Australian property buyers have a legal right to inspect a property before settlement to confirm it is in the same condition as when contracts were exchanged, with all contractual inclusions present and no new damage. This right is embedded in standard contracts of sale across every state and territory and is further supported by the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010). If the property has deteriorated or items are missing, buyers can request repairs, negotiate compensation, delay settlement, or lodge formal complaints with their state consumer protection body.
Many buyers treat the pre-settlement inspection as a quick formality, walking through the property without truly understanding what they are entitled to check, request, or dispute. This gap in knowledge can cost thousands of dollars when defects or missing items are discovered after settlement, at which point the buyer's bargaining position is significantly weaker.
This guide explains the legal rights that protect property buyers during pre-settlement inspections in Australia, the state-specific frameworks that govern those rights, and the steps buyers can take when something is not right.
Your Legal Right to Inspect Before Settlement
The right to conduct a pre-settlement inspection is included in the standard contract of sale used in every Australian state and territory. This right allows the buyer (or their representative) to access the property in the days leading up to settlement to verify its condition.
The purpose of the inspection is straightforward: to confirm that the property is in substantially the same condition as it was at the date of contract exchange, fair wear and tear excepted. Buyers are also checking that all fixtures, fittings, and inclusions listed in the contract are present and in working order.
This right exists because the period between contract exchange and settlement can span weeks or months. During that time, the seller remains responsible for the property. If a pipe bursts, a window breaks, a tree falls on the roof, or the seller removes items that were included in the sale, the buyer needs an opportunity to identify these issues before finalising the purchase.
What You Are Entitled to Check
During a pre-settlement inspection, buyers have the right to check the following:
- Structural integrity of the building, including walls, ceilings, floors, and roof
- Plumbing systems, including taps, toilets, hot water, and visible pipework
- Electrical systems, including power points, light switches, and safety switches
- All appliances included in the contract, such as ovens, dishwashers, and air conditioning units
- Outdoor areas, including fences, gardens, driveways, and pool equipment
- All contractual inclusions such as blinds, curtains, light fittings, and built-in wardrobes
- General cleanliness and absence of rubbish or debris
State-Specific Pre-Settlement Inspection Frameworks
Each state and territory in Australia has its own rules governing when and how pre-settlement inspections can take place. The timeframes, governing bodies, and standard contract provisions differ, and buyers should understand the rules that apply in their jurisdiction.
| State | Inspection Timeframe | Governing Body | Key Legislation |
|---|---|---|---|
| New South Wales | Within the final week before settlement | Fair Trading NSW | Conveyancing Act 1919 |
| Queensland | Within 5 business days before settlement | QLD Office of Fair Trading | Property Law Act 1974 |
| Victoria | Within 7 days before settlement | Consumer Affairs Victoria | Sale of Land Act 1962 |
| South Australia | By arrangement before settlement | Consumer and Business Services SA | Land and Business (Sale and Conveyancing) Act 1994 |
| Western Australia | By arrangement before settlement | Consumer Protection WA | Transfer of Land Act 1893 |
| ACT | Within 7 days before settlement | Access Canberra | Civil Law (Sale of Residential Property) Act 2003 |
New South Wales
In NSW, the standard contract for the sale of land (issued by the Law Society of NSW and the Real Estate Institute of NSW) provides the buyer with the right to inspect the property during the final week before settlement. Fair Trading NSW oversees consumer protection in property transactions and can assist buyers who encounter issues. The seller must provide reasonable access during this period. If the buyer identifies damage or missing inclusions, the standard contract allows for an adjustment to the purchase price at settlement or for the seller to rectify the issue before settlement proceeds.
Queensland
Queensland buyers are entitled to inspect the property within 5 business days before settlement under the REIQ standard contract. The QLD Office of Fair Trading provides guidance and dispute resolution services for property transactions. If the property is not in the same condition as at the contract date, the buyer can request that the seller either repair the damage or provide a monetary adjustment at settlement. The Property Law Act 1974 supports the buyer's position in these situations.
Victoria
Victorian buyers have the right to inspect within 7 days of settlement under the standard Contract of Sale of Real Estate. Consumer Affairs Victoria is the primary body for consumer protection in property matters. The Sale of Land Act 1962 provides the legislative framework, and the contract typically includes provisions for the buyer to require the vendor to rectify any damage or compensate accordingly.
Consumer Protection Under Australian Law
Beyond the state-specific contract provisions, Australian property buyers are protected by the Australian Consumer Law (ACL), which forms Schedule 2 of the Competition and Consumer Act 2010 (Cth). The ACL provides broad protections against misleading or deceptive conduct in consumer transactions, including property sales.
If a seller or their agent has made representations about the condition of the property, its inclusions, or recent renovations, and those representations turn out to be false or misleading, the buyer may have grounds for action under the ACL. This is separate from and in addition to any contractual remedies.
The ACL also protects buyers against unconscionable conduct, which may be relevant in cases where a seller deliberately conceals defects or refuses to allow reasonable access for a pre-settlement inspection.
Common Issues Found During Pre-Settlement Inspections
Understanding what problems to look for can make the difference between a successful inspection and a missed opportunity. These are the most common issues buyers discover during pre-settlement inspections.
| Issue | Description | Typical Resolution |
|---|---|---|
| Wall damage | Holes, cracks, or scuff marks that were not present at contract exchange | Seller repairs or provides a credit at settlement |
| Leaking or dripping pipes | New plumbing leaks in kitchens, bathrooms, or laundries | Seller arranges a licensed plumber before settlement |
| Missing appliances | Dishwashers, ovens, or air conditioning units removed by the seller | Seller replaces the item or provides equivalent monetary compensation |
| Incomplete renovation work | Renovations promised or started before exchange but not finished | Settlement delayed until work is completed or price adjusted |
| Garden and outdoor neglect | Overgrown lawns, dead plants, or damaged fences since contract date | Seller restores or compensates for the deterioration |
| Broken fixtures | Damaged light fittings, door handles, or window locks | Seller replaces or credits the buyer |
Your Pre-Settlement Inspection Checklist
A thorough inspection requires a systematic approach. The following checklist covers the areas that should be assessed during every pre-settlement inspection.
Structural and Interior
- Walls, ceilings, and floors for cracks, stains, or damage
- Doors and windows open, close, and lock properly
- Built-in wardrobes, shelving, and cabinetry are intact
- Flooring is undamaged (tiles, carpet, timber)
Plumbing and Electrical
- All taps run hot and cold water without leaks
- Toilets flush correctly and do not run continuously
- Hot water system is functional
- All power points and light switches work
- Safety switches operate correctly
Appliances and Inclusions
- Oven, cooktop, and rangehood are present and operational
- Dishwasher runs a cycle without leaking
- Air conditioning units are present and functional
- Blinds, curtains, and light fittings match the contract
Outdoor Areas
- Fences are intact and undamaged
- Garden is maintained to a reasonable standard
- Driveway and paths are free from new damage
- Pool equipment and fencing comply with safety requirements
Legal Recourse When Issues Are Found
When a pre-settlement inspection reveals problems, buyers have several options available to them. The appropriate course of action depends on the nature and severity of the issue.
Negotiate Repairs or Compensation
The first step is usually to raise the issue with the seller (through your solicitor or conveyancer) and request that the seller either repair the damage or provide a financial adjustment at settlement. Most standard contracts allow for this type of negotiation, and many issues are resolved at this stage without further action.
Delay Settlement
If the issue is significant and the seller has not addressed it by the settlement date, the buyer may be entitled to delay settlement. This is a serious step and should only be taken on legal advice, as delaying settlement without proper grounds can put the buyer in breach of contract. However, where the property condition has materially changed since contract exchange, the buyer generally has strong grounds to request additional time.
Lodge a Formal Complaint
If the seller refuses to cooperate, buyers can lodge a complaint with the relevant state consumer protection body:
- NSW: Fair Trading NSW
- QLD: QLD Office of Fair Trading
- VIC: Consumer Affairs Victoria
- SA: Consumer and Business Services SA
- WA: Consumer Protection WA
- ACT: Access Canberra
These bodies can provide mediation services to help resolve the dispute without the need for formal legal proceedings.
Pursue Mediation or Legal Action
If a complaint does not resolve the matter, buyers can pursue mediation through their state's dispute resolution service or, as a last resort, take the matter to a tribunal or court. In NSW, this would be the NSW Civil and Administrative Tribunal (NCAT). In Victoria, it would be the Victorian Civil and Administrative Tribunal (VCAT). In Queensland, the Queensland Civil and Administrative Tribunal (QCAT) handles such matters.
Litigation should be considered a last resort due to the time and cost involved. However, for significant defects or where the seller has acted in bad faith, it may be the only option to recover losses.
Steps to Take When You Discover Damage
If your pre-settlement inspection reveals damage, missing items, or a property that is not in the condition it was at contract exchange, follow these steps:
Document everything
Take photographs and videos of all damage, missing items, or issues. Note the date and time of the inspection. Compare the current state to any photographs taken at the time of contract exchange.
Notify your solicitor or conveyancer immediately
Contact your legal representative as soon as possible after the inspection. Provide them with your documentation and a clear description of the issues.
Request repairs or a settlement adjustment
Your solicitor will communicate with the seller's legal representative to request either rectification of the issues before settlement or a financial adjustment to the purchase price.
Consider delaying settlement if needed
If the issues are serious and the seller has not resolved them by the settlement date, your solicitor can advise whether delaying settlement is appropriate and legally supported.
Lodge a formal complaint if the seller refuses to act
If negotiation fails, lodge a complaint with your state's consumer protection body and seek mediation.
Pursue legal action as a last resort
If all other options are exhausted, your solicitor can advise on pursuing the matter through a tribunal or court.
Rights for Apartment and Unit Buyers
Buyers of apartments and units have the same pre-settlement inspection rights as house buyers, but there are additional considerations. Apartment inspections should cover not only the interior of the unit but also common property areas that affect the unit, such as hallways, car parks, storage areas, and building amenities.
For off-the-plan apartments, the inspection is particularly important because it may be the buyer's first opportunity to see the completed product. Defects in new apartments are common, and buyers should pay close attention to finishes, fittings, and whether the completed unit matches the plans and specifications in the contract. For more detail on apartment-specific inspections, see our guide on avoiding mistakes in apartment pre-settlement inspections.
| Inspection Area | House | Apartment |
|---|---|---|
| Interior condition | Yes | Yes |
| Plumbing and electrical | Yes | Yes |
| Appliances and inclusions | Yes | Yes |
| Roof and external structure | Yes | Strata responsibility |
| Garden and fencing | Yes | Common property |
| Car park and storage | N/A | Yes |
| Building amenities | N/A | Yes |
| Common area condition | N/A | Yes |
Frequently Asked Questions
QWhat should I do if I discover damage during my pre-settlement inspection?
Document the damage with photographs and videos, then notify your solicitor or conveyancer immediately so they can raise the issue with the seller before settlement.
Your solicitor will assess whether the damage constitutes a breach of the contract of sale. If the property is not in substantially the same condition as at the contract date, you are entitled to request repairs, a financial adjustment to the purchase price, or a delay to settlement until the issue is resolved. The approach depends on the nature and severity of the damage. Minor cosmetic issues may warrant a small credit, while significant structural damage could justify delaying settlement entirely until repairs are completed to a satisfactory standard.
QIs the seller legally required to fix issues found in a pre-settlement inspection?
Yes, the seller is generally required to deliver the property in substantially the same condition as at the date of contract exchange, fair wear and tear excepted. If new damage has occurred, the seller has an obligation to address it.
The standard contracts of sale in every Australian state include provisions requiring the seller to maintain the property between exchange and settlement. If the seller fails to do so, the buyer can request repairs, seek a reduction in the purchase price, or in serious cases, delay settlement. If the seller refuses to cooperate, the buyer can lodge a complaint with the relevant state consumer protection body or pursue legal action. The seller's obligation relates to damage that occurred after the contract was signed, not to pre-existing conditions that the buyer was aware of at the time of purchase.
QCan I cancel the contract based on pre-settlement inspection findings?
In most cases, pre-settlement inspection findings alone are not sufficient grounds to cancel (rescind) the contract, unless the damage is so severe that the property is substantially different from what was agreed.
Contract cancellation is a serious legal step and requires strong grounds. Minor defects, cosmetic damage, or small missing items would not typically justify rescission. However, if the property has sustained major structural damage, flooding, fire damage, or if the seller has removed significant inclusions, there may be grounds for termination. This is a question of law and depends on the specific contract terms, the state legislation, and the nature of the damage. You should always seek legal advice before attempting to cancel a contract based on inspection findings.
QDo apartment buyers have the same pre-settlement inspection rights as house buyers?
Yes. Apartment buyers have the same contractual right to inspect the property before settlement. The inspection should cover the unit interior, all inclusions, and any allocated areas such as car spaces and storage cages.
Apartment inspections may also require attention to common property areas that directly affect the unit, such as the condition of hallways, lifts, and building amenities. For off-the-plan purchases, the pre-settlement inspection is often the first time the buyer sees the completed unit, making it particularly important to check that finishes, fittings, and layout match the contract specifications.
QHow many times can I inspect the property before settlement?
Most standard contracts allow for one pre-settlement inspection, though some contracts may permit additional inspections by agreement between the parties.
In practice, one thorough inspection is usually sufficient if it is conducted systematically with a checklist. If issues are found and the seller agrees to rectify them, buyers can sometimes negotiate a second inspection to verify the repairs have been completed. The specific number of inspections permitted depends on the contract terms, so buyers should review their contract or ask their solicitor for clarification.
QIs a pre-settlement inspection a legal requirement?
A pre-settlement inspection is not a legal requirement, but it is a contractual right provided in virtually every standard contract of sale in Australia. Buyers are strongly advised to exercise this right.
While no law compels a buyer to inspect the property before settlement, failing to do so means the buyer loses the opportunity to identify and address issues before the purchase is finalised. Once settlement occurs, the buyer's ability to claim for damage or missing items becomes significantly more difficult. The inspection is the buyer's last chance to verify the property's condition while they still have contractual leverage.
QWhat happens if the seller refuses to allow a pre-settlement inspection?
If the seller refuses to provide access for a pre-settlement inspection, the buyer should immediately seek legal advice. Refusing access may constitute a breach of the contract of sale.
Most standard contracts include a clause requiring the seller to provide reasonable access for a pre-settlement inspection. If the seller refuses, the buyer's solicitor can issue a formal notice requiring compliance. If the seller continues to refuse, the buyer may have grounds to delay settlement or seek a remedy through the relevant state tribunal. A seller who blocks an inspection raises serious concerns about the property's condition, and the buyer should proceed with caution.
QCan I bring a professional inspector to my pre-settlement inspection?
Yes. Buyers are entitled to bring a professional building inspector or any other representative to conduct the pre-settlement inspection on their behalf or alongside them.
A professional inspector can identify issues that an untrained eye might miss, such as plumbing leaks behind walls, electrical faults, structural cracking, or incomplete repairs. This is particularly valuable for off-the-plan apartments, properties that have undergone recent renovations, or situations where the buyer suspects the seller may have caused damage. The cost of a professional pre-settlement inspection is modest compared to the potential cost of discovering defects after settlement.
QWhat if settlement has already occurred and I find damage afterwards?
If you discover damage after settlement that was present before settlement and was not disclosed by the seller, you may still have legal options, though your position is weaker than if the issue had been identified during a pre-settlement inspection.
You should document the damage and consult your solicitor. If the seller or their agent made misleading representations about the property's condition, you may have a claim under the Australian Consumer Law for misleading or deceptive conduct. If the damage constitutes a breach of the contract of sale, you may be able to pursue a contractual claim. However, proving that the damage existed before settlement can be challenging without documentation from a pre-settlement inspection, which is why conducting a thorough inspection before settlement is so strongly recommended.
QCan a pre-settlement inspection delay my settlement date?
A pre-settlement inspection itself does not delay settlement. However, if the inspection reveals significant issues that the seller needs to address, settlement may be delayed while repairs or negotiations take place.
Settlement delays carry financial consequences for both parties, including interest charges and potential penalty interest under the contract. For this reason, it is best to schedule the pre-settlement inspection as early as the contract allows (rather than the day before settlement) to provide sufficient time for any issues to be resolved before the scheduled settlement date.
QWhat are my rights if the property was damaged by a natural disaster before settlement?
If the property is damaged by a natural disaster (such as a storm, flood, or bushfire) between contract exchange and settlement, the buyer's rights depend on the specific contract terms and the applicable state legislation.
In most states, the risk of damage to the property passes to the buyer at different points. In NSW, the risk generally passes at contract exchange, meaning the buyer bears the risk of loss or damage from that point (which is why building insurance from contract exchange is recommended). In Victoria, the risk does not pass until settlement. Buyers should check their specific contract terms and obtain appropriate insurance cover from the date of contract exchange. If the property is damaged, both the buyer's and seller's solicitors should be involved immediately to determine each party's rights and obligations.
Key Takeaways
Key Takeaways
- Australian property buyers have a contractual right to inspect the property before settlement to confirm it is in substantially the same condition as at contract exchange
- Pre-settlement inspection timeframes vary by state: NSW allows the final week, Queensland allows 5 business days, and Victoria allows 7 days before settlement
- Buyers can request repairs, negotiate a financial adjustment, delay settlement, or lodge a formal complaint if issues are found
- The Australian Consumer Law provides additional protections against misleading conduct by sellers or agents
- Common issues include wall damage, leaking pipes, missing appliances, and incomplete renovation work
- Apartment buyers have the same rights as house buyers and should also check allocated areas and relevant common property
- Bringing a professional inspector to the pre-settlement inspection can help identify issues that are not immediately visible
- Failing to conduct a pre-settlement inspection significantly weakens the buyer's position if defects are discovered after settlement
References and Resources
Related Articles
What to Expect in a Pre-Settlement Inspection
Your final walkthrough before settlement is crucial. Learn what to check, your legal rights, and when to call in professional help.
Pre-Settlement Disputes and Resolution
Pre-settlement disputes create significant challenges for property buyers. Learn how to navigate construction defects, delays, and contractual issues with effective resolution strategies.
Avoid Mistakes in Apartment Pre-Settlement Inspections
Pre-settlement inspections are your last chance to verify your new apartment meets contractual standards. Avoid these common mistakes that could cost you thousands after settlement.
Protect Your Purchase with a Pre-Settlement Inspection
Exercise your legal right to inspect before settlement. Our professional inspectors identify damage, missing items, and condition changes so you can settle with confidence.