You’ve had a building and pest inspection done, so why does your conveyancer now want you to do another inspection before settlement?
A pre-purchase inspection and a pre-settlement inspection serve two different purposes. One helps you decide whether to proceed with the purchase. The other checks that the property is still in the expected condition before you settle.
This guide explains what each inspection covers, when to arrange it in a Queensland purchase, and why you may need both.
Key takeaways:
- A pre-purchase building and pest inspection is a detailed visual inspection by a licensed inspector, often done in Queensland during the building and pest condition period after signing.
- A pre-settlement inspection is a final check that the condition, inclusions and any agreed repairs match the contract.
- Most buyers need both. They are two checkpoints in the same purchase, not alternatives.
- The standard REIQ residential contract gives buyers one pre-settlement inspection, so timing matters.
- A pre-settlement inspection is not a second chance to renegotiate the price over defects that were already there.
- If something has changed, record it and contact your conveyancer or solicitor before settlement.
What is a pre-purchase inspection?
A pre-purchase building inspection, usually combined with a timber pest inspection, gives you a detailed assessment of the property’s condition before you buy. A licensed inspector checks accessible areas, including the interior, exterior, roof space and subfloor, and reports defects from minor issues to major structural problems.Â
Ideally, you complete a pre-purchase inspection before you sign the contract. In Queensland, however, buyers often sign first and arrange the inspection during the building and pest condition period included in the contract. This gives the buyer a set period to have the property inspected and decide how to proceed if the report identifies problems.
The standard contract from the Real Estate Institute of Queensland (REIQ) can include a building and pest condition, making the sale subject to satisfactory reports by the inspection date in the contract. If a report is unsatisfactory, you may be able to end the contract, but you must act reasonably and give written notice by 5 pm on the inspection date. If you miss that deadline, the seller may be able to terminate.
Auctions work differently. There is no building and pest condition and no cooling-off period, so inspect before you bid.
What is a pre-settlement inspection?
A pre-settlement inspection is a final walkthrough to confirm nothing has been damaged, removed, or left undone since you signed.Â
Under the standard REIQ residential contract, the buyer can enter the property once before settlement to inspect it, after giving the seller reasonable notice. The contract also allows the seller to continue using the property reasonably until settlement, subject to the terms of the contract. Because the right is usually limited to one visit, arrange it as close to settlement as practical, ideally once the property has been vacated and before settlement.
A typical pre-settlement inspection checklist covers any repairs written into the special conditions, the inclusions listed in the contract, and whether taps, switches, hot water and garage doors work. Look for new damage from the move-out, and check that rubbish and belongings are gone. Many buyers do it themselves with the agent present. An inspector can attend if you want a trained eye, which helps most when the contract includes agreed repairs.
Pre-purchase vs pre-settlement inspection: how do they compare?
| Pre-purchase inspection | Pre-settlement inspection | |
|---|---|---|
| When it happens | Ideally before signing; commonly within the building and pest condition period after signing; before auction day at auction | As close to settlement as practical, ideally once the property has been vacated |
| Main purpose | To help you decide whether to proceed, negotiate or end the contract | To confirm the property has not changed and the contract terms have been met |
| What is checked | Structural defects, significant defects, timber pests and conditions conducive to damage | Agreed repairs, inclusions, working fixtures and new damage |
| Who carries it out | A licensed building and pest inspector | Usually the buyer, often with the agent present; an inspector can attend |
| Basis in a Queensland contract | The building and pest condition, where an inspection date is included | The buyer’s standard right to enter once before settlement to inspect |
| What happens with the findings | Proceed, negotiate in writing, or end the contract if the report is unsatisfactory | Raise issues with your conveyancer or solicitor before settlement |
Do you need both?
For most buyers, yes. They sit at opposite ends of the same purchase.
A typical Queensland purchase runs like this:
- Sign the contract. The contract may include finance and building and pest conditions.
- Book the pre-purchase inspection. A five-business-day cooling-off period starts the day you receive the contract signed by both parties. If you can, arrange the inspection before signing or immediately afterwards.
- Deal with any issues. If the report raises problems, negotiate with the seller in writing within the relevant condition period.
- The contract becomes unconditional. Once all applicable contract conditions have been satisfied or waived, you are committed to the purchase.
- Complete the pre-settlement inspection. Close to settlement, check that the property is in the expected condition and that agreed repairs and inclusions are in place.
- Settle.
In short, the difference between a building inspection and a settlement inspection comes down to what each one is checking: one looks for defects, while the other checks for changes since the property was inspected.
Is a pre-settlement inspection necessary?
It is not compulsory. The standard REIQ residential contract gives you the right to one, but it doesn’t require you to use it. However, skipping it because you already had a building and pest inspection is a mistake.
Plenty can change before settlement. Furniture comes out and reveals damage. Fixtures go missing. Agreed repairs are not finished. Once settlement occurs, it may be too late to resolve these issues through the settlement process.
Can you negotiate after a pre-settlement inspection?
Not in the way many buyers hope. The pre-settlement inspection is not generally the stage to renegotiate over defects that were already present when you signed. That is why any issues identified during the pre-purchase inspection need to be addressed under the relevant building and pest condition before the inspection date. Even then, the seller does not have to agree to any repairs or price reduction.
A pre-settlement inspection can identify changes since you signed the contract, such as new damage, missing inclusions or unfinished repairs. If you find an issue, take photos and contact your conveyancer or solicitor before settlement. Depending on the contract and their advice, the seller may need to fix the problem, settlement may be delayed, or a financial adjustment may be agreed. None of these outcomes is automatic.
What is the biggest red flag in a home inspection?
There is no single answer, but two kinds of findings in a pre-purchase report carry the most weight. The first is a major structural defect: damage to a load-bearing part of the building, such as the footings, floors, walls, or roof trusses, serious enough to put all or part of the structure at risk. The second is termite activity or termite damage, which the pest and termite inspection covers.
Conditions conducive to structural damage, such as poor drainage, deserve attention even if nothing has failed yet. The report will also list any areas the inspector could not access, and some findings may need further advice from a plumber, electrician or engineer. Minor defects, such as wall dents or thin cracks, generally affect appearance or function rather than structural integrity.
Book your inspection
Inspect My Home has provided independent property inspections since 1995. Its licensed and insured inspectors work across Queensland, including Brisbane, the Gold Coast, the Sunshine Coast, Toowoomba, Townsville and Cairns, and reports are emailed within 24 hours. To book a building inspection, use the online form or call 1300 337 447.
For questions about your contract or your rights at settlement, speak with your conveyancer or solicitor.
FAQs
Can you have more than one pre-settlement inspection?
The standard REIQ residential contract allows one. Extra access is not automatic and needs to be negotiated with the seller, ideally through your agent or solicitor before you sign.
Can you visit the property before settlement to measure for furniture or blinds?
Not automatically. The standard REIQ residential contract only allows entry for set purposes, such as inspections and a valuation. Any other visit needs the seller’s agreement.
Do the same rules apply to off-the-plan or new builds?
Not necessarily. Off-the-plan contracts may not follow the standard REIQ terms, so access depends on the contract you signed. For a newly built home, a handover inspection identifies outstanding defects and incomplete work before you take possession.
