A practical guide for property buyers in NSW — what it covers, why it matters, and what to do next.
By the team at Alexis Conveyancing — Licensed Conveyancer, Licence No. 05007821
Buying a home or investment property is one of the biggest financial decisions you will ever make. By the time
you sit down to sign the contract, you have probably inspected the property a few times, fallen in love with the
kitchen, and pictured your furniture in the living room. What you almost certainly haven’t done is climb into the
roof cavity, crawl under the floorboards, or check for rising damp behind the bedroom wardrobe.
That is exactly what a building inspector does. As conveyancers, we are regularly asked whether a pre-purchase
building and pest inspection is really necessary. The honest answer is: in nearly every case, yes. Here is why it
matters and how to get the most out of one.
What Is a Pre-Purchase Building Inspection?
A pre-purchase building inspection is a visual assessment of a property carried out by a qualified inspector before you exchange contracts, or during the cooling-off period. It typically covers the structural condition of the building, the roof, walls, ceilings, floors, wet areas, visible plumbing and drainage, the exterior, and any obvious safety hazards.
Most buyers also commission a separate pest inspection at the same time, which checks for termites, borers, fungal decay, and the conditions that attract them. Many inspectors offer a combined building and pest report.
The report is provided to you in writing, usually within 24 to 48 hours and identifies major defects, minor defects, and items that need further investigation by a specialist.
Why We Recommend One Before You Buy
In NSW, property sales operate largely on the principle of caveat emptor, buyer beware. Once contracts are exchanged and the cooling-off period has ended or been waived, you are generally locked in. If you discover three months later that the bathroom waterproofing has failed, the roof tiles are cracked, or the back deck is structurally unsound, the cost of fixing it falls on you, not the seller.
A building inspection is your one realistic chance to find these problems before you commit. It is far cheaper to walk away from a deal, or to renegotiate the price, than it is to repair a $40,000 problem after settlement.
The Pros
- Identifies hidden defects. Inspectors examine the parts of a property buyers rarely see, the roof cavity, subfloor, eaves and external structures. Issues like sagging roof beams, rusted steel, water ingress, asbestos, illegal building work or active termite damage are often only visible on a proper inspection.
- Gives you bargaining power. If the report uncovers significant defects, you can negotiate a price reduction, ask the seller to fix the issue before settlement, or request a special condition in the contract.
- Helps you budget realistically. Even when defects aren’t deal-breakers, the report gives you a list of things to plan for in the first one to five years, a new hot water system, repointing the roof, restumping, or rewiring.
- Provides peace of mind. If the report comes back clean, you can proceed to exchange with confidence rather than crossing your fingers.
- Protects against expensive surprises. An inspection typically costs a few hundred dollars; a missed structural issue can cost tens of thousands.
- Useful for strata, too. For strata properties, a building inspection paired with a strata report (an inspection of the owners corporation’s books) gives you a complete picture of both your unit and the building as a whole.
Our Practical Advice
- For private treaty sales: Order the inspection before you exchange, or during the cooling-off period, usually five business days in NSW. If the report uncovers something serious, you can rescind under the cooling-off provisions, forfeiting only 0.25% of the purchase price.
- For auctions: Always inspect before you bid. There is no cooling-off period after an auction. Build the cost into your due-diligence budget.
- Watch the waiver. Sellers in competitive negotiations often ask buyers to waive the cooling-off period with a Section 66W certificate, which your conveyancer signs. Never waive your rights before your inspection and contract review are complete, talk to us first.
- Use a qualified, independent inspector. Don’t rely on someone recommended by the selling agent. Choose your own, ideally a licensed builder or a member of a recognised body such as the Master Builders Association or HIA.
- Discuss the report with the building inspector. Talk through the findings with the inspector who carried out the inspection, so they can advise you of any red flags
The Bottom Line
If you’re thinking about buying in Sydney or anywhere in NSW, get in touch with Alexis Conveyancing before you sign anything so we can guide you through the process.
Call us on 0403 726 223.
Frequently Asked Questions
How much does a building and pest inspection cost in NSW?
For a typical residential property, expect to pay in the range of a few hundred dollars for a combined building and pest report, with price varying by property size, age and location. It is a small cost relative to the value of the transaction it protects.
When should I get the inspection done?
For private treaty sales, before exchange or during the five-business-day cooling-off period. For auctions, before you bid, because no cooling-off period applies once the hammer falls.
Can I get out of the contract if the inspection finds problems?
If you are within the cooling-off period on a private treaty purchase, you can rescind for any reason and forfeit 0.25% of the purchase price. This is why we recommend arranging the inspection early and never waiving your cooling-off rights (via a Section 66W certificate) until your checks are complete.
Is a building inspection the same as a strata report?
No. A building inspection assesses the physical condition of the property. For a strata unit, you also need a strata report a review of the owners corporation’s records, to understand the financial and structural health of the whole building.
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