There's almost nothing as exciting as the feeling of going unconditional on a property – when that castle, wherever or whatever it is, is finally yours. But before the curtains are drawn and settlement takes place, investors should make sure that the curtains, quite literally, are drawn. In other words, it's imperative to make sure that all those fixtures and fittings that cost hundreds of dollars are still in place.
MBA Lawyers senior partner Rob Balanda says he's seen dozens of cases where buyers have to fork out extra money for house items that mysteriously disappeared around settlement.
The most common item to creep away is the creepy-crawly pool cleaner (usually around $500 to replace). Other items often missing include the dishwasher or curtains and in some cases, expensive appliances are switched for cheaper ones.
"i call it the switcher-oonie," he says.
"I had one case where the seller left on the Friday and the buyer moved in on the Monday. My client (the buyer) called on the Monday and said the creepy-crawly was missing, but the seller said they didn't take it. You have to protect yourself against sellers doing a switch and neighbours just walking by."
The best way to avoid major dramas, according to Balanda, is to make a mini documentary before you make an offer. He advises buyers to take photos of every single room and write the date on each photo. This will give you proof about what items are and aren’t in a room.
Jane Slack-Smith of Investors Choice says buyers should always do a pre-settlement inspection and check that all the same appliances are in the house.
"I've had clients turn up and they’ve taken the dishwasher," she says.
"Settlement shouldn't go ahead unless they say there's an exclusion."
Investors should specifically write into the contract each and every appliance, even if it seems over the top. Slack-Smith says in one case, a vendor removed a wrought-iron gate that cost thousands of dollars, so buyers should never assume everything will always be there. The buyer should also insist on delaying settlement until the correct appliances are returned.
"Say that settlement is postponed because we agreed on something and it isn't there. The vendor is always committed for everything to happen that day and if you tell them they reneged on a contract, they should know they're in the wrong."
Balanda says it's also up to the buyer to insure the property from day one and get a vigilant building and pest inspection.
"Get them to turn on every appliance, every tap, every light and the air conditioning, so you know if there’s an issue," he says.
"There's an assumption by buyers to make sure everything works, but make sure you check, because it can cost thousands otherwise."
Another handy trick is to book a pre-settlement inspection a week before settlement. This gives the vendor one entire week to feel guilty about removing items or switching them.
"This has a powerful psychological effect," he says.
"They'll have second thoughts about doing it, because you're putting them on notice."
