A pre-settlement inspection is the final walkthrough a property buyer conducts before ownership officially transfers at settlement. In Australia, this inspection confirms the property is in the same condition as agreed in the contract of sale, that any negotiated repairs have been completed, and that all included fixtures and fittings remain in place. Skipping this step can leave buyers responsible for damage, missing items, or unfinished work that should have been the seller's obligation.
Buying property is one of the largest financial commitments most Australians will ever make. Whether you are purchasing a family home in Melbourne, an investment unit in Sydney, or a townhouse on the Gold Coast, the pre-settlement inspection is your last chance to confirm that what you are paying for is what you are actually getting. Once settlement occurs and the title transfers to your name, the burden of proving that problems existed beforehand shifts almost entirely to you.
This guide walks through what a pre-settlement inspection involves, how it differs from other property inspections, your legal rights in each Australian state, what to check during the walkthrough, and how to handle issues if they arise.
What Is a Pre-Settlement Inspection?
A pre-settlement inspection is not a technical building assessment. It is a visual walkthrough of the property, usually conducted by the buyer (sometimes with a professional inspector), in the days leading up to settlement. The purpose is straightforward: to verify that the property matches the condition described in the contract of sale.
During this inspection, you are checking that:
- The property has not been damaged since the contract was signed
- All fixtures and fittings listed in the contract are still present
- Any repairs agreed upon during negotiations have been completed
- The property is clean and free of rubbish left by the previous owner
- All systems (electrical, plumbing, heating and cooling) are in working order
For a broader overview of the process, see our guide on what to expect in a pre-settlement inspection.
How a Pre-Settlement Inspection Differs from Other Property Inspections
Buyers sometimes confuse the pre-settlement inspection with a building and pest inspection. These are distinct processes that serve different purposes and occur at different stages of the buying journey.
| Feature | Pre-Settlement Inspection | Building and Pest Inspection |
|---|---|---|
| Timing | Days before settlement | Before signing the contract |
| Purpose | Confirm property matches contract | Identify structural defects and pest damage |
| Who conducts it | Buyer (optionally with a professional) | Licensed building inspector |
| Scope | Visual check of condition and inclusions | Technical assessment following AS 4349.1 |
| Cost | Often no cost if done personally | Typically $400 to $800 depending on property size |
| Outcome | Proceed with or delay settlement | Negotiate price, request repairs, or withdraw |
A building and pest inspection is a detailed technical assessment that follows Australian Standard AS 4349.1. It examines the structural integrity of the property, identifies pest activity, and provides a written report outlining any defects found. This inspection happens before you commit to the purchase.
The pre-settlement inspection, by contrast, is a final confirmation step. You are not looking for hidden structural issues at this stage. You are making sure the property is in the condition you were promised when you signed the contract.
Your Legal Rights by State
Your right to conduct a pre-settlement inspection varies depending on which Australian state or territory the property is located in. While no state makes the inspection a strict legal requirement, most standard contracts of sale include provisions that allow the buyer to inspect before settlement.
| State/Territory | Inspection Rights |
|---|---|
| Victoria | Buyers can inspect the property in the week before settlement. The standard Section 32 vendor's statement process supports this. |
| New South Wales | Buyers can request a final inspection before settlement. Most standard contracts include this right explicitly. |
| Queensland | Inspections should be conducted as close to the settlement date as possible. The REIQ standard contract includes inspection provisions. |
| South Australia | Buyers can arrange an inspection before settlement, though specific timing provisions may vary by contract. |
| Western Australia | Standard REIWA contracts allow for a pre-settlement inspection prior to the settlement date. |
| ACT | Buyers can request access for a final inspection before settlement under standard contract terms. |
If the seller refuses to allow a pre-settlement inspection, contact your solicitor or conveyancer immediately. Refusal may indicate that the property has issues the seller does not want you to discover before settlement completes.
Why Pre-Settlement Inspections Matter
There are four main reasons why every property buyer should treat the pre-settlement inspection as a non-negotiable step.
1. Verify the Property Condition
Between the date you signed the contract and the date of settlement, weeks or even months may have passed. During that time, the property could have sustained storm damage, experienced a water leak, been vandalised, or simply deteriorated through neglect. The pre-settlement inspection lets you confirm nothing has changed.
2. Confirm Agreed Repairs Were Completed
If your building and pest inspection revealed defects and you negotiated repairs as a condition of the sale, the pre-settlement inspection is when you verify that work was actually done. Check that repairs meet a reasonable standard and are not just cosmetic cover-ups.
For more on handling these situations, our article on pre-settlement disputes and resolution covers the process in detail.
3. Avoid Unexpected Costs After Settlement
Discovering after settlement that the hot water system no longer works, the air conditioning unit has been removed, or the garden shed promised in the contract is gone puts you in a difficult position. Your legal options become limited and expensive once the title has transferred. A thorough pre-settlement walkthrough catches these problems while you still have leverage.
4. Confirm Contract Compliance
The contract of sale specifies inclusions, exclusions, and the expected condition of the property. The pre-settlement inspection is your opportunity to walk through every room and verify that the property matches what was agreed. This includes checking that no fixtures have been swapped for inferior alternatives and that all appliances included in the sale are present and functional.
When to Schedule Your Pre-Settlement Inspection
The ideal timing for a pre-settlement inspection is five to seven days before the scheduled settlement date. This window gives you enough time to raise any issues with the seller through your solicitor or conveyancer and have them addressed before settlement proceeds.
Scheduling too early (more than two weeks before settlement) means the property could sustain damage in the intervening period. Scheduling too late (the day before or on settlement day) leaves no time to address problems if you find them.
If you are purchasing off the plan, the timing may differ. Developers often schedule a formal handover inspection. Make sure this occurs before settlement, not after, so you retain the right to have defects rectified before taking ownership.
Your Pre-Settlement Inspection Checklist
A methodical approach is the difference between a useful inspection and a wasted visit. Work through each area of the property systematically, ticking items off as you go.
Interior Checklist
- Walls, ceilings, and floors are free from new damage, cracks, or stains
- All doors open, close, and lock properly
- All windows open, close, lock, and have intact seals
- Light switches, power points, and ceiling fans are working
- Taps, toilets, and showers are functioning with no leaks
- Hot water system is operational
- Heating and cooling systems turn on and respond to controls
- Kitchen appliances included in the contract are present and working
- Built-in wardrobes, shelving, and cabinetry are intact
- Smoke alarms are installed and functional
- No signs of pest activity, mould, or water damage
Exterior Checklist
- Roof and gutters are intact with no visible damage
- External walls and foundation show no new cracks or damage
- Fencing is in the agreed condition
- Garden, landscaping, and driveways match the contract condition
- Outdoor structures (sheds, pergolas, carports) are present and intact
- External taps and drainage are working
- Pool and pool equipment are in working order (if applicable)
Additional Checks
- All fixtures listed in the contract remain in place
- No rubbish or personal belongings left behind by the seller
- All keys, remote controls, security codes, and garage openers are provided
- Meter readings recorded for electricity, gas, and water
For apartment-specific guidance, see our checklist for apartment pre-settlement inspections.
What to Bring to Your Pre-Settlement Inspection
Arriving prepared makes the inspection far more effective. Bring the following items:
- A copy of the signed contract of sale, including any special conditions or variations
- A printed checklist (or use one on your phone)
- A camera or smartphone to photograph any issues
- A notepad and pen for recording observations
- A torch for checking dark areas such as under sinks, in roof spaces, or inside wardrobes
- A phone charger tester to check that power points are live
What to Do If You Find Problems
Finding issues during a pre-settlement inspection does not automatically mean settlement must be delayed or cancelled. The appropriate response depends on the nature and severity of what you discover.
| Issue Severity | Examples | Recommended Action |
|---|---|---|
| Minor | Small scuff marks, light bulbs missing, minor cleaning needed | Note and photograph; may not warrant delaying settlement |
| Moderate | Agreed repairs not completed, fixtures removed, appliance not working | Notify your solicitor immediately; request rectification or financial adjustment before settlement |
| Major | Significant property damage, flooding, structural issues, extensive damage from storms or tenants | Instruct your solicitor to delay settlement until the issue is resolved; seek legal advice |
Your solicitor or conveyancer is your primary point of contact when issues arise. They can communicate with the seller's legal representative and negotiate a resolution. Options may include the seller completing repairs before settlement, a reduction in the purchase price, or funds being held in trust until the work is done.
For common problems that arise during these inspections, our article on common issues in pre-settlement inspections provides practical guidance.
Common Mistakes Buyers Make During Pre-Settlement Inspections
Even buyers who understand the importance of a pre-settlement inspection can undermine the process by making avoidable errors.
Rushing through the walkthrough. A proper inspection for a standard three-bedroom house takes 45 to 90 minutes. Do not let time pressure or the selling agent's schedule force you to cut corners.
Not testing anything. Turn on every tap, flush every toilet, flick every light switch, and open every window. A visual scan is not enough. You need to confirm that systems and fittings actually work.
Inspecting in poor light. If possible, schedule the inspection during daylight hours. Natural light reveals defects that artificial lighting can hide, particularly on walls, ceilings, and floor surfaces.
Failing to document issues. Verbal observations are easy to dispute. Photograph and video every issue you find, with timestamps. Written notes alongside visual evidence create a strong record if disputes arise later.
Not reading the contract beforehand. If you do not know exactly what the contract says about inclusions, condition, and special conditions, you cannot properly assess whether the property complies. Read the contract the night before your inspection.
Learn more about common pitfalls in our article on mistakes to avoid at apartment pre-settlement inspections.
Should You Hire a Professional Inspector?
While many buyers conduct pre-settlement inspections themselves, there are situations where engaging a professional building inspector adds significant value.
A licensed building inspector brings trained eyes and industry experience. They can identify issues that an untrained buyer might overlook, such as early signs of water damage behind walls, subtle indicators of structural movement, or workmanship that does not meet Australian standards.
Professional assistance is particularly worthwhile for:
- Off-the-plan purchases where the property is brand new and has never been lived in
- Properties where significant repairs were negotiated as part of the sale
- High-value purchases where the financial stakes justify the additional cost
- Buyers who are interstate or overseas and cannot attend in person
For information on what builders are required to deliver, see our article on builder obligations in pre-settlement inspections.
Key Takeaways
- A pre-settlement inspection is your final opportunity to verify a property matches the contract of sale before ownership transfers
- It is different from a building and pest inspection, which is a technical assessment conducted before signing the contract
- Legal rights to inspect vary by state, but most standard Australian contracts include provisions for a pre-settlement walkthrough
- Schedule your inspection five to seven days before settlement to allow time to address any issues
- Work through a systematic checklist covering interior, exterior, fixtures, and inclusions
- Photograph and document every issue you find during the inspection
- Contact your solicitor or conveyancer immediately if you discover problems that need resolution before settlement
- Consider engaging a professional inspector for off-the-plan purchases, high-value properties, or where repairs were negotiated
Frequently Asked Questions
QWhen should I schedule a pre-settlement inspection?
Schedule your pre-settlement inspection five to seven days before the settlement date.
This timeframe is considered ideal because it gives you a realistic window to identify problems and have them addressed. If you find that an agreed repair has not been completed or that damage has occurred since the contract was signed, five to seven days is generally enough time for your solicitor to contact the seller's representative and negotiate a resolution. Inspecting too early means conditions could change between the inspection and settlement. Inspecting on the day of settlement or the day before leaves virtually no time to resolve anything, meaning you may be forced to either delay settlement (which can have financial consequences) or proceed knowing there are unresolved issues.
QWho arranges the pre-settlement inspection?
The buyer or their solicitor/conveyancer typically arranges the pre-settlement inspection with the selling agent.
In most cases, the buyer's legal representative contacts the seller's agent to arrange a suitable time for the inspection. The selling agent then coordinates access to the property. If the property is tenanted, additional notice requirements may apply under the relevant state's residential tenancy legislation. In some states, the standard contract of sale specifies the process for arranging the inspection. Your conveyancer will be familiar with the requirements for your jurisdiction and can handle the logistics on your behalf if needed.
QHow long does a pre-settlement inspection take?
A thorough pre-settlement inspection typically takes between 45 minutes and 90 minutes for a standard residential property.
The time required depends on the size and type of property. A one-bedroom apartment may only need 30 to 45 minutes, while a large family home with extensive outdoor areas, a pool, and outbuildings could take well over an hour. Off-the-plan properties often take longer because every surface, fitting, and system is brand new and needs to be checked against the developer's specifications. Do not rush the process. It is far better to spend an extra 30 minutes being thorough than to discover a problem after settlement when your options are limited.
QWhat should I bring to the inspection?
Bring your contract of sale, a checklist, a camera or smartphone, a notepad, a torch, and a phone charger tester.
Your contract of sale (including any special conditions or variations) is the single most important document. It tells you exactly what the property should include and what condition it should be in. A printed or digital checklist keeps you methodical so you do not miss rooms or systems. Your camera or smartphone is for documenting issues with photographs and video, which serve as evidence if a dispute arises. A torch helps you inspect dark spaces like under sinks, inside wardrobes, and in storage areas. A simple phone charger tester plugged into power points confirms that electrical outlets are live.
QCan I bring someone with me to the inspection?
Yes, you can bring another person to assist you during the pre-settlement inspection.
Most contracts and selling agents have no issue with the buyer being accompanied by a partner, family member, friend, or professional inspector. Having a second pair of eyes is genuinely useful because one person can easily overlook things that another will notice. If you are considering bringing a licensed building inspector, this is also perfectly acceptable and recommended for off-the-plan purchases or high-value properties. The only limitation is being reasonable about numbers. Bringing a large group may cause the agent to object, and it is generally courteous to let the agent know in advance if you plan to bring a professional inspector.
QWhat if issues are found during the inspection?
Document the issues thoroughly and contact your solicitor or conveyancer immediately to discuss your options.
The appropriate response depends on the severity of the problem. Minor cosmetic issues (scuff marks, missing light bulbs) may not warrant delaying settlement, though you should still record them. Moderate issues, such as agreed repairs that were not completed or fixtures that have been removed, should be raised with your solicitor, who can request rectification or a financial adjustment before settlement proceeds. Serious problems, such as significant property damage, flooding, or structural issues, may justify delaying settlement entirely until the matter is resolved. Your solicitor can advise on the best course of action based on the contract terms and the specific circumstances.
QCan I inspect the property more than once before settlement?
This depends on the terms of your contract, but most standard contracts allow at least one pre-settlement inspection.
Some contracts, particularly in Victoria, specifically allow the buyer to inspect during the week before settlement without limiting the number of visits. In practice, most sellers and agents will accommodate a second inspection if you have a reasonable basis for it, such as verifying that repairs flagged during the first inspection have been completed. If you need multiple inspections, have your solicitor communicate the request formally to avoid any disputes about access. Unreasonable or excessive inspection requests could be challenged by the seller, so keep your requests practical and justified.
QWhat happens if I skip the pre-settlement inspection?
You risk taking ownership of a property with undiscovered damage, missing fixtures, or incomplete repairs, with limited recourse after settlement.
Once settlement completes and the title transfers to your name, the seller's obligations under the contract are largely discharged. If you later discover that the property was damaged, that fixtures were removed, or that agreed repairs were never done, your legal options become significantly more difficult and expensive. You would typically need to prove that the issue existed before settlement and that the seller was aware of it or responsible for it. Without evidence from a pre-settlement inspection, this can be extremely hard to establish. The small amount of time a pre-settlement inspection takes is insignificant compared to the potential financial and legal consequences of skipping it.
QIs a pre-settlement inspection legally required in Australia?
No, a pre-settlement inspection is not legally mandated in any Australian state or territory, but it is strongly recommended.
While no law compels you to inspect the property before settlement, most standard contracts of sale across Australia include a clause giving the buyer the right to do so. The fact that it is not compulsory does not diminish its importance. The inspection protects your financial interests by confirming the property is in the condition you agreed to purchase it in. Treating it as optional is a significant risk, particularly for properties where weeks or months have passed between contract signing and settlement. Your solicitor or conveyancer will almost always recommend that you exercise your right to inspect.
QWhat is the difference between a pre-settlement inspection and a building inspection?
A building inspection is a detailed technical assessment conducted before you sign the contract, while a pre-settlement inspection is a visual walkthrough conducted before settlement to confirm the property matches the contract.
A building inspection (also called a pre-purchase inspection) is carried out by a licensed building inspector who examines the structural integrity of the property, identifies defects, checks for pest activity, and provides a comprehensive written report. This inspection follows Australian Standard AS 4349.1 and is used to inform your purchasing decision. A pre-settlement inspection, on the other hand, is not a technical assessment. It is a visual check to confirm that the property has not been damaged, that inclusions are present, and that any negotiated repairs have been completed. The two inspections serve completely different purposes and occur at different stages of the buying process. Both are recommended for a well-protected property purchase.
QCan I delay settlement if problems are found?
Yes, in some circumstances you can delay settlement, but the process depends on the severity of the issue and your contract terms.
If your pre-settlement inspection reveals that the property is not in the condition specified in the contract, you have grounds to request that settlement be postponed until the issue is rectified. Your solicitor will assess whether the problem constitutes a breach of contract and advise on the appropriate next steps. Minor issues typically do not justify delaying settlement, but significant damage, missing items of substantial value, or incomplete agreed repairs can be valid grounds. Be aware that delaying settlement can have financial consequences for both parties, including penalty interest in some contracts. Your solicitor can help you weigh the risks and determine whether delay, a price reduction, or holding funds in trust is the most practical approach.
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