Why Pre-Settlement Inspections Are Essential for Property Investors in Perth

For property investors, the days leading up to settlement can be exciting. The hard work is done, the contract is signed and settlement is just around the corner.  But the final step, the pre-settlement inspection, shouldn’t be treated like a formality. Skipping or rushing this inspection can be a costly mistake.

Here’s what you need to know before picking up your keys to your new investment property.

What Is a Pre-Settlement Inspection?

A pre-settlement inspection is usually carried out shortly before settlement. In Western Australia, it is commonly arranged within the five business days before settlement or possession, giving property investors a final opportunity to inspect the property before the sale is completed.

The purpose of the inspection is to check whether the property has been left in the condition required by the contract. It is not a second building inspection, and it generally cannot be used to renegotiate issues that were already visible before the contract was signed unless the contract provides a specific right to do so.

The key question is whether the property still matches what was agreed.

If you identify a problem, the seller is not automatically required to fix it. Whether action is required depends on the contract, when the issue arose, and whether it already existed when your offer was accepted.

If something has changed, is missing, or has not been completed as agreed, raise the issue with your settlement lawyer as soon as possible. Depending on the circumstances, it may delay settlement or need to be resolved before settlement proceeds.

Review Your Contract Before the Inspection

Before attending the inspection, take time to review your contract carefully. This helps you compare the property against the agreed terms rather than relying on memory.

Pay particular attention to:

• Fixtures, fittings and chattels included in the sale.
• Any special conditions.
• Agreed repairs or works to be completed before settlement.
• Whether vacant possession applies.
• Notes, photographs or documents from earlier inspections.

Bring your notes, photographs and relevant documents with you. While a checklist is helpful, your contract is the key reference point.

Pre-Settlement Inspection Checklist 

Walk through the property and take notes.

Condition

Check for any new damage, stains, rubbish being left at the property, broken items, leaks, or changes since your last inspection. Take photos if needed. The burden will be on you to demonstrate the issue is new, so documentation matters.

Inclusions

Make sure everything in the contract is still there (e.g. lights, blinds, appliances, air con, garage remotes, security systems). If something listed in the contract isn't there, this needs to be raised before settlement.

Functionality

Test the basics while you're there: power points and lights, taps, toilets, ovens, dishwashers, air-conditioners, spas, fans, showers, hot water, and any appliances included in the sale. A few minutes spent checking these now can save significant headaches after settlement.

Access & Security

Check doors, windows, locks, gates, garage, and make sure you receive keys, remote controls or access codes on settlement day.

Repairs

If the contract included specific repairs or works to be completed by the seller, verify these have been finished to a reasonable standard. If they haven't, document what's missing and contact your settlement agent straight away.

Outside

Check fences, sheds, outdoor taps, reticulation, and any included outdoor equipment.

What Should Property Investors Do If Something Is Wrong?

If something doesn't look right, don't wait. Document the issue thoroughly with photos and video, compare it against your contract, and contact your settlement agent as soon as possible. Given the tight timeframe before settlement, acting quickly is essential.

It's also worth remembering that not every issue will automatically require the seller to act. Whether a remedy is available depends on your contract, when the issue arose, and whether it existed before you signed. Your settlement agent is best placed to advise you on your options.

For investors who use a property manager, it's also worth looping them in, particularly if the property is tenanted or will be leased shortly after settlement. They can help identify issues that may affect the property's rental readiness and advise on next steps.

A Final Note

A pre-settlement inspection takes an hour at most. The peace of mind it provides, and the problems it can help you avoid, make it one of the most valuable hours you'll spend as a property investor.

If you have questions about preparing for settlement or managing your investment property in Perth, the Rent Choice team is here to help.

Additional sources:

Developer. (2026, June 29). Pre-Settlement Inspection Checklist | Check before settlement. Lotus Legal. https://lotuslegalperth.com.au/pre-settlement-inspection-checklist/