Termite inspections and reports - a guide for homebuyers
Timber pests can cause costly damage if allowed to go unchecked and can reduce the value of a property.
Before you buy a home, it is recommended that you have a timber pest inspection report prepared to make sure the property is not infested by termites or other timber pests.
Including a timber pest inspection condition on your offer
The standard buying/selling contract for the transfer of property has two sections, the:
- Contract for the Sale of Land by Offer and Acceptance (commonly called the "O&A"); and the
- Joint Form of General Conditions for the Sale of Land (also referred to as simply the General Conditions).
The General Conditions cover important contractual obligations for both buyer and seller. This is a formally printed document and not usually varied. The O&A form, however, provides greater flexibility and extra conditions can be added to it to meet the needs of both buyer and seller. These extra conditions may cover issues about property inspections such as building or pest inspections; who pays for necessary repairs; or anything else important for either buyer or seller.
Any extra conditions added to the O&A should be as precisely worded as possible and you may wish to seek legal advice to ensure this.
Because timber pests can cause costly damage to a property, it is recommended that you as a purchaser put a written condition into the contract that a timber pest inspection report be prepared.
Don't rely on any verbal agreement about this with the seller or their agent.
The condition should state that if termite or other pest activity is sufficient to cause, or have caused, damage then the contract of sale can be cancelled or the seller made liable for any loss you suffer.
The Sale by Offer and Acceptance fact sheet produced by the Real Estate and Business Agents Supervisory Board gives further information on what to do when entering into a contract to buy property.
Content of your timber pest condition
Your added condition should clearly specify the standard that any inspection to be carried out and report prepared has to meet.
It is recommended currently that the inspection and reporting comply with Australian Standard 4349.3 - 1998, though check with Consumer Protection or your local authority's building surveyor in case a more up-to-date standard has been released.
Australian Standard 4349.3 is a nationally accepted standard for timber pest inspections and reports. It includes roof and floor timbers, outbuildings and fencing. Timber pests can travel 50 metres underground, so fencing checks are necessary in a thorough inspection.
An inspection and report prepared according to this standard will inform you about any current infestation, previous damage, areas likely to be infested in the future, and areas where additional inspections are recommended to maintain effective physical and chemical timber pest barriers.
It is also recommended that your special condition includes:
- the identification of who will pay for treatment and repairs if the report indicates timber pest activity or damage;
- a statement allowing you to choose to terminate the sales contract if the report identifies timber pest activity or damage which you are not prepared to accept; and
- a reasonable timeframe within which you expect the inspection should be carried out.
The seller may offer to pay for the inspection. Although this may seem cheaper, there are strong reasons for you to get your own inspector.
Any inspector that you hire should be acting in your interests, not the sellers.
Getting the best deal from the timber pest inspector
Naturally you will want to hire an inspector who will provide you with the most thorough and professional service at the best price. Factors such as the price, terms of the contract and the extent of the inspection can form the basis of your decision.
To get the best deal it is a good idea to shop around before you make your choice. You may ask several operators for written quotes for an inspection, and then compare the quotes and the terms of their warranties. In Western Australia these are usually carried out by, but are not restricted to, professional building inspection services and licensed pest control operators.
A range of levels of inspection are offered. You will need to decide how detailed you wish the inspection to be. A thorough inspection of an average sized home should take at least one hour.
When the seller has agreed to you having their property inspected, the inspector must be allowed full access to the premises. If the seller or their agent restricts the inspection in any way, or there are any areas that are inaccessible at the time of inspection, then a thorough report will note these facts.
If timber pest problems are discovered
If the inspection report indicates timber pest activity, your options will to some extent depend on the wording of the special condition about the inspection you put into your O&A.
If you decide to continue with the purchase, and the condition requires that the seller pay for damage and treatment, then it is recommended that you immediately write to the seller or their agent outlining the expected repairs and treatment. Make sure that it is understood that a further inspection will take place prior to settlement to confirm that proper treatment or repairs have been carried out.
If the special condition allows you to terminate the contract, you may decide to give written notice of termination to the seller or their agent according to the terms of the condition.
If the terms of the condition are not as clear as they should have been and there is some confusion as to where you or the seller stand, you may need to get advice from a lawyer.
Should damage or activity be discovered and you didn't put a special condition into the O&A, it is suggested that you seek legal advice.
Further advice about timber pests
If you are building your own home or you want general information about protecting your home from termites, Consumer Protection produces a fact sheet called Termites and Your Home [PDF 76kb] that may assist you further.
Pest control operators
A pest control operator's licence indicates a level of training, experience and adherence to Australian standards in relation to the application of pesticides. To check if an operator is licensed, or to obtain information and advice about chemical treatments, contact the Pesticides Safety section of the Health Department on 9383 4244.