Building and Pest Inspections in Victoria: Why Skipping This Step Could Cost You Thousands

You've found the perfect home. The price looks right. The location is ideal. But before you sign that contract, there's one critical step many Victorian buyers rush through or skip entirely—and it could save you from a financial disaster.

A building and pest inspection isn't legally mandatory in Victoria, but skipping it is like buying a car without checking under the hood. Once you settle, you inherit every flaw, every hidden defect, every termite colony—and fixing them is entirely your problem.

At MKJ Conveyancing, we've guided countless buyers through property purchases. We've seen deals saved and deals ruined, often based on what an inspection revealed. Here's what you need to know.

Is a Building and Pest Inspection Legally Required?

No. Victoria has no legal requirement for a building or pest inspection before purchase. But that doesn't mean you should skip it.

In fact, we strongly recommend inspections if:

·        The property is more than 10 years old

·        Renovation or structural work appears to have been done

·        The vendor's history is unclear

·        The Section 32 statement mentions recent building works

·        You're unfamiliar with the property's owner-builder history

What Happens If You Don't Inspect?

Skipping an inspection opens the door to costly surprises:

Structural Defects – Cracks in foundations, water damage, roof movement, and rotting stumps can cost tens of thousands to repair. Once you own it, they're your responsibility.

Termite Activity – Termite damage can be hidden for years. Chemical barriers may be absent or expired, leaving your property vulnerable.

Treatment can easily exceed $5,000+.

Unpermitted Renovations – If previous owners added rooms, converted spaces, or modified the structure without council permits, you may be forced to demolish or rectify the work—at your cost.

Building Compliance Issues – Under Victoria's Building Act 1993, if owner- builder works were done without mandatory Domestic Building Insurance (DBI) or proper disclosure, you could face legal disputes or expensive remediation after settlement.

As our clients say after a thorough inspection: "It was the best $500–$800 we spent."

What Should a Building and Pest Inspection Cover?

A proper report from a registered building practitioner or licensed pest technician should include:

·        Roofing and gutters – Leaks, rust, structural integrity

·        Stumps, bearers, and subfloor – Movement, rot, termite damage

·        Water ingress indicators – Moisture, mold, water staining

·        Electrical and plumbing – Non-compliant or unsafe installations

·        Termite protection – Inspection of chemical barriers and evidence of activity

·        Cracks and structural movement – Foundation issues and safety risks

Always get a written report. Verbal feedback won't protect you legally or financially.

Making the Inspection a Condition of Your Contract

Here's where your conveyancer (like our team at MKJ Conveyancing) makes a difference. You can add a special condition to your contract that allows you to:

·        Arrange inspections within 7–14 days

·        Withdraw from the contract if defects materially affect the property's value or safety

·        Receive a full refund of your deposit if you lawfully terminate

Important note: If you're buying at auction, you cannot add inspection conditions. Inspections must be completed before the auction. This is why private sales often give buyers more flexibility.

Owner-Builder Works: A Red Flag You Can't Ignore

Owner-builders must:

·        Disclose all works undertaken

·        Provide a 137B Compliance Certificate

·        Hold Domestic Building Insurance (DBI) for works over $16,000

Failure to comply = you can rescind the contract or pursue legal action after settlement.

When reviewing the Section 32 statement, check carefully for:

·        Any building permits issued

·        137B reports or certificates

·        Evidence of Domestic Building Insurance

·        References to owner-builder status

The Three Business Day Cooling-Off Period: Your Safety Net

Even with inspections, Victoria gives you another layer of protection: a three business day cooling-off period after signing the contract.

This allows you to withdraw from the purchase if you have second thoughts—though there's a small penalty ($100 or 0.2% of purchase price, whichever is greater).

However, the cooling-off period does NOT apply if:

·        The property was sold at auction

·        It's a non-residential property

·        It's a rural property over 20 hectares

·        You're a real estate agent or company

What MKJ Conveyancing Recommends

1.   Commission the inspection early – Before signing, if possible

2.   Use a registered professional – Not a mate with a level

3.   Review the Section 32 closely – Check for building red flags

4.   Add inspection conditions to your contract – Protects you legally

5.   Get professional conveyancing advice – We review inspection reports and Section 32 statements to flag concerns

6.   Act during the cooling-off period if needed – Don't delay if the report reveals major issues

Your Investment Deserves Protection

Buying a home is often the biggest financial decision of your life. A building and pest inspection costs $500–$1,000 but could save you from a $50,000+ liability.

At MKJ Conveyancing, we help buyers across Donnybrook, Wantirna South, Ballarat, Mickleham, and beyond navigate these critical decisions. From reviewing Section 32 statements to ensuring your contract includes proper inspection conditions, we're here to protect your interests every step of the way.