Property inspections

You can ask for property and pest inspections as a special condition in your property contract. The contract should cover:

  • Who pays for the inspections
  • Who pays for repairs or treatments
  • The ability to cancel the sale if substantial structural damage.

Pre-settlement inspections

Inspecting a property before purchase helps you understand its features and condition. If you want changes or specific items included, add these terms to the contract, which must be accepted by the seller. Use the inspection checklist for things to check before you take the keys.

At settlement, the property should be in the same condition as when you inspected it, unless otherwise specified in the contract. Buyers should conduct a thorough inspection before finalising the settlement.

Residual current devices (RCDs)

RCDs protect all circuits supplying power to power points and lights. Two or more RCDs must be fitted before the land title is transferred.  

RCDs must be installed by a licensed electrical contractor. See more Handy guide to BE safe – RCD safety switches.

Smoke alarms

All homes should have mains powered smoke alarms before a property is sold. The smoke alarms must be in good working order and no more than 10 years old. Battery powered smoke alarms are only permitted where there is no hidden space in which to run the electrical wiring, such as a concrete ceiling, flat roof etc.

Mains powered smoke alarms must be installed by a licensed electrical contractor  See more on Smoke alarm laws.

Professional building inspections

When signing a contract of sale, include a condition for a satisfactory building inspection. You are responsible for hiring and paying a qualified person to do the inspection. This can be a building inspector, surveyor, or architect.

The inspector will provide a written report listing:

  • faults in the property 
  • whether they can be repaired 
  • unsafe renovations and/or extensions. 

Use an inspection service with full professional indemnity insurance. This will protect you if the inspection misses a problem that must be fixed. 

You may be able to use the report to:

  • negotiate the price and conditions in the contract with the seller 
  • develop a maintenance program if you decide to buy the property.

Timber pest inspections 

Professional pest inspections check for termites, European house borers or other infestations.  They could save you thousands of dollars in repair costs.

Pest inspection should be done to the national standard for timber pest inspections and reports (AS 4349.3).

Timber inspections should cover any timber structures such as:

  • roof
  • floor
  • outbuildings
  • fencing

The report will cover:

  • current pest activity
  • any previous damage
  • areas likely to be infested in the future
  • any recommendations for future inspections and maintenance

A seller may offer to pay for the inspections, but the report may be in the sellers interest. Hiring your own inspector, you will be able to set the terms and specify details for the report.

See more information

Inspection reports issues

Your options for how to deal with any issues in the inspection reports will be covered by any special conditions you added in the Offer & Acceptance (O&A) property contract.

If the O&A does not cover inspection report issues, you will need to seek legal advice.

Fixing the problems 

If you included inspections as a part of the special conditions, you are more likely to be able to sort it out with the seller. 

Make sure any negotiations and agreements between you and the seller are in writing. This may include:

  • who is responsible for the treatment and repairs
  • when these need to be completed by
  • requiring a second independent inspection before settlement to ensure work is completed.

Ending the contract for sale

If the O&A special condition allows you to end the contract, you will need to send written notice to the seller or agent as per the condition terms.

You might need to talk to a lawyer about your rights to end the contract.

 

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