Pre-Settlement Inspections: What You Can (and Can’t) Ask For
Buying a home is one of the biggest investments most people will ever make. As settlement day approaches, one of the final steps in the process is the pre-settlement inspection. Many buyers assume this is a chance to renegotiate the deal or demand improvements – but in reality, the scope of what you can ask for is more limited.
At Goodwill Law, we regularly guide clients through this stage, and here’s what you need to know.
What is a Pre-Settlement Inspection?
Under clause 3.2 of the ADLS Agreement for Sale and Purchase of Real Estate, a buyer is entitled to complete a pre-settlement inspection of the property within a reasonable time before settlement.
The purpose is simple: to make sure the property is in the same condition it was in at the time the agreement was signed, subject to fair wear and tear. It’s also to confirm that any agreed repairs or maintenance have been carried out by the vendor.
What You Can Ask For
During the inspection, you are entitled to raise concerns if:
Damage has occurred since signing – e.g. broken windows, storm damage, or vandalism.
Chattels included in the sale are missing or not working – such as heat pumps, ovens, or curtains.
Agreed work has not been completed – for example, if the vendor promised to fix a leaking gutter before settlement.
The property has not been reasonably maintained – long grass or rubbish left behind could fall outside “fair wear and tear.”
In these situations, your lawyer can ask the vendor to fix the issue before settlement, or negotiate a financial adjustment at settlement.
Important note: The terms of the ADLS Agreement require that any claim for compensation or remedy arising from issues identified during the pre-settlement inspection must be raised prior to the settlement date. If you leave it until after settlement, you may lose the ability to claim.
What You Can’t Ask For
A pre-settlement inspection is not a chance to renegotiate the contract. That means you cannot:
Require the vendor to fix issues that existed when you first viewed the property (unless the contract required it).
Ask for upgrades, renovations, or cosmetic improvements.
Cancel the agreement because you’ve changed your mind or discovered non-urgent defects.
If the property has issues you didn’t pick up on before signing, unfortunately you are bound by the agreement unless specific conditions were included (such as a builder’s report or solicitor’s approval condition).
Common Disputes We See
Some of the most frequent disagreements around inspections include:
Power disconnections: Buyers can’t check chattels if the electricity is off. Vendors should reconnect power so inspections are meaningful.
Unconsented alterations: If you only notice after signing, the vendor is not automatically obliged to fix this.
Chattels swapped out: A vendor might replace an agreed item (like a dishwasher) with a lesser model. This can give rise to a valid claim.
How Goodwill Law Can Help
If issues come up during your inspection, timing is critical. Your lawyer can:
Notify the vendor’s lawyer of the problem.
Request repair or replacement before settlement.
Negotiate a price reduction or retention from settlement funds if work can’t be completed in time.
At Goodwill Law, we ensure your rights under the ADLS Agreement are enforced so that you get what you contracted for – no less.
Final Thoughts
A pre-settlement inspection is your last chance to make sure the property is delivered in the condition you agreed to buy. But if issues aren’t raised before settlement, you may lose your right to claim.
If you’re buying property and want clear advice on your rights – from drafting conditions through to handling settlement hiccups – the team at Goodwill Law is here to help. Our team of experienced lawyers and legal executives can:
Guide you on what to look out for during your inspection.
Act quickly if problems are discovered.
Negotiate repairs, replacements, or compensation with the vendor’s lawyer.
Call us today or visit goodwill.law to protect your purchase.