Home Buying and the Final Walk Through

The final walk through inspection is something that is customary for the buyer to do before closing on a new home loan and buying a house.  During the walk through inspection, the buyer wants to check that the property to see that it is the same condition as the time of the contract to purchase the home was signed.  The buyer should also check to make sure the property is clean and it meets any requirements that may have been established in the purchase agreement. 

The final walk through is in essence a final inspection of the property prior to taking possession of the property.  This process is established to determine that the property is in the condition it was represented to be in the terms of the contract.  If there are problems but they were not stipulated in the contract, then the seller is generally not obligated to remedy these issues.  If there are issues that were called for in the contract that were not handled before the walk through then it may be wise to enlist the help of an attorney to negotiate the best settlement.

The biggest problem that arises in a final walk through and inspections is not an issue with the condition of the property as much as it is a question of how to handle the issues that arise.  Generally, the final inspection is scheduled within day or two of the mortgage loan closing.  Since delaying the home loan closing or settlement is often a difficult undertaking, negotiate problems that are not significantly costly becomes a difficult assessment.

If there are any issues that arise during the final walk through, regardless of the magnitude, these concerns should be discussed before the home loan closing and transfer of ownership.  When there are issues that can not be easily settled before the home loan closing and property transfer the tough question arises as whether or not to delay the home loan closing.

When there are disputes about the property conditions that are not handled until the mortgage loan closing the closing can end up lasting for hours and be very unpleasant.

It may appear that the simplest option is to delay the closing until any issues such as repairs or cleaning and removal of personal property is completed.  However, more often than not delaying the mortgage loan closing and property transfer is not possible.  This may arise because the buyer’s mortgage rate is locked in and the loan lock may expire if the closing date is delayed.  In this case, the buyer may be forced to accept a higher mortgage rate from the mortgage lender.  Delays in the home loan closing may also result in a charge for a redraw fee from the mortgage lender to prepare a new set of mortgage loan documents. 

A delay in the closing may also negatively impact the seller.  If the seller may need the proceeds from the sale of his old home in order to purchase a new property with new home loan.  In this case, the best thing for both parties is for everyone to meet either at the closing table or preferably before hand and come to a compromise.

Final walk troughs or final inspections are generally regarded as a protection to the buyer.  However, delays in the closing with regards to the home loan are the primary responsibility of the buyer since it is the buyer’s mortgage being established.  A dispute that can not be resolved may very well up costing the seller money in the end but initially it may cost the buyer different mortgage terms or closing costs. 

The mortgage lender is working with the buyer not the seller and the mortgage lender is not involved in disputes unless it entails the value of the property therefore the mortgage lender will not get involved in a dispute and can only charge the buyer if there is a redraw fee or if the mortgage rate has to be relocked.

These disputes are not terribly frequent but they do occur.  The best advice is to have an attorney review the purchase contract before it is accepted so you know what your protections are in advance.  If a dispute over the condition of the property does arrive, once again it is sound advice to consult your attorney; after all, buying a house is a very large commitment that entails a considerable sum of money.