How to Include a Building and Pest Condition in a Contract

Parties under a standard residential REIQ Contract may opt to include a Building and Pest condition in the Contract. Parties can do so by populating the building and pest “Inspection date” with a valid date or time frame. This makes the Contract conditional on the Buyer conducting a building and/or pest inspection and receiving a satisfactory report before the inspection date.

Buyer’s Rights and Obligations

  • up until 5:00pm on the inspection date, the Buyer has a right to:
    1. satisfy the condition;
    2. waive the benefit of the condition; or
    3. terminate the Contract pursuant to the condition.
  • a Buyer must give notice of one of the above before 5:00pm on the inspection date;
  • the Seller may elect to terminate the Contract should a Buyer fail to give notice in this regard;
  • in absence of termination by the Seller, the Buyer has a continuing right to give notice under the condition;
  • a Buyer who terminates under building and pest is obligated to provide the Seller with a copy of the building and pest report on request; and
  • The Buyer has an obligation to act reasonably in terminating the Contract under building and pest.


A Buyer who is not satisfied with their building and pest reports and do not wish to terminate may negotiate with the Seller.  Negotiations are best completed through the real estate agent as they have a direct line of contact to both parties. Once an agreement is reached the Buyer should refer back to their solicitor to formalise the arrangement.


Where a Buyer requires additional time to obtain a report or consider their options, they may request an extension of time on the building and pest condition. The extension request is subject to the Seller’s agreement. Should the Seller not agree to the extension to Buyer must provide notice before 5:00pm on the inspection date on the Contract.

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By Aspen Roggeveen

Read more on the special condition affecting the Buyer’s rights under the building and pest condition…