Updated 4 November 2026
What Property Buyers Need to Know About the Contract for Sale #7: How do I ensure the property is in good condition?
A well-presented home can still need substantial repairs. For NSW residential buyers, checking condition means combining professional inspections, relevant records and legal review before committing. No single report removes every risk. The aim is to understand significant problems, investigate uncertainties and decide whether the property suits your budget and plans.
What can a building inspection tell you?
A standard pre-purchase building inspection identifies significant visible defects in accessible areas at the inspection date. It can highlight damp, cracking, roof problems and safety concerns. It does not guarantee a defect-free property, uncover every concealed problem, or certify that all building work complies with the law or current standards.
Read the NSW inspection guidance and the report’s actual scope. Check inaccessible areas and recommended investigations. A roof space that could not be entered remains an unresolved question, not a confirmed absence of defects.
When should you arrange the inspections?
Arrange inspections early enough to review the results before exchanging contracts or bidding at auction. If relying on a cooling-off period, first confirm that it applies and allows sufficient time for follow-up. Ordinary NSW residential purchases generally have five business days; off-the-plan purchases generally have ten, subject to applicable exceptions.
The cooling-off rules exclude auction purchases and same-day contracts after a property is passed in. A section 66W certificate can waive the period. Effective cooling-off withdrawal ordinarily forfeits 0.25% of the purchase price. Ask your solicitor to confirm deadlines and notice requirements.
How do you choose a suitable inspector?
Choose a suitably qualified, experienced professional with adequate professional-indemnity insurance and relevant property experience. Ask who will inspect, what qualifications they hold and what the engagement covers. Membership of a particular industry association is not a universal legal requirement. Agree on the report’s scope and delivery date before booking.
Our practical recommendation is to ask for a sample report and nominate specific concerns in writing. Confirm that you can discuss findings with the inspector. Compare the service and exclusions, as well as the price, when choosing between providers.
Do you also need a timber-pest inspection?
A building report and a timber-pest report serve different purposes. A building inspector may observe damage without assessing whether termites or other timber pests are active. Consider a separate timber-pest inspection by an appropriately qualified, experienced and insured inspector, with clear advice about access limitations and any recommended further investigation.
The EPA licensing guidance distinguishes inspection from pesticide work: timber-pest inspection without using pesticides does not require an EPA licence. If treatment is proposed, check the appropriate pesticide licence. Ask for previous treatment records, but have their relevance and any continuing maintenance requirements assessed.
When are specialist checks needed?
Arrange targeted advice when the property or initial findings raise concerns beyond a general inspection. Structural movement may need an engineer; electrical and plumbing concerns may need appropriately licensed tradespeople. Suspected asbestos needs specialist assessment. Match each further inspection to an identified concern and obtain permission before testing or disturbing materials.
Check relevant trade qualifications and licences. Asbestos NSW explains that appearance alone cannot confirm asbestos: professional sampling and laboratory analysis may be needed. Do not remove material yourself to investigate it. Ask the specialist to explain the result, remaining uncertainty and recommended action.
How do you check renovations and building approvals?
Ask your solicitor about council records, approved plans, relevant certificates and outstanding notices or orders. Compare the available records with the property’s actual layout and use. An attractive extension, converted garage or additional bathroom does not establish lawful approval. A physical inspection and a search of approval records answer different questions.
Council building-record searches illustrate the documents that may be available. Missing records require investigation, rather than an automatic conclusion that work is unlawful. The ABCB guidance on existing buildings also explains why an older building is not automatically required to meet every provision of today’s building code.
Obtain a physical inspection and review the strata records before buying an apartment or townhouse in a strata scheme. Records can reveal reported defects, planned repairs, disputes and financial pressures. A well-maintained apartment does not establish that the roof, balconies, waterproofing or other common property is sound or adequately funded.
The NSW strata buying guide recommends examining records and finances. Review meeting minutes, defect reports, the capital works plan and proposed special levies. Confirm which common areas your inspector will assess. A strata-records report does not replace a physical assessment, and low levies do not necessarily mean low future costs.
Must the seller disclose every physical defect?
Do not assume a private seller must disclose every known physical defect or that silence guarantees good condition. NSW law requires specified contract documents and provides prescribed warranties. Other obligations can arise from the contract and the circumstances. Agents have separate duties concerning misleading conduct and prescribed material facts.
Your solicitor should review section 52A of the Conveyancing Act, the Sale of Land Regulation and relevant contract terms. Agent disclosure rules do not create a general warranty that the property is defect-free. Obtain written answers to specific concerns and have significant assurances addressed before exchange.
Can you rely on a report supplied by the seller?
Treat an existing report as information to evaluate, not automatic protection. Check its date, commissioning party, inspection scope, exclusions and whether you are entitled to rely on it. Ask the inspector about a fresh inspection or an expressly authorised report for you, especially where circumstances or access have changed.
The Law Society’s buyer guidance recommends appropriate enquiries before commitment. Agents must disclose their records of known pre-purchase reports when a prospective buyer requests the contract. That does not necessarily provide a free copy of the full report or establish your rights against its author.
What should you do when a report identifies defects?
Before exchange, assess the defect’s seriousness, likely repair scope and effect on your plans. Obtain specialist advice and written quotations where appropriate, then decide whether to proceed, negotiate or walk away. A report does not automatically set a repair price or require the seller to fix every identified problem.
Use clear written quotations to build a realistic budget. Have agreed repairs or inspection conditions properly documented. After exchange, an adverse report alone does not create a cancellation right: your solicitor must assess the contract, any statutory rights, deadlines and required notices before you act.
What does a real NSW case show about inspection quality?
In Doosey v Walsh & Complete Building Inspection Services Pty Ltd [2017] NSWDC 8, a buyer obtained a report before purchasing a Bulli home. Dangerous balcony-balustrade defects were missed. After purchase, her daughter was injured when a baluster failed. The case shows why competent inspection and identification of safety hazards matter.
The NSW District Court found that a prudent inspection would have revealed corroded fixings and an inadequately secured baluster. The inspector and company were negligent, causing the mother’s and daughter’s injuries. Judgment was given for both; the daughter’s damages remained to be assessed. This was liability of inspection providers, not an automatic seller obligation to compensate for defects.
What should you check at the final inspection?
Arrange a final inspection close to settlement to check the property’s condition, agreed repairs and included items against the contract. Photograph and promptly report new damage, missing inclusions or incomplete work to your solicitor. This inspection serves a different purpose from the detailed building and pest investigations needed before purchase.
The 2026 standard contract generally permits one inspection during the three days before completion, subject to its terms and tenant rights. Your signed contract may differ. A problem does not automatically justify delaying settlement or withholding payment; obtain advice before risking contractual default.
What if you discover a serious defect after settlement?
Preserve the contract, reports, advertisements, correspondence, photographs and repair evidence, and obtain prompt legal advice. Potential claims depend on matters such as contractual promises, misleading statements, negligent inspection or applicable building warranties. Discovery alone does not establish liability, and different claims have different time limits, evidence requirements and potential defendants.
Take reasonable steps to address immediate safety concerns while recording the condition and necessary work. For advice on buying property in NSW, contact Christine Manolakos and CM Lawyers on (02) 9557 9000 or email lawyers@cmlaw.com.au. Early review helps identify the investigations and contract protections appropriate to your purchase.
This article provides general information, not advice about a particular property, inspection report or contract. Obtain legal and technical advice tailored to your proposed purchase.
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