Property Due Diligence Checklist

Sort your finances and get to know the area before you inspect.

• Work out your budget and how much you can borrow, and test it against a 2% rise in interest rates.
• Aim for a 20% deposit to avoid lenders mortgage insurance, or check whether a low-deposit scheme applies to you.
• Get home loan pre-approval, which usually lasts 3 to 6 months and does not commit you to a loan.
• Check first home buyer help, such as the Australian Government 5% Deposit Scheme, plus any stamp duty concessions and grants.
• Research recent sale prices in the area and set a clear price range.
• Get to know the area at different times of day: traffic, noise, odours and the general character of the neighbourhood.

Look closely at the property and arrange professional reports.

• Inspect the property yourself, and attend open inspections more than once.
• Arrange a building inspection for structural issues, damp, cracking, roofing, electrical safety and likely repair costs.
• Arrange a pest inspection for termites and other timber pests, done to the national standard AS 4349.3.
• Use only licensed building inspectors and pest controllers, and check the licence before you hire.
• Ask what the inspection does and does not cover, and get a specialist report for any specific concern such as the roof or plumbing.
• If there is a pool or spa, check it is registered and the safety barrier complies.
• Check for asbestos, illegal or unapproved building work, and other hazards.

Read the paperwork and check what affects the land and the title.

• Request the contract of sale and the vendor disclosure statement (for example, a section 32 statement in Victoria) and read them in full.
• Have a solicitor or conveyancer review the contract before you sign.
• Compare the title boundaries with the actual fences and buildings, and consider a survey if you are unsure.
• Check the title for encumbrances, easements and covenants that limit what you can do with the land.
• Check the zoning, planning overlays and any proposed nearby developments with the local council.
• Check building permits and approvals for past work, and what is needed for any work you plan.
• Investigate flood and bushfire risk, and how it affects insurance and building rules.
• For rural or vacant land, check service availability, native vegetation rules and the land use nearby.

Extra checks if the property shares common property, such as an apartment or townhouse.

• Check whether the property is part of an owners corporation or body corporate, and what fees and rules apply.
• Order a strata or owners corporation records inspection report through a licensed professional.
• Check the funds set aside for repairs, any special levies, and any disputes or planned major works.

Understand how offers, deposits and cooling-off work before you commit.

• Decide between a conditional offer (subject to finance, inspections or valuation) and an unconditional offer.
• Make finance approval and building and pest inspections conditions of the contract where possible.
• At auction, expect to pay the deposit on the day, and remember there is no cooling-off period.
• For a private sale, confirm the cooling-off period for your state or territory. In NSW it is 5 business days for most homes. It never applies at auction.
• Confirm the deposit amount, when it is due, and that it is held in a trust account.

Plan for the upfront and ongoing costs beyond the purchase price.

• Stamp duty, a one-off state transfer tax, usually paid within 30 days of settlement.
• Lenders mortgage insurance, if your deposit is under 20% of the property value.
• Conveyancing or legal fees, and building and pest inspection fees.
• Home and contents insurance, which may be a condition of your home loan.
• Ongoing costs such as council rates, land tax where it applies, owners corporation fees and utilities.

Final checks as the sale completes.

• Understand that settlement is when the title transfers into your name and your mortgage begins.
• Do a pre-settlement inspection to confirm the property is in the same condition as when you inspected it.
• Arrange to connect or transfer water, electricity, gas, phone and internet.
• Confirm the settlement details with your solicitor or conveyancer and your lender.

Additional due diligence if you are buying to rent the property out.

• Estimate the rental yield and weekly cashflow, including all holding costs.
• Estimate the depreciation you may be able to claim over time.
• Understand how capital gains tax applies on sale, and that the main residence exemption does not apply to an investment property.
• Be aware that negative gearing and capital gains tax rules change from 1 July 2027 for property acquired after 7:30pm AEST on 12 May 2026.
• If the property is tenanted, check the current lease terms, rent and bond arrangements.