The pre-settlement inspection is your last formal opportunity to walk through the property before it legally becomes yours. It typically happens 1 to 7 days before settlement, and it exists for one purpose: to confirm the property is in the condition required by the contract.
This is not the same as the practical completion inspection. If you’re building a new home with a builder, you’ll have had a PCI at the end of construction. The pre-settlement inspection is more common with established property purchases, off-the-plan apartments, or house-and-land packages where the builder has completed and you’re settling through a conveyancer.
Whatever the context, missing issues at this stage means you’re taking them on as your own problem after settlement. Here’s how to make sure you don’t.
What you’re checking
The purpose of the pre-settlement inspection is to verify that:
- The property is in substantially the same condition as when contracts were exchanged
- Any items included in the contract of sale are still present (fixtures, fittings, appliances)
- Any defects identified before exchange have been rectified (if agreed)
- No new damage has occurred since exchange
It is not a home inspection in the traditional sense — if you want a full structural assessment, you should have organised an independent building inspection before exchange. The pre-settlement inspection is about confirming condition, not discovering structural issues for the first time.
When to do it — and who to bring
Most contracts allow for a pre-settlement inspection in the final 3 to 7 days before settlement. Your conveyancer or solicitor will advise on the timing allowed under your contract.
Bring your contract of sale and any schedules listing fixtures and inclusions. Bring a phone to photograph anything you find. If you have a trusted builder, tradie, or building inspector you can bring on short notice, it’s worth doing for a new build or off-the-plan apartment.
The checklist — room by room
Exterior
- Roof: Visible damage to tiles or metal sheeting, sagging gutters, loose downpipes
- Walls: New cracks, damage to render or cladding that wasn’t there at exchange
- Windows and doors: All opening and locking correctly, no cracked glass, no broken hardware
- Garage: Door operating, remote working, no new damage to door or frame
- Driveway and paths: No new cracking, drainage clear
- Fencing and gates: As per contract, no damage
- Landscaping: Included plants, lawn, or irrigation systems still present and in reasonable condition
Entry, living, and dining areas
- Walls and ceilings: No new cracks, water stains, or damage from movers/trades that have been in since exchange
- Floors: Timber, tile, or carpet in same condition — no new scratches, chips, or stains
- Lighting: All ceiling lights working (bring a bulb if you suspect blown globes)
- Power points: Working (bring a phone charger)
- Heating/cooling: Turn on, confirm operation
- Window furnishings: Blinds or curtains included in the sale are still present
Kitchen
- Appliances: All appliances included in the contract are present and functioning — oven, cooktop, dishwasher, rangehood. Test each one.
- Cabinetry: Doors and drawers operating, no new damage
- Taps and sink: Running water, no drips, no slow drain
- Splashback: No cracked tiles
- Exhaust fan: Operational
Bathrooms and ensuite
- Taps, showerheads, and toilets: All working, no drips or running toilet
- Exhaust fan: Operational
- Tiles: No new cracks or chips
- Shower screen or bath: No cracks, seals intact
- Basin: No cracks, taps working, drain clearing properly
Laundry
- Taps: Both hot and cold working
- Drain: Clearing properly
- Dryer exhaust: Vent present and connected if applicable
Bedrooms
- Walls and ceiling: No new cracks, no water marks
- Floors: No new damage
- Built-in robes: Doors operating, no damage
- Lighting and power points: Working
Roof space and subfloor (where accessible)
For older properties or where you have had a pre-purchase inspection:
- Check for any sign of water ingress in roof space since exchange
- Subfloor: no new moisture, no evidence of pest activity
Services and utilities
- Electricity: Switchboard accessible, circuit breakers functional, no tripped breakers indicating a fault
- Gas: Smell for any gas odour; turn on a burner if safe to do so
- Hot water system: Confirm presence and model matches contract if specified
- Water: Check mains pressure, confirm no shut-offs have been activated
- NBN/telephone connection: Connection point present if required by contract
Contract inclusions — what should be there
Check your contract of sale for the specific inclusions schedule. Common items that sometimes disappear before settlement:
- Dishwasher
- Clothesline
- Ceiling fans
- Blinds or curtains
- Garden shed
- Light fittings (particularly in main living areas)
- Outdoor furniture or built-in BBQ if specifically included
Sellers sometimes remove light fittings, ceiling fans, or curtain rods between exchange and settlement — legally they’re allowed to remove personal property, but not fixtures and inclusions listed in the contract.
What to do if you find issues
If you find damage or missing items, don’t settle without addressing it. Your options:
Minor issues you’re comfortable accepting
Photograph them and keep a record. After settlement, they’re your problem, but at least you have evidence they were pre-existing if any dispute arises later.
Items missing from the inclusions schedule
Contact your solicitor or conveyancer immediately. Settlement can be held up or a credit negotiated to reflect the missing item’s value. Don’t accept that items were “never included” if the contract says otherwise.
Significant new damage
Your conveyancer should write to the vendor’s solicitor to request the damage be repaired before settlement, or to request a price reduction or compensation equivalent to the repair cost. In serious cases — for example a flood event caused significant damage since exchange — this may warrant seeking legal advice before proceeding.
For new builds
If you’re doing a pre-settlement inspection on a new build and find defects that haven’t been rectified from your PCI defect schedule, do not settle until you have written confirmation of what will be fixed and when. Your builder should provide a written undertaking specifying items, timeframes, and what happens if they’re not completed.
Photographing what you find
Whatever you find, photograph it. Include:
- A wide shot of the room or area for context
- A close-up of the specific issue
- A reference point (door frame, window, tape measure) for scale where relevant
Send all photos to your conveyancer and keep a copy. Our guide on how to photograph construction defects covers technique if you want to make sure your photos will hold up. Time-stamped photographs taken before settlement are some of the most valuable evidence you can have.
Key takeaways
- The pre-settlement inspection is your last chance to catch damage and confirm inclusions before the property legally becomes yours — use it.
- Bring your contract of sale inclusions schedule and photograph everything methodically, room by room.
- Test appliances, switches, taps, and doors — not just look at them.
- For new builds, confirm that all PCI defects have been rectified before agreeing to settle.
- If you find significant damage or missing inclusions, do not proceed to settlement without addressing it through your conveyancer first.
- Photograph every issue with context and timestamps — these records protect you if a dispute arises after settlement.
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