Your Guide to Pre-Settlement Inspections and Preparing for Moving In

Buying a home is exciting, but the steps leading up to settlement are just as important. One key part of this process is the pre-settlement inspection, which helps ensure the property and chattels are in the same condition as when you agreed to buy. Here’s everything you need to know.

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What Is a Pre-Settlement Inspection?

The pre-settlement inspection is your opportunity to check that the property and any included chattels (like appliances or fixtures) are in the same condition as when you signed the sale and purchase agreement.

Important: This inspection is not a chance to uncover pre-existing problems. Its purpose is to make sure the seller has met the agreed conditions and that nothing has changed since you signed the agreement.

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Arranging the Inspection

• Contact your real estate agent to schedule the inspection.
• It should be at least 2 working days before settlement to allow time for any issues to be addressed.
• If the property is tenanted, extra time may be needed to get the tenant’s consent.
• If you want the property cleaned before moving in, include this in your agreement, for example, by specifying that it should be commercially cleaned.

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What to Check During Your Pre-Settlement Inspection

Bring a copy of your sale and purchase agreement so you can refer to any conditions or chattels. Check:

• The property is in the same condition as when you signed the agreement.
• All chattels listed in the agreement are present and in good working order (unless agreed otherwise).
• Fixtures like lights, curtains, and alarms are functioning.
• There is no damage caused since signing, such as from storms, earthquakes, or moving out.
• Any agreed maintenance or repairs have been completed.
• All previous occupants’ belongings and rubbish have been removed.
• All keys, garage remotes, and security codes are accounted for.

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What to Do if You Find Issues

If you notice any damage or missing items that weren’t present when you signed:

1. Contact your lawyer or conveyancer immediately.
2. They will advise you on options and negotiate with the seller’s lawyer to fix the problem.
3. The seller may:
   • Fix the issue immediately, or
   • Agree that the cost of repairs is deducted from the final payment.

Tip: Having the inspection at least 48 hours before settlement allows time to resolve any problems. This protects you from having to pay compensation if there’s a delay.

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Payments and Costs on Settlement Day

• The final payment for the property is made on settlement day. Arrange this with your bank or lender in advance.
• Additional costs may include rates or other fees paid in advance by the seller.

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Insurance

• Full insurance is usually required for your property finance.
• Arrange insurance before settlement day so the property is covered from the day you take possession.
• Your lawyer or conveyancer will request proof of insurance.

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How Your Lawyer or Conveyancer Helps

Your lawyer or conveyancer ensures all paperwork and payments are completed on settlement day. Before settlement, you’ll need to:

• Sign an authority to transfer the title.
• Sign your bank’s home loan and finance agreements if applicable.
• Verify your identity.

They’ll also answer any questions about settlement—remember, your real estate agent works for the seller, not the buyer.

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Other Things to Do Before Settlement Day

• Book a moving company and plan the move.
• Arrange care for children or pets on moving day.
• Consider moving the day after settlement to avoid last-minute issues.
• Leave time to clean your new home before moving in.
• Arrange transfer of services (internet, electricity, gas, phone).
• Notify your landlord if renting and apply for your bond refund.
• Update your contents insurance to cover your new home and the move.

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Tip: Planning ahead and giving yourself plenty of time ensures settlement day is smooth, stress-free, and that your new home is ready to enjoy from day one.