The Final Walkthrough: Your Last Chance to Safeguard Your Cuenca Property Investment

As an expat navigating the vibrant real estate market of Cuenca, Ecuador, you’ve likely experienced a blend of excitement and, at times, apprehension. You’ve searched, you’ve found, and you’ve navigated the initial negotiations. Now, as the closing date looms, there's one critical, often overlooked, step that stands between you and a secure ownership: the final walkthrough. This isn't just a casual look-see; it's your final, vital opportunity to meticulously verify that the property is exactly as agreed upon and that no hidden financial or legal entanglements have materialized since your initial offer. As your experienced expat real estate broker and property law expert here in Cuenca, my primary objective is to ensure your investment is not just acquired, but legally and financially sound.

The closing process in Ecuador, while streamlined in many ways, demands vigilance. While the concept of a final walkthrough is universal, its importance is amplified in a foreign jurisdiction where direct oversight of every detail might be challenging. This is the moment to transition from the abstract legalities of contracts to the tangible reality of the property.

The Purpose of the Final Walkthrough: Beyond a Casual Glance

The final walkthrough serves several crucial purposes:

Verification of Agreed-Upon Condition: It confirms that the property has not sustained any damage since your last inspection and that any agreed-upon repairs have been completed to satisfaction.
Confirmation of Inclusions: It ensures all items stipulated in the purchase agreement (fixtures, appliances, etc.) are present and in working order.
Identification of New Issues: It’s your opportunity to spot any newly emerged problems, such as water leaks, electrical faults, or evidence of pests, that may have developed in the interim.
Confirmation of Vacancy and Cleanliness: It verifies that the property is vacant (unless otherwise agreed), clean, and free of any personal belongings left behind by the seller.
Functional Systems Check: It allows you to test essential systems like plumbing, electricity, and HVAC (if applicable) one last time.

Preparing for Your Final Walkthrough: A Strategic Approach

To maximize the effectiveness of your final walkthrough, preparation is key. I recommend you schedule this inspection no more than 24-48 hours before the closing appointment at the notary’s office. This timing is crucial; it’s close enough to closing to detect recent issues, but not so close that any discovered problems can’t be addressed before the final transfer of funds.

What to bring:

Your Purchase Agreement (Promesa de Compraventa): This document is your blueprint. It details all agreed-upon terms, including specific inclusions, any stipulated repairs, and the property's condition.
Inspection Reports: If you conducted a professional inspection, have those reports handy for comparison.
A List of Inclusions: Refer to your contract for a precise list of what should be included (appliances, light fixtures, window treatments, etc.).
Tools: A small toolkit with a screwdriver, a flashlight, a tape measure, and perhaps a basic voltage tester can be useful.
Your Mobile Phone: To take photos or videos of any discrepancies.
A Notebook and Pen: For diligent note-taking.
Someone with a Keen Eye: If possible, bring a trusted friend or family member who can offer a fresh perspective.

The Comprehensive Final Walkthrough Checklist

This checklist is designed to be exhaustive, covering every critical aspect of the property.

1. Exterior Inspection

Roof: Visually inspect for any obvious damage, missing shingles, or signs of leaks. While a full roof inspection is usually part of due diligence, a quick visual check is essential here.
Walls and Foundation: Look for new cracks, signs of water intrusion, or significant deterioration.
Windows and Doors: Ensure they open and close smoothly, are free of cracks, and that locks are functional.
Gutters and Drainage: Check for blockages or damage that could lead to water pooling.
Yard and Landscaping: Verify that any agreed-upon landscaping has been completed and that the yard is clear of debris. Check for any significant changes or new damage.
Garages/Parking Areas: Ensure the garage door operates correctly and the area is clean.

2. Interior Systems and Functionality

Plumbing:
- Turn on all faucets (kitchen, bathrooms, laundry). Check for adequate water pressure and ensure water runs hot and cold.
- Flush all toilets. Check for proper function and leaks around the base.
- Inspect under sinks for any signs of leaks or water damage.
- Check the water heater to ensure it’s functioning.
Electrical:
- Test light switches in every room.
- Test all electrical outlets using a simple outlet tester or by plugging in a small, known-working appliance (like a phone charger).
- Check the electrical panel for any obvious issues.
HVAC (if applicable):
- If the property has heating or air conditioning, test both systems to ensure they are working effectively.
Appliances:
- Test all appliances included in the sale (refrigerator, oven, dishwasher, washing machine, dryer, etc.). Ensure they power on and operate as expected.

3. Interior Condition and Inclusions

Walls, Ceilings, and Floors: Look for new cracks, water stains, peeling paint, or significant damage. Check that flooring is intact and secure.
Doors and Windows (Interior): Ensure all interior doors open and close properly, and that locks are functional. Check window panes for damage.
Cabinetry and Countertops: Inspect all cabinets and drawers to ensure they open and close smoothly and are in good condition. Check countertops for chips or stains.
Fixtures:
- Verify that all light fixtures, ceiling fans, and chandeliers are present and securely attached.
- Check that faucets, showerheads, and other plumbing fixtures are as expected.
Built-in Features: Inspect any built-in shelving, fireplaces, or other features for damage or disrepair.
Pest Infestation: Look for any signs of new pest activity (droppings, gnaw marks, live insects).

4. Verification of Contractual Agreements

Agreed-Upon Repairs: If the seller agreed to make specific repairs, verify that they have been completed to your satisfaction.
Included Items: Double-check that all items listed in the purchase agreement as included are present. This includes appliances, window coverings, built-in furniture, etc.
Removal of Seller's Belongings: Ensure the property is completely vacant and that the seller has removed all their personal possessions and trash.

5. Utility Connections

Confirmation: While closing typically involves transferring utilities, confirm that the previous owner has initiated the process of disconnecting their services, and be prepared to initiate yours.

Addressing Discrepancies: What to Do If Something Isn't Right

Discovering an issue during the final walkthrough can be stressful, but it’s precisely why this step is so critical. Your response should be calm, factual, and immediate:

Document Everything: Take clear photos or videos of any problems.
Notify Your Broker Immediately: Contact me. I am your advocate. I will assess the severity of the issue and advise on the best course of action.
Communicate with the Seller (via Broker): We will communicate with the seller or their representative. Depending on the nature of the problem, we might:
- Negotiate a Price Adjustment: For minor issues, a small reduction in the sale price might be agreed upon, allowing you to handle the repairs yourself. This is often reflected as a credit at closing.
- Request Repairs: For more significant issues, we can request that the seller rectify the problem before closing. This may involve a slight delay in the closing date.
- Escrow Funds: In some cases, a portion of the sale proceeds may be held in escrow by the notary until the agreed-upon repairs are completed.
- Withhold Closing: If the issues are substantial and cannot be resolved to your satisfaction, the purchase agreement may allow you to withdraw from the transaction.

The goal is to resolve these issues amicably and efficiently, always prioritizing your financial and legal security.

Real Estate Due Diligence Checklist (Recap of Essential Steps)

While the final walkthrough is the last physical inspection, it’s built upon a foundation of thorough due diligence conducted earlier in the process. Key elements include:

Title Search (Estudio de Títulos): Verifying the seller’s legal ownership and identifying any encumbrances (mortgages, liens, easements). This is conducted by the notary or an independent lawyer.
Property Tax Verification (Certificado de Bienes Raíces): Ensuring all municipal property taxes are up-to-date. Unpaid taxes become the buyer’s responsibility.
Municipal Building Permits: Confirming that any construction or significant renovations were legally permitted and registered. Unregistered construction can lead to fines and demolition orders.
Community Fees/HOA Dues: For apartments or condominiums, verifying that all association fees are paid.
Physical Inspection: An earlier, comprehensive inspection by a qualified professional.

The final walkthrough is the capstone of this process, ensuring the current state of the property aligns with all prior assurances and agreements.

⚠️ Broker's Legal Warning: The Property Risk You Must Veto.

The most critical risk I implore you to veto during the final walkthrough is the acceptance of the property in a state that deviates significantly from the Promesa de Compraventa (Purchase Agreement) or the condition it was in when you made your offer, especially if it involves undocumented construction or hidden defects. While cosmetic issues are often negotiable, problems related to structural integrity, major system failures (plumbing, electrical), or unregistered additions can lead to substantial, unforeseen expenses and legal headaches post-closing. Never feel pressured to overlook significant issues to meet a deadline. A slight delay in closing is always preferable to acquiring a property with undisclosed, costly problems. Always ensure any agreement to rectify issues is clearly documented, either as a credit in the Escritura Pública (Public Deed of Sale) or with a clear commitment from the seller.

The final walkthrough is your last line of defense in ensuring your Cuenca real estate dream doesn't turn into a costly nightmare. By approaching it systematically, armed with your contract and this detailed checklist, you empower yourself to make a final, informed decision. My role is to guide you through every step, ensuring your transaction is not only smooth but also legally ironclad and financially prudent.

Cuenca Property Purchase: Your Final Walkthrough Checklist for Legal Ownership & Risk Mitigation