Victorian Government Plans Major Change to Home Sales Rules

Melbourne, 14 March: The Victorian government has announced that if it is re-elected later this year, it plans to introduce significant changes to the home selling process. Under the proposed reform, the cost of building and pest inspections before a property sale would be paid by the seller rather than the buyer.

Currently in Victoria, prospective home buyers must arrange and pay for their own building and pest inspections before purchasing a property. However, the government says the system is unfair and costly for buyers. It therefore plans to introduce a mandatory building and pest inspection scheme, which could be legislated in early 2027.

Minister for Consumer Affairs Nick Staikos said the proposed reform would make the due diligence process easier and more affordable for buyers.
“We want to develop a system that is transparent and protects buyers from potential conflicts of interest,” he said.

Victorian Premier Jacinta Allan said the current arrangement places too much financial pressure on potential home buyers and requires reform.
“When you buy a car, the seller pays for the roadworthy certificate. It should work the same way when you are buying a home,” she said.

However, Opposition Leader Jess Wilson criticised the announcement, saying the government had not provided enough details about the proposal.
“If the government is serious about delivering this reform, it could introduce the legislation in parliament this year instead of waiting until after the election,” she said.

Victorian Premier Jacinta Allan posted about the proposed housing reform on Facebook this morning. Photo: Facebook

Some industry experts have also expressed concerns about the proposed system. Building inspector and Master Builders Victoria representative Angela Perry warned the scheme could potentially be misused.
“There is a risk that inspection costs could be reduced at the expense of quality. Some real estate agents may start using their preferred inspectors,” she said.

Under the proposed law, sellers would be required to obtain building and pest inspection reports and make them available to prospective buyers before the property goes on the market. Buyers would still have the option to commission their own independent inspections if they wish.

According to government data, building and pest inspections currently cost buyers between $500 and $600 on average. Many buyers pay for multiple inspections while searching for a home. Around 17 per cent of buyers have reportedly paid for seven or more inspections, spending up to $4,200.

Research also indicates that about 17 per cent of buyers purchase properties without any inspection due to the cost and inconvenience involved.

The Victorian government said the new scheme would be modelled on the system used in the Australian Capital Territory (ACT). In the ACT, sellers are required to provide building and pest inspection reports before a property is offered for sale.

The government said it would consult widely with the industry before finalising the details of the mandatory inspection scheme.