Common Mistakes to Avoid at Your Apartment Pre-Settlement Inspection

Buying an apartment is one of the biggest financial decisions most Australians will make. The pre-settlement inspection is your final opportunity to check that everything is as it should be before you hand over your money and take ownership. Yet too many buyers treat this step as a formality, rushing through or missing critical details that end up costing them dearly after settlement.

A pre-settlement inspection for an apartment differs from one for a freestanding house. You are dealing with shared spaces, body corporate areas, and often complex building systems that all need attention. Getting it right means knowing what to look for and, just as importantly, knowing which mistakes to avoid.

The pre-settlement inspection is your last line of defence before taking legal ownership of an apartment. Once settlement occurs, the burden of proving pre-existing defects falls squarely on you as the new owner.

Why Apartment Pre-Settlement Inspections Matter

Your contract of sale sets out the condition the apartment should be in at handover. For off-the-plan purchases, the developer's specifications and plans form the benchmark. For established apartments, the condition at the time of contract exchange is the standard.

If you miss defects during this final walkthrough, you lose significant bargaining power. After settlement, your options for recourse become far more limited and expensive. In many states, the seller or developer has minimal obligations once the property changes hands, unless major structural defects are involved.

For a detailed overview of the process itself, see our guide on what to expect in a pre-settlement inspection.

The 10 Most Common Mistakes Buyers Make

The following table summarises the key mistakes and their potential consequences. Each is explored in detail below.

1. Rushing Through the Inspection

This is the most frequent mistake apartment buyers make. Whether due to excitement, time pressure, or the assumption that everything will be fine, many buyers spend less than 30 minutes inspecting their new apartment.

A thorough apartment inspection takes at least 60 to 90 minutes, even for a standard two-bedroom unit. Larger apartments, penthouses, or properties with extensive outdoor areas may require even more time. You need to check every room, every fixture, every surface, and every system methodically.

Do not let the selling agent or developer's representative rush you. You have a legal right to conduct a proper inspection. If someone suggests you are taking too long, politely remind them that this is a significant purchase and you intend to be thorough.

2. Not Bringing Your Contract and Documentation

Your contract of sale, any variations, the plan of subdivision, and the developer's specifications (for off-the-plan purchases) are essential reference documents during the inspection. Without them, you are relying on memory alone to verify that the apartment matches what was promised.

Key documents to bring include:

• The signed contract of sale and any amendments
• The developer's specifications and inclusions list
• Floor plans and architectural drawings
• Any correspondence about agreed repairs or modifications
• Previous inspection reports, if applicable
• Your own apartment pre-settlement inspection checklist

Having these documents on hand allows you to cross-reference what you see against what was agreed. This is particularly important for off-the-plan apartments where the finished product may differ from what you saw in the display suite.

3. Skipping Common Areas

Many apartment buyers focus exclusively on their individual unit and completely overlook the common areas. The building lobby, hallways, car park, storage cages, lifts, fire stairs, gardens, pools, and gym facilities are all part of what you are buying into.

Defects in common areas become a shared financial responsibility through your strata levies. Cracked tiles in the foyer, water damage in the basement car park, or faulty lift mechanisms can all translate into special levies that may cost you thousands of dollars.

Walk through the common areas with the same level of scrutiny you apply to your apartment. Check for water stains on ceilings, cracks in walls, damaged flooring, and any signs of incomplete work. If the building is a new development, pay particular attention to waterproofing in wet areas, car park drainage, and the condition of shared facilities.

4. Ignoring Minor Defects

A hairline crack here, a slightly chipped tile there, a door that does not close quite right. These small issues might seem trivial in the excitement of taking ownership, but they can signal larger underlying problems or deteriorate significantly over time.

Hairline cracks in plaster can indicate structural movement. A door that sticks might point to frame misalignment caused by settling or poor construction. Chipped tiles in wet areas can allow moisture penetration that leads to serious water damage and mould growth.

Document every defect, no matter how minor it appears. You are not being difficult or unreasonable by raising these issues. You are protecting your investment. Under Australian consumer law and state-based home building legislation, you are entitled to a property that meets the agreed standard. For more on what constitutes a defect, read our guide on construction defect inspections.

5. Not Testing Appliances and Fixtures

Every appliance and fixture in the apartment needs to be tested during the pre-settlement inspection. This includes items that buyers commonly overlook, such as exhaust fans, rangehoods, dishwashers, and intercom systems.

Work through each item systematically:

• Kitchen: Turn on the oven, cooktop, rangehood, and dishwasher. Run hot and cold water. Check the sink for drainage speed and leaks.
• Bathrooms: Flush every toilet. Run every tap and shower. Check water pressure and temperature. Look under vanities for leaks. Test exhaust fans.
• Laundry: Run taps, check drainage, test any built-in dryer or washing machine connections.
• Living areas: Test all power points with a phone charger or small device. Check light switches, dimmer controls, and ceiling fans.
• Security: Test the intercom, security access, garage remote, and any alarm systems.
• Air conditioning and heating: Run each system for several minutes to confirm proper operation.

If an appliance is not working at the time of inspection, note it as a defect. Do not accept excuses that it "just needs to be turned on at the switchboard" or "will work once the power is connected." Verify everything yourself.

6. Inspecting in Poor Lighting Conditions

Lighting plays a crucial role in what you can and cannot see during an inspection. Inspecting in dim conditions or at dusk means you are far more likely to miss surface defects, paint imperfections, scratches on flooring, water stains, and mould.

Schedule your inspection during daylight hours, ideally in the middle of the day when natural light is strongest. Open all blinds and curtains. Turn on every light in the apartment. If natural light is limited, bring a powerful torch to examine darker corners, under sinks, inside wardrobes, and behind appliances.

A torch angled across a wall surface (known as a raking light technique) will reveal bumps, dents, and uneven plaster that overhead lighting would hide entirely. Professional inspectors use this method routinely, and it is simple enough for anyone to replicate.

7. Not Photographing or Documenting Issues

Verbal observations mean nothing if you cannot back them up with evidence. Every defect, every discrepancy, and every area of concern should be photographed and described in writing during the inspection.

Use your phone to take clear, well-lit photos of each issue. Include a wider shot showing the location within the room and a close-up of the defect itself. Take video of functional issues such as slow drainage, noisy systems, or flickering lights.

Keep a written log alongside your photos. Note the room, the specific location within the room, the nature of the defect, and any relevant contract clause it relates to. This documentation becomes critical evidence if you need to pursue pre-settlement disputes and resolution processes.

8. Going Alone Without Professional Help

While you absolutely should attend your own pre-settlement inspection, going without professional support is a risk many buyers take unnecessarily. A licensed building inspector brings trained eyes, specialised tools, and knowledge of building codes and standards that most buyers simply do not have.

Professional inspectors can identify issues that are invisible to untrained observers. These include inadequate waterproofing, non-compliant electrical work, structural defects hidden behind plaster, and drainage problems that will only become apparent during heavy rain.

For apartment purchases, particularly off-the-plan properties, the cost of a professional inspection is minimal compared to the potential cost of undetected defects. Our pre-settlement inspection service provides a detailed report that identifies all defects and references the relevant Australian standards.

The builder's obligations during pre-settlement inspections are clearly defined in law. A professional inspector can help you determine whether those obligations have been met.

9. Missing Contractual Specifications

Off-the-plan apartment buyers are particularly vulnerable to this mistake. Developers may substitute materials, change finishes, or alter layouts from what was originally specified. These changes might be subtle, such as a different brand of tapware, a lower grade of carpet, or slightly different cabinetry hardware.

Without your contract specifications in hand, you may not notice these substitutions. And once settlement occurs, proving that a substitution was made and that it was not agreed upon becomes much harder.

Compare every detail against the specifications:

• Benchtop materials and colours
• Tapware and hardware brands and models
• Flooring type, colour, and quality
• Appliance brands and models
• Paint colours and finishes
• Tile sizes, patterns, and grout colours
• Window and door hardware
• Lighting fixtures

If you find discrepancies, raise them immediately. Under the Australian Consumer Law, goods and services must match their description. A developer who delivers something materially different from the contractual specification is in breach.

10. Failing to Confirm Agreed Repairs Were Completed

If a previous inspection identified defects and the seller or developer agreed to rectify them before settlement, you must verify that this work has actually been done. Do not simply take their word for it.

Check each item on the rectification list individually. Test repaired fixtures, examine patched surfaces closely, and confirm that replacement items match the original specifications. Shoddy or incomplete repair work is common, particularly when developers are under pressure to settle quickly.

If repairs have not been completed to a satisfactory standard, you are within your rights to delay settlement until the work is done properly. Discuss this with your solicitor or conveyancer, as the specific process varies between states and territories.

Your Legal Rights During the Inspection

Australian property law gives buyers specific rights regarding pre-settlement inspections, though these rights vary by state and territory.

In New South Wales, the standard contract for sale of land gives the buyer the right to inspect the property before settlement. The property must be in essentially the same condition as at the contract date, fair wear and tear excepted. The NSW Fair Trading website provides detailed guidance on buyer rights.

In Victoria, buyers typically have the right to two inspections before settlement under the standard contract conditions. Queensland, South Australia, and Western Australia each have their own provisions, so check with your conveyancer about the specific rules that apply to your purchase.

For new builds and off-the-plan purchases, additional protections apply under state-based home building legislation. These laws set minimum standards for construction quality and impose warranty obligations on builders and developers.

Timing Your Inspection Right

Getting the timing of your pre-settlement inspection right is more important than many buyers realise. Too early and conditions may change before settlement. Too late and you have no time to address problems.

For established apartments, aim for five to seven days before settlement. This provides enough time to raise issues and negotiate repairs or price adjustments if needed.

For off-the-plan apartments, try to schedule the inspection seven to fourteen days before the proposed settlement date. New builds often have a longer list of defects, and developers may need additional time to arrange tradespeople for rectification work.

If your first inspection reveals significant defects, request a second inspection after the developer or seller claims the work is complete. You are entitled to verify that rectification has been carried out properly.

What to Do If You Find Defects

Discovering defects during your pre-settlement inspection does not mean the purchase falls apart. It means the system is working as intended. The inspection exists precisely to catch these issues before they become your problem.

When you identify defects, take the following steps:

1. Document everything with photos, videos, and written descriptions.
2. Notify the seller or developer in writing, listing each defect clearly.
3. Contact your solicitor or conveyancer to discuss your options.
4. Request rectification before settlement, with a follow-up inspection to verify the work.
5. Consider a professional defect report if the issues are significant or numerous.

In some cases, buyers negotiate a reduction in the purchase price to account for defects that the seller cannot or will not repair before settlement. This approach should only be taken with legal advice, as it can affect your rights under warranty provisions.

For substantial defects, you may be entitled to delay settlement until they are resolved. Speak with your legal representative about the specific provisions in your contract and the applicable state legislation.

Tips for a Successful Apartment Pre-Settlement Inspection

Beyond avoiding the common mistakes listed above, these practical tips will help you get the most from your inspection.

Create a room-by-room checklist before you arrive. Working through each space systematically ensures you do not miss anything. Move from top to bottom (ceiling, walls, floor) and left to right around each room.

Bring the right tools. A phone for photos and notes, a torch, a spirit level, a tape measure, and a small electrical tester (available from any hardware store) will help you identify issues that are not visible to the naked eye.

Check behind and beneath things. Open every cupboard, look behind doors, check under sinks, and inspect the back of wardrobes. Defects are often hidden in places buyers do not think to look.

Run water for several minutes. Short bursts of water flow will not reveal drainage problems or slow leaks. Let taps run for at least two to three minutes and check under sinks and around shower bases for any signs of water escape.

Pay attention to smells. Musty or damp odours can indicate water damage, mould, or poor ventilation. These issues may not be visible but can be significant.

Frequently Asked Questions

A thorough pre-settlement inspection for a standard apartment should take between 60 and 90 minutes. Larger apartments or those with extensive defect lists may take longer. Do not rush the process, as missed defects can be costly to address after settlement.

Yes, you are entitled to bring a professional building inspector to your pre-settlement inspection. In fact, it is strongly recommended, particularly for off-the-plan apartments and new builds where construction defects may be present. The cost of a professional inspection is a small price to pay for peace of mind.

If you discover defects, document them thoroughly and notify the seller or developer in writing. Your solicitor or conveyancer can advise on the best course of action, which may include requesting rectification before settlement, negotiating a price reduction, or in serious cases, delaying settlement.

In many cases, yes. Your right to delay settlement depends on the terms of your contract and the applicable state legislation. Speak with your legal representative before making this decision, as delaying settlement without proper legal grounds can have financial consequences.

Absolutely. Common areas become a shared financial responsibility once you are an owner in the strata scheme. Defects in common areas can lead to special levies that all owners must contribute to, so it is in your interest to identify these issues early.

Bring your phone (for photos and notes), a powerful torch, a spirit level, a tape measure, and your contract documents including specifications and floor plans. A small electrical socket tester is also useful for checking power points.

This varies by state and contract terms. In Victoria, buyers typically have the right to two inspections. In other states, at least one inspection is standard. Check your contract for the specific provisions that apply to your purchase.

If the developer has used different materials or finishes from those specified in the contract, this may constitute a breach. Document the discrepancies and raise them with the developer in writing. Your solicitor can advise on whether the substitutions are significant enough to warrant action.

Rain can actually be an advantage for inspections, as it reveals water ingress, drainage issues, and leaks that would not be visible in dry conditions. If possible, inspect during or shortly after rain to check for these problems, but ensure you also inspect in good natural light.

Yes, price reductions (sometimes called a vendor's allowance) are a common resolution for defects found during pre-settlement inspections. Get legal advice before agreeing to this approach, as accepting a price reduction may affect your rights to claim under builder's warranty provisions for those specific defects.

Waterproofing failures, structural cracking, window seal defects, and balcony drainage issues are among the most expensive defects to rectify in apartments. These can cost tens of thousands of dollars to repair and may affect other units in the building as well.

No, they serve different purposes. A building and pest inspection is typically conducted before you sign the contract and covers the overall condition of the property. A pre-settlement inspection confirms the property is in the agreed condition immediately before settlement. Both are important, but they occur at different stages of the buying process.

Take the Stress Out of Your Apartment Inspection

A pre-settlement inspection does not have to be overwhelming. With the right preparation, the right documents, and the right professional support, you can walk through your new apartment with confidence.

If you want expert eyes on your apartment before you settle, our team of licensed building inspectors can conduct a detailed pre-settlement inspection that covers every aspect of your new home. We identify defects, reference the relevant Australian standards, and provide you with a comprehensive report that gives you the evidence you need to ensure your apartment is delivered as promised.

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