Settlement day is weeks away and most of the hard work feels done. But the period between signing a contract and handing over the balance of the purchase price is exactly when problems with the property are most likely to surface, and most likely to go unaddressed if nobody looks. Queensland's standard residential contract gives buyers one opportunity to inspect the property before settlement, and skipping it means accepting whatever condition the home is in on the day.
The Queensland Government suggests buyers carry out a pre-settlement inspection two to three days before settlement, to confirm the property is in the same condition as at contract and that anything specifically included in the contract is still there. That window is short, and what a buyer finds in it can affect how settlement proceeds.
The Brookwater Legal team helps clients across Greater Springfield and Ipswich with the conveyancing process, including pre-settlement inspections and what to do when something is not right.
Here is how pre-settlement inspections generally work in Queensland, and what the process means for buyers and sellers.
Key takeaways
- The standard Queensland contract allows one pre-settlement inspection of the property.
- Risk in the property passes to the buyer from 5pm on the first business day after contract.
- A buyer's solicitor handles problems found at inspection before they reach settlement day.
This article is general information only and is not legal advice. Every situation is different, and you should speak with a solicitor about your own circumstances.
What does the pre-settlement inspection actually cover in Queensland?
The pre-settlement inspection is the buyer's one contractual opportunity, under the standard Queensland residential contract, to confirm the property's condition before paying the balance. The Queensland Government describes it as a check that the property is in the same condition as at contract and that anything specifically included in the contract is still present.
In practice, this means looking at the structure of the home, any fixtures included in the sale, the condition of inclusions such as appliances and floor coverings, the state of any fencing or outbuildings listed in the contract, and whether anything has been removed that was there when the contract was signed. Buyers in Ipswich and Springfield often find that a property has been cleared of rubbish left behind during the inspection period, which is a positive sign, but sometimes discover that items assumed to be included have disappeared.
The inspection is not a repeat of the building and pest inspection. That separate process, carried out during the inspection period, looks for structural defects, termite activity and other technical concerns. The pre-settlement inspection is about condition and completeness in the final days before settlement.
When does risk in the property shift to the buyer in Queensland?
Risk in the property passes to the buyer from 5pm on the first business day after the contract date, according to the standard Queensland residential contract. This is earlier than many buyers expect, and it applies regardless of whether the buyer has moved in or even seen the property since signing.
From that point, the buyer generally bears the risk of damage to the property. The exception is a specific protection under Queensland's Property Law Act: if a residential dwelling is so damaged or destroyed before settlement that it is unfit for occupation, the buyer may rescind the contract by notice to the seller, and any amount already paid must be refunded. That right ends at the earliest of settlement, the buyer taking possession, or the seller restoring the dwelling to its pre-damage condition.
This is why the pre-settlement inspection matters beyond the checklist of inclusions. If the property has been damaged since contract and that damage has not been disclosed or repaired, the inspection is the last practical moment to identify it before settlement day.
What are the rules about inspections under the standard Queensland contract?
The standard Queensland residential contract gives the buyer the right to enter the property to inspect it once before settlement, after giving reasonable notice to the seller. Separate entries are also allowed for specific purposes: one to read a meter, one for the building and pest inspections during the inspection period, one to value the property, and one to inspect smoke alarms.
The Queensland Government's guidance on inspections sets out the main types relevant to a property purchase:
- › Pre-settlement inspection: one entry in the period before settlement to confirm condition and inclusions, recommended two to three days out.
- › Building and pest inspection: carried out during the contract's inspection period by licensed inspectors, separate from the pre-settlement inspection.
- › Pool safety inspection: a licensed inspector checks compliance with the pool safety standard; a certificate is required before or shortly after settlement where one does not already exist.
- › Solar system inspection: also listed by the Queensland Government as a recognised inspection type, particularly relevant where a solar system is included in the sale.
Under the standard contract, unless the contract says otherwise, the seller must use the property reasonably and must not do anything that may significantly alter it or result in later expense for the buyer between contract and settlement.
How does a solicitor help with the pre-settlement inspection process in Queensland?
Step 1: Talk to us
Get in touch and we will explain what the pre-settlement inspection covers, what to look for, and how the timing fits with your settlement date.
Step 2: We confirm the inspection arrangements
We communicate with the seller's solicitor to confirm notice has been given and that access will be available at the agreed time, so the inspection can go ahead without delay.
Step 3: We deal with any issues found
If the inspection reveals a problem, we raise it with the seller's solicitor before settlement day. Depending on what is found, this may involve asking the seller to carry out repairs, addressing a missing inclusion or discussing how settlement will proceed.
Step 4: We handle settlement
Where an issue has been identified and addressed, we document the outcome and proceed through the electronic settlement workspace. Where a matter remains unresolved, we advise on the available options and ensure the buyer's position is protected going into settlement.
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What happens if something is wrong at the pre-settlement inspection in Queensland?
A common mistake buyers make is assuming that problems found at the pre-settlement inspection are automatically grounds to delay or refuse settlement. The contract sets out what each party's rights and obligations are, and in most cases the buyer's solicitor raises the issue with the seller's side and works toward a resolution before settlement proceeds.
Under the standard Queensland residential contract, on the settlement date the seller must give vacant possession, remove their belongings and repair any damage done in removing them. Items left behind are treated as abandoned. Where the seller has not met these obligations, that is a matter a solicitor addresses before the balance is paid.
Where damage has occurred to a residential dwelling and it is unfit for occupation, Queensland's Property Law Act gives the buyer a right to rescind the contract. That right operates in specific circumstances and ends when settlement occurs, so timing matters. A solicitor can confirm whether the circumstances apply.
"The pre-settlement inspection is a buyer's last practical chance to confirm the property matches what was agreed. Finding a problem on settlement day itself, with funds already in transit, is a much harder position to be in."
Jade Kickbusch, Principal, Brookwater Legal
When does this process not apply to a buyer in Queensland?
The pre-settlement inspection right under the standard contract applies to a buyer purchasing residential property on that contract. There are situations where the process looks different or where a buyer's practical position changes.
Where the property has a tenant in place, the buyer takes on the existing tenancy agreement on settlement. The Residential Tenancies Authority sets out the rules around entry for buyers and their agents during the sale period. Entry to show prospective purchasers requires a notice and can generally only happen at certain times. A pre-settlement inspection of a tenanted property still occurs, but access is arranged through the property manager rather than directly with the seller, and the rules differ from an owner-occupied sale.
Where the contract is for off-the-plan land or a proposed lot, the standard pre-settlement inspection applies differently because the land may not have been built on. The seller must give the registered plan and a cadastral surveyor's statement at least 14 days before settlement. A buyer's right in that context is governed by Queensland's Land Sales Act, not the standard residential contract inspections clause.
Where a new build is involved, a practical completion inspection at the end of the construction process, carried out under the Queensland Building and Construction Commission's framework, is a separate and additional step. The QBCC describes practical completion as the point where the works are essentially finished and usable, apart from minor defects noted on a defects list. That process runs alongside, not instead of, any pre-settlement obligations under the land contract.
Frequently Asked Questions
How many times can a buyer inspect the property before settlement in Queensland?
The standard Queensland residential contract allows one pre-settlement inspection, plus separate entries for specific purposes such as building and pest inspections, meter readings, valuations and smoke alarm checks. Unless the contract says otherwise, the pre-settlement inspection is a single opportunity.
When does risk in a Queensland property pass to the buyer?
Risk passes to the buyer from 5pm on the first business day after the contract date, according to the standard Queensland residential contract. This is before settlement and before the buyer takes possession, which is why checking the property's condition close to settlement matters.
What should a Queensland buyer look for at a pre-settlement inspection?
The Queensland Government suggests confirming the property is in the same condition as at contract and that anything specifically included in the contract is still there. That covers fixtures, appliances, inclusions listed in the contract, and any damage that has occurred since signing.
What happens if the property is damaged before settlement in Queensland?
Queensland's Property Law Act provides that where a residential dwelling is so damaged or destroyed before settlement that it is unfit for occupation, the buyer may rescind the contract and have any amounts paid refunded. That right ends at settlement or when the seller restores the dwelling.
Is the pre-settlement inspection the same as the building and pest inspection in Queensland?
No. The building and pest inspection is carried out during the contract's inspection period by licensed inspectors appointed by the Queensland Building and Construction Commission. The pre-settlement inspection is a separate, final check of the property's condition and inclusions shortly before settlement day.
Do buyers in Springfield or Ipswich need a solicitor to arrange a pre-settlement inspection?
A buyer does not need a solicitor to attend an inspection, but having a conveyancing solicitor managing the transaction means any issue found is raised promptly with the seller's side before settlement proceeds. Getting that advice before a problem reaches settlement day is generally much simpler than after it.
What does the seller have to do before handing over the property in Queensland?
Under the standard Queensland residential contract, the seller must give vacant possession on the settlement date, remove their belongings, and repair any damage caused by doing so. Items left behind are treated as abandoned. The Queensland Government notes that a buyer can ask their lawyer to deal with any problem before settlement proceeds.
Your Next Steps
Pre-settlement inspections are a brief but important part of buying property in Queensland. The days immediately before settlement are when a buyer is most exposed to a problem that carries across into the contract completing, and having the right advice in place before that window opens makes the process considerably smoother. For buyers in Springfield, Ipswich and across Greater Springfield, getting conveyancing advice early means there is time to address anything that comes up.
Every pre-settlement situation is different, and that's exactly why it's worth a conversation. Make an appointment with the Brookwater Legal team or call (07) 3437 8555.
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External Resources
- Queensland Government - Inspections (building, pest, pool, pre-settlement)
- Queensland Government - Settlement day when selling your home
- Queensland Government - Settlement day (buyers)
- Queensland Building and Construction Commission - Practical completion inspection
- Queensland Legislation - Property Law Act 2023
Brookwater Legal · This article contains general information only and does not constitute legal advice. It does not take into account your individual circumstances. You should obtain legal advice about your own situation before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
