Which is NOT a good reason to perform a preclosing walk-through inspection?

• A. To verify that repairs were completed
• B. To check that fixtures are in place
• C. To determine that no encroachments exist
• D. To confirm there are no outstanding liens

Answer: (C)

The main purpose of a preclosing walk-through is to verify the property’s physical condition and to confirm that the seller has fulfilled their duties under the contract. It’s about what you can see and touch in the home and whether any agreed-upon repairs have been completed and fixtures remain in place.

Verifying that repairs were completed fits this purpose because it checks that the seller has met repair obligations before transfer. Checking that fixtures are in place also aligns with the walk-through, ensuring the items listed in the contract are still part of the sale.

Determining that no encroachments exist is not a typical part of this inspection. Encroachments involve property boundaries and possible neighboring structures, which are normally identified through a boundary survey and title work, not by walking through the home. Likewise, confirming there are no outstanding liens is a matter handled by the title search and title insurance process, not something you confirm during the physical walk-through.

So, the option about encroachments doesn't fit the purpose of a preclosing walk-through, making it the not-a-good reason to perform one.