Person signing a contract to purchase subject to building and pest inspection
Blog, Purchasing a House

How Does the “Subject to Building and Pest Inspection” Clause Actually Protect?

Lately, more homebuyers have been proceeding to sale without getting a building and pest inspection first. So why is this such a problem?  

The truth is, the “subject to building and pest inspection” clause is an essential step in the property-buying journey. This clause protects you and your funds, helping to make sure you get the most out of your new home.  

Wondering what the building and pest inspection clause really means for you? Here’s what you need to know! 

Why do you need a building and pest inspection?

A building and pest inspection might seem like a simple last step before your property purchase proceeds to settlement. In reality, it could be the most important step you take. 

Your building and pest inspection report is essential to getting finance for your home. A clear inspection means full steam ahead to sale. Meanwhile, a poor inspection could cause your lender to say no to your loan. 

Can a bad inspection save you from a contract?

Poor results on a building and pest inspection aren’t always enough to get you out of a homebuying contract, but they can alter the process.  

If your inspection results come back looking less than favourable and you still plan to proceed with purchase, a few adjustments might occur.  

When a building and pest inspection indicates major damage or repair bills, you can often renegotiate the property purchase price. The same is true if your inspection report changes how much your lender is willing to loan.  

Can you purchase without an inspection?

The building and pest inspection clause exists for a reason. While it is sometimes possible to purchase a property without an inspection, it’s always best to check the quality of your new home. 

Whether you can proceed without an inspection will depend on your lender and whether you’re buying your property at market price. A knock-down property might not need an inspection before purchase, but a home you plan to live in probably will.  

Is an inspection the same as a bank valuation?

Before you purchase a new home, your bank may conduct a professional valuation to ensure your property is worth its asking price. However, this isn’t the same as a building and pest inspection.  

While a bank valuation takes into account many features of your home, it will often evaluate your property at face value. Without a professional to check for structural integrity and pests, it’s easy for problems to go unnoticed.  

To protect yourself and your money, it’s always best to be sure, and that means getting a professional inspection before you buy. 

Want to ensure your new home is in perfect purchase condition?
Action Property Inspections today
to book your building and pest inspection.



About Andrew Mackintosh

Andrew Mackintosh has been answering home inspection questions in the greater Brisbane area since 1995. He has personally carried out over 20,000 building inspections and is a licensed builder and licensed building inspector, Member of Queensland Master Builders Association & Institute of Building Consultants. Being the business owner and the inspector, Andrew is passionate about providing clients with excellent customer service, value for money, honest, unbiased, thorough inspection and reporting in a professional and timely manner to allow clients to make informed decisions when purchasing property.

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