When you make an offer on a Perth property, you'll almost certainly be signing a REIWA Offer and Acceptance form. Buried inside that contract is one of the most important protections available to buyers: the building inspection clause. Use it correctly, and it gives you the right to walk away — or negotiate — based on what an inspector finds. Use it incorrectly, or miss the deadline, and you lose that protection entirely. This guide explains exactly how the clause works, what timelines apply, and how to use your inspection report effectively.
What Is REIWA?
REIWA is the Real Estate Institute of Western Australia. Unlike other states that use different contract forms, almost all residential property sales in WA use the REIWA Offer and Acceptance contract as the standard purchase agreement. The building inspection clause is a standard optional condition that buyers can include when making their offer.
How the Building Inspection Clause Works
The building inspection clause makes your offer conditional on a satisfactory building inspection. If the inspection reveals defects you consider significant, you have grounds to either renegotiate the purchase price or withdraw from the contract entirely — without losing your deposit.
The clause specifies:
- The number of days to complete the inspection: This is negotiated at the time of offer. Common timeframes are 5, 7, or 10 business days from the contract date. Longer is better — it gives you time to get a proper inspection booked and read the report carefully.
- What constitutes grounds to terminate: The clause is typically worded around "major defects" or defects of a specified type. Understanding what this means in practice — and how it interacts with your inspection report — is important.
- The process for notifying the seller: If you want to exercise the clause (either to negotiate or withdraw), you must notify the seller's agent in writing before the clause expiry date and time. Missing this deadline is a common and costly mistake.
The Timeline — Don't Miss It
The inspection clause has a hard deadline. Once it passes, the clause expires and you lose the right to withdraw or renegotiate on inspection grounds. The clock typically starts from the contract date (when both parties have signed), not from when you receive your copy.
Here's a practical timeline for a 7 business day clause:
- Day 0: Contract signed by both parties
- Days 1-2: Book your inspection immediately — don't wait. Quality inspectors in Perth get booked out, particularly in high-demand periods.
- Days 2-4: Inspection takes place. On-site time is typically 1-2 hours depending on the property.
- Day 4-5: Report delivered (within 24 hours of inspection).
- Days 5-6: Review the report carefully. Debrief call with your inspector. Decide on your position.
- By Day 7: Notify the selling agent in writing if you wish to exercise the clause. Don't leave this to the last hour.
If you're looking at a property in a competitive market and the seller is pushing for a 5 business day clause, push back. Five days is tight. Seven to ten business days gives you room to book a thorough inspection and make an informed decision without racing against the clock.
What Should Your Inspector Check?
A pre-purchase building inspection to AS 4349.1 covers the structural and non-structural elements of the property — exterior walls, roof structure and covering, roof space, subfloor (where accessible), interior walls and ceilings, and more, depending on the inspection tier you choose.
Perth properties have specific risk factors that a local inspector will know to look for:
- Reactive clay movement: South-east suburbs including Canning Vale, Southern River, and Thornlie sit on the Guildford Formation clay. Stair-step cracking in brickwork, binding doors, and floor level changes are the typical signs.
- Concrete roof tile failure: Homes built through the 1980s and 1990s across much of Perth are reaching the end of their concrete tile lifespan. Failed ridge capping and moisture-damaged tiles are a widespread finding.
- Termite activity and risk: Perth is a high-risk termite environment year-round. A combined building and pest inspection is strongly recommended for any purchase — a standalone building inspection won't assess for timber pests.
- Asbestos materials: Properties built before 1985 have a high likelihood of asbestos-containing materials. Your inspector can identify materials likely to contain asbestos based on era and appearance (laboratory testing is required for confirmation).
- COVID-era construction defects: Homes built 2020-2023 in new estates like Baldivis, Alkimos, and Brabham have elevated defect rates due to trade shortages during the HomeBuilder grant period.
- Coastal corrosion: Properties within a few kilometres of the coast in suburbs like Rockingham, Scarborough, and Cottesloe are exposed to salt spray. Corroded lintels, roof fixings, and structural brackets are common findings.
How to Read Your Report in the Context of the Clause
Inspection reports can be detailed documents. For the purpose of exercising your building inspection clause, the key distinction is between major defects and minor defects or maintenance items.
Your report will typically categorise findings by severity. Major defects are structural or safety issues that require significant repair — things like major cracking indicating foundation movement, significant termite damage, failed roofing requiring replacement, or serious water ingress. Minor defects and maintenance items are expected in any home and are unlikely to support a clause termination on their own.
The important thing to understand: even if your report shows minor defects only, you can still use those findings as a basis for price renegotiation — as long as you do it before the clause expires. The clause gives you leverage, even when you intend to proceed with the purchase.
This is exactly why the debrief call matters. At PinPoint, we include a free post-inspection phone call with every inspection. We'll walk you through the report, explain the significance of each finding, and help you understand what carries genuine weight as a negotiating point versus what's normal wear for a home of that age.
Using the Report to Negotiate
Finding defects doesn't mean you shouldn't buy the property. In most cases, buyers use their inspection report as a negotiating tool — and sellers generally expect it. Here's how the negotiation typically plays out:
Price Reduction
The most common approach. You get quotes for the repair costs identified in the report and request the seller reduce the purchase price by a corresponding amount. This works best when defects are specific, quantifiable, and supported by evidence in the report.
Repairs Before Settlement
You can request the seller rectify specific items before settlement as a condition of proceeding. This approach has risks — you need to verify the repairs were done properly before settlement. Get specifics in writing: what's being repaired, by whom, and to what standard.
Withdrawal
If the inspection reveals major structural defects that make the purchase unviable, you exercise the clause to withdraw and recover your deposit. This is the clause working as intended — protecting you from committing to a property with serious undisclosed problems.
Proceed with Knowledge
Some buyers accept the findings and proceed without renegotiation — often because the price already reflects the property's condition, or because they're prepared to carry out the work themselves. That's a valid decision, as long as it's an informed one.
Common Mistakes Perth Buyers Make
- Booking too late: Leaving it until day 4 or 5 to book an inspection gives you almost no time to receive the report, seek a debrief, and make a decision before the deadline.
- Missing the deadline: The clause expiry date and time is in the contract. Set a calendar alert. If you need an extension, ask for one in writing before the deadline — not after.
- Skipping the pest inspection: A building inspection does not cover timber pests. Booking a combined building and pest inspection on the same day costs only a fraction more and ensures no gap in coverage.
- Accepting a verbal debrief instead of reading the report: Always read the full report yourself. The debrief call is a supplement, not a replacement.
- Expecting perfection: Every home has defects. The goal of the inspection is to identify significant issues, not to produce a defect-free report. Minor items are expected and normal.
What Happens at Auction?
If a property is being sold at auction, there is no building inspection clause — because there is no cooling-off period and no conditional offer. Once the hammer falls, you own it. For auction properties, the only option is to arrange a pre-auction inspection — paid for out of pocket — before auction day. It's a risk, but it's significantly less risky than bidding on a property you haven't had inspected.
FAQ
How long do I get for a building inspection in a REIWA contract?
The timeframe is negotiated as part of your offer. Common periods are 5, 7, or 10 business days from the contract date. There is no fixed standard — you can request more time, and it's reasonable to do so. Seven to ten business days is preferable to give you adequate time to book, inspect, and review the report.
Can I use a building inspection report to reduce the price even if I'm still buying?
Yes. The inspection clause doesn't have to result in withdrawal to have value. Many buyers use their inspection report findings to negotiate a price reduction or request specific repairs, then proceed with the purchase. The key is doing this before the clause expires.
Do I need a separate pest inspection, or does the building inspection cover it?
They are separate inspections under different Australian Standards — AS 4349.1 (building) and AS 4349.3 (timber pests). A building inspection does not include a timber pest check. In Perth, booking a combined building and pest inspection is strongly recommended. It's conducted in a single visit, with the timber pest component discounted to $178 when booked with any building inspection.
What if my inspection finds problems but I still want to buy?
You have options: negotiate a price reduction based on repair costs, ask the seller to repair specific items before settlement, or proceed knowing the condition of the property. The free post-inspection debrief call with your PinPoint inspector will help you understand which findings have genuine negotiating weight and what the likely repair costs are.
Book Your Pre-Purchase Inspection
If you're buying a property in Perth and need an inspection before your clause expires, don't leave the booking until the last moment. Our combined building and pest inspections start from $497 for houses, with reports delivered within 24 hours and a free debrief call included. As a 5-star rated building and pest inspection team across Perth, we inspect properties from Two Rocks to Mandurah, seven days a week.
Call 0481 575 747 or book online.
