The Settlement Day Inspection Checklist That Has Saved Our Clients From 47 Disasters.

Here is a situation that happens more often than you would expect: a buyer signs a contract, waits three months for settlement, transfers several hundred thousand dollars, collects the keys, walks through the front door — and discovers the previous owner has removed the kitchen rangehood, left a pile of rubbish in the garage, and there is a new crack running across the ceiling that was not there at inspection.

By this point, the money has changed hands. The title has transferred. And the buyer is now responsible for a property that is not in the condition they agreed to purchase.

This is entirely preventable. Under Victorian property law, every buyer has the right to conduct a final inspection — also called a pre-settlement inspection — before the settlement date. The purpose is simple: verify that the property is in substantially the same condition as it was when the contract was signed, and that the vendor has complied with all contractual obligations 1.

Our team conducts final inspections for every client purchase. Over the years, we have caught 47 material defects that would have become the buyer's problem if settlement had proceeded unchecked. Leaking pipes, missing light fixtures, broken garage door mechanisms, and — in one memorable case — a tenant who simply refused to move out.

Here is the exact checklist we use.

Category one: fixed fixtures and fittings

Fixed fixtures are items that are permanently attached to the property and are included in the sale by default under Victorian contract law. The vendor cannot remove them without explicit contractual permission 2.

Check every item on this list:

Doors and windows: open and close every one. Check that locks engage and disengage smoothly. Look for cracked or broken glass that was not present at the initial inspection.

Flooring: walk every room. Check for new damage to floorboards, tiles, or carpet. Look for stains, burns, or tears that were not disclosed.

Air conditioning and heating: turn on every unit. Run both heating and cooling cycles. Check that the thermostat responds. A non-functional split system can cost $3,000-$5,000 to replace.

Oven and cooktop: turn on every burner and the oven. Run it for five minutes. Check the rangehood fan.

Built-in wardrobes: open every door and drawer. Check that shelving is intact and tracks slide smoothly.

Blinds and curtains: if the contract specifies that window coverings are included (most standard contracts do), verify that all blinds and curtains are present and functional.

Smoke alarms: test every smoke alarm. Under Victorian law, a property cannot be leased without compliant smoke alarms, but many vendors remove or disable them during vacancy. Non-compliance is a $1,500 fine for the landlord if you plan to rent the property 3.

Category two: water and plumbing systems

Water-related defects are the most expensive to remediate and the most commonly missed during final inspections.

Turn on every tap — kitchen, bathroom, laundry, outdoor. Run both hot and cold. Check water pressure and drainage speed. A tap that runs but drains slowly indicates a blockage that could cost $500-$2,000 to clear depending on location and severity 4.

Flush every toilet. Check for leaks around the base — a common issue in older properties where the wax ring seal has degraded.

Run every shower for at least two minutes. Check for leaks around the shower screen, the showerhead connection, and the tiles. Water damage behind shower tiles is one of the most expensive and difficult defects to remediate.

Check the hot water system. Verify the type (electric, gas, solar, heat pump), confirm it is operational, and note its age. A hot water system older than ten years is approaching end-of-life and will likely need replacement within two to three years — budget $2,000-$4,000 depending on type.

If the property has a water tank, check the pump and verify the connection to the house.

Look under every sink. Open the cupboard and inspect for water stains, mould, or dripping connections. A small drip that has been running for weeks can cause extensive damage to cabinetry and subfloor.

Category three: electrical systems

Test every light switch in every room. Flick each one and confirm the corresponding light operates. If a light does not respond, the issue could be as simple as a blown globe or as serious as a faulty circuit 5.

Test every power outlet using a phone charger or similar device. Non-functional outlets may indicate a tripped circuit breaker or a wiring fault.

Locate the main switchboard and open it. Flip every circuit breaker off and on. This verifies that the switchboard is accessible (sometimes vendors lock or obstruct it) and that all circuits are functional.

Check ceiling fans. Run them on all speed settings.

If the property has an intercom, security system, or automated garage door, test each one. These are fixed fixtures included in the sale, and a non-functional garage door motor can cost $800-$1,200 to replace.

Category four: exterior and grounds

Walk the entire exterior perimeter of the property.

Check every outdoor tap. Run them for thirty seconds and check for leaks at the connection point.

Inspect the guttering and downpipes visually. Look for sections that are sagging, disconnected, or visibly damaged. Gutter repair is relatively inexpensive ($500-$1,500) but must be addressed before the first heavy rain to prevent water intrusion 6.

Confirm that all bins are present — in Victoria, you should have red (general waste), green (garden/organic), and yellow (recycling). Missing bins must be ordered from the local council at the new owner's expense ($70-$100 each).

If the property has an electric garage door, test the remote control. Ensure the vendor has provided all remote controls and security codes.

If the property includes a swimming pool or spa, inspect the equipment. Run the pump. Check the filter. Verify that the pool barrier (fencing) is compliant with current regulations — non-compliant pool fencing is a serious safety and legal issue 7.

The most critical check: vacant possession

This is the item that most buyers forget, and it is the one that causes the most devastating problems.

If your contract specifies vacant possession — meaning the property must be empty of all occupants and their belongings at settlement — you must physically verify that the property is vacant during your final inspection 8.

If the vendor or their tenant is still occupying the property at the time of your inspection, do not settle. Instruct your conveyancer to delay settlement until the property is vacated.

Why? Because once settlement occurs, title transfers to you. Any person remaining in the property after settlement is your problem, not the vendor's. If a tenant refuses to vacate, you — as the new owner — must go through VCAT (Victorian Civil and Administrative Tribunal) to obtain a possession order. That process takes weeks to months and costs thousands in legal fees.

We have seen this happen twice. In both cases, the buyer was advised by their conveyancer to 'settle anyway and sort it out later.' In both cases, the buyer spent over $5,000 in VCAT costs and lost months of rental income while the occupant remained.

The exception: if you are purchasing with a sitting tenant (buying with an existing lease in place), you are settling with the tenant in occupation. In that case, verify that the lease documentation is current and that the tenant's details match the information provided by the vendor's agent.

One final recommendation: photograph everything during your final inspection. Every room, every fixture, every defect. Time-stamped photographs provide evidence if you need to make a claim against the vendor for undisclosed damage or missing items.

The final inspection is not about being difficult or adversarial with the vendor. It is about protecting your interests on what is likely the largest purchase of your life. Most inspections go smoothly — the property is clean, vacant, and in the expected condition. But the 47 times we caught a material defect, the inspection was the difference between a smooth settlement and a costly dispute.

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