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Settlement phase

Pre-settlement inspection: the last look before you hand over the money

lodeposit.com.au editorial team · 14 October 2026 · 10 min read

You have a contractual right in every Australian state to inspect in the days before settlement. It is short, it is your last opportunity, and it is not the same as a general condition check.

1Search
2Inspect
3Offer
4Settle
5Move in

You have a contractual right in every Australian state to inspect the property in the days immediately before settlement. It is short, usually five business days, and it is your last opportunity to find a problem that matters.

The inspection is not a general condition check — you already had a building and pest inspection weeks earlier. It exists to confirm the property is in the same condition it was when you inspected it, and that nothing has been damaged or removed in between.

What changed in 2019 — the real risk today

Most Australian sale contracts now include a prescribed property disclosure statement. Sellers must disclose known defects: termite damage, structural issues, safety defects, material changes. This was a significant protection for first home buyers. Ask to see the statement, read it carefully, and note anything that looks unfamiliar — then look for that specific thing on the final walk-through.

What to check, in order of consequence

  1. Water damage. Check every ceiling in every room, including inside wardrobes and behind curtains. Look for fresh brown staining, bubbling paint, or a musty smell. A roof leak that appeared after your inspection is the most common and most expensive finding.
  2. Burst or leaking pipes. Turn on every tap, flush every toilet, run the shower. A supply line that has been turned off often indicates a plumber has been here — ask why, and what was found.
  3. The termite report. If your contract was conditional on a termite inspection, the treatment must have been carried out and you should receive a completion report. Confirm the work was done, and that the treatment warranty has been issued in your name.
  4. Damage to fixtures and fittings. Photograph the oven, hot water system, air conditioning, and bathroom fittings. New scratches and missing items are breach of contract — you can require them rectified or compensated.
  5. Outdoor areas. Pools need a compliance certificate dated within the last three years. Check it exists and is current. Decks, fences, gates and pergolas often deteriorate once vacant.
  6. Garden and landscaping. If it was photographed in the listing and is now different, that is a problem. Vacant properties lose lawns quickly. You cannot recover the cost of re-turfing as a deduction if you agreed to take it "as is" — which is most contracts.
  7. Security. Cameras, alarm systems, garage remotes, keys, and building access fobs. Collect all of them in writing and count them on the spot.
  8. Cleanliness and rubbish. Confirm the property is cleaned to the standard in the contract. Photograph everything.

Your rights if something is wrong

FindingYour positionSeverity
New damage not present at your inspectionSeller must rectify, or you may withhold an equivalent amount from the settlement fundsHigh
Termite treatment not completed as requiredCondition of contract not met — you can delay settlement while it's doneHigh
Missing item listed in the contractRequire the item or deduct its valueMedium
Pool certificate expired or absentRequire a compliant certificate before settlementHigh
Unapproved alterations by the sellerRequire removal or restoration, particularly structural or wet-area workHigh
Lawn deterioration, minor grimeRarely recoverable — most contracts accept properties in their existing conditionLow

Do not spend your negotiating capital on the wrong things

Most contracts state the property is sold "as is" at the time of inspection. You cannot later claim for a crack that was there at your inspection, a garden that needed mowing, or a boiler that was already old. Write on the final inspection report only what is genuinely new since your inspection. Stacking trivial claims into a serious one weakens your position on the things that matter.

The practical routine

5 DAYS OUT
Book the walk-through time

Ask the agent for the day before or on settlement day. Morning light reveals water staining that afternoon light hides. Bring your original inspection report and your contract for reference.

WALK-THROUGH
Inspect and photograph everything

Move through the property systematically. Photograph and time-stamp anything you raise. Write the list before you leave, and send it to the agent and your conveyancer the same day.

48 HOURS OUT
Confirm the rectification list

Agree in writing which items will be fixed, which will be compensated, and by when. If something substantial is unresolved, tell your conveyancer immediately — they may recommend delaying settlement by a day, which is almost always better than accepting it.

SETTLEMENT DAY
Final check and collect

A second brief look, then collect keys, remotes, fobs and the certificates. Confirm the termite treatment warranty and pool certificate are in your name before you leave the property.

If you find something serious and the seller will not fix it, your conveyancer can withhold the cost from the settlement balance. This is a routine and uncontroversial part of settlement — but only if you identify it in time.

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lodeposit.com.au editorial team
Independent · ABN 14 127 573 219 · Reviewed 14 October 2026

We publish general information, not legal or financial advice. Off-the-plan contracts, conveyancing and settlement law vary by state and by individual circumstances. Always have your own independent legal adviser review any contract before you sign — the cost is trivial against the risk. Found something wrong? Tell us.

Information, not advice. This guide is general information about buying property in Australia as at 14 October 2026. It is not legal, financial or tax advice, and it does not create a solicitor-client or conveyancer-client relationship. Contract law, cooling-off periods and disclosure obligations differ between states and change frequently. Fees quoted are typical 2026 ranges and vary by property value, state and practitioner. Obtain advice from a licensed practitioner in your state before acting.