Building and Pest Inspection Conditions in Contracts

The vast majority of transfers of land in Western Australia take place using the standard REIWA document commonly known as the “contract for sale of land or strata title by offer and acceptance”.

This document sets out the critical details of the contract such as the buyer and seller, the property address, and the purchase price.

However, what that contract does not do is provide a buyer with the right to do a structural inspection of the property, or a termite inspection, prior to purchase.

Although these things are not a part of the standard contract, they are amongst the two most common ‘special conditions’ added to contracts in WA.

Following the lead of the ACT, Victoria has recently announced that they are going to make these inspections mandatory for all home purchases – and they are going to make the SELLERS responsible to pay for them.

https://www.abc.net.au/news/2026-03-12/building-pest-inspection-costs-victorian-government-buyer-seller/106443736

While it is possible this scheme will move into Western Australia at some point, it is important for both buyers and sellers to understand what the typical structural defect and timber pest inspection special conditions do – and do not do.

Here are a few things to keep in mind:

1. While major structural defect and timber pest special conditions are widely used – they do not automatically apply to all contracts. Check your contract to ensure whether these special conditions have been added, and if they have not and you want them to be – make sure this is expressly included in your contract.
2. As a general rule, we recommend against do-it-yourself clauses for these matters. REIWA has a standard form for both special conditions. It is not perfect by any means, but it is likely better than any clause you could draft yourself.
3. The timeframes in these clauses are generally tight – and strict. So be very careful to make sure you know the timeframes, and stick to them.
4. Just because an inspection identifies an issue, does not mean you get to walk away from the contract. In both cases the buyer is obliged to serve a copy of the inspection report on the seller within the timeframe and issue a notice in the timeframe if there is an issue. The seller then has the right to decide whether they will rectify the issue or not. It is only if the seller does not agree to rectify the issue within the timeframe that the right to terminate the contract arises.
5. The major structural defect clause is only for defects which are major and structural. This does not cover cosmetic issues, or even flaws which do not impair the structural integrity of the building.

Buying and selling a home is a major financial decision for most people – and it is understandable that you will wish to protect yourself as much as possible.

That is why you should consider the use of these special conditions, and understand what protections they do – and do not – give you.