Do I Need a Building and Pest Inspection Before Buying in Victoria?
/Is a Building and Pest Inspection Mandatory?
No. In Victoria, there is no legal requirement to obtain a building or pest inspection before purchasing residential property.
However, it is strongly recommended—especially where:
The property is more than 10 years old
Renovation or structural work appears to have been done
You are unfamiliar with the builder or owner-builder history
The contract does not include a special condition allowing withdrawal based on defects
What Can Go Wrong If You Don’t Inspect?
At Victorian Property Settlements, we’ve seen clients who skip inspections later face:
Undisclosed structural defects (cracks, water damage, roof movement)
Evidence of termite activity or chemical barriers being absent or expired
Unpermitted renovations requiring rectification or demolition
Compliance risks under the Building Act 1993 (Vic), particularly where owner-builder works were carried out without mandatory insurance or disclosure
Once you settle, you inherit all faults with the property, including those that may cost tens of thousands to fix.
Owner-Builder Risks: What to Watch For
If the vendor carried out works on the property within the last 6 years and 6 months, they may be an owner-builder under the Building Act 1993 (Vic).
In such cases, they must:
Disclose all works undertaken
Provide a 137B report
Have taken out Domestic Building Insurance (DBI) for works over $16,000
Failure to comply may entitle the purchaser to rescind, or result in litigation post-settlement.
We advise checking the Section 32 and contract for:
Any permits
137B reports
References to owner-builder status
Evidence of DBI
What Should the Inspection Include?
A proper report should cover:
Roofing and gutters
Stumps, bearers, and subfloor
Evidence of water ingress or movement
Termite inspection and chemical protection status
Moisture readings and signs of rot or decay
Electrical and plumbing red flags (non-compliant fittings or unsafe works)
Make sure it is carried out by a registered building practitioner or licensed pest technician, and that you receive a full written report.
Can You Make the Contract Subject to Inspection?
Yes, and we recommend it—especially in private sales.
The clause should allow the purchaser to:
Arrange inspections within a defined timeframe (usually 7–14 days)
Withdraw from the contract if defects are revealed that materially affect the value or safety of the home
Obtain a full refund of the deposit if they lawfully terminate
In auction contracts, these clauses cannot be added, so inspections must be completed before the auction.
David Dawn’s Professional Advice
“A building and pest inspection is one of the cheapest forms of protection a purchaser can get. Skipping it is like buying blind. You need to know what you're getting—and whether the vendor is telling the full story.”
At Victorian Property Settlements, we:
Review the Section 32 for building red flags
Explain inspection rights and timelines
Draft custom special conditions for building and pest clauses
Alert our clients if any reports are missing or questionable
When to Raise Building Concerns
If you suspect:
Owner-builder works
Renovation or additions not listed in permits
New painting or coverings hiding potential damage
Let us know immediately. Time is critical.
We may advise:
Delaying exchange
Requesting vendor reports
Insisting on an inspection clause
Renegotiating the price or contract terms
Final Thoughts
While not legally required, a building and pest inspection is one of the most important steps in any Victorian property purchase.
It gives you:
Leverage
Legal clarity
Peace of mind
Don’t gamble with your biggest investment. Let us help you buy with confidence.
Need Advice About Inspections and Contract Clauses?
Victorian Property Settlements – Protecting Victorian buyers for over 25 years.
📍 Frankston | 📞 03 9783 0111 | ✉️ david@quick32.com
🌐 www.victorianpropertysettlements.com.au