A pre-settlement inspection is your last look at the property before the money moves and it becomes yours. Once settlement happens, anything wrong with the place is your problem to fix and your money to spend.
What is a pre-settlement inspection?
It is a walk-through, usually arranged by the selling agent, to confirm the property is in the condition you agreed to buy it in. You are not re-inspecting the whole house. You are checking that nothing has changed since the contract, that whatever was meant to stay is still there, and that anything the seller agreed to fix has been fixed.
When should you do it?
As close to settlement as you can get, and ideally within the last few days. Any earlier and something can go wrong in the gap. Book it well in advance though, because agents get busy and a rushed inspection on the morning of settlement leaves you no time to act.
Why it matters
The contract is what protects you, and it protects you right up until settlement. After that your options narrow to the courts, which is slow and expensive over a broken oven.
The inspection is the moment you can still do something: delay settlement, ask for money to be held back, or require the seller to fix the problem first. Skipping it means giving up all three.
It also matters financially. If the property is damaged after the valuation but before settlement, your lender is funding a property worth less than it thought. That is a conversation you want to have before settlement, not after.
James Haywood
Financial Services Expert
“Buying a property doesn’t finish when your offer is accepted or your loan is approved. The final steps before settlement are just as important because this is when small issues can become expensive problems.
A pre-settlement inspection gives buyers one last opportunity to make sure the property matches what they agreed to purchase. It’s much easier to resolve concerns before settlement than trying to fix them after ownership has transferred.”
James Haywood – Director | Approved Finance
What people actually find
- Damage from the move. Scraped walls, chipped floors, damaged door frames. Very common and easy to miss if you are not looking for it.
- Missing fixtures. Light fittings, blinds, curtains, a dishwasher — things the contract said stayed and the seller took. Check the contract list, not your memory.
- Rubbish left behind. Removing an old lounge suite or a shed full of junk costs real money.
- Appliances that no longer work. Turn everything on: oven, cooktop, dishwasher, air conditioning, hot water.
- Agreed repairs not done. If the seller promised to fix something after the building inspection, this is when you confirm it happened.
- New water damage. Check under sinks and around windows, especially if it has rained since you last visited.
Jack Mckenna
Financial Services Expert
“One mistake buyers often make is treating the pre-settlement inspection as a quick walkthrough rather than an important part of their due diligence. It’s worth taking the time to check appliances, fixtures, repairs and anything specifically included in the contract.
When you’re making one of the biggest purchases of your life, spending an extra hour reviewing the property properly can prevent unnecessary stress and unexpected costs after moving in.”
Jack Mckenna – Director, North Brisbane Mortgage Brokers
A four-step inspection
- Walk the outside. Roof line, gutters, fences, paths, garage and any external structures. Look for anything that has changed since you last saw it.
- Go room by room. Walls, floors, ceilings, windows, doors. Open and close everything that opens and closes.
- Test every service. Lights, power points, taps, hot water, toilets, oven, cooktop, dishwasher, heating and cooling. Most problems hide here.
- Check the contract list. Every inclusion, and every repair the seller agreed to. Tick them off one by one rather than trusting a general impression.
Who should come, and what to bring
You should go. Your conveyancer or solicitor rarely attends but should be on call. A buyer’s agent will attend if you have one, and a builder is worth paying for if the building inspection flagged anything structural.
Bring the contract with the inclusions list, your original inspection photos, a phone for new photos, a torch, and a phone charger to test power points. Photograph anything wrong immediately, with a timestamp.
If you find a problem
Do not settle first and complain later. In order:
- Photograph it and note where and what.
- Tell your conveyancer the same day. Time matters here more than anything else.
- They contact the seller’s solicitor in writing, with the evidence.
- Agree a remedy. Usually one of three: the seller fixes it before settlement, money is held back in trust until it is fixed, or the price is adjusted.
If the seller will not cooperate, your conveyancer can delay settlement while it is resolved. That is uncomfortable, and it is also the only pressure you have — once you settle, that is gone.
Our guides to the settlement process and the steps to buying property cover what happens either side of this. Conveyancers in Melbourne and Brisbane are listed too.
Pre-settlement inspection FAQs
Is a pre-settlement inspection mandatory?
No, and most contracts give you the right to one rather than requiring it. Skipping it is still a bad idea: it is your only chance to raise a problem while you still have room to act.
How long does it take?
Thirty minutes to an hour for a standard home. Do not let an agent rush you.
Can I bring someone with me?
Yes. A second set of eyes helps, and a builder is worth bringing if anything structural was flagged earlier.
What if I find damage?
Photograph it and call your conveyancer the same day. Settlement can be delayed, money can be held back, or the price adjusted — but only before settlement happens.
What if the seller has not done the repairs they agreed to?
That is a breach of the contract terms. Your conveyancer raises it with the seller’s solicitor in writing and settlement can be held until it is resolved.
Can I renegotiate the price over what I find?
Sometimes. A price adjustment is one of the standard remedies, though sellers more often prefer to fix the problem or have funds held in trust.
MANSOUR SOLTANI
Mansour has spent more than two decades involved in the purchase and sale of real estate, acquiring both investment and commercial properties throughout Australia, including in major cities and smaller regional locations.
He is the proprietor of a finance brokerage firm, overseeing a portfolio worth in excess of 75 million in loans and serving a diverse clientele across Australia and a regular contributor to money.com.au. This has equipped him with extensive knowledge in various investment tactics, allowing him to offer significant insight.