Pre-settlement inspection

A pre-settlement inspection, sometimes called a final inspection, is your opportunity to confirm the property is in the condition agreed to in the contract before settlement occurs.

It usually takes place in the days leading up to settlement, often within 5 business days prior.

This inspection isn’t about renegotiating the purchase. It’s about ensuring the property hasn’t changed, been damaged or had agreed inclusions removed.

It’s a safeguard, not a second round of due diligence.

The purpose is to confirm that:

• The property is in substantially the same condition as when contracts were exchanged
• Agreed fixtures and inclusions remain in place
• Any negotiated repairs have been completed
• No new damage has occurred
• The property is vacant if sold as vacant possession

Settlement will proceed regardless of whether you conduct this inspection. That’s why it matters.

Bring a copy of:

• The contract
• The inclusions list
• Any special conditions
• Photos from your original inspection

Walk through carefully and check:

Light fittings, appliances, curtains, blinds, heating and cooling units, dishwashers and any items listed in the contract.

If the seller agreed to complete repairs, confirm they have been completed satisfactorily.

Look for new damage such as:

• Cracked windows
• Water damage
• Holes in walls
• Damaged flooring

Where possible, test:

• Lights
• Power points
• Stove and oven
• Taps and plumbing

This isn’t about cosmetic preferences. It’s about contractual condition.

Some common pre-settlement surprises include:

• Rubbish left behind
• Appliances removed that were included
• Minor property damage during move-out
• Incomplete agreed repairs

Most issues are minor and resolved quickly through your conveyancer.

The key is documenting concerns immediately.

If something isn’t as agreed:

1. Take clear photos.
2. Notify your conveyancer immediately.
3. Do not confront the seller directly.
4. Allow your legal representative to negotiate a solution.

Possible outcomes may include:

• Repair before settlement
• Financial adjustment at settlement
• Retention of funds until issue is resolved

Settlement should not be delayed unnecessarily, but genuine contractual breaches should be addressed.

A pre-settlement inspection is not:

• A new building and pest inspection
• An opportunity to renegotiate price
• A chance to raise previously known issues

Structural or maintenance concerns should have been identified during earlier due diligence.

This step confirms compliance, not condition discovery.

Inspections are typically arranged through the selling agent.

Aim to conduct the inspection as close to settlement as practical, ideally within 3 to 5 days prior.

Too early, and issues could arise after your check.
Too late, and there may be limited time to resolve concerns.

If purchasing with vacant possession, confirm:

• The property is empty
• No belongings remain
• Keys, remotes and access devices are accounted for

If the property is tenanted:

• Confirm the tenancy arrangement aligns with the contract
• Ensure bond and lease documents are correctly transferred

Different conditions apply depending on what you agreed to purchase.