NSW Pre-Settlement Inspections | The Complete Buyers’ Guide

Before the day you officially take ownership of your new home, it’s crucial to ensure the property remains in the same condition as when you signed the purchase contract. Our pre-settlement inspection buyers’ guide is designed to assist you in this process, aiming to facilitate a seamless settlement experience.

From the moment you sign the contract of sale, there may be a gap of several weeks or even months before the settlement date, when the property legally becomes yours. During this period, unforeseen damage or deterioration might occur, or items included in the sale might be removed. Conducting a final inspection, also known as a pre-settlement inspection, allows you to identify and address any issues before the settlement.

Importantly, this inspection is intended to confirm that the property’s condition matches what it was at the time of contract exchange—neither improved nor deteriorated.

Buyers are not entitled to request repairs for items that were already damaged during the initial inspection. However, if the property’s condition has worsened since the contracts were exchanged—such as a new hole in the wall, a broken window, or a burst water pipe—you can request the seller to carry out the necessary repairs prior to settlement.

When should you do a pre-settlement inspection?

Aim to schedule your pre-settlement inspection about five working days before settlement. This timeframe allows for any necessary repairs or negotiations. Ideally, conduct the inspection after the previous occupants have vacated, but if this isn’t possible, request assurances from the vendor regarding the removal of belongings.

How to book in a pre-settlement inspection?

You cannot simply turn up at the property without providing notice to the seller beforehand.

You should get in touch with the seller’s real estate agent to organise a date and time for the inspection to be completed. The agent will generally need to be present for this inspection so, they will arrange a time that works for them, the sellers and you.

We recommend that you get in touch with the agent at least 2 – 3 weeks ahead of settlement to book in the pre-settlement inspection.

Pre-settlement inspection buyers’ guide

On the day of the inspection, conduct a thorough walk-through of the property to check for any damage that may have occurred since the contract was finalised. Ensure that everything is clean and in the same working order as when you exchanged contracts. Verify that all items included in the sale contract are present and that any rubbish has been removed.

Key areas to inspect:

• Electronics: Check that all electrical components are functioning, including the switchboard, telephone line, light switches, power points, fans, dimmers, and automatic blinds.
• Air Conditioners: Test each air conditioner and heater to ensure it is functioning and has a working remote, if required.
• Plumbing: Check for leaks and ensure all plumbing fixtures, such as taps, showers, sinks, and toilets, are operational.
• Door handles and locks: Inspect door handles and locks to ensure they are in working order.
• Appliances: Check that appliances (such as the dishwasher, stove, rangehood etc) are working as expected. Note that this only applies to appliances that are included in the sale.
• Windows and glass: Check that all windows are in working order and that there are no new cracks or breaks that occurred after exchange of contracts.
• Floors: Check for any new stains or damage to the floors or carpets in the property.
• Outdoors: Verify the condition of the gas meter, letterbox, doorbell, outdoor taps, pool pump, spa, and garage door.
• Special Conditions: Confirm that any inclusions or exclusions specified in the contract are adhered to.
• General Damage and Cleanliness: Look for signs of damage, such as leaks or pest infestations, and ensure all rubbish is cleared. The property should still be generally clean, tidy and free of additional damage.

Importance of the pre-settlement inspection

As a buyer, you have the right to inspect the property before settlement to ensure it is in the agreed condition. This inspection helps identify any discrepancies or damages that need to be addressed by the vendor before settlement. It also allows you to verify that any special conditions in the sale contract have been met.

Addressing issues identified during inspection

If you discover any issues during your inspection, you should document these (by taking photos and videos) and then immediately inform your lawyer so they can take the appropriate action. The seller is responsible for rectifying problems before settlement. Your lawyer can negotiate with the seller’s lawyer to find a mutually agreeable solution, which may involve repairs or financial compensation or delaying settlement until the issues are resolved.

By following this buyers’ guide and addressing any issues promptly, you can ensure a smooth transition to your new home.

Need help buying property?

If you need a lawyer to act for you in relation to the purchase of property, please check out our Buying a Property Information Centre, where you can get more information about our conveyancing services and get an instant quote.

Alternatively, you can give us a call, send us a message or book a call.