If you have bought, or tried to buy, a home in Victoria, you have almost certainly paid for at least one building and pest inspection — and if your search dragged on, possibly several. Under the current system, that cost falls entirely on the buyer, whether or not your offer is ever accepted.
That could be about to change. In March 2026, the Victorian government announced a proposal to shift the cost and responsibility for pre-sale building and pest inspections from buyers to sellers. Under the plan, vendors would arrange and pay for the reports before listing, then make them available to every prospective buyer.
Nothing has changed yet. The proposal is subject to consultation and would only be legislated in early 2027 if Labor is re-elected at the November 2026 state election. But if you are buying or selling property in Victoria now or in the near future, it is worth understanding what is being proposed, how it could affect you, and what you should be doing in the meantime.
What is the proposed change?
Currently, prospective buyers in Victoria must organise and pay for their own pre-purchase building and pest inspections. There is no legal requirement to obtain a report before buying, but inspections are widely regarded as a critical part of responsible due diligence.
The government’s proposal would flip this obligation. Under the plan:
- Sellers would arrange and pay for building and pest inspection reports before listing their property for sale.
- Reports would be made available to all prospective buyers before they make an offer, rather than each buyer commissioning their own.
- Buyers would be able to review the reports as part of their due diligence before signing a contract.
Premier Jacinta Allan framed the change in simple terms: “When you buy a car, the seller pays for the roadworthy. It should work the same way when you look for a home.” Minister for Consumer Affairs Nick Staikos said the move would make buyers’ due diligence “as simple and affordable as possible.”
The government has indicated it would model the scheme on the ACT — currently the only jurisdiction in Australia with a mandatory building and pest inspection scheme. Under the ACT model, vendors pay for the inspection upfront but can recover the cost from the buyer after the contract is signed, and reports must be completed within three months of the sale by professionals who meet Australian standards.
Why is the government considering this?
The proposal stems from long-standing concerns about the financial burden the current system places on buyers in Victoria’s competitive market. The government cited research from the Consumer Policy Research Centre (CPRC) to make its case. That research found that:
- A combined building and pest inspection typically costs between $500 and $600.
- About half of all buyers paid for multiple inspections during their search.
- 17% of buyers paid for seven or more reports, spending up to $4,200 before securing a home.
- 17% of buyers purchased “blind” with no inspection at all, often because of the cost and hassle.
- 11% of buyers decided against making an offer after seeing an inspection report — evidence the reports do their job.
- In a survey of recent buyers, 73% wanted vendors to provide an independent inspection report.
The CPRC’s report, From search to sale: Navigating the Victorian property market, recommended that vendors be responsible for providing the pre-purchase report. The government argues the existing model creates an unreasonable burden, particularly for first-home buyers, and is compounded by underquoting that can lead buyers to pay for reports on properties ultimately beyond their budget.or the purposes of meeting the lending criteria set by Participating Lenders, a deposit must consist of genuine savings when applying for the First Home Guarantee.
Why building and pest inspections matter
Whatever the rules say about who pays, building and pest inspections exist for good reasons. A property can look immaculate at an open inspection while concealing problems that cost thousands — or tens of thousands — to repair.
A building inspection examines the structural condition of the property, looking for issues such as:
- Foundation movement or subsidence
- Roof damage, leaks, or deterioration
- Water damage, rising damp, or drainage issues
- Cracking in walls or ceilings that may indicate structural movement
- Defective or non-compliant building work
A pest inspection looks specifically for timber pest activity, including termites, wood borers, and fungal decay. Termite damage in particular can be extensive, costly, and invisible to an untrained eye.
Together, these reports give you an independent, professional assessment of what you are actually buying. A buyer who skips an inspection and later discovers a serious defect has very limited legal recourse once settlement is complete.
How the change could affect buyers
If the proposed scheme comes into effect, the buying process would look different in some important ways. There are genuine potential benefits — but also concerns worth thinking through.
Possible benefits
- Lower upfront search costs: Instead of paying for inspections on every property you seriously consider, you would only pay for the inspection of the property you actually buy, as a reimbursement to the seller under an ACT-style model. As the government put it, “the money you would ordinarily spend on multiple reports can go into your deposit.”
- Faster decision-making: A report available upfront means you can assess the property’s condition before deciding whether to offer.
- Broader access to information: Every buyer gets the same baseline information, regardless of their financial position.
Possible concerns
- Conflict of interest: When the seller chooses and pays the inspector, there is a risk the selection favours inspectors who produce favourable reports. Master Builders Victoria representative Angela Perry warned that a $700–800 report could drop to $200 and “be whitewashed,” noting the inspection industry “is unregulated as it is.”
- Report quality: A competitive market for seller-funded inspections could drive down both fees and thoroughness. A rigorous inspection and a minimal one can look identical on paper.
- Currency of the report: Under the ACT model, reports must be completed within three months of the sale. An inspection done three months before you offer may not capture more recent damage.
The government has committed to including safeguards against low-quality reports and conflicts of interest, but the details are yet to be finalised.
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What the change could mean for sellers
- Upfront cost: Sellers would bear the initial cost of both reports, typically $500–$600 together.
- Earlier planning: Inspections would need to be arranged well ahead of listing, adding a step to the pre-sale process.
- Report currency: Based on the ACT model, inspections would need to be completed within three months of the sale.
- Cost recovery: The ACT model allows vendors to recover inspection costs from the buyer after the contract is signed.
- Buyer confidence: A transparent report provided upfront could increase buyer confidence and streamline negotiations.
For those preparing to sell, it is worth monitoring how this proposal develops and beginning to factor inspection costs into your planning.
Should buyers still get their own inspection?
Yes — and the government has confirmed buyers will retain the right to commission their own independent inspection even where a seller’s report exists. The question is whether it is worth doing in practice.
An independent inspection — one you commission from an inspector of your choosing — gives you a report prepared in your interests, not the seller’s. You can ask specific questions, request that certain areas be examined more closely, and trust the inspector has no reason to downplay what they find.
For older properties, properties with visible wear, or where a seller-funded report raises questions it does not fully answer, an independent inspection is likely worthwhile. The cost of a thorough inspection is modest compared with the cost of discovering a major defect after settlement. For newer properties, or where the seller-funded report is detailed and prepared by a well-credentialed inspector, the case for a second inspection is weaker — but that is a judgement to make with professional advice, not under time pressure at an open for inspection.
- Expert Tip
A building and pest report tells you about the physical condition of a property — it says nothing about the legal risks hidden in the contract of sale or the Section 32 Vendor Statement.
Even a flawless inspection report can sit alongside an easement, a caveat, an owners corporation dispute, or an unfavourable special condition that costs you far more than any structural defect.
Always have a conveyancer review the contract and Section 32 before you sign — never after. Issues identified before signing can be negotiated; issues discovered after are far harder, and more expensive, to fix.
What buyers should do before signing a contract
Whether or not the changes come into effect, the steps you take before signing a contract of sale are critical. Once a contract is signed and any cooling-off period has passed, your options are limited.
How a conveyancer can help
Whether you are buying or selling, a conveyancer’s role extends well beyond transferring title. For buyers, a conveyancer reviews the contract and Section 32, identifies special conditions and risks, explains the implications of inspection reports, and ensures the purchase complies with current legal requirements. For sellers, a conveyancer prepares the necessary documentation, advises on disclosure obligations, and helps the sale run smoothly from listing to settlement.
If the proposed mandatory inspection scheme comes into effect, conveyancers will be well placed to advise sellers on compliance and buyers on how to interpret the reports they receive — including whether further independent verification is appropriate.
Haitch Conveyancing offers conveyancing services across Melbourne for both buyers and sellers, with transparent, straightforward advice at every stage. You can review our conveyancing services and fees to understand what is included and what you can expect to pay.
The bottom line
Victoria’s proposal to make sellers pay for building and pest inspections could meaningfully reduce the upfront burden on buyers — but it is a proposal under consultation, not yet law, and it raises real questions about report independence and quality. Whether you are buying or selling, the smartest move is the same one that applies today: get professional advice before you sign.
If you are planning a property transaction in Victoria, contact Haitch Conveyancing for clear, experienced guidance on contracts, Section 32 statements, inspection reports, and every other step of your property journey.
