While these reports can be a useful starting point, there are several important limitations that buyers need to be aware of.
Firstly, there is a clear conflict of interest. Vendor-provided reports are organised through the selling agent, which can lead to the selection of inspectors who are less likely to highlight issues that may impact the sale. Industry experts have raised concerns that this could result in lower-quality or less thorough reports and ultimately worse outcomes for buyers .
Secondly, the inspection process itself is inherently limited. Building inspectors are not permitted to move items or access concealed areas during their assessment. This means:
As a result, defects can be easily hidden whether intentionally or otherwise and may not be identified in the report .
In addition, these reports typically contain extensive disclaimers. They are often described as a visual assessment only, meaning:
This can give buyers comfort that a property has been thoroughly checked, when in reality, significant issues may still exist.
Another key consideration is the lack of consistency and regulation in the industry. Not all inspectors are qualified or registered builders, and there can be significant variation in what different inspectors identifyor fail to identify in the same property .
What This Means for Buyers
Vendor-supplied building reports should be treated as a guide not a safeguard.
For any serious purchase, it remains critical to:
In a market where conditions are evolving and risks can be less visible, independent advice and detailed due diligence are more important than ever.