Buying or selling property in Queensland is a significant financial commitment, and one of the most important protections included in a standard contract is the building and pest clause.
This clause allows buyers to assess the condition of a property before the contract becomes unconditional, helping to avoid unexpected costs and legal complications later in the process.
Arranging a professional property inspection through experienced providers ensures buyers and sellers have the information they need to make confident decisions.
Key Takeaways
- Building and pest clauses are a standard protection in Queensland property contracts, allowing buyers to assess a property before it becomes unconditional
- The clause gives buyers the right to obtain independent building and pest inspection reports within a set timeframe
- Buyers can proceed, negotiate, or terminate the contract based on the inspection findings
- Sellers are not obligated to agree to repairs or price reductions
- Inspections must be carried out by licensed professionals and supported by written reports
- Acting within the agreed timeframe is critical to preserve contract rights
- Professional inspections help identify hidden defects, reduce risk, and support informed decision-making
What is a Building & Pest Clause on a Contract
A building and pest clause is a contractual condition that gives the buyer the right to arrange independent inspections of a property after signing the contract, but before final settlement. Its purpose is to confirm whether the property is satisfactory based on a professional assessment.
Under this clause, the buyer is responsible for engaging licensed inspectors to carry out both a building inspection and a pest inspection within the agreed timeframe. The buyer must also obtain written inspection reports to support any decision made under the clause.
Once the reports are received, the buyer has three possible options:
- accept the property and proceed with the purchase
- attempt to negotiate repairs or a price adjustment
- terminate the contract if the property is considered unsatisfactory
Sellers are not required to agree to repairs or renegotiation, and any changes to the contract must be mutually agreed upon in writing.
What is a Building & Pest Report
The Building Inspection
A building and pest report in Queensland is a detailed written assessment of a property prepared by qualified professionals. The report provides insight into the overall condition of the property and identifies any defects or risks that may affect the value or safety of the property.
A typical building inspection examines:
- roof structure and accessible roof voids
- internal rooms including bathrooms, kitchens and laundry areas
- walls, ceilings, floors and windows
- external elements and footings
- garages, patios, decks and site conditions
Read more on what’s covered in an inspection.
The Pest Inspection
The pest inspection focuses on termites and other timber-damaging pests, as well as evidence of past infestations that may require professional pest control services.
The report includes written observations supported by photographic evidence, outlines major and minor defects, and provides recommendations for further action where required.
Optional inspections may include:
- thermal or infrared moisture scanning
- asbestos identification
- illicit drug residue testing
Why Building & Pest Clauses Are Important
Building and pest clauses are essential in Queensland property transactions because they protect buyers from hidden structural defects or pest activity that may not be visible during open homes or private inspections. The clause provides a legal right to terminate the contract if the inspection results are unsatisfactory, allowing buyers to withdraw without penalty.
By arranging professional inspections through a trusted provider, buyers reduce the risk of expensive surprises after the contract becomes unconditional and can proceed with greater certainty.
Standard Timeframe for Building & Pest Inspections in Queensland
In most Queensland property contracts, the standard timeframe to satisfy the building and pest clause is ten business days from the date the contract is signed. During this period, inspections must be completed, reports obtained, and any action taken by the buyer.
If more time is required, an extension may be requested, but it must be agreed to by both parties in writing.
Acting Reasonably Under a Building and Pest Clause
Queensland contracts generally require buyers to act reasonably when relying on a building and pest clause unless the contract specifically provides otherwise. Acting reasonably involves assessing the inspection findings in context rather than focusing on minor or cosmetic issues.
Factors commonly considered when determining reasonableness include:
- the age and type of the property
- the number and severity of identified defects
- whether the issues were visible at the time of inspection
- whether the issues are structural, safety-related or maintenance-based
Examples of issues that are generally considered reasonable grounds to negotiate or terminate include major structural damage or significant termite infestation.
Issues that are usually not considered reasonable grounds include missing light fittings, broken light bulbs, minor cosmetic wear, cracked pavers or partially damaged fences.
What Happens After the Inspection Report
Once the building and pest report has been received, the buyer must decide how to proceed within the inspection period.
The buyer may:
- accept the property and allow the contract to become unconditional
- request repairs or a reduction in the purchase price, noting the seller is not required to agree
- terminate the contract if the property is unsatisfactory
If the buyer chooses to terminate, written notice must be provided to the seller within the agreed timeframe and the inspection report should be included as supporting evidence. When termination is carried out correctly, the buyer is generally entitled to a refund of the deposit according to the contract terms.
Practical Tips for Buyers and Sellers
To help ensure a smooth transaction:
- arrange inspections immediately after signing the contract
- attend the inspection where possible
- keep all communication with agents and sellers in writing
- seek advice from a conveyancer if inspection findings are complex or disputed
Sellers who understand how building and pest clauses operate are better positioned to manage buyer expectations and reduce delays.
Who Pays and How to Choose an Inspector
In Queensland, the buyer is responsible for arranging and paying for the building and pest inspection. Costs can vary depending on property size, location and inspection type, so reviewing inspection prices and packages beforehand is recommended.
When choosing an inspector, buyers should look beyond price alone and consider the following factors:
- Licensing and qualifications – ensure the inspector holds the appropriate Queensland licences and insurances
- Independence – the inspector should be independent and not affiliated with the selling agent or builder
- Experience and local knowledge – inspectors familiar with Queensland property types and conditions are better equipped to identify common regional issues
- Report quality – clear, detailed written reports with photographic evidence make it easier to understand defects and rely on the findings under a contract clause
- Turnaround time – fast report delivery is essential to meet strict building and pest clause timeframes
- Availability for follow-up – a good inspector will explain findings and answer questions after the inspection
Inspect My Home provides licensed, independent inspectors across Queensland, delivering comprehensive reports with clear photographs and fast turnaround times to support confident contract decisions within tight timeframes.
How to Read and Use Your Report
Understanding the building and pest report is critical when deciding whether to proceed with a purchase. Buyers should review both the written comments and photographs carefully and focus on defects that affect structural integrity, safety or long-term maintenance costs.
Inspection reports can be used to support negotiations, request repairs or justify termination under the building and pest clause. Inspect My Home inspectors are available to clarify findings and explain how issues may impact the property.
Why Choose Inspect My Home
Choosing the right inspector can make a significant difference to the outcome of a property transaction. Inspect My Home is a trusted provider of property inspections, with licensed inspectors who bring decades of industry experience and local knowledge to every inspection.
Contact Inspect My Home
If you would like advice on what an inspection will cover or need help arranging an inspection within your contract timeframe, contact the team at Inspect My Home. Call 1300 337 447 to speak with an experienced inspector or submit an enquiry online to arrange your inspection with confidence.
Frequently Asked Questions
Can I terminate a contract under a building and pest clause in Queensland?
Yes. If the inspection report shows the property is unsatisfactory and you act within the inspection timeframe, you may terminate the contract under the building and pest clause. Written notice must be provided to the seller along with the inspection report. When done correctly, the deposit is generally refunded.
What defects are considered serious enough to terminate?
Serious defects usually include major structural issues, significant termite damage or safety concerns that require substantial repairs. Minor maintenance items or cosmetic wear are not typically considered reasonable grounds for termination.
Do I need both a building and a pest inspection?
Most Queensland contracts require both inspections. These are often completed together as a combined inspection to ensure all requirements of the clause are satisfied.
Can a seller refuse to negotiate after receiving a report?
Yes. Sellers are not legally required to agree to repairs or price reductions. If negotiations are unsuccessful, the buyer must decide whether to proceed with the purchase or terminate under the clause.
How soon should I book my inspection after signing a contract?
Inspections should be booked immediately after signing the contract to allow enough time to receive the report and take action within the standard ten-business-day inspection period.
