Pre-Settlement Inspection Checklist
The pre-settlement inspection is your last chance to walk through the property before it becomes legally yours. Most buyers spend fifteen minutes on it, find nothing, and settle.
That’s usually fine. When it isn’t, the cost falls on you, because once settlement happens, your leverage is gone.
Here’s what to check, room by room. Print this page or keep it open on your phone as you walk through.
When it happens
The inspection usually takes place within the final week before settlement, often the day before or the morning of. You arrange it through your agent, and your conveyancer or solicitor should remind you it’s due.
You’re entitled to it. In NSW the contract customarily provides for a final inspection, and an agent who resists is a warning sign in itself.
Go at a time when you can see properly, with daylight and ideally not raining. Allow a full hour rather than the fifteen minutes most people give it.
What you’re actually checking
Three things:
- The property is in the same condition as when you agreed to buy it, allowing for fair wear and tear
- Everything included in the contract is still there
- Anything the vendor agreed to fix has been fixed
You are not conducting a building inspection. That should have happened before you exchanged. Our guide to pest and building inspections covers that stage. This is a comparison against the condition at contract.
The checklist
Included items
Check the contract’s inclusions list and confirm each one is present and working. Commonly disputed items include: dishwasher, oven, cooktop, rangehood, light fittings, window coverings, air conditioning units, TV brackets, garden sheds, pool equipment, solar inverters, remote controls, and keys.
Light fittings and window coverings cause more disputes than anything else. Vendors frequently take fittings they consider personal.
Water
- Run every tap, hot and cold, and check pressure
- Flush every toilet
- Check under every sink for leaks or fresh water damage
- Run the shower for several minutes and watch drainage
- Check the hot water system is operating and look for corrosion or pooling
- Look at ceilings and cornices for new staining
Electrical
- Test every light switch and power point you can reach
- Check the switchboard and confirm safety switches are present
- Test the oven, cooktop, rangehood and any included appliance
- Test air conditioning in both heating and cooling
- Test the garage door and confirm you have the remotes
Structure and condition
- Compare against your photos from the inspection or contract date
- Check walls and floors where furniture has been removed, damage is often hidden underneath
- Look at floor coverings now the house is empty
- Check that windows and doors open, close, and lock
- Confirm you have keys for every lock, plus any alarm codes
- Check the roof and gutters from ground level
Outside
- Confirm the garden hasn’t been stripped of plants included in the sale
- Check fencing and gates
- Check pool equipment is present and operating
- Confirm rubbish and abandoned items have been removed; you inherit anything left behind
Agreed repairs
If the vendor agreed to fix anything as a condition, confirm it’s been done and done properly. Ask for receipts or certificates where relevant.
In the Northern Rivers specifically
A few things worth extra attention locally:
Flood-related. If the property is in a flood-affected area, check for recent water marks, damp at floor level, and whether subfloor ventilation is clear. Ask directly whether the property has been inundated since you exchanged.
Storm damage. Between the contract and settlement, this region can cop serious weather. Roofs, gutters, fences and trees are all worth a close look after a big event.
Pools and tanks. Rural and semi-rural properties often have rainwater tanks, pumps and septic systems. Confirm they’re operating and that you understand what you’re taking on.
If something’s wrong
Tell your conveyancer immediately. Not the agent first, your solicitor or conveyancer. They advise on your options and communicate formally.
Document everything. Photograph and video it, with timestamps. Compare against your earlier photos.
Don’t settle and sort it later. This is an easy mistake to make. Once you’ve settled, you own the problem and your practical remedies largely evaporate. Recovering money from a vendor after settlement may mean litigation, and, for most defects, that costs more than the repair.
Options usually include delaying settlement until it’s rectified, negotiating a retention held by the vendor’s solicitor, or a price adjustment. Your conveyancer will advise which fits.
A note on timing
If settlement is delayed, your loan still needs to be in place, as approvals have expiry dates and rate locks run out. If you’re dealing with a dispute close to settlement, let your broker know early so we can manage the lender side rather than discovering the issue on the day.
That’s a call worth making the moment a problem appears, not the afternoon before settlement. If some of the terms in your contract or loan documents are unfamiliar, our glossary of common mortgage terms may help.
If you’re approaching settlement and want to make sure the finance side is watertight, get in touch. We work as mortgage brokers in Byron Bay, Ballina and Lennox Head, and it’s a call worth making early if you’re buying your first home.
Disclaimer for the foot of the page: This information is general in nature and is not legal advice. Contract terms vary, speak to your conveyancer or solicitor about your specific contract and rights.
