Pre-Settlement Inspection in Victoria: What to Check Before You Pay

A pre settlement inspection is your last look at a property before you hand over the balance of the price. It’s the point where you confirm the home is in the condition you bought it in, with everything the contract says comes with it.

In Victoria it’s a right under the standard contract, and plenty of buyers still treat it as a quick walk-through. Below I cover when to book it, what to check, what to do if something is wrong, and what I found at a client’s inspection in Fairfield this month.

Key points

• Victoria’s standard contract lets you inspect at any reasonable time in the 7 days before settlement, including settlement day.
• The seller must hand over the property in the same condition as on the day of sale, apart from fair wear and tear.
• Book the pre settlement inspection a few days out, so there’s time to fix a problem before settlement.
• If something is wrong, take photos and call your conveyancer before settlement goes ahead.

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What Is a Pre-Settlement Inspection?

It’s a final inspection of the property you’ve bought, done in the days before settlement. Consumer Affairs Victoria says you’re entitled to inspect at any reasonable time during the week before settlement, and that you arrange it through the agent.

The general conditions in Victoria’s standard contract of sale set out two rules that make the inspection worth doing. The seller carries the risk of loss or damage until settlement, and must deliver the property in the same condition it was in on the day of sale, except for fair wear and tear. Contract editions vary, so check the version you signed with your conveyancer.

A pre settlement inspection isn’t a building inspection. It won’t tell you about the structure or the roof. Its job is to compare the property today with the property you agreed to buy.

When Should You Book a Pre Settlement Inspection?

Book it with the selling agent as soon as the settlement date is confirmed. Two or three days before settlement works well. If you find a problem, that leaves time for the seller to fix it and for your conveyancer to act.

Leaving it to the morning of settlement squeezes everyone. If the seller is still moving out, ask for a time after they’ve gone, since that’s when damage from the move shows up.

Pre Settlement Inspection: 7 Things Buyers Miss

1. Inclusions listed in the contract

Have the contract with you. Light fittings, window furnishings, the dishwasher, a garden shed: if it’s listed, check it’s still there and that nothing has been swapped for a cheaper version.

2. Appliances and services

Turn things on. Run the oven, heating, cooling, hot water and taps, and flush the toilets. A fault that existed on the day of sale is a different conversation to one that appeared since.

3. Damage from moving out

Removalists bump walls, scratch floors and chip door frames. Look closely at hallways, stairs and doorways, the places furniture goes through.

4. Agreed repairs

If the contract or a special condition says the seller will fix something before settlement, check it’s done, and done properly.

5. Items that should be gone

Unless you agreed otherwise, the seller’s belongings and rubbish should be removed. Check the garage, the shed and behind the house.

6. Signs of water

Look under sinks and around the hot water service, and at ceilings for fresh stains. Water damage that wasn’t there at the sale is exactly what this inspection is for.

7. Keys, remotes and codes

Ask what keys, garage remotes, alarm codes and letterbox keys will be handed over, and confirm it in writing with the agent.

What If Something Is Wrong at the Inspection?

Stay calm and document it. Take dated photos and video, note what’s missing or damaged, and call your conveyancer the same day.

Consumer Affairs Victoria says you can request a repair if something isn’t in the condition it was in on the day of sale. Depending on the problem and your contract, your conveyancer may negotiate a repair before settlement, a reduction or an amount held back. Get advice before you refuse to settle, because failing to settle on time can put you in default.

Don’t let the agent talk you into accepting a promise that a problem will be sorted later. Once settlement goes through, your bargaining position changes.

What I Found at a Recent Pre-Settlement Inspection

My client Lucinda bought a two-bedroom apartment in Fairfield by private sale, and we did her pre settlement inspection together the Wednesday before settlement. The sellers had moved everything out and nothing was left behind, apart from a TV wall mount, which she was happy to keep.

We went through every cupboard, ran the split system and checked the fittings worked. Then we went back over two items from the building and pest report. A small section of timber in the corner of the second bedroom had perished, and she’ll have it assessed further when the new carpet goes in. In the bathroom, a cap hadn’t been fitted off properly, so that’s being looked at before the washing machine goes in.

Both items were already in the building and pest report, so neither was new damage since the sale. Checking them again meant she settled knowing exactly what to sort out first. We also talked through adding a split system to the bedrooms later, run through a false bulkhead. Everything in the contract was accounted for, and settlement went through on Monday 12 October.

Do You Have to Attend It Yourself?

No. You can send someone in your place, and some buyers ask their conveyancer or buyer’s agent to attend. As part of my service I attend my clients’ pre settlement inspections myself, which helps when you’re at work, interstate or buying an investment property.

If you’re buying with a lender, Consumer Affairs Victoria also notes your lender will usually recommend building insurance from the date the contract is signed, not from settlement. Organise it early.

Still at the search stage? My guide to off-market properties in Melbourne covers the checks to run before you sign, and 7 Questions to Ask a Buyer’s Agent covers what to ask before you engage help.

Frequently Asked Questions

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A pre settlement inspection takes less than an hour and it’s your last chance to fix a problem while the money is still yours. Book it early, take the contract with you, and call your conveyancer before settlement if anything is wrong.

Jason McCall is a licensed buyer’s advocate (licence 091847L) and the founder of Buyer’s Agent Victoria Pty Ltd (licence 091857L), based in Thornbury. He is a member of the REIV and PICA.