What Are Pre-settlement Inspections in New Zealand

What Are Pre-settlement Inspections in New Zealand?

Buying a new house is no small feat and it requires the knowledge of lawyers and real estate agents, as well as the services of brokers and or mortgage lenders.  If you’re putting forth this much effort and money it’s important to know your property before you buy.

This is accomplished through rigorous pre-settlement inspections.  With this quick guide, we’ll walk you through what to expect and what to watch out for as you conduct your own inspections on real-estate prospects.

What is the purpose of a pre-settlement inspection?

What is the purpose of a pre-settlement inspection

Pre-settlement inspections are conducted for the purpose of ensuring that a property is in the same state as when the contract was signed.  Additionally, the inspection is also used to evaluate whether special conditions and stipulations in the contract have been met.

These inspections are typically conducted about a week before buyers settle into their homes.  More often than not pre-settlement inspections are carried out with the help of a real estate agent or the property’s seller.

How are pre-settlement inspections conducted?

How are pre-settlement inspections conducted


The first thing to check during a pre-settlement inspection is the current state of the property in question.  It would be wise to focus specifically on foundations, load-bearing structures, tiles, and any other places that show damages that were not originally present.

If any issues are found, the buyer can move to have the issue fixed by the responsible party.  Otherwise, if the issue cannot be remedied, a lower price can be negotiated as a form of compensation


Some properties will come fully furnished while others will be completely bare.  In any case, it’s important to specify what state the property will be received in before the property’s closing week.

If you agree to a fully furnished home, it should be verified during the inspection that all the agreed-upon appliances are indeed present and accounted for.  Alternatively, if some items were to be removed these exclusions should also be verified.


Another factor to watch out for during the inspection is the overall state of the property and whether it meets your standards of cleanliness.  These standards will depend on you but depending on your contract, the property may be cleaned slightly prior to settling.

Contract Conditions

From the initial purchase, the seller is given a certain number of days to meet the renovation conditions stipulated in the contract prior to purchase.  This can sometimes require sellers to work with home builders, architects, and construction companies.

Though the exact conditions of a contract will vary based on each purchase, buyers should view this as an opportunity to adjust certain aspects of the property that do not meet their initial expectations.