Three Property Inspections Before Settlement

Most of the money in a property purchase changes hands at settlement. Much of the checking happens before it, across three inspections at different points in the buying journey. One before an offer is made. One focused on the building and pest condition. One shortly before settlement. Different timing, a different job each time, and each is designed to catch something the others may not.

1. The pre-offer inspection: eyes on the ground, before you offer

The first inspection happens before an offer is made. In our process, it isn't the buyer who walks the property, and it isn't us. It's a local property manager we've briefed, someone who regularly inspects rental property in that area and can give us another set of eyes on the property before we proceed.

The purpose isn't to diagnose structural or building issues. It is to observe the property in person and flag anything that may warrant further investigation. That can include the light and aspect, floorplan, position relative to roads and neighbouring properties, general condition and any visible concerns that don't come through clearly in photographs.

Those observations form part of our decision about whether the property remains worth pursuing and whether anything needs to be investigated further before an offer is made.

2. The building and pest inspection: the specialist's eyes

A separate building and pest inspection is carried out by a suitably qualified and appropriately insured professional, with any licensing requirements depending on the state or territory in which the property is located.

The timing can differ depending on the transaction, contract and jurisdiction. It may occur before contracts are exchanged or at another appropriate point before the buyer becomes unconditionally committed. The client's solicitor or conveyancer advises on the contractual timing and any relevant rights.

The inspection looks more closely at the property's building and pest condition, including matters within the inspector's scope such as significant building defects, moisture or movement concerns, roof and subfloor areas where accessible, and evidence of pest activity.

We prefer the inspection to be independently arranged rather than relying solely on information supplied by the selling side. The written report matters, but so can speaking directly with the inspector to understand which findings are significant, which may simply reflect the property's age and condition, and whether any further specialist investigation has been recommended.

If the inspection identifies concerns, those findings are reviewed before proceeding. Where the findings may affect contractual rights or obligations, the client's solicitor or conveyancer advises on the available options under the contract.

3. The pre-settlement inspection: the last look before settlement

The third inspection happens shortly before settlement. Its purpose is to check the property's condition against what was agreed under the contract and identify anything that appears to require attention before settlement.

• Does the property appear to be in substantially the same condition as when contracts were exchanged?
• Are the agreed inclusions still present?
• Is there any obvious new damage or change that should be raised before settlement?
• Does the property's occupancy or tenancy position appear consistent with what has been agreed?

If something appears inconsistent or requires attention, it is raised with the client's solicitor or conveyancer before settlement. They can then advise the client on any rights, obligations or next steps under the contract.

Why the timing matters

No single inspection answers every question about a property. The pre-offer inspection helps us decide whether the property is worth pursuing. The building and pest inspection brings in a specialist assessment of the property's condition. The pre-settlement inspection checks for changes or issues shortly before the transaction completes.

Each inspection has a different purpose, and none replaces the others or the work of the client's solicitor, conveyancer or other appropriately qualified professionals.

If you want the detail on how we assess price before an offer is made, we've written that up separately: How We Assess the Price of Every Property Before We Offer.