What is a building and pest report in Australia?
A building and pest report is an inspection report prepared by a licensed building inspector and pest inspector (often the same person) that identifies structural defects, safety hazards, and pest activity (particularly termites) in a property. It is not legally required in any Australian state, but it is strongly recommended before purchasing any property. The report typically costs $400–$800 for a standard residential property and can save purchasers from buying a property with hidden defects worth tens of thousands of dollars.
What the building inspection covers
The building inspector checks the structural integrity of the property: foundations, walls, roof, ceilings, floors, wet areas (bathrooms, laundry), plumbing, electrical (visual only), drainage, and external areas. The inspection is visual and non-invasive — the inspector cannot look behind walls or under sealed areas. Reports are prepared to AS 4349.1 (Inspection of buildings — Pre-purchase inspections — Residential buildings).
What the pest inspection covers
The pest inspector checks for evidence of timber pest activity: termites (the primary concern in Australia), borers, and wood decay fungi. The inspection uses visual examination, moisture meters, and often thermal imaging cameras. Reports are prepared to AS 4349.3 (Inspection of buildings — Timber pest inspections). Termite damage is not covered by standard home insurance in Australia.
How I help with building and pest reports
I review building and pest reports and summarise the key findings in plain language for the purchaser. I flag items that may be grounds for renegotiation (major structural defects, active termite infestation) versus minor maintenance items. For conveyancers, this summary helps frame the advice to the client about whether to proceed, renegotiate, or withdraw.
Common issues
- Termite damage is not covered by standard home insurance — a pest inspection is essential in termite-prone areas
- The inspection is visual only — hidden defects behind walls or under floors may not be detected
- Always commission the inspection before the cooling-off period expires (NSW) or before going unconditional
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