that it was working at the date of the agreement.


Check and agree before you sign

Before signing a sale and purchase agreement, a purchaser should check that all of the chattels are in working order and satisfy themselves with their condition. A purchaser should note anything that is not working and a suitable solution should be provided for in the sale and purchase agreement.

If a purchaser has specific expectations regarding the general state of the property on settlement (for example that the carpet be cleaned and the lawns mown), it is important this is agreed in writing with the vendor at the time of signing the sale and purchase agreement. If this is not agreed at the time of signing, there is a risk that the parties may disagree as there is no general right for a purchaser to insist that the lawn is mown and the carpet and oven cleaned.


If you are looking to purchase a property, we always recommend having your lawyer look over the sale and purchase agreement before signing. We have a team of experts here at Simpson Western who are here to help.