What a building and pest report doesn't tell you

A pre-purchase building and pest inspection is one of the best things you can spend money on before you buy. But it has firm limits, set by the Australian Standards it follows and by what the inspector can see on the day. Knowing those limits tells you what else to check.

1. It's a visual inspection

Inspections follow AS 4349.1 (building) and AS 4349.3 (timber pests). They're visual and non-invasive: the inspector doesn't move furniture, lift floor coverings, open walls or test materials. Areas hidden by stored goods, furniture, landscaping or lack of safe access aren't inspected, and the report will list them. Read that list; it's where problems hide.

2. It doesn't check council approvals

A building inspector reports on condition, not whether work was approved. An enclosed balcony, converted garage, deck or extra bathroom may have no approval. Ask the vendor for approvals and occupation certificates, and have your solicitor check the planning certificate and council records.

3. It doesn't test the services

Plumbing, drainage, electrical wiring, gas, hot water and smoke alarms are usually outside the scope, or only noted if something obvious is seen. If the house is older or has been renovated, consider a licensed electrician and plumber.

4. It doesn't confirm asbestos

An inspector may note materials that could contain asbestos, but can't confirm it without testing. Homes built before 1990 often contain some. Also check the NSW loose-fill asbestos register, which is noted on the planning certificate.

5. Pools, trees, retaining walls and drainage

In NSW, a contract for a property with a pool must attach a certificate of pool barrier compliance, a recent occupation certificate or a certificate of non-compliance, and the inspection report doesn't replace these. Large trees, retaining walls, boundary fences and site drainage are often only commented on generally. If the land slopes, consider a structural or geotechnical engineer.

6. It's a snapshot on one day

Leaks may not show in dry weather, and termite activity can start after the inspection. The report describes the property on the day, not in the future.

7. In an apartment, it doesn't cover the building

For a strata property, the inspection mostly covers the inside of the unit. The roof, facade, basement, structure and other common property belong to the owners corporation, and their condition is in the strata records, not the building report. That's why apartment buyers need a strata report too.

How WIBI reads a building and pest report

WIBI reads the whole report, lists each defect and recommendation with its page, and reads it together with the contract: if the contract says you can't claim for defects, WIBI tells you which defects would become your cost. It also checks public records the inspector doesn't, such as planning, flooding, landslide and acid sulfate soil maps.

Questions

Is a building and pest report enough for an apartment?

No. It mostly covers the unit itself. The building's condition, money and disputes are in the strata records, so get a strata report as well.

What does "further investigation recommended" mean?

The inspector saw signs of a possible problem they couldn't assess within the inspection's limits, such as cracking that may be structural. Get the recommended specialist to look before you commit.

Will the report tell me if the extension was approved?

No. Building inspectors report condition, not approvals. Check council records and occupation certificates, and ask your solicitor.

Keep reading

• NSW strata report red flags: what to look for before you buy
• Special conditions in a NSW contract for sale: what to look for
• The NSW Low and Mid-Rise Housing rules: what they mean for buyers

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