A pre-settlement inspection is a crucial final walkthrough of an apartment before ownership officially transfers to the buyer. This step allows buyers to confirm that the apartment meets all contractual requirements, ensuring there are no unexpected defects, incomplete work, or breaches of agreement that could lead to costly repairs or legal disputes.
Unlike general property inspections conducted earlier in the buying process, this inspection focuses on the final condition of the apartment, verifying that all agreed-upon repairs and inclusions have been completed satisfactorily. Missing this step may result in buyers inheriting unaddressed defects, leaving them with additional financial burdens after moving in.
While not legally mandated in Australia, pre-settlement inspections are strongly recommended as a protective measure to avoid post-settlement disputes. Identifying issues early enables negotiations with the seller for necessary fixes before completing the purchase.
Understanding the Pre-Settlement Inspection
Legal Rights of Apartment Buyers and Investors
Under Australian consumer and property laws, buyers are entitled to conduct a final inspection before settlement. This inspection ensures that the apartment matches what was promised in the contract, including the condition of fixtures, fittings, and any agreed-upon repairs.
Best Time to Conduct the Inspection
It is best to schedule the pre-settlement inspection within a week of the settlement date. This timing provides buyers with the opportunity to identify and resolve any last-minute concerns before legally taking possession of the property. It is advisable to bring a checklist, a copy of the sales contract, and a real estate agent or solicitor for additional guidance.
Read more: What You Need to Know About Pre-Settlement Inspections
Exterior Inspection Checklist
Building Structure & Common Areas
- Check for visible cracks, damp spots, or structural shifts in the apartment building, as these can indicate deeper foundation issues.
- Inspect paintwork and external finishes for peeling, discoloration, or poor workmanship that may require maintenance.
- Ensure balconies and railings are secure and meet Australian building safety codes to prevent safety hazards.
Roof & Drainage
- Examine gutters and downpipes for blockages or leaks, as clogged drainage can lead to water damage over time.
- Assess the roof structure (if applicable) for missing tiles, sagging sections, or signs of past leaks that could lead to future problems.
Read more: How Drones Speed Up Building Exterior Inspections
Shared Amenities & Security
- Verify the functionality of shared apartment facilities such as pools, gyms, and elevators to ensure they meet building management standards.
- Ensure parking allocations match contractual agreements, including assigned parking spots and storage spaces.
- Test security access systems, including intercoms, key fobs, and gate entry points, to confirm they are operational and provide secure access.
Interior Inspection Checklist
Walls, Ceilings, & Paintwork
- Check for any visible cracks, patchwork repairs, or uneven paintwork that may indicate underlying structural or moisture issues.
- Test for dampness or leaks, especially around windows, bathrooms, and air conditioning vents.
Flooring & Carpets
- Inspect tile grout and floorboards for any lifting, creaking, or uneven sections that may indicate subflooring issues.
- Ensure carpets are clean, stain-free, and properly installed without visible seams or missing sections.
Doors & Windows
- Open and close all doors, windows, and sliding glass panels to ensure smooth operation, checking for sticking, misalignment, or damage.
- Inspect window seals and insulation to prevent heat loss, draughts, or potential water leaks during heavy rain.
Electrical Fixtures
- Test all light switches, power outlets, and ceiling fans using a phone charger or small appliance.
- Confirm that smoke detectors comply with Australian fire safety regulations and are installed in the correct locations.
Plumbing & Water Pressure
- Run all taps, showers, and toilets to check for leaks, weak water pressure, or slow drainage that could signal pipe blockages.
- Ensure hot water systems function correctly and provide consistent temperature control.
Appliances & Heating/Cooling Systems
- Test built-in kitchen appliances such as ovens, stovetops, range hoods, and dishwashers to ensure they are operational.
- Verify that heating and cooling systems, including air conditioners, are functioning efficiently.
- Request user manuals and warranty documents for future reference in case of repairs or maintenance.
Documentation & Compliance
Warranties & Maintenance Guides
- Collect warranty certificates and operating manuals for all built-in appliances and installed systems.
- Confirm whether any ongoing maintenance obligations apply to the apartment, such as strata-covered repairs or servicing requirements.
Contractual Obligations & Inclusions
- Cross-check all fixtures, fittings, and appliances against the contract to ensure they are installed and in good condition.
- Verify that all promised repairs and touch-ups have been completed to an acceptable standard.
Safety & Compliance Checks
- Confirm that smoke alarms, carbon monoxide detectors, and fire extinguishers comply with Australian regulations.
- Check fire exit plans and emergency access routes in shared apartment buildings to ensure safety measures are clearly outlined and accessible.
Common Issues & How to Address Them
Typical Defects Found During Inspections
- Scratched floors, chipped benchtops, or incomplete paintwork are common issues in new apartments.
- Plumbing defects, such as leaking taps or faulty hot water systems, can lead to ongoing maintenance costs if not addressed before settlement.
- Poorly installed fixtures, including doors, handles, and cabinetry, should be reported for immediate rectification.
Read more: Australia’s Top 10 Most Common Building Defects
How to Raise Concerns with the Seller
- Document all issues with photographs and written descriptions to present to the seller.
- Request written confirmation that repairs will be made before settlement, including deadlines for completion.
- If major issues arise, negotiate contract amendments, deposit holds, or financial compensation to cover repair costs.
Final Steps Before Settlement
Last-Minute Checklist Before Signing Off
- Conduct a final walkthrough with your real estate agent or solicitor to ensure all identified defects have been addressed.
- Take photos of any remaining unresolved issues and report them to the appropriate parties for documentation.
- Ensure all keys, security fobs, remote controls, and access details are provided as per the contract agreement.
Next Steps if Issues Remain Unresolved
- Discuss options with your conveyancer, including delaying settlement until repairs are completed.
- Consider withholding a portion of the settlement amount until outstanding issues are resolved to satisfaction.
Make Your Apartment Settlement Stress-Free
A detailed pre-settlement inspection safeguards your investment and ensures your new apartment meets expectations.
