The goal of a building and pest report is to identify any issues with the property you intend to purchase.

Typically, a building and pest clause is included in the contract of sale, allowing the buyer to back out of the transaction or negotiate in the event that there are serious issues with the property.

Note: In South Australia, Building and Pest Inspections normally aren’t included as a special condition in sales contracts, making it different to other states.

These problems could be anything from a leaking tap to more serious issues such as termite infestation or structural damage to the building itself.

Prior to signing the contract of sale, it’s important that you consult with a solicitor or conveyancer to make sure you have entered the correct wording for your Building and Pest Inspection clause.

If you’re buying a property through an auction process, you might be required to conduct your own Building and Pest Inspection prior to auction day, as sales by auction are considered unconditional.

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Strata Report

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The Strata Inspection Report is similar to a building report, however, it reports on the entire building or complex. It is also known as the Strata Scheme.

The report will provide precise details of what is happening within the entire building or complex, as these issues are often recovered under the strata. However, as an owner of a strata-titled property, you will probably be required to contribute to ongoing Strata Levies and any Special Levies for large works undertaken on the building itself.

A Strata Report typically includes:

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• Current ownership
• Quarterly levies for the property
• What are your voting rights? What is your unit entitlement?
• Are there any current or proposed Special Levies?
• Does the Strata Scheme comply with Fire Requirements, Work, Health & Safety Obligations and Asbestos Management
• Are pets allowed?
• Balance of the sinking fund and administrative fund
• Current legal matters
• Building Defects or Home-owner Warranty Claims for Defects
• Breaches of by-laws (Rules and Regulations for this building)
• Major income and expenditure over the past 3 years
• Checking whether the building is adequately insured
• Compliance issues
• Disputes within the Strata Scheme
• All copies of the minutes of Annual General Meetings, Extraordinary General Meetings and Executive Committee Meetings

The sinking fund can often be the biggest issue prospective buyers will face when choosing to purchase a strata-titled building. For many older buildings, there are often extensive maintenance requirements and potentially expensive planned capital works that owners will have to pay for out of pocket.

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