Building and pest inspection before you buy

What a building inspection covers

NSW Government describes a written report on the property’s condition, usually done before you exchange contracts. It covers accessible areas: interior and exterior, roof space, under-floor space, garage or carport, laundry or toilet, steps, fencing, drainage, paths and driveways. You can ask for extras such as visible asbestos, a working electrical safety switch or smoke alarms. A good report states the scope, areas not inspected and why, an overall condition summary, significant problems and recommended specialist follow-up.

Victoria adds that the report should list faults, whether each can be repaired, the likely repair cost, and flag unsafe or unauthorised renovations. You can use it to negotiate price and contract conditions.

What it does not cover

The NSW page says a building report:

• identifies major visible problems at the time of inspection and is not a certificate of compliance with any law, warranty or insurance policy;
• does not estimate repair costs, list minor defects or detect termites;
• normally excludes footings, concealed damp-proofing, wiring, plumbing, air conditioning, pools, fireplaces, appliances and paint;
• for strata properties usually covers only the unit’s interior and immediate exterior. Common property needs a special-purpose report (see strata title and body corporate).

Loose-fill asbestos cannot be confirmed by a building report; only a licensed asbestos assessor can test for it (NSW). Victoria suggests considering an asbestos assessment if the property was built before 1990.

Pest inspection

A building report notes visible termite damage, not whether pests are still active. Western Australia’s Consumer Protection page says pest inspections check for termites, European house borers and other infestations, should follow standard AS 4349.3, and cover timber parts such as roof, floors, outbuildings and fencing, with current activity, past damage and high-risk areas.

Who may do it

You check the licence yourself on the official register of your state. This guide does not rate or recommend any inspector.

The seller’s report is not yours

Victoria’s page warns: “Getting your own report is the only way to make sure it is independent and accurate.” NSW says the agent must tell you about any inspection reports commissioned, and advises asking for them, but getting your own if possible.

In the ACT the seller must supply, among the required documents, a building and compliance inspection report and, if the residence has been occupied, a pest inspection report, each from an inspection not earlier than 3 months before the property was first advertised or listed. The reports must be prepared by someone who is not a family member or business associate of the seller, the agent or the lawyer. These are not required for a class A unit (pest) or a residence not previously occupied or sold as a dwelling (building).

When to book

• Before signing or exchanging. NSW advises asking the vendor’s permission early and booking at least 2 to 3 days ahead.
• During cooling-off. In NSW, if you use the cooling-off period, give the consultant as much notice as possible, because withdrawing forfeits 0.25% of the price. See cooling-off period.
• As a contract condition. Queensland says that if you cannot arrange inspections before negotiating, you can add a term letting you cancel if the reports are poor. Western Australia suggests a satisfactory building inspection condition. At an auction you generally cannot add conditions, so inspect beforehand; see buying at auction.
• Before settlement. Queensland suggests re-inspecting 2 to 3 days before settlement; Victoria says you may inspect during the week before settlement.

Which professional to consult

A building inspector prepares the report; see building inspector. A conveyancer or solicitor can add the inspection condition to the contract and advise if the report finds problems; see conveyancer.