Updated 27 October 2026
CM Law's Ultimate List: The top 50 FAQs on Buying a Residential Investment Property #35. Pest Control
CM Lawyers guide to buying a property
Inspect before committing to the purchase
Building and pest inspections are important safeguards when buying a NSW investment property. They help you understand its physical condition before committing money, accepting repair risks or setting a rental budget. A freshly painted interior and an appealing rental estimate cannot tell you whether structural timbers are damaged or moisture problems need investigation.
Arrange the inspections early, read the complete reports and act on recommendations. Ordering a report has limited value if an urgent warning or inaccessible area is overlooked. Your lawyer should review the findings alongside the contract so your purchase decision reflects both the physical risks and your legal options.
Understand the two different inspections
A building inspection assesses visible building defects, such as significant cracking, damp or roof problems, within the agreed scope. A timber-pest inspection investigates timber pests and relevant evidence of activity or damage. NSW Government guidance explains that a building report alone does not normally establish whether termites remain active.
A combined package can cover both, but confirm this in writing. Ask which structures and pests are included, particularly if you are concerned about a granny flat, outbuilding, rodents or other infestations. Do not assume that a report labelled ‘building inspection’ includes every pest assessment you need.
Get the timing right before exchange or auction
Aim to complete inspections and necessary follow-up before exchanging contracts. Before bidding at auction, resolve concerns and have your lawyer review the contract. NSW generally provides no cooling-off period for auction purchases or contracts exchanged on the auction day after a property is passed in.
For ordinary residential private treaty purchases, the usual cooling-off period is five business days after exchange; off-the-plan contracts generally have ten. A section 66W certificate can waive cooling-off rights. If relying on a cooling-off period, confirm the exact deadline and allow time for reports, specialist advice and any required notice.
Withdrawing under ordinary cooling-off rights generally forfeits 0.25% of the purchase price. An adverse report does not automatically create a separate right to cancel. Ask your lawyer about any inspection condition or extension before the deadline; do not assume a verbal reassurance changes the contract.
Choose the inspector and agree on the scope
Check relevant qualifications, experience with similar properties and professional indemnity insurance. Ask who will attend, what the written report includes and whether they will discuss the findings with you. Price should be considered alongside the work being offered and the time available for follow-up.
Inspection and pesticide treatment are different services. The NSW EPA confirms that timber-pest inspection alone, without pesticide use, does not require an EPA licence. Before commissioning treatment, verify the appropriate licence or authorisation. A treatment licence does not, by itself, tell you whether the proposed building inspection meets your needs.
Read limitations as carefully as the findings
Check the inspection date, photographs, exclusions and inaccessible areas. A standard visual inspection cannot reveal everything behind walls, beneath coverings or in obstructed spaces. A report is not a guarantee against future defects, a repair quotation or a certificate that all building work has approval.
Ask what remains uncertain and whether further access or a specialist assessment is recommended. Obtain the seller’s permission before intrusive investigation. If an important area cannot be assessed, discuss that unresolved risk with your inspector and lawyer before proceeding.
Turn the findings into a practical decision
Discuss significant findings with the inspector rather than relying only on the summary. Ask which issues require urgent attention, which need another specialist and which are routine maintenance. Where structural damage is suspected, further advice from an appropriately qualified engineer or builder may be needed.
Obtain separate written quotes for treatment and repairs. Eradicating termites does not replace damaged timber or establish that a structure is safe. Consider whether work requires vacant possession, approvals or time without rent. Add a contingency for unresolved work rather than treating a preliminary estimate as a fixed price.
You may seek a price adjustment or properly documented contractual protection, but the seller need not agree. A lawyer should settle any repair obligation, evidence requirement and completion deadline. Decide whether the remaining risk fits your finances before committing.
Check existing reports and obtain strata records
Ask the agent about previous reports. NSW imposes record-keeping and disclosure requirements on agents concerning pre-purchase reports. If a seller supplies one, check its age, scope, commissioning party and whether you are entitled to rely on it. An independently commissioned report may better address your particular concerns.
For an apartment or townhouse in strata, obtain a strata records report as well as appropriate physical inspections. Review defect reports, pest-treatment history, meeting minutes, planned works, finances and possible special levies. Records and physical inspections answer different questions.
Clarify whether common areas were inspected. Under the usual strata maintenance arrangements, the owners corporation maintains common property and owners maintain their lots, subject to relevant exceptions and by-laws. A common-property problem can still affect your costs through levies. Do not assess the investment only by looking inside the apartment.
A real NSW case about concealed termite damage
In Alexandrou v Pacific Pest Control Pty Ltd [2016] NSWDC 193, purchasers obtained a visual building and pest report before their cooling-off period expired. Substantial termite damage was discovered after settlement, including damage exposed when wall linings were removed. The purchasers claimed against the inspectors.
The District Court found that the evidence did not establish a failure to exercise due care and skill or negligence in the visual inspection. The report and contemporaneous photographs were important; later discovery of damage did not establish that it should have been detected at the inspection. Judgment was entered for the defendants.
The case illustrates why the agreed scope, access restrictions and inspection evidence matter. It does not make inspections unnecessary or excuse careless work. Buyers should understand what was assessed and investigate recommendations before accepting the remaining risk.
Continue pest management after settlement
A pre-purchase report describes conditions at a particular time. It does not replace an ongoing maintenance plan. Building Commission NSW guidance explains that termite risk-management systems work alongside regular inspections to reduce risk.
Ask the pest professional for a property-specific inspection schedule and advice about moisture, access and existing barriers or baiting systems. Obtain treatment records, warranties and maintenance requirements from the seller where available. Diary follow-up dates and tell your managing agent about recommendations. A property manager’s routine tenancy inspection is not a substitute for a specialist timber-pest assessment.
Respond promptly to tenant reports
Under NSW tenancy guidance, landlords generally address pest problems present at the start of a tenancy. Responsibility later depends on matters including property defects, tenant conduct and circumstances beyond the tenant’s control. A hole allowing pests into the building is different from an infestation caused by unremoved rubbish.
Record concerns, arrange a suitable assessment and address the cause as well as treatment. Keep the condition report, photographs, invoices and communications. Do not automatically blame the tenant because the problem appeared after they moved in. If responsibility is disputed, obtain advice about repair obligations and the available dispute-resolution process.
Check insurance and obtain legal advice
Do not assume insurance will pay for pest damage, existing defects or the resulting loss of rent. Read the policy wording and ask the insurer about exclusions, limits and conditions. Moneysmart’s insurance guidance explains why the product disclosure statement matters. Include inspections, maintenance, repairs and possible vacancy in your investment budget.
Christine Manolakos and the CM Lawyers conveyancing team can review your reports alongside the contract and explain the legal options. Contact CM Lawyers before exchange, auction or a cooling-off deadline. This guide should always be checked by a lawyer against your circumstances, with technical findings assessed by the appropriate building or pest professional.
General information about NSW property matters only. Obtain legal advice and appropriate technical inspection advice for the particular property.
Key resources
NSW pre-purchase inspection guidance and contracts and deposits — Inspection scope, timing, cooling-off periods and contract review.
NSW agent requirements for inspection reports — Information about reports commissioned before a sale.
NSW EPA pest-management licensing — The distinction between inspection and pesticide treatment.
Buying a strata property and strata repairs and maintenance — Records, common property and potential costs.
Building Commission NSW termite guidance and NSW pest responsibilities in rentals — Ongoing protection and tenancy obligations.
Alexandrou v Pacific Pest Control Pty Ltd [2016] NSWDC 193 — Reproduced judgment discussing visual inspection scope and proof of negligence, particularly paragraphs 5–12, 47, 66–67 and 92.
Moneysmart home insurance guidance — Checking exclusions, limits and policy conditions.
CM Lawyers — Property contract reviews and fees — Have the contract reviewed before you sign or bid.
