Why Your Building & Pest Condition Might Be Useless — And How to Avoid Losing Your Rights

/

The standard contract has traps everywhere — are you about to fall in?

Most buyers think ticking “subject to building and pest inspection” in the contract covers them. They feel safe, believing they can just walk away if something turns up.

But under the standard REIV / LIV Contract of Sale of Real Estate, it’s far more complicated. Unless you comply to the letter, your right to terminate could vanish, leaving you:

❌ Forced to buy a home riddled with problems,
❌ Unable to claim your deposit back, or
❌ Sued for breach of contract.

🏗 The building inspection trap — GC 21

Under General Condition 21, your right to walk away only exists if:

  • Your report is by a registered building practitioner under the Building Act 1993 (Vic) (like a VBA-registered builder), or a licensed architect.

  • It finds a major structural defect.

  • You provide written notice (with the report) within the strict timeframe.

  • And crucially, you are not in default under any other part of the contract (like failing to pay your deposit on time).

Most buyers have no idea their “building inspector” isn’t even licensed under Victorian law. Many are simply experienced tradespeople or unregistered inspectors with insurance. That’s not enough.

🐜 The pest inspection trap — GC 22

It gets even tougher with General Condition 22, which deals with pest inspections.

This clause states you can only rely on a pest report if it’s carried out by:

“a pest control operator licensed under Victorian law.”

So, who is that?

🔎 What is a “pest control operator licensed under Victorian law”?

It means someone who holds an ACUP (Agricultural Chemical User Permit) or equivalent licence from Agriculture Victoria, authorising them to handle and apply pesticides professionally.

  • A “pest inspector” who just does visual checks but doesn’t hold a chemical application licence under the Agricultural and Veterinary Chemicals (Control of Use) Act 1992 (Vic) likely doesn’t meet this standard.

  • Many inspectors rely only on past experience, membership in industry associations, or general insurance, none of which satisfy the specific wording of GC 22.

So if you paid them $400 to do a “pest check” and they find live termite activity under the house, you may still be locked in, because legally, their report isn’t from a licensed pest control operator.

❌ Don’t pay unless they can back it up

Before you engage any inspector:

✅ Ask them for their Victorian practitioner registration number (if building) or their pest control operator licence number (if pest).
✅ Check it on the official registers:

  • VBA Practitioner Search for builders/architects

  • Agriculture Victoria licensing info for pest control.

If they can’t produce these, or start with “Well, I’ve done this for 20 years but…” — don’t pay them a cent. Their report will be legally useless under your contract.

⏳ And don’t forget: your timing and defaults matter too

  • You must arrange inspections and give notice within the specified days (often 7 days to get the inspection done, 14 days to give notice, unless the contract changes this).

  • You also must not be in breach of any other obligation, such as failing to pay your deposit on time. If you’re in default, your right to terminate under these conditions evaporates.

🐾 There’s a wombat under my house!

You might remember our light-hearted article “There’s a wombat under my house — do I have to tell the buyer?”
It was a fun way to explore how unusual animal activity can impact your obligations as a vendor.

But under these building & pest clauses, it’s no joke — if your report doesn’t come from a properly licensed inspector, you can’t terminate even if there’s a literal wombat burrow compromising your foundations.

📝 How to protect yourself properly

✅ 1. Hire only licensed practitioners

  • Building: Must be a VBA-registered building practitioner (or architect).

  • Pest: Must be a pest control operator licensed under Victorian law.

✅ 2. Book inspections early

  • Ideally, within days of signing, to avoid any delays that chew up your deadline.

✅ 3. Pay your deposit on time

  • Even one day late can strip your rights under these clauses.

✅ 4. Keep your conveyancer in the loop

  • We can chase your inspectors, double-check licences, and ensure notices are served correctly.

💬 David Dawn’s perspective

As David Dawn, Licensed Conveyancer at Victorian Property Settlements, often says:

“Buyers think they’re protected by their building and pest clause — but unless their inspector is properly licensed under Victorian law, the clause is worthless.
I’ve seen purchasers forced to complete contracts on homes with serious defects simply because their ‘inspector’ didn’t meet the legal requirements.
The safest way? Have us check their credentials before you engage them. Otherwise you’re gambling with your deposit.”

✅ Take the stress out of it — get us to handle it for you

At Victorian Property Settlements, we:

✔ Check your contract and special conditions to see exactly what they demand.
✔ Confirm your building inspector or pest control operator is properly licensed.
✔ Keep the dates on track so you don’t accidentally waive your rights.

Victorian Property Settlements — Trusted for over 25 years by buyers and sellers across Melbourne and the Peninsula.
👉 Get your contract reviewed today at www.victorianpropertysettlements.com.au