While it can be tempting to run towards the finish line when purchasing an NYC property, buyers should always conduct a pre-closing “walk-through.”
While it can be tempting to run towards the finish line when purchasing an NYC property, buyers should always conduct a pre-closing “walk-through.” Thoroughly inspecting the property before finalizing the transaction can help ensure there are no costly surprises awaiting you in your new home.
What Is a Pre-Closing Walk-Through?
As the name suggests, a pre-closing walk-through is one of the final steps before closing. Typically, buyers will arrange the walk-through with the real estate agent. Knowing when to schedule it, and what to look for, are keys to a thorough and efficient inspection.
Final walk-throughs should occur as close to closing as possible, ideally a day or two before the scheduled closing date. The goal is to give buyers the opportunity to inspect the property one last time to verify that it is still in a good condition and confirm that any agreed-upon repairs have been completed.
In most cases, any issues discovered during a walk-through can be remedied fairly quickly. Alternatively, the purchase price can be adjusted to reflect any necessary repairs, or a sum of money can be set aside in escrow at the closing. However, should the buyer discover a significant problem, the closing may have to be delayed or even cancelled. Whether you are able to recover your deposit is generally determined by the nature of the issue, as well as the terms of the sales contract. It is also important to note that, absent a written agreement, the seller generally has no obligation to address any issues identified after the closing.
Pre-Closing Inspection Check List
So, what should buyers be looking for during a walk-through? First, it is important to verify that any agreed-upon repairs have been made. Below is an example of additional items that should be on your pre-closing walk-through checklist:
Turn all light switches on and off to make sure lights and ceiling fans work
Run all kitchen and bath faucets to verify they work properly
Run shower/tubs to check for leaks and drainage issues
Flush toilets to make sure they work/don’t leak
Run all of the kitchen appliances and the garbage disposal
Test all of the electrical outlets
Run the heater and air conditioner
Turn on and test the fireplace
Open and close all windows and doors
Verify that garage door opens and closes
Confirm smoke alarms/carbon monoxide detectors are placed according to law and functioning
Run the exhaust fans in the bathrooms and kitchen
Inspect the walls, flooring, and ceilings for water stains or other defects
Examine the exterior of the building for structural and cosmetic issues
Verify that furniture and other seller’s possessions have been removed or that property agreed to be left behind is still there
If issues are discovered, it is important to determine what remedy you will seek, i.e., repair or credit. You should also be prepared to decide whether the issues are worth walking away from the deal should the buyer refuse your request.
Key Takeaway
Conducting a pre-closing walk-through should be a part of every New York City real estate transaction. While it may seem like an unnecessary formality, conducting a thorough inspection can help save you both time and money in the long run.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Bruce Feffer, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
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