Closing time. After weeks or even months of searching for your new home and working with your lender to complete financing, the finish line is in sight. As the big day approaches you will be given the opportunity to do a "final walk-through" of the property. What can you expect, and what should you keep in mind? This month we will discuss walk-throughs and offer some tips.
The final walk-through is the buyer's opportunity to inspect the property and confirm it is in the same condition as when the home inspection occurred and any repairs previously negotiated are complete. It is not a time to renegotiate or attempt to get the seller to sweeten the deal. That being said there are some things that you as a Buyer can expect and should look for.
Your final walk-through may be scheduled with your Realtor a few days or a few hours before closing. I prefer the final walk-through be done a few hours before closing to ensure the seller is fully moved out and the premises is broom swept clean. Never waive your right to walk through the house or opt to inspect it after closing. Unless particular terms of your Purchase & Sale Agreement are drafted to survive or be effective after closing, the closing itself will likely constitute full performance between you and the seller and severely limit any recourse you might have.
I usually advise clients to do two walk-throughs and draft language in the P&S to allow for such. The first walk-through, always in the presence of the seller or their Realtor, is usually for the purpose of taking measurements which will allow the Buyers to plan for furnishing.
As you prepare for your final walk-through here is a list of things to keep in mind:
- Bring your Realtor and a copy of your Purchase & Sale Agreement with you
- Check walkways, garages and lawns for personal property or trash the seller has left behind (most Purchase & Sale Agreements call for broom swept condition free of debris)
- Bring a camera or cell phone to document any concerns
- Turn every light on and off
- Test the alarm system
- Check that all appliances work
- Run water in all sinks/bathtubs and flush all toilets.
- Examine the plumping and fixtures for leaks
- Check that the basement is dry and the premise is free from hazardous materials such as fertilizers, paints or poisons
- Inspect all floors, walls and ceilings to ensure they are not damaged from the seller moving out
- Run any garbage disposals or dishwashers
- Test any heating or air conditioning units regardless of the time of year. You don't want to be in your home six months before discovering you do not have air conditioning.
- Arrange before the walk-through to have the seller set aside any remote controls, warranties, service contracts or security codes you will need
- Check all fixtures and ensure that any lights, curtains or blinds that were to remain are there (refer to your Purchase & Sale Agreement)
- Check that any repairs negotiated in the Purchase & Sale are complete
- Walk the exterior of the home to check for any broken windows or damage to the exterior
In my experience I have found most sellers to be responsible individuals who willingly address any concerns you raise after the final walk-through. However, occasionally you may discover a problem or damage which cannot be fixed prior to your closing. In that case your attorney will likely draft a hold back agreement for you. A hold back agreement places a portion of the seller's proceeds in escrow until the issue(s) are fixed. The buyer may opt to fix the problem themselves and get reimbursed or the seller may make arrangements depending upon the situation. Either way what's most important is that the work gets done and inspected prior to releasing any funds which have been held back. If you do discover a problem you may be able to close on time, but it is best to let your attorney handle the matter. The final walk-through is one reason you should hire your own attorney instead of relying upon your bank's attorney. That way if an issue arises you can be certain someone is their looking out for your interests.
For more information about the home buying process or assistance with your next home purchase or sale, please feel free to contact me by phone or e-mail.
-Andrew R. Martignetti, Esq.
Information in the above article is for educational purposes only and does not create an attorney-client relationship. You should not construe this to be a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel.
