A young purchaser signed an Agreement to purchase her first home.  The week before settlement, both her lawyer and the real estate agent advised her that she had the right to do a “pre-settlement inspection” of the property.  She didn’t know what this was.

The standard Agreement for Sale and Purchase gives the purchaser a right to do a pre-settlement inspection before the settlement date.  This is normally around the day before settlement.

Generally, the things a purchaser should check as part of a pre-settlement inspection include:

1. That the property is in the same condition as when the Agreement was signed;
2. That all the same chattels listed on the Agreement (e.g. light fittings, oven, rangehood, dishwasher) are still in the property and are in reasonable working order;
3. Any damage to the property since signing of the Agreement (which may include damage during moving out);
4. If the vendor had agreed to carry out any maintenance or repairs to the property prior to settlement then checking that these matters have been completed;
5. In the event of any earthquakes or storms between when the Agreement was signed and settlement, checking that this has not caused any damage to the property;
6. That the property is free of any rubbish.

If the property and/chattels have been damaged (or if any chattels are not in reasonable working order) then there is generally a right of compensation, which the purchaser would need to discuss with their lawyer. The purchaser usually cannot just refuse to settle on the settlement date.