Who pays for a building and pest inspection in Victoria?
Today in Victoria, the buyer usually pays for the building and pest inspection. The Victorian Government has announced a proposed scheme that would shift that to the seller, expected to begin in 2027. Here is what has been announced, and what has not.
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Important: the scheme described on this page is proposed. It is not currently law in Victoria. Nothing here changes your obligations as a buyer or seller today. We will update this page as further detail is released.
The position today
Under the current rules, a building and pest inspection in Victoria is arranged and paid for by the buyer. A vendor is required to provide a Section 32 statement, which covers title, rates, and certain notices, but it does not include a condition report on the building itself. That means the physical condition of the property is the buyer's problem to investigate, usually within a short window before auction or during a cooling off period.
In practice, several buyers on the same property may each pay for their own inspection of the same house, and only one of them ends up buying it.
What has been announced
The Victorian Government has announced a proposed reform that would require sellers of residential property to obtain a building and pest inspection report and make it available to prospective buyers before sale. The stated intention is to reduce duplicated inspection costs for buyers and to give purchasers condition information earlier in the process.
Commencement is expected in 2027. The detail that matters most to vendors, including who may prepare the report, how long a report remains valid, what must be inspected, and how the report is provided, is still to be settled through the legislative and regulatory process.
Expected timing
Expected 2027. Until the legislation is passed and the regulations are made, dates and details can change.
Who would pay
Under the proposal, the seller would pay for the report. Today, the buyer pays.
What it would mean for sellers
If the scheme proceeds as announced, a vendor would go to market with a condition report already in the buyer's hands. That changes the sequence of a sale. Instead of learning about a defect during a buyer's cooling off period, a seller would know about it before the first open for inspection, and would have the choice of repairing it, pricing it in, or simply disclosing it.
Sellers who prefer to be ahead of that do not need to wait for the legislation. A pre-sale building assessment gives you the same information now, on your own timetable.
What it would mean for buyers
A vendor-supplied report would give buyers condition information earlier and at no cost. It would not remove the value of your own independent inspection. A report commissioned by the seller answers the seller's brief, and it may be some months old by the time you read it. Many buyers will still choose to have their own inspector look at the property, particularly on older homes or where the report flags movement, damp or roof issues.
If you are buying now, our pre-purchase building inspections are unaffected by the proposed change. See what a combined building and pest inspection in Melbourne covers and what it costs.
What is still unknown
- The final form of the legislation, and whether the announced model is what is enacted
- Which properties and transaction types would be covered
- Qualification requirements for whoever prepares the report
- How long a report would remain current
- How the requirement would be enforced
We will keep this page current as detail is released. For advice on your specific property, call us on 1800 918 281.
Getting ready to sell, or getting ready to buy?
We inspect for both sides of the transaction, and we will tell you plainly which report you need.