Weeks usually pass between signing the contract and settlement day. A pre-settlement inspection, also called a final inspection, is the check you do near the end of that gap. It confirms that what you are about to pay for is still what you agreed to buy. It is not a fresh building and pest inspection. It is a final check before settlement.
It is an important opportunity to identify problems before settlement, while your conveyancer can still consider what options the contract gives you. Once settlement completes, your options narrow considerably.
When does it happen?
The inspection is often arranged shortly before settlement, sometimes on the day before or the day of settlement. It is usually organised through the agent, who will often be present. The timing and any inspection rights depend on the contract and state or territory. The closer the inspection is to settlement, the less opportunity there is for something to change afterwards.
Where the right to inspect comes from
Your right to carry out a pre-settlement inspection comes from the contract and the rules that apply to the transaction. The number of inspections, timing and what you can require the seller to do can vary between states and contracts. Your conveyancer should confirm what your particular contract allows.
What should you check?
The final inspection is a condition and handover check, not a substitute for the building and pest inspection or other due diligence you should have considered earlier in the purchase.
- Condition: new damage or deterioration since the contract was signed.
- Inclusions: fixtures, fittings and other contract items still there. Oven, cooktop, dishwasher, heating and cooling, light fittings, curtains and blinds are the usual ones to check.
- Agreed work: repairs or work the seller agreed to complete have been done.
- Possession: the property vacant if vacant possession was agreed, or the agreed tenancy arrangements in place. If someone is living there who you didn't expect, tell your conveyancer straight away.
- Rubbish and belongings: the seller has removed items not included in the sale.
- Access: keys, remotes, fobs and other access devices, ready for handover at settlement.
- Services: where relevant, services you expect to be connected are operating. Check relevant services and fixtures that the contract or property circumstances require to be available, such as electricity, water and hot water.
The standard you are measuring against is the condition required by the contract, generally allowing for fair wear and tear where applicable. You're looking for significant changes, new damage or missing inclusions, not minor signs of ordinary use.
The pre-settlement inspection is your physical check of the property. Your conveyancer will also be carrying out the legal and financial checks needed to complete settlement. The two work together but have different jobs.
What if I find something?
Photograph what you have found, note the date, and tell your conveyancer, before settlement rather than after. The important thing is to raise the issue before settlement, while your conveyancer can still consider the options available under the contract.
Depending on the contract, state and seriousness of the issue, your conveyancer may discuss options such as asking the seller to rectify the problem, negotiating an adjustment or compensation where appropriate, making a formal compensation claim under the contract, which in some contracts can involve part of the money being held until the claim is resolved, or considering whether settlement should be delayed in appropriate circumstances. More serious remedies may exist in some circumstances, but none should be assumed. None is automatic, and your conveyancer will tell you which, if any, are open to you.
Timing matters here too. A late discovery can push settlement out, and that carries its own cost: see why settlements get delayed, and the state rules on time and settlement in Queensland, Victoria and New South Wales.
What a pre-settlement inspection isn't for
- Renegotiating the purchase price because you have changed your mind.
- Identifying every minor cosmetic imperfection.
- Replacing a professional building or pest inspection.
- Introducing issues that were already apparent when you signed.
- Assuming every defect gives you a right to delay settlement.
The inspection is primarily about identifying changes, missing inclusions, incomplete agreed work and possession issues.
Does the pre-settlement inspection work the same way everywhere?
The broad purpose is similar across Australia, but inspection rights, timing and contractual standards differ between states and between individual contracts. Your contract and conveyancer are the right source for the specific inspection rights that apply to your purchase.
Before settlement goes ahead
Complete the inspection before settlement and tell your conveyancer about any issue before settlement proceeds. Once everything checks out, your conveyancer can continue with the remaining settlement process, including confirming the numbers on your settlement statement.
You've spent weeks or months getting to this point. The pre-settlement inspection is not about finding reasons to pull the deal apart. It's about making sure the property you're about to pay for is still the property you agreed to buy. Walk through it calmly, check the things that matter, and raise anything unexpected before settlement.
Good conveyancing isn't just about preparing documents for settlement. It is also about knowing what needs to be checked before settlement, and what to do when something doesn't look right.
