Buyer’s guide · ACT
Building and compliance reports in the ACT: what every buyer needs to know
In the ACT, the seller must provide a building and compliance report, but you pay for it if you buy. Here’s what it covers, when you can rely on it and when a second report is worth it.
Buying in the ACT works differently from most states. Before a home goes on the market, the seller must have a building and compliance inspection report ready for buyers to read.
The catch is the cost. If you buy the property, you reimburse the seller for that report at settlement. Many buyers also order their own inspection, and end up paying for two reports. This guide explains what the seller’s report covers, when you can rely on it and how to decide whether you need your own.
Key takeaways
- The seller must provide a building and compliance inspection report with the contract.
- If the sale completes, you reimburse the seller for it at settlement. In our experience, it’s generally in the region of $1,800 to $2,000.
- The report also checks whether structures match the approved plans, which a standard pre-purchase inspection doesn’t.
- If the report is wrong because it wasn’t prepared with reasonable care, the inspector is liable to you for your loss.
- A second report is a choice, not a requirement. It’s sometimes worth it, but it doubles your cost.
On this page
What the seller must provide
Under the Civil Law (Sale of Residential Property) Act 2003, a contract for the sale of a home must come with a set of “required documents”. For a house, these include:
- the building conveyancing inquiry documents, such as the approved plans and certificate of occupancy held by the planning authority
- the energy efficiency rating statement, if one is required
- a building and compliance inspection report
- a pest inspection report, if the home has been lived in.
The building and pest inspections must have been carried out no earlier than 3 months before the property was first advertised, offered for sale or listed with an agent. If the seller got 2 or more reports in the 6 months before then, you must be given each of them, not just the best one.
Units
Some units don’t need a building and compliance report or a pest report. Your lawyer will check which required documents apply to the property you’re buying.
What the report covers
The Civil Law (Sale of Residential Property) Regulation 2004 says the report must be prepared under AS 4349.1, the Australian Standard for pre-purchase inspections of residential buildings, with some ACT changes. It’s a visual inspection of the building’s condition, covering defects and an assessment of cosmetic and minor maintenance matters.
It also does something a standard inspection doesn’t. For each structure on the property, the report must include any approved plans, building approvals, permits and certificates of occupancy. The inspector must also say whether they believe the structure substantially complies with the approved plans, and whether approval was needed. That’s how unapproved decks, extensions, carports and garages come to light.
Who prepares it
The inspector must be independent. They can’t be a family member of the seller, the agent or the seller’s lawyer, or work for a business any of them has a stake in. They must also have the professional indemnity insurance required by the regulation, and the report must show the policy details.
When you can rely on it
The report must set out when it can be relied on. It can’t be relied on for a contract entered into more than 180 days after the inspection date, so check how old it is before you sign.
Who pays for the report
The seller pays the inspector up front. Under section 18 of the Act, when the sale is completed, the seller is entitled to be reimbursed by the buyer for the cost of the building and compliance report and the pest report.
- If the seller got more than one report, you only reimburse the first one.
- You don’t pay for extras, such as a fee the seller paid for a faster report.
- The reimbursement usually appears as an adjustment on your settlement statement.
In our experience, the building and compliance report is generally in the region of $1,800 to $2,000. Budget for it, along with your stamp duty and legal fees.
Do you need your own report?
This is where many ACT buyers end up paying twice. If you commission your own building inspection, you pay for that, and you still reimburse the seller for theirs at settlement. A second report isn’t legally required, and the seller’s report is one you can rely on.
A second report can still be worth it if:
- the seller’s report is close to 3 months old, or something may have changed since, such as storm damage or work on the property
- the report raises issues you want a builder or specialist to look at more closely, such as cracking, moisture or roof problems
- you want advice on things outside the report’s scope, such as detailed electrical or plumbing checks, pool safety or asbestos
- you’d like an inspector who works only for you and who you can question before you buy.
Our practical view: read the seller’s report first, with your lawyer. If it’s recent and clean, a second full inspection often adds little. If it raises a specific concern, a targeted inspection by a builder or specialist can cost less than a second full report.
Building and pest conditions are rare
Because the reports are provided up front, sellers in the ACT rarely agree to a building and pest condition. If you want your own inspection, the realistic times to get it are before you sign or during the cooling-off period.
Using the cooling-off period
For most private sales, the ACT cooling-off period ends at 5 pm on the 5th working day after the contract is made. If you cool off, you forfeit 0.25% of the price, which is $2,250 on a $900,000 home. There’s no cooling-off at auction. An inspection during cooling-off is possible, but the timing is tight, so book the inspector before you sign.
Before you sign
- Read the building and compliance report and the pest report in full, not just the summary.
- Check the inspection date and whether any structures don’t match the approved plans.
- Decide whether you need your own inspection, and book it early if you do.
- Ask the agent what the reports cost, so you know what you’ll reimburse at settlement.
- Ask us to review the contract and required documents before you sign.
If the report turns out to be wrong
Under section 19 of the Act, if a building and compliance report, pest report or energy efficiency rating statement given to you is false or misleading in a material way, or wasn’t prepared with reasonable skill and care, and you suffer loss because of it, the person who prepared it must compensate you.
If you find a problem the report should have picked up, keep the report, take photos, don’t start repairs until the damage is recorded, and get advice quickly. Our step-by-step guide to buying in the ACT explains where the report fits in the whole process, and our article on why building inspections matter has tips on reading a report.
Frequently asked questions
Do I have to pay for the seller’s building report in the ACT?
Yes, if the sale completes. The seller is entitled to be reimbursed for the first building and compliance report and pest report, usually as an adjustment at settlement.
Can I rely on the seller’s report?
Yes, within the terms set out in the report, and not for a contract made more than 180 days after the inspection. If it wasn’t prepared with reasonable skill and care and you suffer loss, the inspector must compensate you.
Does the report pick up unapproved building work?
It should. The inspector must say whether each structure substantially complies with the approved plans and whether approval was needed.
Should I get my own building inspection?
It’s not required. It can be worth it if the seller’s report is old, raises specific concerns or doesn’t cover something you’re worried about. Otherwise, it often means paying twice for similar advice.
How long is the cooling-off period in the ACT?
For most private sales, until 5 pm on the 5th working day after the contract is made. If you cool off, you forfeit 0.25% of the price. There’s no cooling-off at auction.
Buying in the ACT?
Talk to our property team
Property & Conveyancing
Our team can review the contract and required documents, including the building and compliance report, before you sign, explain what you’ll pay at settlement and handle your purchase through to completion.
This article is general information only and is not legal advice. It reflects ACT law at the date of publication. Please contact us for advice about your circumstances.
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