What Property Buyers Need to Know

When buying a home in Victoria, one of the most important parts of due diligence is getting a pre-purchase building inspection.

The Real Estate Institute of Victoria (REIV) and the Law Institute of Victoria (LIV) have recently updated the Contract of Sale of Land (September 2025 edition). These changes affect General Condition 21, which covers how building inspection reports work when buying or selling a property.

What’s Changed in General Condition 21.2(a)?

In the past, the contract said a “building practitioner or architect” could write a building report.

Now, the updated contract clearly lists who can prepare a pre-purchase building inspection report. The report must be done by one of the following:

A registered building surveyor

A registered building inspector

A registered domestic builder

An architect

This means only properly qualified and registered people can do reports that count under the contract.

Reports Must Follow Australian Standard AS 4349.1-2007

The new rules also say all building inspection reports must meet Australian Standard AS 4349.1-2007 – Pre-Purchase Inspections of Residential Buildings.

This standard explains how to check a home properly and how the report should be written including what’s covered, what’s not, and how findings are described.

At Red Dog Property Inspections, every inspection is carried out by a Registered Domestic Builder (DB-U 47579) and fully follows AS 4349.1-2007.

Only Major Defects Let You End the Contract

Another important change is that only a “Major Defect” as defined in AS 4349.1-2007 allows the buyer to end the contract under General Condition 21.

Small problems like minor maintenance, cosmetic issues, or normal wear and tear don’t count as major defects.

What Buyers Should Do

If you’re signing the new LIV Contract, make sure you:

Only use one of the registered professionals listed above.

Check your report follows AS 4349.1-2007.

Know what a “major defect” means under the standard.

Follow all contract steps carefully – You must give proper notice and meet all time limits, or you could lose your right to end the contract even if there’s a major defect.

Why This Matters

These changes make it more important than ever to use a registered and experienced building professional.
A proper inspection report helps protect your rights and gives you a clear picture of the home’s condition before you buy.

At Red Dog Property Inspections, all reports are done by a Registered Domestic Builder and meet AS 4349.1-2007 standards. We provide detailed, easy-to-read reports that show major defects, safety hazards, minor defects and maintenance items so you can buy with confidence.

Book Your Inspection Today

Whether you’re buying your first home or investing in another property, make sure your inspection meets Victoria’s latest REIV/LIV Contract rules.

Red Dog Property Inspections Trusted pre-purchase building inspectors in Melbourne and across Victoria.