What Is a Pre-Settlement Inspection?
A pre-settlement inspection is your legal right as a buyer in New Zealand. It gives you a chance to confirm that the property is still in the agreed condition, that all the promised chattels are present, and that nothing has changed for the worse since you signed the sale and purchase agreement. You’re not required to do one, but skipping it can be a costly mistake.
When Should You Do the Inspection?
Ideally, your pre-settlement inspection should take place three to five business days before your settlement date. This allows time to address any issues through your lawyer without delaying the settlement. Always arrange the inspection through your real estate agent, and ensure the seller or their representative is aware.
Your Complete NZ Pre-Settlement Inspection Checklist
✅ Interior Condition
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Are the walls, ceilings, and flooring in the same condition?
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Any signs of damage, mould, or leaks?
✅ Doors and Windows
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Do all doors and windows open, close, and lock properly?
✅ Lighting and Power
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Test every light switch and power socket. Are they working?
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Do all electrical appliances (and extra plugs) work?
✅ Plumbing and Water
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Turn on the taps. Is hot and cold water flowing?
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Do toilets flush and refill correctly?
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Check under sinks for leaks.
✅ Appliances and Chattels
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Are all listed chattels—such as the stove, dishwasher, or washing machine—still there and operational?
✅ Heating and Ventilation
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If the property has a heat pump or fireplace, test it.
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Are extractor fans functioning?
✅ Smoke Alarms
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Are smoke alarms present and working?
✅ Cleanliness
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Is the home clean and free from rubbish as agreed?
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Check the garage, sheds, and garden areas.
✅ Outdoor Areas
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Are gates, fences, and garage doors intact?
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Check the roofline for any visible damage.
What Happens If You Find a Problem?
If you discover something wrong—say, an appliance doesn’t work, or a chattel is missing—notify your lawyer immediately. They may be able to:
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Request that the seller repair or replace the item
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Negotiate compensation
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Delay settlement until the issue is resolved
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Retain funds in trust until repairs are completed
It’s important to note: you can’t refuse to settle just because the house is dusty. The property needs to be in “reasonably clean” condition, and disputes are handled based on what was agreed to in the sale and purchase agreement.
Your Rights as a Buyer in NZ
Under the standard REINZ/ADLS Sale and Purchase Agreement (used in most NZ real estate transactions), you’re entitled to one pre-settlement inspection. The property must be in the same state as when you signed the agreement, minus normal wear and tear. If damage occurs after you go unconditional (e.g. storm damage), the seller must fix it or negotiate a fair resolution.
If the seller refuses access or fails to meet obligations, your lawyer can take legal action. Never hesitate to push back—you have rights, and they’re there to protect your investment.
Best Practices for a Smooth Pre-Settlement Process
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Book the inspection well in advance, especially in competitive markets
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Bring a copy of the chattels list and the sale agreement with you
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Use a printed checklist to stay organised
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Follow up in writing on any issues identified
After the Inspection: What’s Next?
If everything is satisfactory, your lawyer will confirm readiness to proceed to settlement. On settlement day, funds are transferred, and you’ll receive the keys. If there are issues, your lawyer will advise the next steps, which may include holding back money, seeking repairs, or delaying the settlement (if justified).
FAQs About Pre-Settlement Inspections
What is a pre-settlement inspection in NZ?
It’s a buyer’s right to inspect the property before settlement to ensure it’s in agreed condition and all listed items are present and functional.
When should I do my pre-settlement inspection?
Ideally, 3–5 days before the settlement date to allow time to resolve any issues.
Can I delay settlement if something is wrong?
Yes, but only in specific situations. Your lawyer can negotiate repairs, compensation, or retention of funds depending on the issue and the agreement.
Can I bring a builder or inspector to my pre-settlement check?
Yes, especially if you’re unsure about specific areas. While not required, having a professional with you can provide peace of mind.
Is the seller required to clean the house before settlement?
The property must be in a “reasonably clean and tidy” state, but this can be subjective unless otherwise specified in the agreement.
