Compliance When Buying a House in Australia: Complete Buyer’s Guide

Why Compliance Matters When Buying a Property in Australia

When thinking about what to consider when buying a house, compliance should be high on your checklist. These checks protect you from financial and legal headaches and are one of the most important things to know before buying a house in Australia.

Whether you’re a first-home buyer looking at your dream property or an investor adding another property to your portfolio, compliance ensures:

• You can secure home and contents insurance or landlord cover
• You avoid unexpected repair or rectification costs
• Your property meets legal and safety standards

Without due diligence, you risk buying a property with illegal renovations, outstanding council notices, or title disputes. All issues that could derail your property purchase.

What Compliance Checks Should You Do Before Buying a House?

If you’re wondering what to do before buying a house, compliance checks should be one of your first priorities. Doing your due diligence before signing the contract of sale can save you from costly mistakes. These are the most important checks every homebuyer should complete:  

Building and Pest Inspections

A thorough building and pest inspection is the first step in any homebuyer’s checklist. Qualified inspectors assess:

• Structural issues or cracks
• Termite damage or pest infestations
• Poor workmanship or non-compliant renovations
• Illegal extensions or unapproved building work

These reports can give you negotiation power or a reason to walk away before settlement date.

Council Building Permits and Approvals

Ask your conveyancer or legal expert to check whether the property has:

• Valid council permits for extensions, garages, pools, and renovations
• Final occupancy certificates
• Outstanding building notices or orders

Unapproved structures can void insurance policies, impact your pre-approval, and cost thousands to rectify before you can move in.

Title Search and Encumbrance Checks

A title search is a key part of the buying process. It uncovers:

• Legal ownership
• Easements, covenants, or encumbrances
• Disputes with neighbouring properties

This step is crucial for both residential home buyers and investment property purchasers.

What Is Title Insurance and Why Do You Need It?

Title insurance is a one-time premium that protects buyers against hidden risks, such as:

• Illegal building work by previous owners
• Survey or boundary discrepancies
• Title defects or errors
• Undisclosed council notices or land issues

If you’re wondering what do I need to know before buying a house in terms of protection, title insurance in Australia is one of the most cost-effective safeguards against long-term debt and legal disputes.

Home Insurance in Australia: Why the Right Cover Matters

Not all home insurance policies offer the same protection. Many buyers mistakenly assume all damage or loss is covered, but this isn’t always true. 

When Should You Take Out Home Insurance?

Take out insurance as soon as you sign the contract of sale. In some states, the buyer becomes liable from the time of contract exchange.

Common Exclusions in Standard Home Insurance

• Unapproved renovations or structures
• Flood or storm damage in high-risk areas
• Outdated wiring, plumbing, or roofing
• General wear and tear

Always read the Product Disclosure Statement (PDS) carefully and disclose full details about the property to avoid claim rejections.

Landlord Insurance in Australia: Investor Must-Have

If you’re buying an investment property, landlord insurance is crucial. It protects you from:
– Loss of rental income
– Damage caused by tenants (accidental or malicious)
– Legal liability if a tenant is injured
– Repairs not covered by strata or building insurance 

Tips for choosing the right landlord insurance:

– Check if it covers short-term/Airbnb rentals
– Look for malicious damage cover
– Confirm tenant default protection
– Compare excess levels and claim limits

Pro Tip: Not all landlord insurance policies are equal—cheaper policies often have more exclusions and lower payout limits. 

Extra Compliance Considerations to Be Aware Of

Smoke Alarm Regulations

Every state in Australia has specific requirements. These alarms must be:
– Hardwired or 10-year battery-operated
– Located in key rooms
– In compliance with AS 3786:2014 

Pool Fencing Compliance

Properties with a pool must have fencing that complies with national safety standards. Non-compliance can lead to legal liability if accidents occur. 

Electrical and Plumbing Safety

Older properties may have:
– Non-compliant wiring or fuse boxes
– Unlicensed plumbing
– Unsafe gas systems

Arrange for a licensed tradesperson to perform compliance checks during your building inspection. 

Professionals to Help With Property Compliance

Navigating compliance alone can be overwhelming. The right professionals can protect your investment and guide you through the buying process:

• Buyer’s Agent: Supports property search, negotiation, and due diligence.
• Conveyancer/Solicitor: Reviews legal documents, checks building approvals, and handles settlement.
• Building & Pest Inspector: Identifies structural issues and pest risks.
• Mortgage Broker: Helps secure a home loan suited to your financial situation.

Final Compliance Checklist Before Settlement

Before settlement, make sure you’ve ticked off the following:
– [ ] Building and pest inspection completed
– [ ] Council permits and occupancy certificates verified
– [ ] Title search and/or title insurance in place
– [ ] Smoke alarms and pool fencing compliant
– [ ] Electrical and plumbing safety checks done
– [ ] Home or landlord insurance active from contract signing
– [ ] Professionals engaged and reviewed all findings 

Peace of Mind Comes From Compliance

Buying a house is an exciting time, but it’s also a complex process. By focusing on compliance, you’ll avoid costly mistakes and ensure your property purchase is legally sound, insurable, and safe.

If you’re not sure where to start with due diligence, You&Me Personalised Property Services can guide you. From property search to settlement, our buyer’s agents help you secure your dream property with confidence. Get in contact with us today.