Building & pest
A building and pest inspection helps you understand the physical condition of a property before you commit to buying it. A building inspection looks for visible building defects and problems with the structure and condition. A pest inspection looks for signs of termites, timber pests and conditions that could make pest problems more likely.
They are an important part of your due diligence, but they don't tell you everything, and they don't replace your contract review or the other searches that go with a purchase.
The important question is not just "Is there a problem?" It's "What does the problem mean for the property I'm considering buying, and what can I do about it before I commit?"
They look for different things. A building inspection focuses on the building and its visible condition. A pest inspection looks for termites, timber pests, timber damage and the conditions that may attract pests.
Some inspectors offer both as a combined inspection, but check exactly what is included before you book. A building inspection on its own does not pick up termites.
Building inspections are generally visual and non-invasive. An inspector cannot see through walls or uncover defects that are not reasonably accessible during the inspection.
| Zone | What's checked |
|---|---|
| Roof | Damage, leaks, gutters, flashings and visible roof problems |
| Roof space | Structural timbers, moisture, insulation and signs of leaks |
| Inside | Cracks, moisture, floors, ceilings, doors and windows |
| Outside | Walls, cladding, balconies, decks and visible deterioration |
| Under the house | Stumps, bearers, joists, ventilation and drainage |
| Grounds and outbuildings | Drainage, paths, fencing and accessible structures |
Plumbing and electrical are generally checked visually only. Walls aren't opened and services aren't tested.
A pest inspection looks for termites, timber pests, timber damage and the conditions that can make pest problems more likely, such as water pooling, leaking pipes, mulch against timber and poor subfloor ventilation.
The exact scope varies between inspectors and reports, so check what your inspector includes rather than assuming every pest, mould issue or animal problem will be identified.
The timing depends on the state, and on how the sale is structured.
A standard contract can include a building and pest condition giving the buyer a set period to obtain inspections and respond to the findings. Check the contract before signing so you know the inspection period and what happens if the report identifies a problem.
As a practical matter, book the inspector as early as possible after signing. Don't leave it to the end of the period.
Buyers commonly arrange inspections before exchanging contracts, particularly where the seller is not offering a contract conditional on a satisfactory inspection.
If the inspection is not done before exchange, the cooling-off period may provide an opportunity to arrange further checks, subject to the rules that apply. The important point is timing: don't assume you can wait until after exchange and then have unlimited time.
Buyers can arrange inspections before signing, and the contract may contain an inspection condition depending on how the sale is structured.
If you are buying at auction, the inspection generally needs to happen before you bid, because you shouldn't assume the same opportunity to negotiate or withdraw afterwards. If you are buying privately, check the contract and any inspection condition before signing.
Consumer Affairs Victoria's due diligence checklist recommends that buyers arrange professional inspections to check for illegal building work, asbestos, termites and other hazards.
The practical rule is simple: organise your inspection as early as the transaction allows.
The price varies with the property, its location, the scope of the inspection and the inspector. Ask exactly what is included before comparing quotes, because a cheaper inspection is not necessarily equivalent to a more comprehensive one.
When in doubt, check the inspector's qualifications and client reviews rather than shopping on price alone.
Inspectors use different terminology, but your report will usually distinguish more significant defects from routine maintenance. Read the significant findings first.
Don't assume that a heading such as "major defect" automatically tells you what you can do under your contract. The inspection report tells you about the property's condition; your contract determines what options may be available.
Your inspector is the best point of contact for understanding the report and the likely cost of rectifying any defects.
More significant defects. Typically things needing rectification to avoid unsafe conditions, loss of utility or further deterioration. Read this part first.
- Structural cracking
- Active termites
- Persistent moisture
- Unapproved or undocumented building work
- Exposed wiring, unsafe electrical
Routine maintenance. Usually maintenance, cosmetic issues or fair wear and tear.
- Cracked floor tile
- Peeling paint
- Sticky window or door
- Loose cabinet handle
- Worn carpet edge
Classification is generally about severity, not cost. A small structural crack can be significant, while an expensive paint job may be routine.
Some findings are worth talking through with your inspector before you do anything else.
| Finding | Why it matters |
|---|---|
| Significant structural cracking | Diagonal cracks, stair-stepping in brickwork or sagging floors |
| Active termites or extensive timber damage | Particularly in load-bearing timber |
| Persistent moisture | Can lead to rot, mould and decay |
| Signs of unapproved or undocumented building work | Ask your conveyancer and relevant professionals what the work means for approvals and your transaction |
| Potentially hazardous materials | More common in older homes, and removal can be costly |
| Significant roof leaks | Can quietly damage ceilings, walls and wiring |
| Substantial drainage problems | Often the underlying cause of other problems |
These findings don't automatically tell you whether to proceed. They are reasons to understand the problem, its likely significance and your options before committing. If the report raises an issue, tell your conveyancer promptly before taking action with the seller or agent.
Don't panic, and don't assume you have to walk away.
Start by understanding what the inspector found: how serious it is, whether further investigation is recommended, and what fixing it might involve. Then speak to your conveyancer about how it interacts with your contract.
Depending on the contract and the circumstances, options may include proceeding as planned, negotiating with the seller, asking the seller to address an issue, seeking a price adjustment, or exercising a contractual right to terminate where one applies.
None of these outcomes is automatic. The inspection report describes the property; your contract determines what rights and options may be available.
Look for someone who:
If possible, choose an inspector independently so you can be comfortable that they are working for you rather than the selling agent.
An inspection generally isn't:
The inspector helps you understand the physical condition of the property. Your conveyancer helps you understand what the contract says about those findings, and what options may be available.
If the report identifies something significant, send it to your conveyancer before you respond to the seller.
What is a building and pest inspection?
It is an inspection of a property's visible condition, covering building defects and signs of termites and other timber pests, carried out before you commit to buying.
Do I need both a building and a pest inspection?
They answer different questions, and a building inspection on its own does not pick up termites. Many buyers arrange both.
When should I get one?
As early as the transaction allows. The right moment depends on the state and on how the sale is structured.
Can I get one after signing?
Sometimes, depending on the contract and whether it includes an inspection condition. Don't assume you will have unlimited time.
What happens if it finds a problem?
That depends on your contract. Options may include proceeding, negotiating, or terminating where a contractual right applies.
Does a building inspection check for termites?
No. A building inspection looks at the building's visible condition. Termites and timber pests are the subject of a pest inspection.
Does an inspection guarantee there are no problems?
No. Inspections are generally visual and non-invasive, so concealed defects may not be found.
Should I use the inspector recommended by the agent?
If possible, choose an inspector independently, so you can be comfortable they are working for you.
An inspection is one part of understanding what you're buying. Arrange it as early as the transaction allows, understand what the report actually covers, and don't assume a finding automatically tells you whether you can walk away.
If the report identifies something significant, give it to your conveyancer before your next move. Your inspector can explain the physical problem; your conveyancer can explain how it interacts with the contract. Get a quote from Zettle.
General information only, not legal advice. Property checks and conveyancing rules vary by state; confirm your situation with a licensed conveyancer or solicitor.
Published by Zettle Conveyancing. ABN 23 642 711 395. Conveyancing in Queensland, New South Wales and Victoria.
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