Pest and Building Inspection

Pest and Building Inspection

The pest and building report is a very important step in the process of buying a home.  Let’s take a look at why they should be done when this can occur and what are the ramifications if something bad is found.

Do I have to get a pest and building inspection?

The short answer is no. This step is not compulsory, but it is a rare event for a home sale to finalise without one being done.  As a buyer, you will have a much clearer picture of what you are getting yourself into when a thorough inspection is conducted on or soon after you sign the contract.

The street appeal and general presentation of a property are only superficial.  A home may look terrific but could be hiding significant draining issues, structural defects, or even additions that are not legal.  Importantly, as many Queensland homes have timber construction, a pest and building inspection can help uncover termite damage.

When does a pest and building inspection take place?

Typically, as a buyer, this is done within 7 days of signing the contract.  The Standard House & Land Contract in Queensland has a built-in clause that allows for a time period to be entered.  7 days is the common amount of time, but you can negotiate a different time frame.  Keep this in mind if you are entering a contract over the Christmas/New Year or Easter periods.  You may have trouble finding a service provider during these holiday times.

It is important to remember, that if this clause in the contract is left blank, you are not entitled to conduct a pest and building inspection.  Also, if the clause is completed, the seller must co-operate by providing access.

As a seller, particularly if your property is going to auction, your agent will most likely encourage you to have a pest and building report completed to provide to people who inspect prior to the auction.  This is because a property sold at the auction is done so on an ‘as is; where is’ basis.  There is no provision at all for an inspection to be done once the hammer falls.

What happens if the inspection uncovers some problems?

It depends on the nature of the problem. These reports tend to be very thorough and will draw the buyers’ attention to even minor things. For example, a common one is a warning about the presence of garden beds close to the house.  Or the presence of old termite activity which may not be an issue in a home that has a well-maintained termite barrier.  Information such as these two examples is really not sufficient to negotiate any changes to the contract.  Nor should they deter a buyer from proceeding with the contract.

However, if the report identifies significant issues, then the contract, as it stands, can be in jeopardy.  Let’s say, that the report found a problem with the guttering that was causing some water damage to a wall.  The buyer should discuss with the inspector and or a builder the approximate cost of repairing the problem.  With that information in hand, the buyer can then talk to the agent and request that the contract price be reduced to account for the extra expense of the repairs.

The seller is not compelled to agree.  They may be prepared for the contract to fall over, especially if it is a hot market with lots of buyers around.  Usually, if the request is a reasonable one, then the seller will agree to reduce the contract price.

This is why good pest and building inspections are worth the expense.  At a few hundred dollars you will get peace of mind and perhaps save much more in the long run.