Contracts exchanged weeks ago. The removalists are booked, the bank has confirmed the funds and settlement is on Friday. Then the selling agent rings to say the vendors moved out early, and you can come through on Wednesday for your final inspection. You’ll get a short window to work out whether the house you’re about to pay for is still the house you agreed to buy.
That short window is the pre-settlement inspection, and in NSW it’s one of the few times between exchange and settlement where you can still do something about a problem. Most buyers treat it as a quick walk-through with a tape measure for the couch. We treat it as the last check before your money moves, because after settlement anything you find is much harder to fix.
It confirms nothing has changed since exchange
A pre-settlement inspection is a check that the property is in the same condition it was in when you exchanged contracts, allowing for fair wear and tear, and that everything the contract says is included is still there. That’s the whole job.
It is not a second building inspection. You can’t use it to raise a cracked tile you didn’t notice the first time, or to reopen the price because you’ve had second thoughts about the bathroom. Those things belonged in your building and pest inspection before you committed. What you’re looking for now is anything that’s different: damage caused by the move, appliances that have stopped working, inclusions that have walked out the door, and repairs the vendor agreed to make that haven’t been done.
Under the standard NSW Contract for the Sale of Land, buyers are generally entitled to inspect the property before completion, at a reasonable time and with reasonable notice to the vendor. In practice it’s arranged through the selling agent. Your contract can change the details, so ask your conveyancer what yours actually allows before you assume anything.
Book it as close to settlement as you can
The later the inspection, the less time there is for something to go wrong after you’ve looked. Most buyers we work with aim for the last few days before settlement, ideally after the vendors have moved out. If the vendors are moving out the day before, ask about late that afternoon or first thing on settlement morning. An inspection done while the house is still full of boxes tells you very little. Damage tends to happen on moving day, when a fridge gets dragged across timber floors or a wardrobe takes a chunk out of a door frame.
What to test, room by room
Bring a copy of the contract (or at least the list of inclusions), your phone charger to test power points, and the photos or notes from your earlier inspections. Then work through the place properly. A checklist is genuinely the clearest way to show it:
- Taps, showers and toilets: run them all, check under sinks for drips and make sure hot water arrives
- Oven, cooktop, rangehood and dishwasher, plus any built-in microwave
- Lights, power points, ceiling fans and smoke alarms
- Split systems and ducted air conditioning, in both heating and cooling
- Doors, windows, locks and flyscreens, including every key and window lock key
- Garage door, remotes, gate openers and any alarm codes
- Walls, floors and door frames for damage from the move
- Inclusions listed in the contract: blinds, curtains, light fittings, the garden shed, pool equipment
- Rubbish left behind, inside and out, including the garage and under the house
Check the outside too. Gardens get dug up when a vendor decides the prize roses are coming with them, and that may or may not be allowed depending on what the contract says about fixtures.
The Central Coast adds a few of its own checks
A lot of the homes we look at here have features you won’t find on a standard checklist from a bank’s website, and they’re worth a few extra minutes.
Storm weather between exchange and settlement. If a big storm has come through since you exchanged, look at ceilings for fresh water stains, check the gutters and downpipes and walk the yard for fallen branches. In NSW the property generally stays at the vendor’s risk until settlement or until you take possession, which is exactly why you want to find storm damage before Friday, not after. Many buyers still arrange insurance from exchange for peace of mind, and your conveyancer can tell you what makes sense for your contract.
Coastal wear on moving parts. In beachside suburbs, salt air is hard on sliding door tracks, window winders and garage door motors. They might have worked fine at the open home. Test them again.
Rural and semi-rural blocks. Out towards the hinterland, plenty of properties run on tank water, a septic system or a pump. Make sure the pump runs, the tanks haven’t been drained and any equipment listed in the contract is still connected.
Pools. Check the pump, filter and chlorinator are still there and running, and that the pool fence and gate latch haven’t been damaged during the move.
Tenanted investment properties. If you’re buying with a tenant in place, you won’t get an empty house. Focus on whether the inclusions are there, whether anything is obviously broken, and confirm with the agent that the lease details match what’s in the contract.
If something is wrong, don’t settle first and argue later
Stay calm and document it. Take clear photos, note the time and date, and tell the selling agent while you’re still on site. Then call your conveyancer or solicitor straight away, because they’re the one who can act before settlement funds are released.
What happens next depends on how serious it is. Small things, like a missing remote or rubbish left in the garage, usually get sorted by the agent within a day. Bigger problems, such as a broken appliance that was included in the sale or new damage to the floors, are normally handled between the two legal representatives. That might mean the vendor fixes it before settlement, agrees to a reduction in the amount payable, or agrees to hold back some money until the repair is done.
One thing we’d caution against: refusing to settle on your own initiative. Failing to complete on time can put you in breach of the contract and cost you far more than the repair. Let your conveyancer make that call.
Buying from Sydney or further away
A lot of our clients are relocating, and getting up the M1 midweek for a short inspection isn’t always practical. If you can’t be there, don’t skip it. Ask your conveyancer whether someone can attend on your behalf, or have a family member go with your checklist and a video call open. We’ve written more about the logistics of buying here when you still live in Sydney, including timing your move around settlement.
When we manage a purchase from the search right through to the keys, attending the final inspection is part of following it through. If you’d rather have someone who knows what to look for handling that last step, our full start-to-settlement buying service is set up for exactly that.
Common questions about pre-settlement inspections
What should I expect from a pre-settlement inspection?
Expect a short visit, usually with the selling agent present, where you check the home is in the same condition as at exchange and that all inclusions are there. You test appliances, fixtures and fittings and look for any new damage. It’s not a negotiation over things you could have spotted earlier.
Should the house be empty for the pre-settlement inspection?
Ideally, yes. If you bought with vacant possession, the best time to inspect is after the vendors have moved out, because that’s when you can see the floors and walls properly and damage from the move becomes visible. If the vendors are still packing, ask whether you can come back once they’ve left.
How long after the pre-settlement inspection is settlement?
There’s no fixed gap. Most buyers inspect in the last few days before settlement, and some do it on settlement morning. The closer to settlement, the less chance something changes after you’ve looked, but leave enough time for your conveyancer to act if you do find a problem.
Can I do more than one pre-settlement inspection?
The standard NSW contract generally allows an inspection before completion, and extra visits are by arrangement with the vendor and agent, so ask early if you want one.
What happens if I find damage at the final inspection?
Photograph it, tell the agent and call your conveyancer immediately. They’ll raise it with the vendor’s representative before settlement, which can lead to a repair, an adjustment to the amount payable or money held back until it’s fixed. Don’t refuse to settle without legal advice.
Can I move in on settlement day?
Usually, yes, once settlement has completed and the agent releases the keys. Settlement times can run later in the day than expected, so don’t book the removalists for first thing in the morning without some flexibility built in.
Settlement week goes a lot smoother when someone experienced has been with the purchase from the start. If you’re buying on the Central Coast and want help from the first inspection to the final one, have a look at our end to end buyers agent service and get in touch.
