A building and pest inspection picks up structural problems, termite damage, work that should have been completed under a building permit, dodgy renos and moisture issues — defects that can cost tens of thousands after settlement. The standards are national (AS 4349.1 building, AS 4349.3 timber pest), but how the inspection sits inside your contract differs in QLD, NSW and VIC.

Quick links

Building vs pest: two reports, one visit

Two separate standards: AS 4349.1 (building) and AS 4349.3 (timber pests). Most inspectors do both in one visit and hand you a combined report — ask the inspector whether they recommend obtaining both reports, because a building inspection alone doesn't pick up termites.

What the building inspector looks at

A non-invasive visual inspection of six accessible zones. Plumbing and electrical are visual only — no testing, no opening walls.

6 zones

What the building inspector actually checks (AS 4349.1)

1

Roof exterior

Tiles or sheeting, flashings, gutters, chimney, downpipes.

2

Roof space

Rafters, trusses, insulation, leaks, structural timbers.

3

Interior

Walls, ceilings, floors, doors, windows, signs of moisture.

4

Exterior walls

Cladding, render, brickwork, eaves, balconies, decks.

5

Sub-floor space

Stumps, bearers, joists, ventilation, drainage.

6

Within 30 metres

Fencing, paths, drainage, outbuildings.

Plumbing & electrical = visual only. No invasive checks, walls aren't opened, switches aren't tested.

What the pest inspector looks at

Under AS 4349.3, the inspector looks for subterranean and dampwood termites, wood decay fungi, and wood-boring beetles — and flags conducive conditions (water pooling, garden beds over weep holes, leaking pipes, mulch against timber, poor subfloor ventilation) that invite termites in.

Not covered: drywood termites, rodents, ants, mould.

QLD: when to book it (REIQ contract clause)

The REIQ contract's Building and Pest condition (Clause 4.1) defaults to 14 days from the contract date — confirm the date is filled in the Reference Schedule before signing, or the clause doesn't apply. Inside the window, you inspect, review with your conveyancer, and notify the seller in writing by 5pm on the inspection date. Miss it and you lose the clause. Book in the first 3-5 days.

NSW: best pre-exchange, otherwise during cooling-off

In NSW, it's common for sellers not to accept a contract being subject to satisfactory building and pest reports — with the exception of properties near the Queensland or Victorian border. You have two main options:

  • Pre-exchange inspection (best approach). Get the building and pest reports done before you exchange contracts, while you're still negotiating. If a report is bad, you walk away with nothing at risk. This is the best approach in a NSW purchase.

  • Inspection during the cooling-off period. Get the reports done as soon as the contracts are exchanged so you're well ahead of the cooling-off expiry. If you need more time, negotiate a longer cooling-off (e.g. 10 instead of 5 business days) — it's best to do this before signing the contract because the seller is not obliged to agree to extend cooling-off later. If you're not satisfied with the findings, let your conveyancer know straight away to serve a rescission notice on the seller's conveyancer under the cooling-off period. Upon rescission, you forfeit 0.25% of the purchase price to the seller.

VIC: General Conditions 21 and 22

The REIV/LIV contract's Building and Pest condition (General Conditions 21 and 22) defaults to 14 days from the contract date — but you must make the contract subject to building and pest inspection in the Particulars of Sale, or the clause doesn't apply. Inside the window, you arrange the inspections, review the reports with your inspector, confirm with your conveyancer whether a major defect in a structure on the land or a major pest infestation has been identified, and notify the seller in writing by 5pm on the inspection date. Miss it and you lose the clause. Attend to this as soon as possible.

In Victoria, the Section 32 vendor's statement is given to you before you sign and discloses things like notices, planning info and known building permits — but it is not a building condition report. Your options:

  • Pre-contract inspection (most common). Inspect before you sign. Private sales in VIC typically include a 3 business day cooling-off period after signing, which gives a fallback. Auction contracts are unconditional with no cooling-off.
  • Make the contract subject to a building and pest inspection. Ensure the building and pest inspection boxes in the Particulars of Sale are completed.
  • Special condition via your conveyancer. Your conveyancer or solicitor can write a subject-to-inspection clause into the contract if the vendor agrees. This can include a shorter or longer timeframe (e.g. 7–21 days), or make the inspections subject to the buyer's satisfaction — allowing termination if you're not satisfied with any aspect of the reports.

Consumer Affairs Victoria's due diligence checklist specifically calls out that buyers should arrange professional inspections to check for illegal building work, asbestos, termites and other hazards.

⏱️ TL;DR on timing. In QLD and VIC the B&P happens after you sign, inside the 14-day condition (in VIC only if you've made the contract subject to it). In NSW it usually happens before you sign or during cooling-off, because the standard contract doesn't include a B&P clause. Plan your inspector booking around that.

What it costs

A combined inspection in 2026 typically costs $450–$700, depending on property location, size and inspector. Larger homes and acreage push the price up. Booking both together is almost always cheaper than separate providers.

Don't pick the cheapest one. The price difference is usually report quality, experience and insurance. A missed major defect costs far more than $250 — when in doubt, check the inspector's qualifications and client reviews.

How to read the report: Major Defect vs Minor Defect

AS 4349.1 uses two classifications. Read the major defect section first, every time. Your inspector is the best person to walk you through the report and the likely cost to rectify any defects.

The key practical distinction: a major defect in a structure on the land can give you the right to terminate the contract; a minor defect doesn't.

Defect classes

Major vs minor: what they mean for your contract

🚨 Major defect

A defect requiring rectification to avoid unsafe conditions, loss of utility, or further deterioration.

Major defects in a structure on the land can give you the right to terminate the contract (subject to the contract terms).

🛠 Minor defect

Maintenance, cosmetic or fair wear-and-tear items. Not a deal-breaker on its own.

Minor defects don't give a right to terminate — they're useful for negotiation or a future repairs list.

Classification is about severity, not cost. A small structural crack can be a major defect; a $5,000 paint job can be minor.

Red flags to watch for

Some findings should make you stop and call your inspector before anything else.

7 red flags

Findings that warrant a call to your inspector

🧱
Structural cracking

Diagonal cracks > 5mm, stair-steps in brickwork, sagging floors.

🐜
Active termites

Or extensive past damage in load-bearing timber.

💧
Rising damp / moisture

Leads to rot, mould, and decay.

📋
Unapproved building work

Decks/extensions without council or QBCC sign-off. You inherit the liability.

☢️
Asbestos

Common in pre-1990 homes. Removal is expensive.

🌧
Roof leaks & flashings

Quiet way to ruin ceilings, walls, electricals.

💨
Poor subfloor ventilation or drainage

The conducive condition that creates every other problem on this list.

Spot any of these? Talk to your inspector first to understand the finding — then, once you've decided how to proceed, your conveyancer will assist with contacting the seller and drafting the notice. Don't email the agent directly.

What to do with a bad report

Under Clause 4.1 (QLD) or General Conditions 21 and 22 (VIC), if the report discloses a major defect in a structure on the land or a major pest infestation, you have three options:

  1. Accept as-is and proceed.
  2. Negotiate. Ask for a price drop or specific repairs before settlement. We recommend requesting a price reduction over specific repairs — you can't control how repairs are completed, the quality of the work, or whether they're done by a registered builder (where required). The seller has no obligation to agree to either request.
  3. Terminate by 5pm on the inspection date, penalty-free. Major structural damage and active termites count; a sticky cupboard door doesn't.

Your conveyancer drafts and sends the notice — don't email the agent yourself.

How to choose an inspector in QLD

  • Licensed by QBCC. They need a Completed Residential Building Inspector licence, or work for a company that holds one. Check at qbcc.qld.gov.au before booking.
  • Insured. Professional indemnity and public liability.
  • AS 4349.1 and AS 4349.3 compliant. These standards should be named in their service agreement.
  • Independent. Not recommended by the selling agent.
  • Sample reports available. Look for clear photos, numbered defects, and a plain-English summary.

How to choose an inspector in NSW

NSW has no mandatory licence for residential building inspectors, which means standards vary widely. Look for:

  • Suitably qualified professional. E.g. licensed builder, surveyor, architect, or licensed pest controller.
  • Insurance. Written evidence of professional indemnity and public liability.
  • Sample reports available. Look at the quality of photos, report format, level of detail and defect explanations.
  • Independent. If time allows, engage an inspector of your own choosing. Be wary of inspectors recommended by the seller's agent — repeat business relationships can make them inherently more likely to understate problems with the property.

How to choose an inspector in VIC

In Victoria, registration with the Victorian Building Authority (VBA) is required for registered building practitioners, but residential pre-purchase inspection is not a separately licensed class. Look for:

  • VBA-registered building practitioner where possible — typically registered as a Building Inspector or Building Surveyor. Check the VBA practitioner register at vba.vic.gov.au.
  • Industry membership. Master Builders Victoria or HIA.
  • Pest technician. Pest control in VIC sits under the Department of Health's Public Health and Wellbeing regulations. Look for AEPMA membership — see the AEPMA pest manager search.
  • Insured. PI and public liability.
  • AS 4349.1 and AS 4349.3 compliant. Named in the service agreement.
  • Independent of the agent.
  • Sample reports available.

What's next

Line up an inspector before you make an offer. In QLD and VIC it gives you a head-start on the 14-day condition. In NSW, once the contract is exchanged, rescinding under the cooling-off period will cost you 0.25% of the price — and once cooling-off lapses, you have little recourse but to settle.

Your conveyancer manages timing, drafts special conditions, and advises on your legal position for renegotiating, rescinding or terminating. Get a quote from Zettle. We look forward to assisting you with your purchase.

Sources

Standards & inspections

Queensland

New South Wales

Victoria