Your building and pest report came back bad. Now what?
A building and pest report almost always finds something. The question is whether what it found is enough to justify acting, and what your contract actually lets you do about it.
Written by Michael Klein, Legal Practice Director, admitted 2003 · General information about Queensland law · Last reviewed 2026
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Read the condition, not the report, first
The standard REIQ contract makes the building and pest condition subject to you being satisfied with the reports, acting reasonably. That is a low bar in practice, but it is not unlimited — a trivial defect used as cover for buyer's remorse can be challenged.
Your options and your deadline both come from the contract, so that is where advice starts.
Your three practical options
Once you have the report, you generally choose between:
- Terminate. Give written notice before the due date and your deposit is refunded in full.
- Negotiate a price reduction reflecting the cost of the works. This is the most common outcome.
- Ask the seller to carry out repairs before settlement, with a right to reinspect.
The timing trap
Everything depends on the building and pest date. If that date passes without written notice, the condition is taken to be satisfied and your leverage disappears — you are bound to complete, defects and all.
Negotiating with the seller does not extend the date. If talks are ongoing as the deadline approaches, either get a written extension or give the notice to protect your position while you keep talking.
Issues worth taking seriously on the Sunshine Coast
In our coastal strip, some findings deserve particular attention: active termite activity or previous damage, corrosion in metal roofing and fixings from salt exposure, unapproved structures such as decks, carports and enclosed under-house areas, and evidence of water ingress or rising damp.
Unapproved building work is often the sleeper issue. It can affect insurance, future sale, and council enforcement, and it is not always cheap to regularise.
Frequently asked questions
Can I terminate over anything the report finds?
The contract usually requires you to act reasonably. Genuine defects, safety issues, termite activity or significant repair costs support termination. A cosmetic complaint alone is riskier.
Who pays for the inspection?
The buyer. Budget for it early — a proper building and pest inspection is one of the cheapest risk controls in the whole transaction.
What if the seller refuses to negotiate?
You are back to your two remaining choices: terminate before the due date, or proceed and take the property as it is.
This guide is general information about Queensland law, current at the time of writing. It is not legal advice and does not take your circumstances into account. Call Coastside Law on 0488 340 853 for advice on your own matter.
Related questions
The questions people usually ask next on this topic.
- How much does conveyancing cost in Queensland?
- How long is the cooling-off period in Queensland?
- What should I know before buying from a mortgagee in possession?
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