Buyer’s guide  ·  Victoria

Building and pest conditions in Victoria: what every buyer needs to know

In Victoria, building and pest conditions are not automatic. Learn how General Conditions 21 and 22 work, the report deadline, cooling-off and owner-builder rules.

Buying a home in Victoria is a big commitment. A building and pest inspection helps you find out what you are really buying before you are locked in.

This guide explains how building and pest conditions in Victoria work under the standard contract of sale. It covers the report deadline, the cooling-off period, auctions and homes built by owner-builders.

The most important point is simple: in Victoria, the condition is not automatic. You need to make sure it is in your contract before you sign.

Is a building and pest condition automatic in Victoria?

No. This is one of the biggest differences between Victoria and states like Queensland.

Most Victorian sales use the standard contract published by the Law Institute of Victoria (LIV) and the Real Estate Institute of Victoria (REIV). It includes optional general conditions for a building report and a pest report. The first pages of the contract, called the Particulars of Sale, list these conditions with a tick box next to each one.

If the box is ticked, the condition applies. If it is left blank, the condition does not apply at all, even though the words are printed in the contract.

Sellers and agents often leave these boxes blank. If you want the protection, ask for the box to be ticked, or for a special condition to be added, before you sign. A special condition is an extra clause written into your contract that adds to or changes the standard terms. Once you have signed, the seller does not have to agree to any change.

Also read the special conditions closely. Some sellers add one that deletes or limits the building and pest clauses, or shortens the deadline.

Buying in Queensland instead? The rules there work quite differently. For a related read, see our guide to building and pest conditions in Queensland.

How the building report condition works (General Condition 21)

If the building report box is ticked, you can end the contract if all of these things happen:

1. By the deadline in your contract, you get a written building report from a qualified person.
2. The report finds a current defect in a building on the land and says it is a major defect.
3. By the same deadline, you give the seller a copy of the report and a written notice ending the contract.
4. You are not in default at that time. Being in default means you have broken a term of the contract, for example by paying the deposit late.

Under the standard contract, the deadline is 14 days from the day of sale. Check your contract as soon as you sign and diarise the last day straight away.

Who can prepare the building report?

Under the September 2025 edition of the contract, the report must be prepared by a registered building surveyor, registered building inspector, registered domestic builder or architect. It must follow the Australian Standard for building inspections, AS 4349.1.

Older editions of the contract are still in use, because sellers do not have to use the newest one. Those versions refer to a report from a registered building practitioner or architect that identifies a “major building defect”. Always check which edition you have been given.

Check the deadline in your contract

The standard deadline is 14 days from the day of sale, but a seller can change it with a special condition. A short deadline makes it harder to book an inspector in time, so check this before you sign.

How the pest report condition works (General Condition 22)

The pest report clause works the same way. If the box is ticked, you can end the contract by the deadline in your contract if a pest report shows a major infestation affecting the structure of a building on the land.

You must give the seller a copy of the report and a written notice ending the contract, and you must not be in default.

In the September 2025 edition, the report must come from a pest inspector and follow the relevant Australian Standard. Older editions require a pest control operator licensed under Victorian law.

Termites (sometimes called white ants) are the main concern. They can damage timber framing and floors without being seen. Old termite damage that has already been treated may not count as a major infestation, so ask your inspector whether any activity is current.

What counts as a major defect in Victoria?

The contract does not give a list of examples. That leaves room for disagreement between buyer and seller.

As a guide, the building inspection standard AS 4349.1 treats a major defect as one serious enough that it needs fixing to avoid unsafe conditions, loss of use or further damage to the property.

• Likely to be major: significant structural cracking, failed or sinking footings, serious roof or subfloor damage, or active termites in structural timbers.
• Unlikely to be major: hairline cracks, worn paint, a leaking tap, or general wear and tear you would expect for the age of the home.

The wording of the report matters. Ask your inspector to say clearly whether a defect is a major defect. You must follow the clause strictly. A vague report or a late notice can cost you the right to end the contract.

How does cooling-off work in Victoria?

Victoria’s cooling-off period comes from section 31 of the Sale of Land Act 1962 (Vic). It is separate from any building and pest condition.

• You have 3 clear business days after you sign to end the contract. Weekends and public holidays do not count.
• You must give written notice to the seller or the seller’s agent.
• You get your money back, less $100 or 0.2% of the price, whichever is more. On an $800,000 home, that is $1,600.

Cooling-off does not apply if:

• you bought at a public auction, or within 3 clear business days before or after a public auction
• the property is used mainly for industrial or commercial purposes
• the property is more than 20 hectares and used mainly for farming
• you previously signed a contract for the same property on substantially the same terms
• you are an estate agent or a company (corporate body).

Some buyers plan to do their inspections during cooling-off. That can work, but 3 business days is tight and pulling out costs you the penalty. A ticked building and pest condition gives you more time. If it is used correctly, you are generally entitled to a refund of your deposit.

Consumer Affairs Victoria has more on cooling-off and private sales.

Buying at auction in Victoria

Auction contracts are usually unconditional. That means no building and pest condition, no finance condition and no cooling-off.

If you plan to bid, get your building and pest inspections done before auction day. Ask the agent for access early. If you are the winning bidder, you are bound to buy, whatever a later report shows.

What the section 32 vendor statement does not tell you

Before you sign, the seller must give you a vendor statement under section 32 of the Sale of Land Act 1962. Most people call it the “section 32”.

It covers things like the title, mortgages, covenants, easements, zoning, rates and whether the land is in a bushfire-prone area. If it is not provided, or is incorrect or incomplete, you may be able to end the contract or take legal action.

What it does not do is tell you about the physical condition of the buildings. Consumer Affairs Victoria notes that it does not cover whether buildings are sound or comply with building rules. That is exactly why your own inspection matters.

Buying a home built by an owner-builder

An owner-builder is a person who builds or renovates their own home without engaging a registered builder.

Under section 137B of the Building Act 1993 (Vic), an owner-builder who sells within 6 years and 6 months of finishing the work must, before signing the contract:

• get a defects inspection report from a prescribed building practitioner that is no more than 6 months old, and give you a copy, and
• take out domestic building insurance if the work was worth more than $16,000.

If the seller has not done this, the contract is voidable. That means you can choose to end it at any time before settlement.

Defects listed in that report are generally not covered by the insurance, because you knew about them when you bought. Read the report closely and still get your own independent inspection. Consumer Affairs Victoria explains more in its owner-builder checklist.

What to do if your report finds a problem

1. Check your deadline. Check your contract for the last day to act.
2. Talk to your inspector. Ask whether any issue is a major defect or a major infestation, and whether the report says so clearly.
3. Get legal advice before giving notice. A notice that does not meet the clause may not be valid.
4. Choose your path: end the contract, negotiate, or go ahead.

Negotiating: you can ask for a lower price or for repairs before settlement. The seller does not have to agree. Any deal should be put in writing and signed by both of you before your deadline passes.

Need more time? Ask for an extension in writing. The seller does not have to give one, so don’t let the deadline pass while you wait for an answer.

For tips on choosing an inspector and reading a report, see our article on why building inspections matter.

Summary: your protections when buying in Victoria

Frequently asked questions

This article is general information only and is not legal advice. It reflects Victorian law at the date of publication. Please contact us for advice about your circumstances.

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