Buyer’s guide  ·  NSW

Building inspections in NSW: what every buyer needs to know

A building inspection can save you from costly surprises when buying in NSW. Learn what it covers, what it misses, and why timing around cooling-off matters.

Updated October 2026 to reflect current law.

A building inspection is one of the smartest things you can do before buying a property in NSW. It tells you what condition the home is really in, before you are locked in.

In NSW, once the cooling-off period ends, you usually cannot walk away just because you find defects. So timing matters.

This guide explains what a building inspection covers, what it does not, when to get one, and what to do if the report finds problems.

What is a building inspection?

A building inspection is a check of a property’s condition by a qualified building inspector. It is usually a visual, non-invasive inspection. The inspector looks at what can be safely seen and reached, without removing walls, floors or furniture.

You then get a written report. It should list major defects, safety hazards and the general condition of the building, usually with photos.

For an apartment or townhouse, you may also want a strata inspection report. This looks at the owners corporation’s records, such as levies, repairs, disputes and known building defects.

Why a building inspection matters

1. It uncovers hidden problems

Issues such as cracking, rising damp, roof leaks, poor drainage or termite damage are not always obvious at an open home. Finding them early can save you from expensive surprises.

2. It helps you negotiate

If the report finds problems, you can ask the seller to fix them, ask for a lower price, or (if you are still in cooling-off) decide not to proceed.

3. It flags safety hazards

Inspectors report on safety hazards such as unsafe balustrades, damaged stairs or possible asbestos. This matters most for older homes.

4. It helps you plan and budget

Knowing the condition of the roof, gutters, paint and structure helps you plan maintenance and budget for repairs after you move in.

What does a building inspection cover (and not cover)?

A standard pre-purchase building inspection usually covers:

• Structure: footings, walls, floors, roof framing and signs of movement or cracking.
• Roof and roof space: roof coverings, gutters, downpipes and accessible roof void.
• Interior: ceilings, walls, floors, windows, doors and wet areas (bathrooms, laundry, kitchen).
• Exterior and site: walls, decks, stairs, retaining walls, fences, paths and drainage.
• Subfloor: where accessible, including signs of damp or poor ventilation.

It usually does not cover:

• testing electrical wiring, plumbing, gas, smoke alarms or appliances (use a licensed electrician or plumber),
• whether the building complies with council approvals, building codes or the Building Code of Australia,
• areas the inspector cannot safely access, such as behind furniture, inside walls or under carpets,
• swimming pool safety barriers (these need a separate check), and
• timber pests, unless you order a combined building and pest inspection.

Tip: read the “limitations” section of the report. It tells you what the inspector could not check. If something worries you, ask for a specialist (such as a structural engineer) to look at it.

If council approvals matter (for example, for an extension or granny flat), ask your lawyer to check the approvals before you exchange. A building inspection will not tell you if work was approved.

When should you get a building inspection in NSW?

The safest time is before you sign and exchange contracts. That way, you can walk away with no cost other than the inspection fee.

In a busy market, that is not always possible. If you exchange first, you must complete the inspection before your cooling-off period ends.

Here is why. In NSW, most residential buyers who exchange by private treaty get a 5 business day cooling-off period. It ends at 5pm on the fifth business day after exchange. If you cancel during that time, you forfeit 0.25% of the purchase price (for example, $2,500 on a $1,000,000 home). See NSW Fair Trading for the official rules.

After cooling-off ends, you are generally bound to complete the purchase, even if the report later reveals defects. NSW contracts do not usually include a building inspection condition. One can be negotiated as a special condition, but sellers often resist it.

Read more in our guides to the cooling-off period in NSW and buying at auction in NSW.

What if the building inspection report finds problems?

Do not panic. Most reports list some defects. What matters is how serious they are and what they will cost to fix. Your options include:

• Ask the inspector to explain any findings you do not understand.
• Get a quote from a builder or tradesperson for the repairs.
• Negotiate a lower price or ask the seller to do repairs before settlement. Any agreement should be put in writing in the contract.
• Walk away if you have not exchanged, or if you are still in cooling-off (forfeiting 0.25%).

If the home was built or renovated recently, statutory warranties under the Home Building Act 1989 (NSW) may still apply: generally 6 years for major defects and 2 years for other defects from completion. Ask your lawyer whether this could help you.

Before settlement, you can also do a final check to make sure nothing has changed. See our guide to pre-settlement inspections.

How to choose a building inspector

• Choose someone with building qualifications and experience, such as a licensed builder.
• Check any licence they hold on the NSW Government licence check.
• Make sure they hold professional indemnity insurance.
• Ask whether the report follows AS 4349.1 (and AS 4349.3 for timber pests).
• Ask for a sample report. A good report has clear photos and plain explanations.
• Choose an inspector who will talk you through the report after the inspection.

Use an inspector who works for you, not one chosen by the seller or agent. A seller’s report may be a useful start, but you generally have no contract with that inspector if something is missed.

Building inspection FAQs

Is a building inspection compulsory in NSW?

No. It is not required by law, but it is strongly recommended. Your lender may also require a valuation, but a valuation is not a building inspection.

Can I pull out after a bad building inspection in NSW?

Yes, if you have not exchanged contracts. If you have exchanged, you can cancel during cooling-off and forfeit 0.25% of the price. After cooling-off ends, you generally cannot, unless your contract has a building inspection condition.

Do I need a separate pest inspection?

A timber pest inspection is a separate check, but many inspectors offer a combined building and pest inspection. In areas with termite risk, it is well worth it.

Does a building inspection check council approvals?

No. It reports on condition, not on whether work was approved. Ask your lawyer to review approvals for any extensions, granny flats or pools.

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

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