A building inspection in Australia is one of the most important steps in buying a property and one of the most frequently skipped. Buyers caught up in competitive markets, time pressure, or the excitement of a purchase often waive their right to inspect or fail to read the report properly when they get one.
The result, in too many cases, is discovering significant defects after settlement that are expensive to fix and were entirely visible to a trained eye before purchase.
A building inspection costing $400 to $700 is cheap insurance against a property that might require $30,000 or $100,000 or more in rectification work. Here is what you need to know to use it effectively.
The Australian Institute of Building Surveyors sets professional standards for building inspectors and surveyors and can assist in identifying qualified practitioners in your area.
What a Standard Building Inspection Covers
A standard pre-purchase building inspection in Australia is a visual assessment of the accessible areas of a property conducted by a qualified building inspector. It is governed by Australian Standard AS 4349.1 which defines the scope and reporting requirements.
The inspection covers the structural elements of the property including the roof structure and exterior roof covering, wall framing and cladding, floors and subfloor areas, windows and doors, and internal walls and ceilings.
The inspector assesses the condition of these elements and identifies significant defects, minor defects, and safety hazards.
Significant defects are those that affect the structural integrity or functionality of the property and typically require major work to rectify. Minor defects are maintenance items that require attention but do not pose immediate structural or safety concerns.
The inspector also notes items that require further investigation by a specialist, such as visible signs of electrical issues, plumbing problems, or areas that could not be accessed during the inspection.
What a Standard Inspection Does Not Cover
Understanding the limitations of a building inspection is just as important as understanding what it covers.
A standard building inspection is a visual assessment only. The inspector cannot open walls, lift fixed floor coverings, access areas that are locked or obstructed, or use invasive methods to identify concealed defects. This means a problem hidden behind a wall or under a concrete slab will not be identified.
Plumbing and electrical systems are not assessed by a building inspector unless they hold the relevant trades licences and the inspection specifically includes these items.
A separate plumbing inspection by a licensed plumber and an electrical inspection by a licensed electrician may be warranted for older properties.
A standard building inspection also does not assess environmental hazards such as asbestos, lead paint, or contaminated soil, though the inspector may note the likelihood of their presence based on the age and condition of the property.
Pest Inspection: Why It Should Always Be Combined
A pest inspection, specifically for timber pest activity including termites, borers, and wood decay fungi, is a separate inspection conducted by a licensed pest inspector. It should almost always be ordered alongside the building inspection rather than separately.
Termites are one of the most destructive and costly problems a property can have. They can cause significant structural damage that is not visible from the surface.
Evidence of past or present termite activity, termite damage, or conducive conditions such as moisture and wood to soil contact are the primary findings of a pest inspection.
In many parts of Australia, particularly in Queensland, New South Wales, and Western Australia, termite pressure is significant. Never purchase a property in these areas without a pest inspection.
Building and pest inspections can often be ordered as a combined package from a single company for a total cost of approximately $500 to $800, which is more convenient and usually slightly cheaper than separate reports.
How to Choose a Building Inspector
Quality varies significantly among building inspectors, and the cheapest option is not always the best. Look for an inspector who holds qualifications as a builder or building surveyor, carries professional indemnity and public liability insurance, is familiar with the property types and construction methods common in your target area, and provides a detailed written report, not just a summary.
Ask how long the inspection will take. A thorough inspection of a standard house should take at least two to three hours. A report generated in forty-five minutes is unlikely to be thorough.
Ask whether you can attend the inspection. Most inspectors welcome this and being present allows you to ask questions, see issues firsthand, and get a verbal explanation of the findings that may not be fully captured in the written report.
How to Read and Interpret the Report
Building inspection reports are typically lengthy and can be alarming to read, particularly for first-time buyers. Understanding what you are reading prevents unnecessary panic and poor decision-making.
Most properties, including relatively new ones, will have a list of defects in the report. The presence of defects does not automatically mean the property is a poor purchase. What matters is the nature and cost of rectifying the significant defects.
Focus on the significant defect section. Items classified as minor defects or maintenance items are normal and expected. Items classified as significant defects, particularly those involving structural elements, require follow-up, typically a quote from a licensed builder for the cost of rectification.
If significant defects are found, you have several options. You can proceed without adjustment if you are comfortable with the cost and nature of the issues. You can negotiate a reduction in the purchase price to reflect the rectification cost.
You can request that the vendor rectify specified items before settlement. Or you can withdraw from the purchase within the inspection period if the condition is a show-stopper.
Conclusion
A building inspection in Australia before you sign is not optional if you are serious about protecting your investment. The cost is modest, the information it provides is irreplaceable, and the alternative, discovering significant defects after you own the property, is considerably more painful.
Order the inspection early in the due diligence period, attend if possible, read the report carefully, and use the findings as a negotiating tool where appropriate. Visit seen.com.au for more property guides for buying and investing in property.
FAQs
1. Can I use a building inspection report to negotiate on price in Australia?
Yes, and this is one of the most common and appropriate uses of a building inspection report. If the report identifies significant defects with a material rectification cost, this provides a legitimate basis to negotiate a price reduction or request vendor repairs. The strength of your negotiating position depends on the severity of the defects and the level of buyer competition for the property.
2. How long does a building inspection take in Australia?
A thorough inspection of a standard three to four-bedroom house typically takes two to three hours on site. Larger properties, older properties, or those with significant defects may take longer. The written report is usually delivered within 24 to 48 hours of the inspection.
3. Is a building inspection required by law when buying property in Australia?
No. A building inspection is not legally required. It is, however, strongly recommended for any significant property purchase. Waiving the inspection to compete in a hot market is a calculated risk that sometimes results in expensive surprises after settlement.
4. What is the difference between a building inspection and a structural engineering report?
A standard building inspection is a visual assessment conducted by a builder or building surveyor. A structural engineering report is prepared by a qualified structural engineer and provides a more detailed technical assessment of the structural elements of a building.
5. Should I get a building inspection for a new property?
Yes. New properties and recently completed renovations can still have defects. A pre-settlement inspection on a new build, ideally by an independent building inspector before you accept the property from the builder, is a valuable step that allows defects to be identified and added to the defect liability list while the builder is still obligated to rectify them.