The Significance of the Final Walkthrough

By Puneet Shroff

What Is a Final Walkthrough?

A final walkthrough is the buyer's last opportunity to inspect the property before ownership transfers. Typically conducted 24-48 hours before closing, this inspection ensures that the property remains in the condition agreed upon in the Agreement of Purchase and Sale, barring normal wear and tear. It's not merely a formality but a critical protective measure for buyers making one of life's largest investments.

Sellers are obligated to maintain the property's condition until closing. The walkthrough serves as verification of this obligation and provides buyers with recourse in the event of discrepancies. This step emphasizes transparency and good faith dealings between parties.

Common Issues Uncovered During Walkthroughs

Even in seemingly straightforward transactions, walkthroughs frequently reveal issues that require prompt attention:

1. Undisclosed property damage, including water leaks or structural concerns
2. Missing fixtures or appliances that were included in the sale agreement
3. Incomplete repairs previously negotiated between parties
4. Abandoned furniture or debris left by the seller
5. Utility system malfunctions affecting essential home functions.

Each of these issues carries potential legal and financial implications that must be addressed before funds transfer and ownership changes hands.

Conducting an Effective Walkthrough

A comprehensive walkthrough requires methodical attention to detail. We recommend clients:

• Use a detailed checklist matching the items specified in the purchase agreement
• Document the property's condition with timestamped photos and videos
• Test all systems, including plumbing, electrical, and HVAC components
• Verify that all included items remain in the property
• Confirm completion of any negotiated repairs

When issues arise, immediate documentation and communication with your legal representative are essential to protect your interests before closing.

Legal Options When Issues Arise

When walkthrough concerns emerge, several legal remedies may be available:

• Negotiating a monetary holdback from the sale proceeds until issues are resolved
• Delaying closing until satisfactory resolution is achieved
• Requesting immediate remediation of critical problems
• Adjusting the statement to account for necessary repairs

Your legal representative should be notified immediately of any discrepancies to explore these options before funds are transferred.

The walkthrough may seem like a simple inspection, but its implications reach throughout the legal framework of your real estate transaction. With proper guidance and representation, this step serves as an essential safeguard ensuring your investment receives the protection it deserves.

Please contact Puneet Shroff at pshroff@sorbaralaw.com for your real estate needs.