Building and Pest Inspections – A Comprehensive Guide

When signing a contract to buy a property a buyer will generally make the contract subject to a building and pest inspection which is activated by inserting an inspection date in the reference schedule of the contract.

So let’s assume you are buying a property, have signed a contract and the inspection condition is activated.

The next step is to engage the services of a licensed inspector who will perform the inspection and then provide you with a report on the findings.

You should attend the inspection with the inspector. Why? Because sometimes reports are difficult to understand, and it is best to physically see the problem rather than it being described to you in a 20 page report.

You can’t do other inspections, such as an electrical inspection, unless you specifically include a special condition in the contract which allows you to do so.

You can terminate the contract if, acting reasonably, the inspectors report is unsatisfactory. This means that you have to have a good reason to terminate the contract. For example, you cannot terminate because of a few cracked tiles on the porch.  

You need to remember, that even if you find issues with the property, the Seller is under no obligation to fix them. The inspection reports can be used to negotiate either a reduction in the purchase price or seek to have the seller fix the issues before settlement.

Failing to inform a seller of the outcome of the inspection condition will entitle a Seller to terminate the contract.

Properties are never ‘trouble-free’ but at least by completing an inspection you can get a fair idea of what you may be in for!