Why a Pre-Settlement Inspection Matters Before You Settle
A pre-settlement inspection is your last look at a property before the money changes hands. Its job is to confirm the home and its chattels are in the same condition they were in when you signed the sale and purchase agreement, and that any repairs the seller agreed to have been done. It is not a second building inspection, and it is not a chance to renegotiate. Done properly, it takes under an hour and can save you from taking over a home with damage, missing items or unfinished work.
This guide explains why the inspection matters, when to book it, what to check, and what to do if something is wrong. We also cover it from the seller’s side, because knowing what a buyer will look for helps you prepare.
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TL;DR
- A pre-settlement inspection checks that the property is in the same condition as when the agreement was signed, and that agreed repairs are finished.
- In New Zealand, buyers should arrange it at least 2 working days before settlement, so the seller has time to fix any issues.
- Take your agreement, your chattels list and a phone for photos. Test things, do not just look at them.
- If you find a problem, call your lawyer or conveyancer straight away rather than raising it with the seller yourself.
- Tenanted homes work differently, and the buyer may not have a right to inspect.
Table of Contents
- What a pre-settlement inspection actually is
- Why the inspection is worth doing
- When to book it and who can attend
- What to check, room by room
- What the inspection is not for
- What to do if something is wrong
- The seller’s side: how to be ready
- Perspective
- Selling a home that is not in perfect shape?
- FAQ
- Sources
What a pre-settlement inspection actually is
The inspection happens after the agreement is unconditional and before settlement day. You walk through the property, usually with the agent, and compare what you see with what you agreed to buy.
The official government guide, Settled.govt.nz, says the purpose is to check the property and its chattels are in the same condition as when the agreement was signed, and that agreed repairs have been completed. That wording matters. The inspection looks for change, not for flaws that were already there.
Chattels are the items that stay with the house, such as the oven, heat pump, blinds and light fittings. They are listed in your agreement. If you want a refresher on how they work, our guide on the role of chattels in property sales covers it in plain language.
How it differs from a building inspection
People often mix the two up, so it helps to separate them.
| Building inspection | Pre-settlement inspection | |
|---|---|---|
| When | Before you commit to the purchase | After you commit, shortly before settlement |
| Purpose | Find out the condition of the structure and any defects | Confirm nothing has changed and agreed work is done |
| Who does it | Usually a qualified building inspector | Usually you, often with the agent |
| Can it change the deal? | Yes, it can lead to a price talk or a decision to walk away | No, it is a final check against the agreement |
Think of the building inspection as the question “should I buy this?” and the pre-settlement inspection as “is this what I agreed to buy?”
Why the inspection is worth doing
Once you settle, the house is yours. So is any broken appliance, hole in a wall or pile of rubbish left in the garage. Raising a problem before settlement gives your lawyer leverage. Raising it afterwards usually means a harder, slower conversation.
There are four main reasons to take it seriously.
- Damage can happen between signing and settlement. Moving furniture out is where most scuffs, dents and broken fittings appear. A burst pipe, storm damage or a break-in can also happen in that gap.
- Chattels can go missing. Items listed in the agreement should still be there and working. Settled.govt.nz lists checking that chattels are present and working as part of the inspection.
- Agreed repairs may not be finished. If the seller promised to fix a leaking tap or repair a fence, this is where you confirm it.
- The seller must have moved out properly. Rubbish and belongings should be gone, and you should know how you will get keys, garage remotes and alarm codes.
When to book it and who can attend
Book early. Settled.govt.nz advises buyers to arrange the inspection at least 2 working days before settlement. That gap gives the seller time to put right anything you find. If you leave it to the morning of settlement, there is no room to fix anything, and the options are to settle anyway or delay.
Your lawyer or conveyancer will usually tell you the exact window under your agreement. Ask them when you sign. The agent helps arrange access, and the seller is expected to make the property available. Settled.govt.nz states that a seller must make the property available for the inspection, unless the property is sold with a tenancy in place.
You can go alone, bring the agent, or bring a partner or family member as a second pair of eyes. If the house is large, older, or has had recent repair work, some buyers bring a builder or building inspector for a more professional look. That is your choice, and worth considering when a lot of money rides on the repairs being done properly.
What if the property is tenanted?
Tenancies change the picture. According to Settled.govt.nz, where a tenancy continues after settlement, the buyer may not be entitled to a pre-settlement inspection. If the tenancy ends on or before settlement, the buyer should have the right to inspect, subject to the tenant’s consent and reasonable notice.
In practice, if you are buying a tenanted home, talk to your lawyer early about what access you can get and what the agreement says.
What to check, room by room
Bring your sale and purchase agreement, including the chattels list, and your phone. Do not rush. Work through the house in the same order each time so you do not miss a room.
Start with the paperwork
Read the chattels list and any clauses about repairs or work to be completed. Have the agreement open, not just in your head. If you have photos from the open home or your earlier inspection, use them to compare.
Inside the home
- Chattels: Check each listed item is present. Turn on the oven and hob, run the dishwasher if it is included, and switch on the heat pump or heater.
- Fixtures: Test lights, switches, power points, taps, showers and toilets. Look under sinks for damp or leaks. Check curtains, blinds and rails that were included.
- Doors and windows: Open and close them, and check the locks work.
- Walls, ceilings and floors: Look for new marks, holes, cracks, stains or scratches, especially along hallways and doorways where furniture was carried out.
- Smoke alarms: These are easy to forget. Press the test button on each one.
- Cleanliness: Rubbish, unwanted furniture and leftover belongings should be gone.
Moisture and mould
Damp is one of the issues that can appear quickly in an empty house, particularly if windows have been shut or ventilation has stopped. Look at ceiling corners, window frames, bathrooms and the backs of wardrobes for fresh staining or a musty smell. If you see signs, a specialist can explain causes and fixes, for example when looking into black mould and condensation fixes and how ventilation affects them. Photograph anything you see and pass it to your lawyer.
Outside
- Check fences, gates, the letterbox and the driveway for new damage.
- Look over the roof, gutters and downpipes from the ground for anything out of place.
- Check the garden, sheds and garage. Rubbish and old materials should be removed.
- Confirm garage remotes, keys and any alarm codes will be handed over at settlement.
Repairs the seller agreed to do
If the agreement says the seller will repair something, check the work is finished and looks reasonable. Ask for any receipts, warranties or consent paperwork that your agreement says should come with it.
What the inspection is not for
This is where buyers get caught out. Settled.govt.nz is clear that the inspection is not an opportunity to uncover problems that existed when you signed the agreement. A worn carpet you saw at the open home, an old stain or a sticky window is not new damage, and the seller is not expected to fix it now.
That is why the earlier steps matter. If you want to know about hidden defects, a building inspection before you sign is the tool. Our article on property defects explained walks through what NZ sellers need to know about them, which helps buyers understand why the line is drawn where it is.
What to do if something is wrong
Stay calm, and do not argue with the agent or seller on the spot. Follow these steps.
- Document it. Take clear photos, note which room or area it is in, and write down the date and time.
- Call your lawyer or conveyancer immediately. Settled.govt.nz advises that they can negotiate with the seller’s representative to have the issue fixed, or to deduct repair costs from the final payment.
- Keep everything in writing. Verbal promises are easy to forget when settlement is close. Ask that any agreement to fix something is recorded in writing through the lawyers.
- Do not move in or take keys early unless your lawyer has confirmed the position.
Settlement dates are firm, so speed matters. That is the reason for inspecting at least two working days ahead, not on the day.
The seller’s side: how to be ready
If you are selling, the inspection is a chance to finish cleanly. Most disputes can be avoided with a few habits.
- Read your chattels list and leave every listed item in place and working.
- Complete any repairs you agreed to, and keep the paperwork.
- Remove all rubbish and belongings, including from the garage, shed and under the house.
- Take care when moving furniture out, and protect floors and walls.
- Arrange keys, remotes and alarm codes in advance.
- Make the property available for the inspection, as the agreement expects.
Our property inspection checklist for cash sellers and the wider property sale checklist help you keep track of the final tasks.
Perspective
We speak to a lot of homeowners whose biggest worry is not the price, it is the process. Settlement is where that worry peaks. Sellers fear a last-minute complaint, and buyers fear a surprise.
Our view is that the fewer moving parts there are, the less can go wrong. That is why we built easySale around a simple path: you tell us about your property, you get a no-obligation offer, and you settle on a timeline that suits you. There are no agent fees or commissions, and you do not need to repair or stage the home first.
For many sellers, particularly those with a damaged, tenanted or inherited property, that means less pressure around the final inspection too. You can read more about how a no-inspection offer works and decide whether it fits your situation.
Aaron
Selling a home that is not in perfect shape?
Not every seller wants to clean, repair and prepare for buyers and their inspectors. If your home is damaged, unconsented, tenanted, inherited or just tiring to manage, easySale can buy it as it is. We offer a fair, no-obligation cash offer, with no agent commission and no repairs required, and you choose a settlement timeline that works for you.
If you need to move quickly, see our fast sale option. If the property needs work, our page on selling a damaged house as is explains how that works. You can also start at easySale.co.nz and tell us about your property.
FAQ
Is a pre-settlement inspection compulsory?
It is not something you must do, but it is strongly recommended. Your right to inspect usually comes from your sale and purchase agreement, so ask your lawyer what yours says. If you skip it, you have fewer chances to raise a problem before you take ownership.
How long does a pre-settlement inspection take?
Most take around 30 to 60 minutes, depending on the size of the home and how many chattels you need to test. Allow more time if the seller completed repairs or the property is large. Do not rush, because you only get a limited window.
Can I ask the seller to fix things I did not notice before signing?
Generally no. The inspection checks for changes since the agreement and for agreed repairs. Problems that already existed when you signed are not normally the seller’s job to fix at this stage, so raise any concerns with your lawyer.
Who should come with me?
The agent can help with access, and a partner or relative is useful as a second pair of eyes. A building inspector or builder is worth considering if there were repairs or major work. Your lawyer does not usually attend but should hear about any issues straight away.
What if my buyer or seller is in a tenancy situation?
If the tenancy continues after settlement, the buyer may not have the right to inspect. If it ends on or before settlement, the buyer should be able to, with the tenant’s consent and reasonable notice. Your lawyer can confirm how this applies to your agreement.
Sources
- Planning for settlement day when buying, Settled.govt.nz
- Planning for settlement day when selling, Settled.govt.nz
