Oct 4, 2023
In the world of real estate, the day of possession is a joyful moment for buyers, marked by the exchange of keys and the realization of homeownership dreams. However, before you get swept away in the excitement, it’s crucial to consider whether a pre-possession walk-through is a wise step in your home-buying journey. In this blog, we will delve into the significance of a pre-possession walk-through and explore why every buyer should contemplate this essential practice.
Once you’ve found your dream property and submitted an offer, that offer typically comes with various conditions. Common conditions include financing approval and property inspections, but they can span a wide range, depending on your specific needs and agreements with the seller. However, when you remove these conditions, your purchase contract becomes unconditional. This means that, regardless of the circumstances, you are committed to buying the property, and the consequences of backing out at this stage can be substantial.
If you have reservations about the property’s condition after the sellers have vacated or want to ensure that specific agreed-upon improvements have been made, you may contemplate a pre-possession walk-through. However, it’s crucial to note that unless this walk-through was explicitly included in the contract, the seller is not obligated to permit it. Even if it is included, the walk-through doesn’t grant you the power to change the outcome or back out of the deal. It’s essentially a final visual inspection, often occurring at a moment when your emotions are running high.
The best approach to handling potential issues is to address them before they become problems. Ensuring that the seller’s obligations are clearly defined in the contract can mitigate the need for a pre-possession walk-through in most cases. Realtors play a crucial role in helping buyers craft contracts that protect their interests. By specifying conditions and inspections as part of the contract, you can guarantee that the seller commits to these terms and understands that you may still choose to back out if the conditions are not met. This eliminates the need for a high-stakes pre-possession walk-through without contractual teeth.
While pre-possession walk-throughs may not be the norm, there are unique circumstances where they might be necessary. Real estate transactions can be complex, and a knowledgeable realtor can help you navigate these complexities and determine if a walk-through is warranted in your specific case. Given the legal intricacies and the significant stakes involved, it’s advisable to seek legal advice when drafting contractual terms for a pre-possession walk-through.
In summary, the question of whether to conduct a pre-possession walk-through in real estate is one that should be carefully considered. While they may make for dramatic television moments, in the real world of real estate, there are often better tools to protect both the buyer’s and seller’s interests. By leaving pre-possession walk-throughs as rare occurrences and ensuring that contracts are well-structured, all parties involved can enjoy smoother and more secure real estate transactions. In most cases, it is advisable to schedule a walk-through inspection a few days before the possession date, offering ample time to address any issues that may arise. Remember, if issues do come to light, consult with your realtor or lawyer, as a walk-through is not a means to cancel the possession. Legal remedies should be considered after the possession date.
Hi! I’m Erin Crocker. I’m a real estate lawyer with over 10 years of experience in Alberta and British Columbia real estate law. I love technology and efficiency. I’m on a mission to create a modern, digital closing experience for buyers and sellers through technology, transparency and sharing knowledge.
