The pre-settlement inspection: what to check and what you can do

In the days before settlement, most buyers are focused on logistics: confirming loan funds are ready, organising insurance, making sure removalists are booked. The pre-settlement inspection can feel like a box-ticking exercise, but it's actually an important opportunity. Done properly, it can identify issues that affect settlement and give you options before it's too late to act.

This is one stage in our complete guide to the Victorian buying process.

What is the pre-settlement inspection?

The pre-settlement inspection is your right, as the buyer, to inspect the property at a reasonable time before settlement to confirm it remains in the condition it was in when you signed the contract. In Victoria, this right exists under the general terms of property contracts.

It typically happens in the week before settlement, often arranged through the real estate agent. If the property is tenanted, the agent needs to provide the tenant with appropriate notice before arranging access.

The inspection is not another chance to conduct a building inspection or find new things to negotiate on. It's specifically about confirming the status of the property relative to what you contracted to buy.

What you're actually checking

The pre-settlement inspection has a focused purpose. You're looking for:

All inclusions are present and in working order. The contract of sale lists inclusions, which are items that form part of the sale. Common inclusions are fixed appliances (oven, cooktop, dishwasher), light fittings, window furnishings (curtains, blinds, shutters), built-in wardrobes, air conditioning units, and any other items specifically listed. Check each one is still there and functioning.

No new damage since the contract was signed. The property should be in substantially the same condition as when you inspected it before buying. Look for anything that wasn't there before: holes in walls, cracked windows, damaged flooring, marks or stains that weren't previously present.

Fixtures haven't been removed. Sometimes vendors remove things they consider to be personal items that a buyer expected to be included. The classic examples are light fittings (a ceiling light fitting is generally considered a fixture and should stay unless excluded in the contract), mirrors that appear to be fixed to the wall, garden features, or items that were clearly present during inspections and weren't listed as exclusions.

Keys, remotes, and alarm codes. Confirm that all keys for the property (house keys, garage keys, letterbox keys), remote controls (for garage doors, gates, air conditioning), and any alarm codes will be handed over at settlement.

Taking a checklist

It helps to go through the contract and write a list of every inclusion before you attend the inspection. That way you're checking specifically against what was contracted, not just relying on memory of what the property looked like during open inspections.

Take your phone or a camera. Photograph anything that concerns you as evidence of the condition at the time of the pre-settlement inspection.

Don't rush. Give yourself enough time to go through the property room by room methodically, including checking appliances actually turn on, running taps to check water pressure, and checking that window and door locks work.

What if something is wrong?

This is the critical point. If you find something at the pre-settlement inspection that shouldn't be there (damage, missing inclusions, items removed), your immediate response should be to contact your conveyancer, not to refuse to settle.

Do not refuse to settle on the basis of a pre-settlement issue unless your conveyancer advises you to. Refusing to settle without proper legal justification puts you in breach of the contract. You could lose your deposit and face legal action from the vendor. That's a much worse outcome than the missing dishwasher.

Your conveyancer can:

• Contact the vendor's conveyancer to raise the issue formally
• Negotiate a deduction from the purchase price at settlement to compensate for the cost of the missing item or repair
• Arrange for a retention amount to be held (an amount held back from the vendor's settlement proceeds until the issue is resolved)
• In serious cases, advise on whether there are grounds to delay settlement

Most pre-settlement issues are resolved this way, by negotiating a deduction or retention at settlement rather than by refusing to proceed.

The closer to settlement the issue is identified, the less time there is to negotiate, which is why attending the inspection several days before settlement rather than on the morning of settlement is sensible.

What if the vendor refuses to cooperate?

If the vendor refuses to address a legitimate issue and your conveyancer can't negotiate a resolution, your conveyancer can advise on whether you have grounds to delay settlement or pursue a claim.

In practice, most vendors want settlement to proceed because they have their own plans (buying another property, paying off their mortgage, accessing the funds). A request for a reasonable deduction or retention is usually preferable to them than a delayed or contested settlement.

Common things found at pre-settlement inspections

Things buyers commonly find at pre-settlement inspections that weren't expected:

• Light fittings removed and replaced with bare bulb sockets
• Dishwasher, washing machine, or dryer removed (check whether these were listed as inclusions)
• Window furnishings (curtains, blinds) removed
• Fixed garden features, pot plants, or outdoor furniture that was visible during inspections and implied to be included
• Keys missing for side gates, sheds, or storage areas
• Damage from the vendor's move-out (wall marks, scratches to floors)
• Alarm system or garage door remote not left with the agent

For newly built properties

For new builds or off-the-plan purchases, the pre-settlement inspection takes on additional importance. You're not just checking that the property is in the same condition as when you bought, you're checking that the construction has been completed properly and to specification.

This type of inspection is more involved. You're looking for defects, incomplete works, items that differ from the agreed specifications, and anything that should have been fixed by the builder but hasn't been. Some buyers engage a building inspector specifically for this purpose when buying a new build.

Practical timing

Ask your agent to arrange the inspection about a week before settlement. This gives enough time for any issues to be raised and (hopefully) resolved before settlement day. An inspection the day before settlement is better than none, but leaves little room for negotiation.

If you can't attend in person, have someone you trust attend on your behalf. This is your property and this inspection is your opportunity to confirm what you're receiving.

Summary

The pre-settlement inspection is a practical, important step. Go through every room methodically, check all inclusions against the contract, photograph anything concerning, and if you find a problem, contact your conveyancer immediately. Don't refuse to settle without legal advice, but don't let the inspection pass without raising legitimate issues either.

Sources

• Consumer Affairs Victoria: Property settlement: the regulator's guidance, including the pre-settlement inspection and what to do if there's a problem.
• Sale of Land Act 1962 (Vic): the law governing the sale, including the standard general conditions that provide the pre-settlement inspection right.

Sources verified 25 July 2026.