Property Due Diligence Checklist Australia — What to Check Before You Buy (2026)

In Australia, signing a contract of sale commits you to purchase — in most states, there is a short cooling-off period (2–5 business days) but significant financial penalties apply for withdrawing. Completing due diligence before exchange protects you from purchasing a property with undisclosed problems.

1. Legal and Title Checks

Order a title search through your conveyancer or directly from the state land registry. A title search confirms:

• The registered owner (ensure the seller has title to sell)
• Any mortgage or charge on the property
• Any caveats (third-party claims)
• Easements registered on title
• Covenants or restrictions affecting use

Contract review: Have your conveyancer or solicitor review the contract of sale before you sign. The contract contains:

• Vendor disclosures (varies by state)
• Any special conditions
• Settlement date
• Inclusions and exclusions (what stays with the property)
• Title encumbrances disclosed

2. Planning and Zoning

Planning certificate (state-specific name):

This confirms zoning (residential, rural, commercial, mixed), overlays (heritage, flood, bushfire, vegetation), and any development restrictions.

Outstanding DAs: Ask if any development applications affecting the property or neighbouring properties are on file.

3. Environmental and Physical Risks

Flood risk:

• Check the council flood certificate / planning certificate
• Review flood mapping through your council or state flood authority
• Properties in flood zones may be uninsurable or have very high insurance premiums
• Some lenders will not lend on certain flood-prone properties

Bushfire risk:

• For properties in bushfire-prone areas: request the Bushfire Attack Level (BAL) rating
• BAL ratings range from BAL-LOW (minimal risk) to BAL-FZ (flame zone)
• Higher BAL ratings require more expensive construction standards and affect insurance

Contamination:

• Properties near former petrol stations, dry cleaners, industrial sites, or infill sites may have soil contamination
• Request an environmental search or historical land use check through your conveyancer

Asbestos:

• Homes built before 1990 (particularly 1940–1980) may contain asbestos in roofing, eaves, fences, or internal linings
• A building inspector can flag likely asbestos-containing materials (requires laboratory testing for confirmation)
• Licensed asbestos removal can cost $1,500–$30,000+ depending on scope

4. Building Inspection

A licensed building inspector assesses:

• Structural soundness (roof, walls, foundations, subfloor)
• Water ingress and moisture issues (roof leaks, rising damp)
• Cracks (cosmetic vs structural)
• Drainage and plumbing
• Electrical switchboard condition (visible)
• Safety items (stairs, balustrades)

Cost: $400–$800. Always engage independently — never rely on a seller-provided inspection.

Combined building and pest: Many inspectors offer combined reports for $500–$900 — pest (termite) inspection recommended for all timber-framed homes.

5. Pest (Termite) Inspection

Termite damage is one of the most costly concealed defects in Australian property — particularly in Queensland, NSW, WA, and NT.

A licensed pest inspector:

• Visually inspects the property and subfloor for termite activity
• Uses moisture meters and thermal imaging (premium reports)
• Identifies evidence of past activity and treatment

If termites are found: Negotiate with the seller (price reduction or treatment condition) or walk away.

6. Strata Checks (Apartments and Townhouses)

If buying a strata, company title, or community title property — a strata inspection report is essential. See Strata Inspection Report — What to Look For for detail.

Key items:

• Current levies (admin fund and capital works fund)
• Outstanding or proposed special levies
• Financial health of the strata scheme (sinking fund balance)
• Meeting minutes (disputes, major decisions)
• Building defects register
• Insurance coverage

7. Financial Checks

Stamp duty: Know your stamp duty liability before committing. This is payable within 30–90 days of exchange (varies by state) — factor into your funds position.

Council rates: Request the most recent council rates notice — becomes your liability from settlement.

Water rates: Confirm water usage charges and supply charges.

Body corporate / strata levies (if applicable): Confirm quarterly levy amount — ongoing cost.

Outstanding charges: Confirm with your conveyancer there are no outstanding rates, water, or land tax arrears on the property (these may be disclosed in the vendor’s conveyancing).

Frequently Asked Questions

Do I have to do my own inspections, or will the agent arrange them?

You should always arrange your own independent inspections — not use inspectors recommended solely by the selling agent. While agent-recommended inspectors are not necessarily biased, conflicts of interest can exist.

Can I do due diligence after exchange?

In most Australian states, there is a cooling-off period (typically 2–5 business days) after signing a private sale contract. However, in NSW, the vendor can require the buyer to forfeit 0.25% of the purchase price to exercise the cooling-off right. At auction, there is no cooling-off period — you must complete all due diligence before bidding.

What happens if I find a problem after exchange?

Unless there is a specific condition in the contract (such as a building inspection condition), you are generally bound to proceed. Pre-exchange due diligence is therefore critical.

Related Due Diligence Guides

• Title Search Australia — What It Is and How to Do It
• Flood Zone Property — How It Affects Your Loan and Insurance
• Strata Inspection Report — What to Look For
• Property Due Diligence Hub

This article provides general information about property due diligence in Australia. Due diligence requirements vary by state and property type. Always engage a licensed conveyancer or solicitor before signing a contract of sale. Find one through MoneySmart.