A Pre-Settlement Inspection Checklist

A pre-settlement inspection is your last opportunity to confirm that a property is in the condition the contract promised before you hand over the balance of the purchase price. It usually happens in the day or two before settlement, once the vendor has moved out or is close to finishing. This checklist sets out what to check, when to check it, and what to do if something is not right before your residential purchase settles.

Why a Pre-Settlement Inspection Matters

Under a standard contract of sale, the property must be handed over in the same condition it was in when contracts were exchanged, fair wear and tear aside. A pre-settlement inspection is your chance to confirm this before settlement occurs, because your options for addressing a problem become far more limited once the transfer has gone through. Most contracts allow for one final inspection in the days before settlement, and it is worth treating this as a formal step rather than a quick, casual walkthrough on your way to somewhere else.

When to Book Your Inspection

Timing matters more than most buyers expect. Inspect too early and the vendor may not have moved out yet, so you cannot see the property in the state it will actually be handed over. Inspect too late and there is little time left to resolve a problem before settlement is due. Most buyers arrange the final inspection the day before settlement, or two days before if settlement falls early in the week, so there is a genuine buffer to raise concerns with your conveyancer. Confirm the date, time and access arrangement with the selling agent in writing so there is no confusion on the day.

Checking the Property Matches the Contract

Bring a copy of the contract of sale, including the schedule of inclusions, and work through it item by item rather than relying on memory. Compare the property's current condition to any photographs taken at the time you signed, particularly for anything that was a selling point, such as fixtures, fittings or landscaping. If the vendor agreed to complete repairs as a condition of sale, this is the point to confirm the work was actually done and done properly, not just claimed to be finished.

Inside the Property: What to Check Room by Room

• Test every light switch, power point and ceiling fan, and check for any new damage to walls, floors or ceilings.
• Run taps in the kitchen and bathrooms to check water pressure and confirm there are no new leaks under sinks.
• Flush toilets and check that hot water is working, especially if the property has been unoccupied for some time.
• Open and close all doors and windows, including built-in wardrobes, to confirm nothing has been damaged during the move.
• Check that any appliances included in the sale, such as an oven, dishwasher or air conditioning unit, are still present and in working order.
• Look for signs that furniture or fittings excluded from the sale, like light fixtures or curtains, have not been removed if they were meant to stay.

Outside the House: Grounds, Fixtures and Services

• Walk the boundary and confirm fences, gates and any structures noted in the contract are still standing and undamaged.
• Check the pool, spa or water tank if one is included, and confirm pumps and filtration equipment are present.
• Look at the garden and lawn for excessive neglect beyond what would be expected from a vendor preparing to move.
• Confirm rubbish and unwanted items have been cleared, or at least that removal is genuinely underway before settlement.
• Check that keys, remotes, security codes and any smart home devices will be handed over as agreed.

Confirming Inclusions and Exclusions

Disputes over inclusions are one of the most common sources of friction at settlement, usually because the contract was vague or the parties had different assumptions. If anything is missing or has been swapped for something inferior, take photographs immediately and note the date and time. Your conveyancer needs specifics, not a general impression, in order to raise the issue effectively with the vendor's representative before settlement takes place.

What to Do If You Find a Problem

Contact your conveyancer as soon as the inspection finishes, ideally the same day, rather than waiting until the next business morning. Depending on the nature of the issue, your conveyancer may seek a retention of funds at settlement to cover the cost of repairs, request that the vendor fix the problem before settlement proceeds, or in more serious cases advise that settlement be delayed. Minor issues like a missing light bulb are usually not worth holding up settlement over, but damage, missing inclusions or an unfinished repair agreed as a special condition are different matters entirely and should be raised formally rather than resolved with a verbal promise from the agent. It also helps to have your settlement documents in order beforehand, so your conveyancer can act quickly if a retention or adjustment needs to be arranged.

After the Inspection

Once you are satisfied the property matches the contract, or any issues have been resolved to your conveyancer's satisfaction, settlement can proceed as planned. Keep your notes and photographs from the inspection in case anything is disputed after you take possession. If you are also managing your own residential sale at the same time, or a straight property transfer, coordinating both inspections and settlements with your conveyancer helps avoid a scramble on moving day. Understanding what happens at settlement itself, once the inspection is behind you, makes the final step feel far less uncertain. For general guidance on what to have ready before settlement, MoneySmart's guide to buying a house covers the broader financial checklist alongside the physical one.