Answering 5 Crucial Questions About Pre-Settlement Inspection

A pre-settlement inspection is one of the most important steps a buyer can take before finalising the purchase of a property. 

You have found the right home. The contract is signed, the timeline is in motion, and the keys are almost within reach. Plans are forming and the space is beginning to feel like yours. 

But as settlement approaches, a quiet question can arise: has anything changed? 

A fixture that was meant to stay might no longer be there. A repair that was promised may not have been completed. The home, once staged and spotless, could now show signs of damage, neglect, or missing inclusions. 

This is why pre-settlement inspection matters. It is your legal opportunity to walk through the property one last time before ownership transfers. It acts as a safeguard for both the condition of the home and your peace of mind. 

In this guide, we will answer the five most important questions about pre-settlement inspection: 

• What happens in a pre-settlement inspection? 

• What are your rights as a buyer? 

• What if the property is tenanted? 

• What should you look for during the inspection? 

• What to do if you find an issue? 

Taking this final step ensures you can move forward with clarity and confidence. 

Pre-settlement Inspection Explained 

A pre-settlement inspection is the buyer’s final chance to check the property before settlement day. It ensures the home is in the agreed condition and that any repairs or inclusions have been completed as promised. 

While not legally required, this inspection is a standard right in most contracts and strongly recommended. Skipping it can lead to overlooked issues, which may be difficult to resolve once ownership transfers. 

This is not the time to revisit problems identified earlier. The focus is on confirming that the seller has met their obligations, and that the property is ready for handover. 

For many buyers, the inspection also offers peace of mind. Amid deadlines, paperwork, and preparations, it provides a quiet opportunity to step inside the home and feel confident that everything is as agreed. 

What Happens During a Pre-Settlement Inspection? 

The inspection is usually arranged through the real estate agent and takes place within a few days of settlement. Many buyers choose to schedule it one to three days before the final handover. This gives enough time to raise any concerns while ensuring the property is close to its final condition. 

During the inspection, buyers typically move through the home room by room. Some bring a copy of the contract to cross-reference any listed inclusions. Others come with a checklist, which can help ensure nothing is missed. 

Here are the most important things to look for: 

• New or unexpected damage: Check for any signs of deterioration or incidents that may have occurred after the contract was signed. This could include water damage, broken windows, or marked walls. 

• Completed repairs: If the seller agreed to fix or replace certain items, now is the time to verify that the work has been done. Test the item yourself where possible. 

• Presence of inclusions: Appliances, fixtures, and fittings that were part of the sale should still be in place. Confirm that nothing has been removed or replaced without agreement. 

• Functioning utilities: Test taps, lights, power points, air conditioning units, and other essential services to ensure everything is working as expected. 

• Cleanliness and condition: While the contract may not require professional cleaning, the property should be left in a reasonable state. Any leftover belongings or rubbish should be removed unless agreed otherwise. 

If the property is vacant, the inspection will be more straightforward. If the seller has not yet moved out, it may be more difficult to assess everything clearly. In that case, ask questions, take photos if needed, and seek clarification through your solicitor. 

This step does not need to be rushed. Taking the time to inspect thoroughly can help you avoid difficult conversations after the property becomes legally yours. 

What are your rights as a buyer? 

As a buyer, you are entitled to conditionally inspect the property before settlement takes place. This right is typically outlined in standard contracts and is widely recognised across Australia. While it may not be mandatory under legislation, it is an accepted and expected part of the settlement process. 

The seller must provide reasonable access for a pre-settlement inspection, typically arranged through the selling agent. One inspection is usually allowed, though your solicitor may request additional access if needed. The purpose is to confirm that the property remains in the same condition as when the contract was signed, not to revisit previously accepted issues. It ensures no new damage has occurred, agreed inclusions are present, and the seller has met their obligations. 

If you discover something during the inspection that is not in line with the agreement, you have the right to raise that issue through your conveyancer. In most cases, the matter can be resolved through repair, replacement, or financial adjustment before settlement proceeds. 

Taking this step affirms your position as an informed buyer. It also supports your legal and financial interests by ensuring that the final condition of the property reflects what you agreed to purchase. 

What If the Property Is Tenanted? 

Conducting a pre-settlement inspection on a tenanted property requires some additional steps, but your rights as a buyer remain unchanged. 

Access must be arranged with proper notice. For Example, under Queensland tenancy laws, tenants must receive at least seven days’ written notice for a routine inspection, or a minimum of twenty-four hours for inspections related to the sale. This notice is usually provided by the property manager or agent and must include the reason for entry and the proposed time. 

During the inspection, respect the tenant’s privacy. Focus on the property’s condition as outlined in the contract, including fixed items like flooring, appliances, and fittings. Personal belongings may still be present, but you are entitled to assess whether the property meets the agreed standard. 

If the property is to be vacant at settlement, confirm that the tenant’s departure is on track. Unexpected delays can occur if this is overlooked. If the tenant is remaining, the inspection provides insight into how the property has been maintained and whether any damage goes beyond reasonable wear and tear. 

Raise any concerns with your solicitor or conveyancer as soon as possible. With clear communication and documentation, most issues can be addressed before settlement. 

What should you look for during pre-settlement inspection? 

A pre-settlement inspection can feel overwhelming without a clear plan. To help you stay organised and ensure nothing is overlooked, use the checklist below during your inspection. It covers the most important areas to verify before settlement is completed. 

Pre-settlement inspection checklist 

Bring a printed or digital copy of this checklist to your inspection to help you stay focused. If possible, bring someone with you to act as a second set of eyes or take photos for documentation. 

This final check is your chance to ensure the property is delivered as promised. A careful and thorough approach will help prevent unwanted surprises once you take possession. 

What to Do If You Find an Issue? 

If something during the pre-settlement inspection is not as expected, act promptly and calmly. Most issues can be resolved through clear communication, but delays may limit your options. 

Start by documenting the issue. Take photographs, write detailed notes, and compare the condition to what is outlined in your contract. Whether it involves a missing item, an incomplete repair, or new damage, gather evidence to support your position. 

Then, contact your solicitor or conveyancer immediately. They will assess the issue based on your contract and advise on next steps. Common outcomes include: 

• The seller agreeing to fix or replace the item before settlement 

• A financial adjustment 

• Funds withheld in trust until resolution 

The appropriate solution depends on the severity of the issue. Minor defects like a loose handle may not delay settlement, but more serious concerns, such as structural damage or missing appliances, may require firmer negotiation. 

It is also important to stay realistic. The pre-settlement inspection is not a chance to renegotiate the contract. Your rights relate only to the property’s agreed condition. If the problem falls outside of that scope, your solicitor can explain your options. 

In most cases, sellers are open to resolving genuine concerns. A respectful, well-documented approach often leads to a practical outcome that keeps settlement on track. 

Settle With Confidence 

A pre-settlement inspection is more than a final walk-through. It is your chance to confirm that the property matches the condition, inclusions, and expectations set out in your contract. It provides peace of mind, allowing you to move forward with confidence, knowing the home is ready, the terms have been met, and there are no surprises waiting after settlement. 

If issues do arise, addressing them before settlement is far easier than after. A conveyancing solicitor can help you resolve concerns in a way that is fair, practical, and within the scope of your agreement. 

This step only takes a small portion of your time, but its impact can be significant. Taking it seriously shows that you are not only purchasing a property but also protecting the quality of that investment. 

Contact us If you are preparing for settlement and want to make sure everything is in order. Our team is ready to support you through a smooth and confident property transfer.