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Victorian vendors to foot the bill for pest and building inspections
The Victorian government has announced it will make property owners responsible for pest and building inspections if Labor is re-elected at the state election in November.
Currently, buyers have been required to organise and pay for their own inspection, usually costing hundreds per property.
The state government said it intended to put the responsibility on the vendors, who would be required to make the reports available to all potential buyers.
Victorian Labor said it has started work to develop a mandatory building and pest inspections scheme, including safeguards to protect buyers.
Legislation to implement the scheme will be introduced next year under a re-elected Allan Labor government.
According to the state government, the high costs of pest and building inspections meant prospective buyers were paying too much, while others faced risks by going without.
Consumer Policy Research Centre data has shown building and pest inspections can cost $500 to $600, with half of all buyers paying for multiple inspections in the process of finding a home.
It also showed 17 per cent of buyers paid for seven or more building inspections, spending up to $4,200, while another 17 per cent were buying blind with no inspections, often due to the extra cost and hassle.
The government said that by making sellers pay for inspections, buyers could put the money that would have been spent on multiple reports toward their home deposit.
However, should they wish to, they can still organise and obtain their own separate inspections before the property’s sale.
Ahead of the changes being introduced, Labor will consult with the property industry and the ACT government, the only other jurisdiction in Australia with the scheme in place.
In the territory, sellers must organise inspections to be completed within three months before sale, by professionals who meet key requirements.
Under the ACT’s scheme, after the contract is signed, the vendor can recover the report’s costs from the successful purchaser.
Premier Jacinta Allan said the new initiative would make buying a property easier, safer and more affordable for Victorians.
“When you buy a car, the seller pays for the roadworthy. It should work the same way when you look for a home,” she said.
According to Minister for Consumer Affairs, Nick Staikos, the due diligence process for an already big purchase should be as simple and affordable as possible.
“We’ll do the work to make sure our scheme is watertight and protects buyers from conflicts of interest,” Staikos concluded.
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