Arequipa Real Estate: Why a Final Walkthrough is Crucial Before Closing
Discover why skipping a final property walkthrough in Arequipa, Peru, can lead to costly issues. Learn what to check and how to protect your investment befor...
Why You Should Never Skip a Final Walkthrough Before Closing on a Property in Arequipa
As a licensed Peruvian real estate broker with extensive experience assisting foreign investors in Arequipa, I cannot stress enough the critical importance of conducting a final walkthrough before you sign the Escritura Pública (Public Deed) and finalize your property purchase. While the excitement of acquiring your dream property in Yanahuara, Cayma, or the historic Centro is palpable, skipping this crucial step can lead to significant financial loss, legal complications, and unforeseen headaches in a foreign jurisdiction. This final inspection is your last opportunity to ensure the property you are buying is exactly what you agreed upon, in the condition you expect.
The "Why": More Than Just a Courtesy – It's Your Final Safeguard
In Peru, once the Escritura Pública is signed before a notary and registered with S.U.N.A.R.P. (Superintendencia Nacional de los Registros Públicos), the property legally transfers into your name. Recourse for issues discovered after this point becomes incredibly difficult and expensive, often requiring lengthy and complex legal action. The final walkthrough serves several vital purposes:
- Verification of Property Condition: Confirm that the property's physical state has not deteriorated since your initial inspections and that no new damage has occurred.
- Confirmation of Agreed Repairs: If your purchase agreement (Minuta) stipulated that the seller would undertake specific repairs based on a prior inspection, this is your moment to verify that these repairs have been completed satisfactorily and professionally.
- Ensuring Fixtures and Fittings: Check that all included appliances, fixtures (e.g., light fixtures, ceiling fans, built-in cabinetry), and personal property that were part of the agreement are still present and in working order.
- Checking for Seller Removal: Ensure the seller has removed all personal belongings and that the property is broom-clean and ready for your occupancy.
- Utilities Confirmation: Verify that essential utilities like water, electricity, and gas (if applicable) are connected and functional. Critically, ensure there are no outstanding bills attached to the property that could become your responsibility, as utility debts often transfer with the property in Peru.
When to Conduct Your Final Walkthrough in Arequipa
The ideal time for your final walkthrough is typically 24 to 48 hours before the scheduled signing of the Escritura Pública at the notary's office. This timeframe is crucial: it’s close enough to closing that new issues are less likely to arise, yet it provides a narrow window to address any problems discovered before you commit legally. If significant issues are found, this allows time for last-minute negotiations, a potential holdback of funds (escrow is less common in Peru than in other markets, but can be structured with legal assistance), or even a postponement of closing if necessary.
Step-by-Step Instructions for Your Arequipa Final Walkthrough
Approach your final walkthrough with the diligence of an inspector, not just a prospective homeowner.
1. Preparation is Key: Gather Your Tools and Documents
- Your Purchase Agreement (Minuta): Bring a copy of the signed Minuta (the private purchase agreement) detailing what is included in the sale and any agreed-upon repairs. Pay close attention to sections on fixtures, appliances, and seller responsibilities.
- Inspection Report (if applicable): If you had a professional property inspection, bring the report to double-check that all noted defects requiring seller intervention have been addressed.
- Walkthrough Checklist: Develop or use a comprehensive checklist.
- Essential Tools:
- Smartphone/Camera: For documenting any issues with photos and videos.
- Phone Charger: To test all electrical outlets.
- Small Flashlight: For dark corners, cabinets, and under sinks.
- Tape Measure: If you need to verify dimensions for appliances or furniture.
- Your Real Estate Broker (Me!): I will be there to guide you, translate, and advise on local procedures and implications.
- Optional: Local Contractor/Lawyer: For properties with significant potential issues or if you have specific legal concerns, consider bringing a trusted local contractor for an expert opinion or your lawyer for immediate advice.
2. During the Walkthrough: A Comprehensive Checklist
Go through every room and area systematically. Turn on, open, and test everything.
- Exterior & Grounds:
- Roof: Look for any new visible damage, missing tiles, or signs of recent leaks.
- Walls/Foundation: Check for new cracks, peeling paint, or dampness.
- Windows & Doors: Open and close all exterior windows and doors. Ensure locks function properly.
- Landscaping/Perimeter: Verify fences, gates, and any agreed-upon landscaping elements are intact.
- Patios/Terraces: Check for cracks, pooling water, or loose railings.
- Interior – Room by Room:
- Walls, Ceilings, Floors: Look for new holes, scuffs, water stains, or damage. Verify any agreed-upon painting or repairs.
- Doors & Windows (Interior): Open, close, and latch all interior doors and windows.
- Electrical Outlets: Test every single outlet with your phone charger. Flip light switches. Ensure all permanent light fixtures are present and working.
- Plumbing:
- Turn on all faucets (kitchen, bathrooms, laundry) and check water pressure (cold and hot).
- Flush all toilets.
- Look under sinks for any signs of leaks or dampness.
- Check for proper drainage in sinks and showers.
- Appliances (if included): Turn on the oven, stove, refrigerator, washing machine, and any other included appliances to ensure they power on and function.
- HVAC (if applicable): While central heating/cooling is less common in Arequipa's mild climate, if present, test it. For portable units, verify they are included as agreed.
- Cabinets & Drawers: Open and close all kitchen and bathroom cabinets and drawers.
- Closets: Inspect for any damage or unpleasant odors.
- Safety Features: Check smoke detectors and carbon monoxide detectors (if installed and agreed upon).
- Utilities & Services:
- Water, Electricity, Gas: Confirm these are all connected and functional. While the notary will verify no outstanding bills, a physical check is vital.
- Hot Water Heater: If present, verify it’s working.
- Cleanliness: The property should be free of debris and the seller's personal belongings, left in a reasonably clean condition.
Local Context and Warnings for Arequipa Investors
- SUNARP Registration is Final: Once your Escritura Pública is signed and registered with S.U.N.A.R.P., the property is legally yours. Issues with the physical condition found after registration become your responsibility. Peruvian law prioritizes the legal transfer of title; the physical state is generally outside the scope of the registry's concerns.
- Notary's Role: Remember, the notary's primary role is to verify identities, ensure legal documents are in order, check for liens or encumbrances, and formally record the transaction. They do not inspect the physical condition of the property. Do not rely on them for property condition checks.
- Historic Properties: If you are purchasing a colonial property in the Centro Histórico or areas like Yanahuara, renowned for their preserved architecture, pay extra attention to signs of dampness, especially in older sillar (white volcanic stone) walls. Also, inspect the condition of traditional bóveda (vaulted) ceilings and the integrity of older electrical and plumbing systems. These older elements can be very costly to repair and might not be immediately obvious to an untrained eye.
- Utility Bills: While the notary typically requests proof of payment for the last month's utility bills, a final check during the walkthrough to ensure nothing has been disconnected due to non-payment is a wise precaution. As mentioned, outstanding utility debts are usually attached to the property, not the person, and can become your liability.
What if You Find Issues During the Walkthrough?
Do not proceed to closing immediately. If you uncover significant new damage, incomplete repairs, or missing items that contradict your agreement:
- Document Everything: Take clear photos and videos of the issues.
- Inform Your Broker Immediately: Contact me or your legal representative to discuss the findings.
- Negotiate: Your broker will help you negotiate with the seller. Options include:
- Demanding immediate rectification or completion of repairs.
- Requesting a price reduction to compensate for the cost of repairs.
- Arranging for a portion of the purchase funds to be held back (e.g., in a legal holdback agreement with the notary or a lawyer) until the issues are resolved.
- In extreme cases, if the seller is uncooperative and the issues are substantial, you may need to consider postponing closing or, as a last resort, walking away from the deal (though this is rare at this late stage and usually involves complex legal considerations).
The final walkthrough is not merely a formality; it is the final, indispensable layer of due diligence that protects your investment in Arequipa. Skipping it is a gamble no savvy foreign investor should take.
⚠️ Legal Notice: Consult a Local Lawyer. The information provided in this article is for general informational purposes only and does not constitute legal advice. Real estate laws and procedures in Peru can be complex and are subject to change. It is imperative to consult with a qualified Peruvian real estate lawyer and your trusted Arequipa real estate broker before making any property investment decisions.
Ready to navigate the Arequipa real estate market with confidence? Visit ArequipaRealEstate.com for expert guidance and exclusive property listings.