Buying, selling, renting or even just living in a property in Australia means dealing with building inspections at some point. These inspections, stickers, certificates and compliance procedures might seem tedious but they exist for good reason – to keep us safe and ensure properties are well maintained. 

As a homeowner, property manager or tenant, having a handle on what inspections and certificates are needed and when can give you confidence your legal responsibilities are covered. It also provides peace of mind that any safety risks or defects are identified early, avoiding nasty surprises down the track.

This guide covers the common building inspections and certificates, when they are required, what they entail, typical costs and how to work with inspectors. I’ll also share tips on using reports for negotiations and disputes, overcoming their limitations, spotting red flags and ensuring ongoing safety and compliance. 

Let’s demystify building inspections so you can navigate this important process with ease!

Why Building Inspections Matter

Building inspections help to identify issues and risks such as:

– Structural problems like cracked walls or dodgy extensions

– Faulty electrical wiring and switches 

– Gas or water leaks

– Pest damage or asbestos materials

– Safety risks like pool fences or fire systems

Inspections ensure the property meets minimum building codes and standards for occupancy. They also enable repairs and maintenance to be done proactively, avoiding bigger problems later.

For buyers, inspections provide confidence in the condition and identify negotiating factors. For sellers they help optimise sale price by addressing any problems upfront.

Tenants benefit through required checks on things like smoke alarms, electrical safety and pool fencing. And for commercial sites, periodic inspections are a legal requirement.

So while the inspection process might seem tedious, it provides important protection and reassurance for all parties.

Types of Building Inspections

There are a few main types of inspections conducted in Australia:

The Standard Pre-Purchase Inspection

A general inspection paid for by the buyer prior to purchase is strongly recommended. This looks over the entire property to identify any notable defects, safety hazards, compliance breaches or required repairs. 

It usually covers things like the roof, structure, electrics, plumbing, exterior, pests and overall condition. Having an inspection done gives buyers a better understanding of what they are purchasing and negotiating power if issues are found.

Pre-Sale Inspection

The seller may choose to get a pre-sale inspection done before listing so they can fix any problems upfront. This shows buyers the property is in good condition and can help achieve a higher sale price.

Pre-Settlement Inspection

The buyer may also inspect shortly before settlement to check if anything has changed or new damage occurred since originally viewing the property. It gives one final chance to discuss any concerns with the seller prior to handing over the money.

Specialist Inspections

In addition to a standard building inspection, specialists may be needed to look over things like asbestos, swimming pools, fire protection systems or lift hydraulics in commercial properties. 

Pest inspections are also common to check for termites. Each type of specialist inspection focuses in detail on their area of expertise.

Council Inspections 

Local councils have powers to inspect properties for compliance, condition, unapproved works and safety. They can issue orders to fix any issues and fines for breaches.

Insurance Inspections

Insurers may inspect a property before providing coverage to assess for risks. Periodic inspections may also be required for commercial properties insured. Certificates are usually required proving inspections are up to date.

Annual Inspections

Rental properties require annual inspections looking at things like smoke alarms, electrical safety, gas appliances and pool fencing which must meet mandatory standards. Commercial properties also require regular fire and safety inspections.

So in summary – inspections are conducted for presale, presurchase, insurance, compliance, councils, rentals and occupational health and safety. Each has a specific purpose to ensure property condition and safety is upheld.

Common Inspection Stickers and Certificates 

After an inspection is complete, the inspector may provide a sticker, tag or formal certificate to verify checks have occurred.

Electrical Safety Certificates

Electricians will thoroughly check the electrical systems for safety and issue a certificate. A colour coded sticker will also be applied to the switchboard showing the test date and when the next inspection is due – usually every 1 – 2 years.

Gas Safety Certificates

Plumbers inspect gas appliances and pipework for leaks or faults. Once tested as safe, a gas safety certificate is issued and the appliances will be tagged. For rentals, inspections are required annually.

Pool Safety Certificates

Certificates are issued once inspectors have checked the pool barriers and gates meet strict safety standards. Pool certificates may be required for property sales or rentals. Reinspection is needed every 1 – 3 years.

Smoke Alarm Certificates

Electricians test smoke alarms in rental properties to ensure they activate correctly. Once operational, a smoke alarm certificate is provided for compliance.

Fire Safety Certificates

For offices, hotels, factories and public buildings, a fire safety inspection is required annually. The inspector checks fire exits, alarms, emergency lighting, extinguishers etc. and issues a certificate verifying compliance with fire codes.

Building Inspection Reports

A detailed written report is provided after the inspector has examined the property. This documents all notable findings and identifies any defects, damage or risks. More on these reports shortly.

So in summary, look out for various stickers, tags, stamps and formal certificates which verify the property has passed required inspections.

When are Inspections Required by Law?

While a pre-purchase inspection is recommended, there are a number of instances where building inspections or certificates are compulsory by law:

Before Property Sales 

A valid pool safety certificate is required by law before selling or leasing a property with a pool in most states. Smoke alarm operability certificates are also encouraged.

For Rentals

Landlords must arrange annual inspections focusing on electrical safety, gas appliances, smoke alarms and pool fencing which then require certification. 

For Commercial Buildings

Workplace laws require existing commercial buildings to be periodically inspected for fire safety as well as electrics, machinery, lifts etc. Certificates of compliance must be displayed.

For Council Approvals

Councils can request inspections of new or modified buildings, or to investigate complaints. Owners must comply or risk fines for non compliance.

For Insurances

Insurers often require electrical and fire systems of commercial properties to be inspected and certified before providing insurance.

It’s wise for landlords, building owners and strata committees to diarise when required inspections and certifications are due each year to ensure they fulfil their legal obligations.

Building & Pest Inspection Reports 

The detailed inspection report provided after an inspector visits the property is an invaluable resource. Here’s what to expect inside these reports:

Overview of Major Issues

A summary of significant defects, damage or risks will be outlined upfront – like a leaking roof or faulty electrical wiring. An overall condition rating is also normally provided.

Detailed Findings

The report then delves into more detail about issues found in each area:

– Structure – foundations, walls, roof, windows

– Electrical – wiring, switches, outlets, appliances  

– Plumbing – pipes, taps, leaks, drainage

– Exterior – façade, gutters, decks, landscaping

– Interior – floors, walls, ceilings, doors  

– Pests – evidence of termites, rodents, other pests

– Compliance – unapproved works, safety risks

– Estimated repair costs – obtain quotes for any high value repairs

Photographs 

Photos help document defects, damage, risks and areas needing repair. They provide a useful visual reference.

Further Inspections Recommended

Specialist inspections may be recommended such as for asbestos, mould or structural engineers if certain issues are identified. Consider following up any critical recommendations.

Using the Report for Negotiations

Major safety risks or costly repairs identified in the report give buyers negotiating power on price. Non-urgent issues can be used to request repairs prior to settlement.

Overall, a thorough report helps buyers make an informed decision about proceeding or walking away. For sellers, it highlights priority fixes to make before selling.

Building Compliance Requirements

In addition to inspections, all buildings must comply with building codes and standards, including:

National Construction Code

The National Construction Code stipulates minimum standards for safety, health and amenity. All construction and renovations must adhere to the code.

Development Approvals

Council approval is required to construct or significantly modify a building, which will specify plans and conditions to be met.

Building Legislation

Requirements like mandatory smoke alarms, electrical safety switches, pool fences, asbestos handling and periodic inspections need compliance.

Australian Standards

Standards outline specifications related to buildings, construction, plumbing, electrics, lifts, fire safety, asbestos and many other aspects.

Non-compliance can mean hefty council fines or insurance claims being denied. Ensure you understand and meet all relevant compliance requirements for your property.

Typical Costs of Building Inspections

A few factors determine the cost to get a residential building inspection completed:

– Property size – Larger or multi storey homes cost more to inspect thoroughly, often 10-20% more than average.

– Accessibility – Difficult access increases time required, especially for roofs and restricted spaces.

– Scope – Standard visual inspections are the most affordable starting from around $250. Specialist inspections like asbestos cost more.

– Location – Remote properties may attract travel fees. Inspected quoted in metro areas may be cheaper.

– Inspector experience – Quotes can vary significantly, so get multiple to compare.

As a rough guide, typical inspection costs are:

– Standard pre-purchase – $250 to $400 for average sized homes

– Pest inspection – $180 to $300 

– Swimming pool – $150 to $250

– Asbestos – $300 to $600

– Electrical and gas safety – $250 to $400 each

Many inspectors offer multi-inspection discounted packages. Shopping around can save money.

Choosing a Building & Pest Inspector

The experience and expertise of the inspector makes a big difference to what issues are identified. Here are top tips for selecting reliable building and pest inspectors:

– Verify licensing – All inspectors should be fully licensed for their field by the relevant state building authority. Check they can provide a license number.

– Look for certifications – Prefer inspectors accredited by a professional body like the Australian Institute of Building Inspectors or equivalent. This indicates ongoing training. 

– Check specialisations – Generalists may miss issues a specialist would notice. Use accredited assessors for things like pools, asbestos and fire systems.

– Request sample reports – Ask inspectors to provide recent reports as examples to assess the quality and detail provided.

– Read reviews – Online customer reviews reveal inspectors with happy clients and thorough inspection practices. 

– Compare quotes – Quotes can vary greatly, so get several to compare pricing and what is included.

Questions to Ask Your Inspector

Here are some useful questions to ask your inspector:

– Are you fully licensed and insured for the type of inspection I need?

– What professional bodies are you a member of? 

– How long will the inspection take?

– Do you inspect roof spaces, under floors and check inside wardrobes?

– Will you test things like electrical points, pipes and appliances?

– Can you provide a sample report?

– Do you outline estimated repair costs for defects found?

– How long until I receive the report?

Their responses will help determine if they offer a sufficiently thorough service.

Limitations of Building Inspections

While extremely useful, building inspections have some limitations:

– Visual only – Inspectors cannot see inside walls, ceilings or under floors where hidden issues may lurk undetected like asbestos or termite damage.

– Not comprehensive – Specialists may be needed to look over things like swimming pools, lifts or fire systems in detail.

– A snapshot in time – The information only reflects the property condition at the date and time of inspection. New issues can arise anytime.

– Subjective – Not all inspectors will assess or describe issues consistently. Get a second opinion if the report seems lacking.

– Not assessing to code – Most inspectors only identify visual issues rather than compliance to building codes and standards.

– No guarantees – An inspection is an opinion, not a guarantee defects won’t arise or were missed.

Understanding these limitations helps you determine any high risk areas that need further investigation by specialists. Weigh up the costs to get a more comprehensive inspection versus potential risks.

Building Inspection Checklists

Use checklists to review what areas an inspection report has covered and identify any gaps. Checklists include:  

Electrical

– Powerpoints and light switches

– Wiring and safety switches

– Smoke detectors

– Electrical appliances

Plumbing  

– Pipes, taps and valves

– Blocked drains

– Water leaks

– Toilets, showers, sinks

Structure

– Foundations and footings

– External walls 

– Windows, doors

– Ceiling and floors

– Roof including insulation

General

– Signs of asbestos

– Signs of pests – termites, rodents

– Major safety hazards

– Swimming pools barriers

Checklists help assess if the inspector has adequately looked over each area. Follow up on any gaps.

Red Flags: When to Get a Second Opinion 

Some red flags in an initial inspection report suggest a second specialist opinion is advisable:

Major Cracking 

Large cracks in walls, retaining walls or foundations may require a structural engineer inspection if initial findings are unclear.

Dampness & Mould

Significant dampness, moisture or mould issues warrant further testing by a specialist waterproofing company to identify the source.

Faulty Electrical

Any evidence of damaged wiring, powerpoints, meters or appliances should be followed up with a full electrical safety inspection and certificate.

Materials Containing Asbestos

If asbestos (or suspected asbestos) materials are identified, an asbestos specific inspection can determine management or removal requirements.

Evidence of Termites

Known termite activity or damage requires further inspection and quotes by a licensed pest inspector and treatment company.

Poor Renovations

Shoddy additions like carports, decks, bathrooms and swimming pools merit a second look by a building certifier or engineer.

Serious Safety Hazards 

Urgent risks like faulty pool fencing, damaged balconies, inadequate smoke alarms or hazardous electrics should be rectified immediately.

It’s wise to follow expert recommendations to investigate any red flags further using accredited specialists. This provides a more definitive diagnosis of issues and solutions.

Disputes & Getting a Second Building Inspection Opinion

Disputes can arise if buyers or sellers disagree with the inspector’s findings in a report. Some options are:

Negotiate on repairs

If the buyer wants repairs made but the seller disagrees on the defect or cost, negotiate a mutually acceptable solution. Get quotes for major items.

Get a second opinion 

Another accredited and licensed inspector may provide a different assessment. Only use inspectors registered with recognised professional bodies.

Use report to withdraw or renegotiate 

For buyers, an unsatisfactory inspection may enable terminating the contract. For sellers, building works can be done to rectify issues then get reinspected.

Lodge a complaint

If the inspection quality or report is unsatisfactory, complaints can be lodged with consumer protection agencies and professional inspector associations.

Go to mediation

Independent mediators can review reports and hear both sides to assist in negotiating an outcome fair to buyer and seller.

Pursue legal action

For high value disputes, legal advice may be warranted if negotiations fail and consumer protection avenues don’t succeed.

Have reasonable expectations about what inspections can uncover. Where possible, aim to resolve disputes through negotiation rather than legal avenues.

Property Inspections for Insurance

Insurers often require building inspections to assess risks, determine policy conditions and set premiums. Typical requirements include:

Electrical 

Electrical safety inspection reports less than 2 years old may be required for commercial property insurance policies. Annual checks are recommended.

Fire Systems

A current fire safety inspection report will be required verifying fire systems like alarms, sprinklers and extinguishers are compliant and functioning.

Machinery/Lifts 

Plant, lifts and machinery will require inspection by qualified engineers for commercial property or landlord insurance. Regular servicing logs may be requested.

Security

Insurers may ask for photographs of any security systems like CCTV or alarm systems installed on the property.

Swimming Pools

A current pool safety certificate verifying fencing meets standards will often be required for house insurance policies on properties with pools. 

Hazardous Materials

Insurers want disclosure of any hazardous materials kept on site like asbestos, chemicals or gas bottles. Register copies may be requested.

Check all inspections are up to date _before_ applying for new insurance on a property to avoid delays or exclusions. Keep copies of certificates and provide updates each year.

Ensuring Ongoing Building Compliance & Safety

To ensure properties remain compliant and no safety issues arise over time:

Conduct routine maintenance – Follow a maintenance schedule and keep records of repairs done.

Check inspection due dates – Diarise required inspections like fire systems, pool barriers and electrical safety so none are missed.

Keep certificates on file – Retain copies of all inspection certificates and make available to tenants, buyers, insurers as required.