Building and Pest Inspections in Canberra: What to Check Before Buying an ACT Home

What to check before you buy a home in Canberra

Buying a home is one of the biggest decisions most Canberrans ever make, and the ACT has its own rules that change what you need to look at. The single most important thing to understand is that, unlike most of Australia, ACT sellers must have a complete contract of sale prepared (with inspection reports attached) before the property can even be advertised. That gives buyers here an unusual head start. This guide walks through building and pest inspections, the reports a seller must include, the energy efficiency rating, and the red flags worth spotting at an open home.

How building and pest inspections work in the ACT

A building (and compliance) inspection assesses the physical condition and compliance of the dwelling. A pest inspection looks for timber pests, most importantly termites, which are a genuine concern across many Canberra suburbs. In the ACT these are not just optional extras you arrange yourself. For an existing, previously occupied house, the seller must attach both a building and compliance inspection report and a pest inspection report to the contract of sale. This obligation comes from the Civil Law (Sale of Residential Property) Act 2003 and the Civil Law (Sale of Residential Property) Regulation 2004.

These reports must be reasonably current. Access Canberra's Reality Check guide explains the building report must be based on an inspection carried out no earlier than three months before the property was first advertised, offered for sale, or listed with an agent. If the seller obtained more than one report in that window, each one must be included.

The seller orders and pays for these reports up front, but is generally entitled to be reimbursed by the buyer for the reasonable cost at settlement. The maximum recoverable amounts are set out in the Regulation and Access Canberra guidance and change over time, so confirm the current figure rather than assuming.

New, unbuilt and unit properties are different

• A building inspection report is generally not required for a home that has not previously been occupied or sold as a dwelling (for example, a brand new house).
• If the home is still under construction, the seller instead agrees in writing to provide a pest (termite) treatment certificate at completion or when the certificate of occupancy issues.
• If the home is completed but not yet occupied, a pest treatment certificate is provided instead of a pest inspection report.
• Units and apartments have their own document rules. For a Class A unit, the building inquiry documents and building inspection report are not required, but owners corporation (units plan) information must be included. See Buying a unit.

Read the reports, do not just file them

Because the seller arranges the reports, some buyers commission their own independent building and pest inspection as well for peace of mind. Either way, read the reports closely and ask your conveyancer or solicitor about anything flagged. Building and pest inspection businesses operating in the ACT appear on the government's Building and Pest Inspections Public Register.

Check the Energy Efficiency Rating (EER)

The ACT has required energy efficiency disclosure for residential sales for many years, and it is something buyers elsewhere rarely get. Sellers of most existing homes must obtain an Energy Efficiency Rating and publish that star figure in any sale advertisement, and it is also disclosed in the contract. The EER runs on a scale from 0 stars (least efficient) up to a maximum of 6 stars (most efficient), and must be prepared by an accredited assessor under the ACT House Energy Rating Scheme.

A low star rating is not a dealbreaker, but it is a clue to running costs through Canberra's cold winters and hot summers, and to potential upgrade spending on insulation, glazing and heating. See ACT Planning's energy efficiency page.

Red flags to look for at an open home

The reports tell you a lot, but a careful walk-through still matters. Things worth a closer look and a question to the agent:

• Signs of termite activity or past treatment: mud tubes, hollow-sounding or soft timber, and damaged skirting or door frames.
• Damp, water stains, musty smells or fresh paint patches that could be hiding moisture problems.
• Cracking in walls and cornices, sticking doors or uneven floors that may point to movement.
• A low EER star figure, and ageing or absent heating, insulation or double glazing.
• For units, ask about the owners corporation: levies, the sinking fund balance, insurance and any special levies, all disclosed in the section 119 unit title certificate.
• Cross-check anything the agent says against the building and pest reports and the contract documents.

Remember the buying process rules

Two ACT rules catch buyers out. First, properties sold at auction have no cooling-off period and the contract is binding immediately on the fall of the hammer, so do your inspections and finance checks before you bid. Second, for private treaty sales there is a statutory cooling-off period under the Act, but it can be waived with a solicitor-signed section 17 certificate, which is now common. Always have a licensed conveyancer or solicitor review the contract before you sign. For the official overview, see Buying and owning a home in the ACT and the Access Canberra real estate pages.

This is general information compiled with AI assistance, not legal or financial advice. Rules, figures and recoverable costs change, so confirm current details with the linked official ACT sources and seek advice from a licensed conveyancer, solicitor or broker before acting.