Guide 6 · Goes out before signing, and again before settlement
Building and pest inspections in Queensland
Queensland’s building regulator, the QBCC, recommends a pre-purchase building inspection and a termite inspection before a home is bought, and suggests making the contract conditional on the buyer being satisfied with the results. Only a licensed residential building inspector may carry out the building inspection, and only a licensed pest controller the termite inspection.
Who may inspect
The licence for a pre-purchase building inspection is the QBCC’s completed residential building inspection licence. Under the Queensland Building and Construction Commission Regulation 2018, its scope is a completed building inspection, including inspecting and reporting in line with Australian Standard 4349.1-2007 on pre-purchase inspections of residential buildings. To hold it, an applicant needs, among other requirements, five years’ experience in the work of a low rise, medium rise or open builder licence, or as a building surveyor, assistant building surveyor or building surveyor technician.
A termite inspection, often called a pest inspection, is done by a licensed pest controller. The two can be done together when one inspector holds both licences. The Queensland Government’s buying advice says the same in short: a combined building and pest inspection is possible, and the inspector should hold a current QBCC licence.
What the building report looks for
The QBCC describes a pre-purchase building inspection as a look for obvious defects or areas of concern. Its examples:
- a faulty roof or a leaking ceiling;
- weak or cracked walls, or damaged foundations;
- mould, missing waterproofing, or drainage problems.
The QBCC is plain that this inspection is not a warranty against future defects. Where one part of a home is a worry, the roof for instance, it suggests a more detailed report from the right expert, such as a plumber or an engineer. It also suggests being there for the inspection, knowing what the inspector will and will not look at, and asking questions on the spot.
The QBCC adds that the building inspector will point out possible asbestos in the house, and that “most homes built before 1990 contain some asbestos”. Queensland’s asbestos website explains that the risk of an asbestos-related disease goes up when asbestos is worked on or disturbed and its fibres are released. Brisbane City Council’s advice is not to disturb a structure you suspect contains asbestos, and to call a licensed contractor to remove or treat it. Among the things Queensland’s asbestos website says not to do when renovating is this one, in its own words: “Saw, sand, scrape or drill holes in asbestos materials.” The Asbestos and Silica Safety and Eradication Agency’s advice for householders says it is “not recommended that you handle or remove asbestos yourself”, and that getting a professional to do the job is easier, safer and often cheaper. The agency also says never to clean asbestos materials with high-pressure water or with anything abrasive, such as scrubbing, sanding or grinding. It adds that all asbestos waste must go to a landfill licensed to accept it. In Queensland, asbestos waste is regulated waste: it has to go to a landfill that can lawfully receive it, and putting it in a household garbage bin is illegal.
On the pest side, the QBCC says a termite inspection checks for termites, for damage they have done, and for any termite management system already in place, and that the inspector should explain how to maintain that system and whether the area is at risk of termite attack. The QBCC’s page on protecting against termites covers termites themselves.
Where inspections fall around the contract
- Before negotiating
Inspect early
The Queensland Government’s buying advice is to arrange inspections before negotiations begin, so the property’s condition and any future costs can be weighed in an offer, and to be clear on what the report covers.
- Signing the contract
Or make it a condition
Where inspections cannot be done early, the same page says they can still be done before settlement, with terms in the contract that let the buyer cancel over poor reports.
- 5 business days
The cooling-off period
The standard contract carries a cooling-off period of 5 business days, starting when the buyer receives the contract signed by both sides and ending at 5pm on the fifth day. A buyer who cancels in that time does so by written notice; the seller refunds the deposit within 14 days and may keep a penalty of up to 0.25% of the price. There is no cooling-off period at auction, and it can be waived or shortened by written notice.
- 2 to 3 days before settlement
The pre-settlement inspection
The Queensland Government suggests inspecting the property 2 to 3 days before settlement to see it is in the condition it was in at signing, checking anything the contract specifically included, and asking the solicitor whether the contract’s other conditions have been met.
A newer home: the warranty search
A builder doing more than $3,300 of residential work, counting labour, materials and GST, takes out insurance under the Queensland Home Warranty Scheme. It covers houses, duplexes, townhouses and low-rise units of up to 3 storeys above a carpark, against some defects and subsidence for a set period. The QBCC says cover lasts 6 years and 6 months from the contract or the premium payment, whichever came first, and can run longer when construction took more than six months. A buyer, or their legal agent, can request a home warranty insurance search; for work finished more than 6 years ago, the QBCC says the cover has likely expired.
One link runs straight back to the inspection: the scheme will not cover defects or subsidence that the buyer knew about before buying.
An owner-built home
If an owner-builder project on the property was finished in the last 6 years, the seller must give the buyer a notice before the contract is signed, describing the work, naming the owner-builder permit holder and confirming the work was done under a permit. The buyer receives two copies, signs one and returns it to the seller on or before signing. The notice also has to carry a set form of words warning that home warranty insurance under the Queensland Building and Construction Commission Act 1991 does not cover the work.
That notice is the one section 47 of the Queensland Building and Construction Commission Act 1991 asks for. If it is not given, the Act says the seller is taken to have given the buyer a contractual warranty that the building work was properly carried out. A copy of the notice is also one of the certificates the seller disclosure scheme asks for, but the Property Law Act 2023 does not let a buyer end the contract over a missing document when another Act already sets its own consequence for that failure, beyond making it an offence. So the buyer has the warranty, not a right to end the contract. Guide 1 has more.
A home with a pool
Before the contract is entered into, the seller should give the buyer a current pool safety certificate, or a Form 36, the notice that there is no certificate. A buyer who takes a pool without a current certificate must bring it up to standard and apply for a certificate within 90 days of settlement; for a shared pool, as in a unit complex, the body corporate must get it within that time. The QBCC’s page on buying or selling a property with a pool has the detail.
After the report
If a report missed existing damage
The QBCC says a buyer whose pre-purchase building or termite report failed to mention existing damage has to take their own action against the inspector. The steps it sets out:
- Write to the inspector with the concerns, allowing a reasonable time to respond, such as 14 days, and keep a copy.
- If the response does not resolve it, lodge a complaint with the QBCC, with the letter and the report, as soon as possible after receiving the report.
- The QBCC assesses it, may inspect the property, and can give an investigative report for use at the Queensland Civil and Administrative Tribunal or in court.
Where a loan comes in
Inspection fees are part of the cost of buying. In Queensland Treasury’s worked example for its Boost to Buy scheme, the buyer has saved for purchase costs that include building inspections as well as the deposit. That scheme’s contracts must include a finance clause of at least 14 days and cannot be made at auction, where there is also no cooling-off period. More is in guide 5.
That is the last guide on the tide table. Go back to the tide table, or start again with the seller disclosure statement.