Settlement day - Property settlement guide
Understanding the pre-settlement inspection
Your final property inspection represents your last checkpoint before settlement—the opportunity to verify everything is as agreed when you signed the contract. This inspection is particularly important if the seller has occupied the property during the 30-90 day period between contract and settlement, as this timeframe allows for accidental damage to occur.
Why pre-settlement inspection matters
While pre-settlement inspection is not mandatory, skipping this important step carries unnecessary risk. This inspection serves as your safeguard against hidden surprises, ensuring the property is in the condition expected before legal ownership transfers. Many issues can develop between contract and settlement—accidental damage, pest infestations, or maintenance problems can arise surprisingly quickly. Your pre-settlement inspection catches these issues, giving you opportunity to negotiate repairs or price adjustments before the point of no return. The small cost and effort of inspection pays dividends by protecting your substantial investment.
Optimal inspection timing and preparation
Ideally conduct your pre-settlement inspection a few days before settlement day. This timing provides enough buffer to address minor issues without creating last-minute scrambles that compromise settlement. A few days' notice also allows you time to contact your conveyancer if issues arise and explore resolution options before settlement. As the buyer, you're responsible for arranging the inspection—schedule it at a time you can be present. Bring along a trusted friend or family member with property knowledge for an extra set of eyes, or engage your buyer's agent if you have one. Your conveyancer won't typically join the pre-settlement inspection, but they're your first call if you discover issues requiring resolution.
Inspection tip: Conduct your inspection systematically, examining each area methodically rather than rushing through. Take photos and notes of any issues, creating documentation for your conveyancer if negotiation becomes necessary.
Pre-settlement inspection checklist
Use this detailed checklist to ensure comprehensive examination of your soon-to-be property before settlement finalises ownership transfer.
Water systems and pressure
Test water pressure at all taps in kitchens, bathrooms, and laundry areas. Water should flow smoothly and consistently without fluctuating pressure. Reduced pressure compared to your initial inspection may indicate problems. Check for leaks under sinks and around connections. Verify hot water systems function properly. Test all toilet flush mechanisms for proper operation. These checks ensure water systems work reliably for daily living.
Doors, windows, and access points
Open and close all doors throughout the property, verifying smooth operation and proper locking mechanisms. Test all windows for functionality, smooth opening and closing, and secure latching. Check weatherstripping for signs of deterioration. Inspect locks on external doors for security. Verify any special access points function as expected. Proper door and window operation is essential for security and weather protection.
Electrical systems and lighting
Flick every light switch on and off to confirm proper operation throughout the property. Test any ceiling fans or integrated electrical devices. Check power outlets with a simple device to verify they're functional and properly polarised. Note any switches or outlets that don't function properly. Electrical system reliability is fundamental to comfortable living.
Plumbing and water-related issues
Inspect all visible pipes for signs of leaks or water staining. Check under sinks and around toilets for moisture or damage. Ensure shower and bath drains function properly. Verify septic systems (if applicable) show no signs of issues. Water-related problems can be expensive to repair, making thorough inspection essential.
Appliance functionality
For any appliances included in the sale—dishwashers, ovens, washing machines, dryers—conduct basic functionality tests. Run a test cycle to verify operation. Check for unusual sounds or vibrations indicating potential problems. Confirm all controls respond properly. Appliance verification prevents disappointing discoveries after moving in.
Heating and cooling systems
Activate heating systems to verify proper operation (essential during cooler months). Test cooling systems for cold months inspection planning. Systems should reach expected temperatures without unusual sounds. Proper climate control is essential for comfort and energy efficiency.
Safety systems and alarms
Test all smoke alarms by pressing their test buttons—they should sound loudly and clearly. Verify carbon monoxide detectors function if present. Check security system operation if included. Safety systems protect your home and family, making their functionality non-negotiable.
Interior condition assessment
Examine walls, ceilings, and floors for new damage not present during previous inspections. Look for water stains indicating leaks. Check paint condition for new damage or deterioration. Inspect flooring for scratches or damage beyond normal wear. Note any cracks in walls or ceilings. New damage gives you grounds for repair negotiation.
Pest and structural indicators
Look for signs of new pest infestations including droppings, damaged wood, or unusual marks suggesting termite or rodent presence. Check dark corners and under furniture where pests hide. Pest evidence warrants professional inspection before settlement. Structural issues—new cracks, sagging, or unusual settling—require immediate attention.
Curtains, blinds, and included furnishings
Verify all curtains and blinds included in the sale are present and in the agreed-upon condition. Test their functionality—they should operate smoothly and completely. Note any damage or wear requiring replacement. Clarity on included furnishings prevents post-settlement disputes.
What to do if you discover issues
Discovering problems during pre-settlement inspection requires systematic action to protect your interests.
Document everything thoroughly
If you spot something that wasn't present during earlier inspections, photograph and document it comprehensively. Take clear photos from multiple angles showing the problem clearly. Write detailed notes including location, nature of damage, and when you first noticed it. This documentation becomes crucial evidence if disputes arise. Detailed records support your negotiating position and demonstrate you're taking the matter seriously.
Contact your conveyancer immediately
Your conveyancer is your legal expert and should be your first call when issues arise. They understand your rights and the legal remedies available. They can advise whether issues constitute grounds for repair demands, price reductions, or other resolutions. They know how to formally raise concerns with the seller's legal representative. Their expertise is invaluable in navigating resolution processes, ensuring you don't inadvertently compromise your position. Provide them with your documentation and detailed issue descriptions.
Price renegotiation considerations and timing
If issues warrant price reductions or repair credits, your conveyancer may negotiate with the seller's representative. However, any changes to the agreed-upon sale price could impact your loan approval—this is where Buyvest steps in as your mortgage broker partner. Before you proceed with renegotiating the purchase price, contact us. We'll assess how price reductions might impact your loan application and advise you accordingly. Our goal is ensuring your path to homeownership remains smooth and free of unexpected financial complications. Sometimes a smaller price reduction is preferable to delayed settlement or complications with your lender. We help you make informed decisions balancing all considerations.
Critical step: Always inform your mortgage broker before finalising any price changes. What seems like a minor reduction could have implications for loan approval or financing terms that warrant careful consideration.
The final countdown to settlement day
Once your pre-settlement inspection is completed and any issues are addressed, you enter the final countdown to settlement—an exciting period requiring minimal additional action but warranting some key preparations.
Settlement timing and coordination
Settlement dates are established in your purchase contract and typically occur 30-90 days after contract signing. Your conveyancer coordinates with the seller's solicitor, the lender, and the settlement agent to confirm all documentation and funds are prepared. Settlement usually occurs at a settlement office or through electronic transfer, with your conveyancer handling most processes on your behalf. You generally don't need to physically attend settlement; your conveyancer represents your interests. On settlement day, funds transfer from your lender and any personal deposits to the seller, contracts transfer ownership, and keys are collected.
Final financial confirmations
In the days before settlement, confirm all funds are properly arranged. Verify your lender has confirmed final approval and funding is scheduled. Confirm any personal deposit contributions are available for transfer. Review the final settlement statement from your conveyancer showing all costs and final payment amounts. Ensure you understand the exact amount required at settlement. Clarify any questions about costs or adjustments before settlement day. Financial clarity prevents surprises when settlement occurs.
Key collection and access preparation
Arrange when and where you'll collect property keys. This typically occurs through your conveyancer at settlement time, though sometimes sellers or agents arrange collection. Confirm access arrangements in advance. Plan timing to access the property after settlement to conduct a final walkthrough. Prepare for moving arrangements and utilities connection if settlement involves taking immediate possession. Being organised ensures smooth transition to property ownership.
Moving and occupancy planning
Coordinate moving arrangements to align with settlement if taking immediate possession. Arrange utilities connection for electricity, gas, water, and internet. Update address information with banks, insurance, and service providers. Plan for any cleaning or immediate maintenance needs. Arrange for removal of any items the seller was retaining. Being prepared allows immediate comfortable occupation after settlement.
Related reading: For comprehensive first home buyer guidance throughout your journey, explore our important first home buyer tips guide.
Common questions about property settlement
What is the typical settlement timeline?
Settlement timelines are established in your purchase contract and typically range from 30-90 days after contract exchange. Standard practice is 30 days for established properties and up to 90 days for off-the-plan or construction properties allowing more time for inspections and preparations. Your conveyancer manages the timeline and coordinates with all parties to ensure timely settlement.
What happens at settlement?
At settlement, funds transfer from your lender and any personal contributions to the seller's account. Contract documents transfer ownership of the property to you. The seller releases keys and transfers access credentials. Your conveyancer handles nearly all processes on your behalf. You don't typically attend in person. Electronically, the property ownership transfers and you become the legal owner.
Who handles the settlement process?
Your conveyancer (solicitor or licensed conveyancer) handles the entire legal settlement process on your behalf. They coordinate with the seller's legal representative, your lender, and the settlement agent. They prepare all necessary documentation, manage funds, verify all conditions are met, and coordinate the actual settlement. Your role is minimal—primarily confirming information and ensuring funds are available.
What costs am I responsible for at settlement?
Settlement costs include the purchase price balance (after deposit), stamp duty (potentially reduced or waived for first home buyers), conveyancing legal fees, settlement agent fees, and any council adjustments or utility prorations. Your conveyancer provides a detailed settlement statement showing all costs. Reviewing this statement in advance prevents settlement day surprises. Your mortgage broker can explain how these costs affect your total borrowing requirements.
Can settlement be delayed?
Settlement can be delayed if conditions aren't met—failed building inspection, finance issues, or title problems warrant delays. Both buyer and seller have rights regarding delays. Significant delays can trigger contract breach issues. Your conveyancer advises on your rights and obligations if delays occur. Communication early about potential delays is preferable to last-minute complications.
What should I do after settlement?
Immediately after settlement, collect keys and access information. Arrange utilities connection if not already done. Change locks and security codes for security. Register your ownership with relevant authorities. Update insurance coverage. Change address with banks and service providers. Plan any immediate maintenance or cleaning. Conduct a final walkthrough to document property condition at takeover. Being organised ensures smooth property occupancy.
What if I discover issues after settlement?
Issues discovered after settlement are generally your responsibility unless they relate to misrepresentation by the seller. This is why pre-settlement inspection is crucial—it catches problems before you take ownership. If major structural issues arise shortly after settlement, consider seeking legal advice about potential remedies. Comprehensive pre-purchase inspections and pre-settlement checks prevent discovering problems after you're legally responsible.
Your settlement support and next steps
Throughout your property purchase journey—from initial pre-approval through to settlement day—Buyvest remains your trusted financial partner. If questions or uncertainties arise during the settlement process, remember we're just a call away. As your lending expert, we guide you through every step of the settlement process, anticipating issues and helping you resolve them before they impact your timeline or finances.
Your settlement day represents not just the completion of a property transaction, but the beginning of your homeownership journey. The careful preparation and professional guidance that brought you to settlement continue to support your financial wellbeing. Whether it's understanding settlement costs, coordinating timing with your lender, or simply answering questions about the process, Buyvest is committed to being your partner throughout settlement and beyond.
Ready to reach settlement day?
Our experienced team specialises in guiding first home buyers across Ryde, Parramatta, North Sydney, Hills District, and Inner West through their complete home buying journey, including final settlement.
If you have questions about your settlement process or need support as you approach your settlement date, we're here to help.
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Complete first home buyer resources
Your complete home buying journey is supported by comprehensive Buyvest resources. Start with our essential first home buyer tips for foundational knowledge. Our complete first home buyers journey guide walks you through each stage from pre-approval to settlement. Our pathways to home ownership explores your options. Our property deposit calculator helps you understand borrowing capacity. Our mortgage repayment calculator assists budget planning.
For specific topics, explore our home loan pre-approval guide, our Home Guarantee Scheme guide for deposit assistance, our Lenders Mortgage Insurance guide, our NSW stamp duty guide, and our Loan to Value Ratio guide. Each resource provides detailed information supporting confident decision-making at every purchase stage.
Connect with Buyvest today
As Sydney's leading mortgage broker specialising in first home buyers, we serve Ryde, Parramatta, North Sydney, Baulkham Hills, Castle Hill, Kellyville, and surrounding suburbs. We're here to support you through every step of your home buying journey, including final settlement.
📱 Phone: 0426 002 202
📧 Email: Hello@buyvest.com.au
Buyvest specialises in mortgage broking for first home buyers across Sydney. Whether you're approaching settlement in Ryde, Parramatta, North Sydney, Baulkham Hills, Castle Hill, Kellyville, Rouse Hill, or other suburbs, our experienced mortgage brokers understand the settlement process and remain available to support you. We help first time home buyers navigate pre-settlement inspections, understand settlement costs, coordinate with your conveyancer, and ensure everything proceeds smoothly to settlement day. Our commitment is helping you achieve homeownership with confidence, ensuring your journey from initial pre-approval through final settlement remains smooth, professionally managed, and financially secure.
Settlement day doesn’t need to be stressful.
Talk to Buyvest today for expert mortgage advice and support to make your settlement run smoothly.
Important stuff:
Please note that the views and opinions expressed in this post are general information only, and this is not financial advice.
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