What to Check Before Buying a Property: A Homebuyer’s Pre-Settlement Checklist

Buying a home is one of the biggest financial commitments you’ll ever make. Whether it’s your first home or another investment, overlooking critical details before settlement can cost you time, money, and peace of mind. To help you avoid costly mistakes, we’ve put together a comprehensive pre-settlement checklist every buyer should follow before finalising a property purchase.

1. Final Inspection – Don’t Skip It

Before the keys change hands, you’re entitled to a final inspection of the property. This should be arranged within the week leading up to settlement.

What to look for:

• The property is in the same condition as when you signed the contract
• Fixtures and fittings included in the sale (e.g., oven, dishwasher, blinds) are present and working
• No new damage has occurred (e.g., water leaks, broken windows, wall cracks)
• The property has been cleaned and is free of rubbish
• Lights, powerpoints, and appliances are functioning

Bring your contract and any agreed inclusions list with you to cross-check everything.

2. Building and Pest Inspection Report

If you haven’t already done this earlier in the process, a pre-purchase building inspection is essential. It can uncover structural issues, safety concerns, or pest infestations that may not be visible to the untrained eye.

Key issues often flagged include:

• Roof leaks and poor drainage
• Termite activity or damage
• Foundation movement or cracks
• Plumbing leaks or electrical faults
• Mould and dampness

In regions like Melbourne, building conditions can vary significantly across suburbs, making it vital to engage a qualified inspector. If you haven’t booked one yet, now is the time to consider a professional pre purchase building inspection in Melbourne to ensure peace of mind.

3. Check Inclusions and Exclusions

Inclusions are items that come with the property. Make sure everything listed in the contract is accounted for.

Examples include:

• Light fittings and window coverings
• Appliances (dishwashers, stoves, air conditioners)
• Outdoor features like garden sheds or water tanks

If the vendor has removed something that was meant to be included, this should be flagged before settlement.

4. Test Utilities

Confirm that essential services are connected and working:

• Electricity and gas
• Water supply and hot water system
• Internet and phone line availability (especially in outer suburbs)

Issues with utility setup can be inconvenient and delay your move-in timeline.

5. Confirm Repairs Have Been Completed

If the seller agreed to complete any repairs as part of the sale conditions, make sure they’ve been done to a satisfactory standard.

How to confirm repairs:

• Ask for receipts or reports from licensed tradespeople
• Re-inspect the specific areas repaired (e.g., leaking taps, damaged flooring)

Don’t assume work has been done unless you’ve seen evidence.

6. Check Compliance and Permits

Check that any renovations or additions (like decks, pergolas or extensions) have the appropriate council approvals.

Red flags to watch for:

• Unpermitted building work
• Lack of final inspection certificates for completed renovations

If these are missing, it could affect your ability to insure or resell the property later.

7. Review the Certificate of Title

Before settlement, your conveyancer or solicitor should provide a copy of the title. Make sure:

• The vendor is the registered owner
• There are no encumbrances or caveats (e.g., easements, outstanding mortgages)
• Boundaries align with what you’ve seen on site

8. Organise Insurance

You may be responsible for the property from the moment contracts are exchanged — not settlement.

Tips:

• Organise building insurance as soon as the contract is signed
• Compare policies for coverage against natural disasters, theft, and liability

Some lenders won’t approve your loan unless proof of insurance is provided prior to settlement.

9. Review the Final Settlement Statement

A day or two before settlement, you’ll receive a settlement statement detailing all financials.

Check the following:

• Purchase price
• Stamp duty
• Adjustments for rates, water, strata, etc.
• Legal and conveyancing fees

Compare this against your loan details and personal records.

10. Prepare for Moving Day

Finally, plan your move and ensure a smooth transition.

Checklist items:

• Book removalists in advance
• Set up mail redirection
• Notify utilities of the move
• Change your address with banks, insurers, and the ATO

Final Thoughts

A pre-settlement checklist isn’t just a formality — it’s a safeguard against expensive surprises. Being proactive ensures that what you’re buying matches the value you’re paying for.

By thoroughly checking the property and surrounding details, and considering services like a pre-purchase building inspections, you give yourself the best chance of moving into your new home with confidence.

Remember: it’s far better to find a problem now than after the keys are in your hand.

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