Settlement is often treated as the final administrative step in a purchase, but it is one of the last moments buyers have real leverage. Once ownership transfers, unresolved defects, minor or structural, become the buyer’s responsibility. A pre-settlement inspection is not about re-negotiating the deal; it is about confirming that what you agreed to buy is what you are actually receiving.
For buyers who have spent months navigating contracts, finance, and approvals, this inspection is where attention shifts from paperwork to the physical reality of the home.
Confirm the property matches the contract
The starting point is simple but often overlooked: the property must be in the same condition as when contracts were exchanged, allowing for fair wear and tear.
Buyers should walk through with the contract in mind, checking that fixtures, fittings, and appliances included in the sale remain in place and functional. This includes items such as ovens, dishwashers, air-conditioning units, and light fittings if they were specifically listed.
If repairs or conditions were negotiated as part of the sale, such as fixing a leak, replacing a damaged window, or completing agreed works, these should be verified carefully rather than assumed to be complete.
Look beyond surface presentation
A clean property can disguise unresolved issues. Pre-settlement inspections should focus on function as much as appearance.
Windows and doors should open and close properly, taps should run without leaks, toilets should flush correctly, and electrical switches should operate as expected. While buyers are not testing the home to the level of a building inspection, basic usability checks can quickly reveal whether something has deteriorated or been damaged since the last viewing.
In apartments or townhouses, this also extends to storage cages, car spaces, and common access points allocated to the property.
Check for new damage or deterioration
Vacant homes can change quickly, particularly if settlement has been delayed. Water damage from storms, mould growth, pest activity, or vandalism can occur after contracts are signed.
Buyers should pay attention to ceilings, skirting boards, and wet areas for signs of moisture, as well as external areas such as fences, balconies, and retaining walls. Any new damage that was not present at exchange should be raised promptly with the conveyancer or solicitor.
Appliances and services should be operational
While sellers are not required to provide warranties beyond what is in the contract, inclusions should be in working order at settlement.
Testing appliances briefly, heating, cooling, cooktops, garage doors, can prevent disputes later. Utility connections such as electricity and water should also be confirmed as active, particularly in newly completed or previously vacant properties where services may have been disconnected.
Understand what the inspection can, and can’t, do
A pre-settlement inspection is not a substitute for a building and pest inspection, nor is it an opportunity to request cosmetic upgrades. Its purpose is verification, not discovery.
If issues are identified, buyers typically have limited options: requesting rectification before settlement, negotiating a retention or adjustment, or in rare cases delaying settlement. The strength of these options depends on how clearly the issue breaches the contract rather than buyer preference.
Why this step matters more than buyers realise
Once settlement occurs, responsibility transfers immediately. Even small issues, missing remotes, faulty locks, or incomplete repairs, can become costly or time-consuming to resolve without seller cooperation.
For buyers, especially first-home buyers or those purchasing off-the-plan or newly completed homes, the inspection is a final quality control checkpoint. Approached carefully, it reduces the risk of post-settlement surprises and ensures the handover reflects the agreement that was signed months earlier.
Settlement may be the end of the transaction, but the inspection before it is where buyers protect the value of what they are about to own.
Publisher Website: www.homeshelf.com.au