You’ve found the property, negotiated a price and finally exchanged contracts, you think the hard part is over. So, when should you book your building inspection? The window to do this closes very quickly, here is everything you need to know.
In NSW, a standard residential purchase comes with a 5 business day cooling-off period, starting from the moment contracts are exchanged and ending at 5pm on the fifth business day. It does not apply if you buy at auction, or if you exchange contracts on the same day an auction is passed in.
Five business days sounds like plenty of time, until you remember what the process actually entails. First, you need to book an inspector, have the inspection carried out, receive the written report and read it properly. Finally, you decide whether you want to proceed, renegotiate, or walk away from the house. Doing all that in under a week can be a daunting task.
If a building or pest report turns up something serious and you decide not to proceed, you can withdraw during the cooling-off period by giving written notice. The catch: you’ll forfeit 0.25% of the purchase price to the seller. On a $700,000 South Coast property, that’s $1,750- a lot less than inheriting a termite problem or a failing roof, but still money you’d rather not lose because your inspection was rushed or booked too late to give you a real say.
Yes, but only if the seller agrees. Buyers (usually through their solicitor or conveyancer) can request an extension in writing, and it’s common for sellers to agree to 10 business days instead of 5, particularly if finance or an inspection is still pending. It’s not guaranteed, though, and it needs to be requested and signed off before the standard period runs out, not on day four when you realise you’re out of time.
There’s no cooling-off period at auction. If you’re bidding on a property, any building and pest inspection needs to happen before auction day, not after. This is one of the most common mistakes we see: buyers assume they’ll get the same window they would with a private treaty sale, then find out on the courthouse steps that it doesn’t apply. If you’re serious about a property going to auction, book your inspection as soon as you register interest, not once you’ve won the bid.
Working backwards from a 5-day cooling-off period:
The practical takeaway: call your inspector the same day you exchange, not after the weekend. On the South Coast, where properties are spread across Mollymook, Ulladulla, Batemans Bay, Moruya and Narooma, factor in a little extra lead time if you’re booking around a long weekend or during peak holiday periods, when demand for inspectors spikes alongside buyer interest in the region.
The cooling-off period is your safety net, but only if there’s enough of it left to actually use. Booking your building and pest inspection the moment contracts are exchanged, rather than waiting to see if you “need” one, is what turns a five-day scramble into a genuine chance to make an informed decision.
At Coastal Inspections, our team has been carrying out building inspections since 2013. Family run, we bring a wealth of knowledge and practical advice to each inspection. If you’re buying on the South Coast, book an inspection in good time to avoid making a costly decision under time constraints.
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