How to Handle a Building and Pest Report as a Seller in Brisbane
A buyer's building and pest report is one of the most common sources of late-campaign conflict. Here is what Brisbane properties typically show, how to respond to post-report negotiations, and whether commissioning a pre-sale report is worth doing.
Most private treaty property sales in Brisbane's inner east include a building and pest inspection condition. The buyer commissions an independent inspection, receives a report on the physical condition of the property, and decides what to do with the findings. For most buyers whose inspection reveals only routine items, the process is uneventful. For buyers who receive a report with significant findings, the inspection condition becomes a negotiating point or, in some cases, a basis for terminating the contract.
For sellers, this period is one of the more uncertain parts of the campaign. The property is under contract, the inspection is happening, and the seller has no control over what the report finds or how the buyer responds to it. Understanding what Brisbane inner east properties typically show on inspection, what your options are if the buyer raises issues, and how to approach the disclosure question before listing puts you in a better position to manage this phase without making rushed decisions.
What Brisbane inner east properties typically show on inspection
Brisbane's inner east contains a large proportion of pre-war and mid-century timber homes. Queenslanders, chamferboard workers' cottages, and post-war brick homes from the 1950s and 1960s are common throughout Hawthorne, Balmoral, Norman Park, Camp Hill, Seven Hills, and Morningside. These properties have character and longevity, but they also have age, and age produces inspection findings.
Timber pest activity and damage. This is the most significant finding on older Brisbane homes. Queensland has an active termite population, and timber-framed homes that have not had regular pest management treatment are at genuine risk. An inspection finding may indicate active termite activity (live insects present), evidence of past termite damage (damage without current activity), or conducive conditions (moisture, timber-to-soil contact, debris) that increase the risk of future activity. These are materially different findings, and buyers often conflate them. Active termite infestation is serious. Past damage that has been managed and remediated is different. Evidence of conducive conditions without damage or activity is different again.
Subfloor moisture and drainage. Elevated timber homes have subfloor spaces that are susceptible to moisture if drainage is inadequate or if the subfloor is not adequately ventilated. Subfloor moisture is a common finding on older Brisbane homes, particularly those in lower-lying areas or on blocks with limited drainage. A report noting high subfloor moisture may recommend increased ventilation, drainage works, or in some cases, treatment for associated timber decay.
Roof condition. Terracotta and Marseille tile roofs on older Brisbane homes crack and shift over time. Box gutters, which are common on older character homes, rust and leak. Flashing around chimneys and roof penetrations deteriorates. These items are routine on properties of 30 years or older and are not unexpected. A report noting some tile cracking or minor gutter deterioration on a 1930s Queenslander is not the same as a report noting major structural damage to the roof frame.
Structural items. Cracked cornices, differential settling in older brick homes, window and door frames that are out of square due to timber movement: these are common findings on Brisbane properties of age. A building inspector notes them. Most are not structurally significant. A buyer whose inspector raises these items in a report should be asking whether they are cosmetic or structural, not assuming the worst.
Safety hazards. Building inspectors flag items against the Building Code requirements applicable at the time the property was built and against current safety standards. A deck with inadequate balustrade height, unguarded stairs to a sub-floor area, or a carport with non-compliant clearance may be noted as a safety item requiring attention. These items are frequently raised on older properties and may require minor rectification to bring into compliance with current standards.
Your disclosure obligations before the inspection
Under Queensland's Mandatory Seller Disclosure Statement, introduced under the Property Law Act 2023 which commenced on 1 August 2025, sellers are required to disclose known material facts that could affect a buyer's decision to purchase. This includes known structural defects, known termite damage or infestation, and other conditions that materially affect the property.
The disclosure obligation applies to facts you know, not to facts you do not know. If you are aware of significant termite damage from a past infestation and have had it repaired, that is a known material fact. If you have lived in the property for five years and never had a termite inspection and have no knowledge of pest activity, that is different. The obligation is not to commission an inspection before selling in order to discover and disclose unknown defects. It is to disclose what you actually know.
The practical implication: if there is a known significant defect with your property, disclosure before contract is not just a legal obligation, it is also sensible risk management. A buyer who discovers after contract that you knew about a significant defect and did not disclose it has a much stronger legal position than a buyer who simply did not like what the inspection found.
How buyers use the report to negotiate
Buyers who receive a report with significant findings have several options. They can proceed with the contract without raising the issues, accepting the property in its current condition. They can request that the seller repair specified items before settlement. They can request a price reduction to account for the cost of addressing the issues themselves. Or, if the building and pest condition has not yet expired, they can terminate the contract under that condition and receive their deposit back.
In practice, buyers who intend to terminate typically do so quickly rather than entering a protracted negotiation. A buyer who spends several days negotiating repairs and then terminates was likely using the negotiation to buy time while they reconsidered the purchase. A buyer who genuinely wants to proceed but is uncomfortable with specific items will typically focus the negotiation on those specific items.
The inspection report is also a document the buyer's agent will have seen. A good buyer's agent will advise the buyer on which items in the report are genuinely significant and which are routine findings for a property of that age. In competitive markets, buyers who terminate a contract over routine inspection findings miss out on properties. Most buyers are informed enough to distinguish between a report that warrants renegotiation and a report that simply confirms that the property is old.
Your options as a seller
When a buyer raises issues from their inspection report, you have several options. None of them requires you to accept the buyer's request unconditionally.
Repair the items before settlement. If the buyer has identified specific items that can be rectified at reasonable cost before settlement, agreeing to repair those items resolves the issue. This works best when the items are clearly defined and when you can obtain quotes and complete the work within the settlement timeline. It does not work well for items that are complex, expensive, or where the scope of work is uncertain until a contractor inspects the property.
Offer a price adjustment. A price adjustment is a clean way to resolve inspection findings when the items cannot be practically repaired before settlement. The buyer takes on the rectification work post-settlement and receives a credit toward the cost. The size of the adjustment is negotiated based on realistic cost estimates, not on the worst-case reading of the inspection report. A building and pest inspector notes issues; they do not price the rectification. Before agreeing to any price adjustment, seek independent quotes for the work so that you are negotiating on actual costs rather than buyer assumptions.
Decline to negotiate. This is a legitimate option, particularly if the inspection findings are routine for a property of the age and construction type. A buyer who receives a report noting typical wear-and-tear on a 1950s chamferboard home and requests a significant price reduction may not have a strong negotiating position. Your agent should help you assess whether the buyer's request reflects a genuine concern or an opportunistic attempt to renegotiate. If the property is priced appropriately, if the inspection findings are routine, and if there are other interested buyers, holding firm is a reasonable response.
Seek a second opinion. If the inspection report raises concerns about the severity of a particular item (for example, structural movement that the inspector describes in alarming terms), a second opinion from a structural engineer or a specialist can give you factual information on which to base a response. Inspection reports sometimes reflect an abundance of caution that overstates the practical significance of findings. A second expert opinion can either confirm the concern or provide reassurance that the item is within normal tolerances.
Should you commission a pre-sale inspection?
A pre-sale building and pest inspection gives you advance knowledge of what a buyer's inspector is likely to find. You can address significant items before the campaign, which removes the risk of a late-campaign renegotiation or termination. It also allows you to price the property with confidence, knowing that the physical condition of the property has been assessed and that significant items have been addressed.
The consideration in Queensland is the disclosure framework. Under the Mandatory Seller Disclosure Statement, sellers must disclose known material facts. A pre-sale report you have commissioned makes you aware of its findings. If those findings include material defects, you may have an obligation to disclose them. This is not a reason to avoid commissioning a pre-sale report, but it is a reason to discuss the disclosure implications with your conveyancer before the inspection so that you understand what the report will mean for your disclosure obligations.
In practice, sellers who commission a pre-sale inspection and address the significant items before listing are in a stronger position than sellers who rely on the buyer's inspection to discover issues. A buyer who knows their inspection is unlikely to find significant surprises is more likely to proceed to an unconditional contract than a buyer who is uncertain about the property's condition.
The building and pest condition in the contract
The standard REIQ residential contract includes a building and pest inspection condition that gives the buyer a specified period (typically 7 to 14 days from the contract date) to commission an inspection and, if the findings are not acceptable, to terminate the contract. This right runs concurrently with the finance condition period in most standard contracts.
Once the building and pest condition period expires, the buyer's right to terminate under that condition is extinguished. A buyer who received their inspection report within the condition period but did not exercise the right to terminate by the deadline cannot later use the inspection report as a basis for termination. The condition is time-limited and the deadline is enforced.
If a buyer attempts to raise inspection findings after the building and pest condition has expired, they are doing so as a negotiating tactic rather than as an exercise of a contractual right. You are under no obligation to negotiate. Your conveyancer should be involved in any post-condition-expiry communication that involves a request to vary the price or conditions of the contract.
The pre-sale checklist tool walks through every item sellers typically need to address before listing, including pest and building report timing. Use the pre-sale checklist
Navigating a post-report negotiation? The inspection condition period is one of the moments in a sale where experienced agent guidance matters most. Daniel has handled building and pest report negotiations across Brisbane's inner east and can help you calibrate your response to buyer requests without leaving money on the table or losing a genuine buyer over routine findings. Get in touch.
Seller disclosure obligations are set under the Property Law Act 2023 (Qld), which commenced 1 August 2025. Contract conditions including the building and pest condition are governed by the REIQ standard residential contract. This article is general information only and does not constitute legal advice. Seek advice from your conveyancer before signing any contract or responding to inspection-based requests.