What should I check at a pre-settlement inspection?
A pre-settlement inspection is your chance to confirm the property is in the same condition as when you exchanged contracts, and that everything included in the sale is still there. Check that inclusions like blinds, appliances and light fittings remain, that any agreed repairs have been completed, and that there's no new damage since your last viewing. It usually happens within a week of settlement, and it's the last practical opportunity to raise a problem before the money changes hands.
The Fuller Picture
A pre-settlement inspection is not a formal building inspection — it's a final walkthrough, usually arranged through the agent, to confirm the property is being handed over as agreed. You're checking the contract against reality: is everything that was included in the sale still there, is the property in roughly the same condition as when you last saw it, and have any agreed repairs actually been done. It's a practical check, not a technical one, and it typically takes 15 to 30 minutes.
Where it gets more complicated is in judging what counts as acceptable wear versus a genuine problem. A property that's been vacated will often look different — carpets vacuumed, marks left by furniture, garden untended for a few weeks. None of that is usually a breach of contract. What matters is whether the structure, fixtures and inclusions match what you agreed to buy, and whether anything has been damaged or removed since exchange. Vendors are entitled to normal use of the property up until settlement, so minor scuffs are expected; missing items or new damage are not.
Contracts of sale in NSW typically include a schedule of inclusions and exclusions, and standard contract terms require the property to be handed over in the same condition (fair wear and tear aside) as at the date of the contract. If repairs were negotiated as a condition of the sale — for example, following a building inspection — the pre-settlement inspection is where you confirm they were actually carried out, not just promised.
What This Means for Your Purchase
The pre-settlement inspection is a timing issue as much as anything else. It typically happens 3 to 7 days before settlement, which gives enough time to raise an issue with your conveyancer and negotiate a resolution before funds are due, but not so much time that the vendor's circumstances change again before you complete. Book it too early and you risk missing last-minute changes; too late and you may not have room to act on what you find.
If something is wrong — an included item missing, new damage, or incomplete repairs — your conveyancer is the right first call, not the agent directly. Depending on what's found, the usual options are a small settlement adjustment (an agreed dollar amount held back or deducted), a short delay to settlement while the issue is fixed, or in more serious cases a formal notice to the vendor's solicitor. What you don't want to do is raise it informally with the agent and let it drop — get it documented.
Financially, most pre-settlement issues are resolved through minor adjustments rather than derailing the purchase. But it's worth knowing that refusing to settle over a small, fixable issue carries its own risk — if you're not genuinely entitled to delay, you could be the one in breach. This is a reason to loop in your conveyancer quickly rather than acting on your own read of the contract.
How This Shows Up in the Illawarra
In the Illawarra, pre-settlement inspections tend to be straightforward on established houses in suburbs like Figtree, Berkeley or Shellharbour, where the property has usually been owner-occupied and vacated in the normal way. The more common issues we see are things like an air conditioning unit or garden shed that was in the listing photos but not mentioned in the contract, or agreed repairs from a building and pest report — a leaking gutter, a faulty smoke alarm — that turn out to be only partially done.
Coastal and investment properties add a wrinkle: if the vendor was renting the property out, there can be a tenant still moving out close to settlement, which makes timing the inspection trickier and increases the chance something is overlooked in the handover. For strata apartments around North Wollongong or Wollongong CBD, it's also worth confirming keys, fobs and any storage cage or car space match what's in the contract, since these are easy to forget in a rushed move-out.
Frequently Asked Questions
What happens if I find a problem at the pre-settlement inspection?
Tell your conveyancer straight away. Depending on what it is, they may negotiate a settlement adjustment, a short delay, or a formal notice to the vendor's solicitor.
Is a pre-settlement inspection the same as a building inspection?
No. A building and pest inspection happens earlier, before you're locked into the contract, and checks structural and pest issues. A pre-settlement inspection is a final walkthrough to confirm the property matches the contract.
Do first home buyers need to worry about this as much as other buyers?
Yes, arguably more — it's often a first home buyer's only experience of a handover, so it's easy to assume everything is fine when something has actually changed since the last viewing.
How soon before settlement should I book the inspection?
Most buyers book it 3 to 7 days out. Earlier gives you a false picture if the vendor is still living there; later leaves little time to fix anything you find.
Can I refuse to settle if something isn't right?
Only in limited circumstances, and it depends on how serious the issue is. Refusing to settle over a minor issue without proper advice can put you in breach, so this decision should go through your conveyancer.
Does a buyers agent attend the pre-settlement inspection?
Yes, this is one of the practical checks a buyers agent will do for you, comparing the property against the contract and flagging anything worth raising before you're locked into settlement.
If your pre-settlement inspection turns up something you're unsure about, we're happy to talk it through before you sign off. Get in touch and we'll help you work out whether it's worth raising.
