Building and pest reports in NSW: how to read one

A building and pest report is a pre-purchase inspection that tells you about the condition of a property before you buy: defects, safety hazards, damp, and signs of termites or other timber pests. In NSW, inspections are usually done to Australian Standard AS 4349.1 for buildings and AS 4349.3 for timber pests. The report covers what the inspector could see and reach on the day, so how you read it matters as much as what it says.

Most buyers read the summary and stop. The most useful parts are often further in: the photos, the list of areas not inspected, and the recommendations for further investigation.

What a building and pest report covers

A standard pre-purchase report usually includes:

• Major defects. Problems serious enough to affect the structure, safety or use of the building, such as significant cracking, movement or failed waterproofing.
• Minor defects. Maintenance items and wear that are common in most homes.
• Safety hazards. Items that could cause injury, such as unsafe balustrades, trip hazards or loose roofing.
• Damp and water. Moisture readings, leaks, poor drainage and signs of rising damp.
• Timber pests. Live termites, past termite activity or damage, borers and wood decay, and conditions that make termite attack more likely.
• The overall condition. How the building compares with others of a similar age and type.

How to read a building and pest report

Start with the areas not inspected

Every report lists areas the inspector couldn't access: a roof space without safe entry, a subfloor too low to crawl, rooms locked or full of furniture, or walls behind built-ins. Termites and leaks often hide in exactly those places. "Not inspected" isn't the same as "all clear", so ask whether those areas can be accessed before you exchange.

Separate major defects from maintenance

A long list of minor items is normal. Focus on major defects and safety hazards, then ask what they could cost to fix. For anything structural, the report may recommend a specialist such as a structural engineer, plumber or electrician.

Check the termite findings carefully

Look for live termites, evidence of past activity, damage, and whether a termite management system is in place. Conditions such as garden beds against the walls, leaking pipes or timber touching the soil raise the risk.

Read the recommendations

If the inspector recommends further investigation, treat it as unfinished business. Those recommendations are where the biggest costs tend to sit.

What a building and pest report doesn't tell you

• Council approvals. An inspector checks condition, not whether an extension or pool was approved. Check the contract for occupation or building information certificates.
• Hidden defects. The inspection is visual and non-invasive. It doesn't open walls, lift floor coverings or test every system.
• Electrical and plumbing compliance. These usually need a licensed electrician or plumber.
• Strata common property. For apartments, the inspection focuses on the lot. The building's wider problems are in the strata report.

How WIBI helps

Upload the building and pest report to WIBI and it reads every page. It pulls out safety hazards, major defects, damp, termite findings and every area the inspector couldn't get to, so you know what's still unknown, and gives you the questions to ask. WIBI reads the inspector's report; it doesn't inspect the property.

Questions

Do I need a building and pest inspection in NSW?

It isn't compulsory, but it's one of the most important checks before buying a house. For apartments, combine it with a strata report, because building-wide problems sit in the strata records.

How much does a building and pest inspection cost?

Prices depend on the size, age and location of the property. Get quotes from licensed, insured inspectors and check the report follows AS 4349.

When should I get the inspection done?

Before you exchange contracts, or before auction day if you're bidding. After exchange you're bound by the contract, with only a limited cooling-off period for most private sales.

Can I use a building report to negotiate?

Often, yes. Costed defects give you a reason to negotiate the price or ask the seller to fix items before settlement. Your solicitor can advise on how to put that in writing.

What's the difference between a building report and a pest report?

A building report covers the structure and condition of the home. A pest report covers termites and other timber pests. They're often combined into one inspection and one report.

Keep reading

• Building and pest inspection cost in Sydney
• Unapproved building work: how to check in NSW
• What a building and pest report doesn't tell you
• First home buyer checklist for NSW

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