How to read a building and pest report: major defects, minor defects and what to do next

Read the summary and conclusion first, then the limitations

Start with the summary, read the conclusion, then go straight to the limitations before you look at individual defects. Under AS 4349.1-2007, the summary has to give the purpose of the inspection, its scope and the conclusion.

The conclusion has to state the incidence of major defects and give an opinion on minor defects compared with similar buildings of about the same age that have been reasonably well maintained. That comparison is one of the most useful lines in the report: it tells you whether the house is typical for its age or behind.

The building inspection is a visual assessment to identify major defects and form an opinion on the general condition of the property at the time of inspection. The timber pest part of a combined report is done to AS 4349.3-2010, which sets the minimum requirements for visual inspection and reporting on timber pest activity.

My own pre-purchase reports group findings under four headings: Major Defects, Minor Defects, Safety Issues and Timber Pests. If your report uses a different layout, look for the same terms.

Major defect, minor defect, safety hazard: what each term means

A major defect, in AS 4349.1-2007, is "a defect of sufficient magnitude where rectification has to be carried out in order to avoid unsafe conditions, loss of utility or further deterioration of the property." A minor defect is any defect other than a major defect. The test is whether the fault has to be fixed to stop something becoming unsafe, unusable or worse. It is not a test of how much the repair costs.

That is why a leak can sit under Major Defects on my reports while widespread tired exterior paint is reported as part of the minor defects picture. The Standard's commentary describes minor defects as things like blemishes, corrosion, cracking, weathering, general deterioration and unevenness, and expects them to be fixed as part of normal ongoing maintenance. The inspector describes the general extent of minor defects and does not have to list each one.

Do not skip the minor defects paragraph. The commentary also notes that a purchaser may need to put substantial resources into bringing a poorly maintained property back to a reasonable standard for occupancy.

Safety hazards sit inside the major defect category. The commentary says any defect that is a safety hazard has to be reported as a major defect, and the report must identify any observed item that may be a present or imminent serious safety hazard. The Standard's examples are unsafe balustrades and imminent collapse of a structural member.

For each major defect, the commentary expects a description, its specific location and an explanation of why it is major. If your report lists a major defect without saying why, ask the inspector.

Timber pest findings: live activity, past damage and conducive conditions

A timber pest section reports three different things, and each calls for a different response. Evidence of live termite activity at the time of inspection is the finding to act on before your due date. Damage from past activity tells you termites have been there; the questions are whether the damage was repaired, whether a termite management system is in place, and whether a builder or engineer should look at the affected timber. Conducive conditions are not damage at all. They are conditions that make a timber pest attack more likely.

On my pest inspections I look for termite activity and past damage, borers or fungal decay in timber, moisture levels in walls and subfloors, conducive conditions such as wood-to-soil contact and poor ventilation, and evidence of pest treatments or barriers. I inspect only. I do not treat, so any treatment quote comes from a pest controller.

The Queensland Building and Construction Commission (QBCC) says the Building Code of Australia requires a durable termite management notice, usually in the electrical meter box, which records the protection method and the recommended inspection interval. QBCC also advises a licensed inspection every year, or more often in high hazard areas, and warns that footpaths, garden beds, patios, pergolas, landscaping and new turf can make a termite system less effective. If your report flags garden beds or paving built up against the house as a conducive condition, that is why it matters.

The limitations section: what was not inspected was not cleared

The limitations section tells you which parts of the house the report says nothing about. AS 4349.1-2007 defines a limitation as "any factor that prevents full or proper inspection of the building", and the report must identify every area or item within scope that was not inspected and what prevented it. Areas where reasonable access was not available are excluded from the inspection altogether.

The Standard lists common expected limitations: legal right of entry, locked doors, security systems, pets, furniture and similar obstructions. It also lists common limitations that are harder to predict: height or narrow boundary clearance, thick vegetation, a small roof or crawl space, and bad weather. A wall hidden behind stored boxes, or a roof space too tight to enter, is a wall or roof the report has not assessed.

Two lines in this section are easy to skip and matter most. First, the Standard notes that excluded areas may be the subject of an additional inspection once reasonable access is provided, so ask the agent whether access can be arranged before your due date. Second, a report under the Standard is not a certificate of compliance and not a warranty against problems developing in future, and it does not cover identifying unauthorised building work. QBCC makes the same point: a pre-purchase building inspection is not a warranty against future defects.

Further investigation recommended: book the specialist inside your due date

A recommendation for further investigation means the inspector saw enough to flag a concern, and the detailed assessment belongs to another specialist. AS 4349.1-2007 requires the report to include that recommendation where it applies, and its note gives examples: a pest consultant, an electrician, a plumber, a structural engineer, a geotechnical engineer, a fire-safety consultant or a surveyor. QBCC gives buyers the same advice: if you are worried about one part of the property, get a more detailed report from the appropriate expert, such as a plumber or engineer.

Treat that line as a task with a deadline. The specialist's report or quote is what tells you how big the problem is, and you want it in hand before your building and pest due date, not after it.

The building Standard also lists items an inspector need not inspect or report on, including electrical installations, concealed plumbing, gas fittings, air conditioning and swimming pools. Check the scope section of your own report rather than assuming. On my inspections, electrical is an on/off test of electrical appliances only, and plumbing is a visual check of taps, drainage and water hammer.

Red flags and normal wear: which finding needs which call

Not every finding needs the same response, and the report will not put a price on any of them: AS 4349.1-2007 does not require an inspection report to estimate the cost of fixing defects. Prices come from the trades. The table below maps common findings to what they mean and the usual next call.

The findings worth answering before your due date are an urgent safety hazard, live termite activity, a major defect affecting the structure or water getting in, and any further investigation line about structure, moisture or termites. A long list of minor defects on an otherwise sound house usually points to a maintenance budget rather than a reason to walk away.

What to do before your building and pest due date

1. Call the inspector. Ask which findings are major and why, what the limitations mean for this house, and which specialists to book. I take the time on site or by phone to show you exactly what's going on: real conversations, not just a report sent and forgotten.
2. Book the specialists the report names, inside your due date. The report will not price the work, so quotes from the right trades are how you size each problem.
3. Ask the agent about access to any area that could not be inspected, and ask the inspector whether a further inspection is possible.
4. Talk to your conveyancer or solicitor early. Queensland Government guidance says a contract can be made subject to a successful building and pest inspection, and that the condition has to be in the contract when you sign it to be legally binding. QBCC recommends making the purchase conditional on you being happy with the results. Your conveyancer can tell you what your particular condition allows and by when.
5. Keep the report and read every finding. QBCC notes that if you buy a house with defects or subsidence you knew about before purchasing, you cannot later claim through the Queensland Home Warranty Scheme, so known defects are yours to price in now.

Cooling-off is a separate right. The warning statement on a Queensland residential contract says the contract may be subject to a 5 business day statutory cooling-off period, and that a termination penalty of 0.25% of the purchase price applies if the buyer terminates during that period. Cooling-off does not apply if you buy at auction. This is general information, not legal advice.

How my reports are set out

My pre-purchase building and pest reports comply with AS 4349.1-2007 and AS 4349.3-2010. Findings are grouped as Major Defects (serious property defects such as structural issues and leaks), Minor Defects (the small wear and tear common in most houses), Safety Issues, and Timber Pests (evidence of timber pest attack and conditions conducive to it). The aim is a report structured so you can quickly see what matters and what doesn't. Moisture findings are supported by a FLIR E6 Pro thermal camera and a Tramex MEX5 moisture meter, and I offer 24 Hour Reports, with support before, during and after the inspection.

To book, see pre-purchase building and pest inspections or the Sunshine Coast building and pest inspections page. I inspect between Brisbane and Gympie, including Caloundra, Maroochydore and Mooloolaba. Call 0401 527 667 or request a quote, and read more about me.