Buying a home is often the biggest investment someone makes. After the excitement of signing the contract and securing financing, there remains one crucial step before the keys are handed over: the pre‑settlement inspection. This final walk-through is your last opportunity to ensure that the property is in the condition you agreed upon, that all repairs promised have been completed, and that nothing unexpected has changed.
Buying property in Sydney is exciting, from watching harbour views to exploring leafy suburbs and chasing that dream lifestyle, but the journey towards settling into your newly owned home involves careful checks and due diligence. In the tight, competitive Sydney market, where timeframes are often compressed and sellers may still be moving out, knowing exactly what to inspect and how to protect yourself is critical.
Too many buyers rush through—or skip—this stage, only to discover after settlement that fixtures are missing, appliances don’t work, or damage has occurred in the interim. A well-organised inspection checklist helps you methodically review the home from top to bottom, protect your interests, and avoid nasty surprises once you officially become the owner.
In this guide, you’ll find everything you need to conduct a thorough pre‑settlement inspection: what to look for, the timing, whom to involve, how to document findings, and how to act if something’s amiss. Think of it as your final safeguard—ensuring the home you move into is the home you paid for.
What Is a Pre-Settlement Inspection and Why Does It Matter
A pre‑settlement inspection, also called a final inspection or final walk‑through, is the buyer’s last chance, just before settlement, to verify that the property is in the same condition as when they agreed to buy it, that any agreed-upon repairs have been done, and that all fixtures and inclusions promised in the contract are still present and functional.
In Sydney, we let you confirm that everything the vendor agreed to, like repairs, inclusions, and condition, has been met, that no new damage has occurred since you exchanged contracts, and that the property is in the same state you expected. It matters because once legal ownership is transferred, your ability to demand fixes or compensation is significantly reduced, so this inspection is your opportunity to catch new damage, missing items, or unfinished work and negotiate remediation before you finalise the purchase.
Your Rights as a Home Buyer Before Settlement
Under NSW law, as a buyer, you have a number of important rights in the period between exchanging contracts and settlement. First, the standard contract for the sale of land gives you the right to undertake at least one pre‑settlement inspection of the property (often the day before settlement or close to it), so you can verify that the home is in the same condition, state of repair, and inclusions as when you entered into the contract. You have the right to confirm that any special conditions in the contract have been met — for example, that agreed repairs are done, that fixtures, fittings and appliances promised to stay are still present and functioning.
You are also entitled to receive full disclosure of certain documents before or at the exchange of contract—these may include the title, zoning certificates, strata plans, by‑laws, if it’s a strata property, easements/covenants, and other statutory and planning documents. If you bought off‑the‑plan, you also have extra protections: for example, the vendor must give you a schedule of finishes, copies of proposed plans, registered final plans and provide notice of any material changes, and you have cooling‑off rights in those purchases.
If the property is strata‑titled, you have rights to information about the strata scheme and obligations on the vendor to provide certain reports. Importantly, after settlement takes place, many of your remedies are greatly reduced, so these pre‑settlement rights let you raise concerns, negotiate fixes, or possibly delay or adjust settlement if serious problems (breaches of contract) are found.
When and How to Conduct the Pre-Settlement Inspection
Ideally, you schedule the pre-settlement inspection within a few days, typically 2–5 working days before settlement, so the property is as close to its final condition as possible while still allowing time for necessary fixes. You arrange access via the agent or seller, ideally when the premises are vacant or after the seller has moved out.
At the inspection, you methodically walk through both exterior and interior areas, armed with a copy of the contract, the inclusions list, checklist, camera/phone (for photos), flashlight, and small tools (e.g. test lamp or outlet tester). You verify that agreed-upon repairs have been completed, that fixtures, appliances, doors/windows, plumbing, electrical systems, heating/cooling systems, locks, etc., are in working order, and that no new damage or missing items have occurred since the contract exchange. If defects or inconsistencies are found, you document everything and promptly relay them to your conveyancer or solicitor so that remedial steps like repairs, compensation or settlement adjustments can be negotiated before final settlement.
The Complete Pre-Settlement Inspection Checklist
As settlement approaches, do your pre‑settlement inspection ideally within the week before the settlement date (or a few days prior) so there’s time to remedy anything before handover. Walk through every part of the property—inside and out—armed with your contract (especially the list of inclusions/exclusions), photos from earlier inspections, a checklist, torch/flashlight, plug‑tester or a small appliance, and a camera.
- Start with structural elements: check the roof, gutters, downpipes, and external walls for new cracks or signs of water damage, and ceilings for stains or sagging.
- Move to doors, windows, blinds & locks: open & close everything, check all locks, fly‑screens, window panes, and ensure that the curtains/blinds included in the sale are still there and operate properly.
- Test electrical & lighting: switches, all power points, exhaust fans, ceiling fans, dimmers, light fittings, external lighting.
- Check plumbing & water: run taps (hot & cold), check showers & baths, basins & sinks for leaks or drips; toilets flush properly; drains clear; hot water system is working. All included appliances (oven, cooktop, rangehood, dishwasher, washer/dryer if included etc.) should be in working order. In bathrooms and kitchens, inspect for mould, mildew, and water stains.
- Check flooring, walls & finishes: carpets, tiles, timber floors for damage, scratching, lifting; skirting boards and architraves for damage.
- Inspect outdoor areas: garden and landscaping, fences, gates, deck, patios, pool/spa & safety barriers (if applicable), external power points and taps.
- Ensure safety items are working: smoke alarms, ventilation, any gas appliances are safe, any alarm/security systems, and hot water safety.
Finally, ensure the property is in the agreed‑upon condition, clean, all rubbish & previous owner’s belongings removed, no hidden damage since you last saw it, and that all “special conditions” or repairs promised in the contract have been properly completed. Document anything that isn’t right, report promptly to your solicitor or conveyancer, and if needed, negotiate fixes or hold‐backs before the settlement day.
What to Do if You Spot an Issue
Let us give you some clear pointers on what to do if you spot an issue before your pre-settlement.
Document Everything Immediately — take photos and videos from different angles; make written notes of what exactly is wrong, where, and when you noticed it. This establishes evidence.
Review Your Contract & Special Conditions — check what the contract says about inclusions, exclusions, repairs, maintenance, and condition. If there were special conditions or agreed repairs, see whether they’ve been met.
Contact Your Conveyancer or Solicitor — as soon as you find anything unacceptable or not as agreed, inform your legal representative so they can advise on your options and next steps.
Negotiate Remedies — possible remedies include having the seller fix the issue before settlement, reducing the purchase price (price adjustment) to cover repair costs, or arranging for a credit or hold‑back.
Request a Follow‑Up Inspection — if repairs are agreed to, arrange another inspection to verify the fixes have been done satisfactorily before finalising settlement.
Delay Settlement If Necessary — if the issues are serious and not addressed in time, you might be entitled to postpone settlement until they are fixed (if your contract allows). Your lawyer can guide you on using this leverage.
Consider Legal / Regulatory Remedies — for major defects, or cases where the seller fails to do what’s contractually or statutorily required, you may have recourse through NSW Fair Trading, or via statutory warranties under the Home Building Act.
Final Tips for a Smooth Property Handover
As you approach handover, make sure to walk through the property just before settlement, ideally as close to the settlement date as possible, to confirm that everything is in the condition agreed upon, repair works are completed, fixtures are intact, all appliances work, and no new damage has occurred. Bring your contract’s inclusion list, take photos or videos for documentation, test utilities like water, gas, electricity, doors, windows, heating or cooling systems, smoke alarms, etc., and ensure keys, remotes, and warranty manuals are handed over. Clear, timely communication with the seller, their agent, and your solicitor or conveyancer is essential so any discovered defects can be addressed before final settlement.
Choosing a professional service like Sydney Pre‑Purchase is highly beneficial because we provide qualified, experienced inspectors who understand local building codes and common defects in Sydney, e.g. termite risk, moisture issues, structural shifts, produce detailed reports compliant with Australian Standards, and can be leveraged as strong negotiation or protection tools, helping you to avoid costly surprises and giving you added confidence during the final stages of your purchase.
