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AML Reliance
Building & pest
A building and pest inspection picks up structural problems, termite damage, works which should have been completed under a building permit, dodgy renos and moisture issues — defects that can cost tens of thousands after settlement. The standards are national (AS 4349.1 building, AS 3660.2 termites), but how the inspection sits inside your contract differs in QLD, NSW and VIC.
Two separate standards: AS 4349.1 (building) and AS 4349.3 (timber pests). Most inspectors do both in one visit and hand you a combined report — you should ask the inspector if they recommend obtaining both reports, because a building inspection alone doesn't pick up termites.
A non-invasive visual inspection of six accessible zones. Plumbing and electrical are visual only — no testing, no opening walls.
Plumbing & electrical = visual only. No invasive checks, walls aren't opened, switches aren't tested.
Under AS 4349.3, the inspector looks for subterranean and dampwood termites, wood decay fungi, and wood-boring beetles — and flags conducive conditions (water pooling, garden beds over weep holes, leaking pipes, mulch against timber, poor subfloor ventilation) that invite termites in.
Not covered: drywood termites, rodents, ants, mould.
The REIQ contract's Building and Pest condition (Clause 4.1) defaults to 14 days from the contract date — confirm the date is filled in the Reference Schedule before signing, or the clause doesn't apply. Inside the window, you inspect, review with your conveyancer, and notify the seller in writing by 5pm on the inspection date. Miss it and you lose the clause. Book in the first 3-5 days.
It is common that NSW sellers do not accept the contract being subject to the buyers obtaining satisfactory building and pest inspection reports, with the exceptions of properties located near the border with Queensland or Victoria. You have two main options:
The REIV contract's Building and Pest condition (General Conditions 21 and 22) defaults to 14 days from the contract date — ensure that you make the contract subject to a building and pest inspection in the particulars of sale, or the clause doesn't apply. Inside the window, you arrange for the building and pest inspections to be completed, review the reports with your inspector, confirm with your conveyancer if a major defect in a structure on the land or a major pest infestation have been identified and notify the seller in writing by 5pm on the inspection date. Miss it and you lose the clause. Attend to this as soon as possible.
In Victoria, the Section 32 vendor's statement is given to you before you sign and discloses things like notices, planning info and known building permits — but it is not a building condition report. Your options:
Consumer Affairs Victoria's due diligence checklist specifically calls out that buyers should arrange professional inspections to check for illegal building work, asbestos, termites and other hazards.
TL;DR on timing. In QLD the B&P happens after you sign, inside the 14-day condition. In NSW and VIC it usually happens before you sign, because the standard contracts don't include a B&P clause. Plan your inspector booking around that.
QLD combined inspection in 2026: $450-$700 in Brisbane/SEQ, $400-$650 regional. Don't pick the cheapest — the price difference is report quality, experience and insurance. A missed major defect costs far more than $250.
The cost varies from $450 - $700 depending on the property location and inspector. It is not always a good idea to pick the cheapest. When in doubt, check the inspector's qualification and client's reviews.
AS 4349.1 uses two classifications. Read the major defect section first, every time. Your inspector is the best point of contact to understand the reports and advising on potential costs to rectify any defects.
Major defect
Rectification needed to avoid unsafe conditions, loss of utility, or further deterioration. Read this section first.
Minor defect
Usually maintenance, cosmetic, or fair wear and tear. Not a deal-breaker on its own.
Classification is about severity, not cost. A small structural crack can be a major defect; a $5,000 paint job can be minor.
Some findings should make you stop and call your inspector before anything else.
Spot any of these? Talk to your inspector before you respond to your conveyancer. Once you determine how you wish to proceed, your conveyancer can assist you with contacting the seller. They draft the notice. Don't email the agent directly.
Under Clause 4.1, GC 21 and 22 (VIC) if the report discloses a major defect in a structure on the land or a major pest infestation, you have three options:
Your conveyancer drafts and sends the notice — don't email the agent yourself.
NSW has no mandatory licence for residential building inspectors, which means standards vary widely. Look for:
In Victoria, registration with the Victorian Building Authority (VBA) is required for registered building practitioners, but residential pre-purchase inspection is not a separately licensed class. Look for:
Line up an inspector before you make an offer. In QLD and VIC it gives you a head-start on the 14-day condition; in NSW it's critical. Once the contract is exchanged, rescinding under the Cooling-Off Period will cost you 0.25% of the price. After the Cooling-Off Period lapses, you have little recourse but to settle.
Your conveyancer manages timing, drafts special conditions, and advise your legal position for renegotiating or rescinding/terminating. Get a quote from Zettle. We look forward to assisting you with your purchase.
General information only — not legal advice. Property checks and conveyancing rules vary by state; confirm your situation with a licensed conveyancer or solicitor.