Inspecting properties
From inspection to due diligence
Why a physical observation and a legal check are separate — and the specific document or authority record each common observation should trigger.
- Many consequential risks only show up in legal and authority records, not a visual inspection.
- Every material observation should trigger a specific document check, not a general sense that due diligence will cover it.
- A Section 32 vendor statement is a legal disclosure, not a substitute for a physical inspection, and vice versa.
- A property can pass inspection and still carry an unresolved legal issue — and the reverse.
A physical observation should trigger a specific document check
What you observe on a walkthrough and what a building inspector reports are only half the picture. Many of the most consequential risks — an unapproved extension, an easement crossing the block, an owners corporation special levy, a registered Building Order — only show up in legal and authority records, not in a visual inspection. Every material observation should generate a specific document or authority check, not a general sense that "due diligence" will cover it.
Observation to document: a worked table
| What you observed | Record or document to check | Who can help |
|---|---|---|
| Recent extension | Building permit, approved plans, occupancy or final inspection certificate | Conveyancer, council |
| Shared driveway | Title, plan of subdivision, easement | Conveyancer or surveyor |
| Apartment water staining | Owners corporation minutes, defect reports, maintenance records | Conveyancer, building specialist |
| Reconfigured internal walls | Permit records | Conveyancer, building inspector |
| Pool or spa | Council registration and barrier-compliance certificate | Pool inspector, conveyancer |
| Possible heritage character | Planning report and heritage overlay controls | Planner, conveyancer |
| Retaining wall near boundary | Title, survey, engineering assessment | Surveyor, engineer, conveyancer |
| Flood indicators | Authority flood records and insurer enquiry | Council, insurer |
| Renovated electrical work | Certificate of Electrical Safety records | Licensed electrician |
| Solar panels, battery or EV charger | Certificate of Electrical Safety for the installation | Licensed electrician, conveyancer |
The physical check and the legal check are separate
A Victorian Section 32 vendor statement must be provided before you sign the contract (Consumer Affairs Victoria, verified 30 Jul 2026), but it is a legal disclosure document, not a substitute for a physical inspection or additional authority searches — and the reverse is equally true. A property can pass a building inspection with no visible defects and still be subject to an unresolved legal Building Order; a property can have a real physical defect that never appears in any legal document. You need both checks, not one instead of the other.
Other states use a different disclosure document
Every state requires some form of seller disclosure, but the document, its timing and its consequences genuinely differ. Queensland's equivalent is the Seller Disclosure Statement (Form 2), required since 1 August 2025 alongside a suite of prescribed certificates, given before the buyer signs — structurally close to Victoria's model (Queensland Government (Department of Justice), verified 13 Aug 2026). South Australia takes a different approach again: its Form 1 can be served up to 10 clear days before settlement even after the contract is signed, but the purchaser's cooling-off period doesn't start until it's actually served, and an inaccurate Form 1 doesn't start it at all — with a fine of up to $10,000 for a missing or inaccurate one (Legal Services Commission of South Australia, verified 13 Aug 2026). NSW, WA, Tasmania, the ACT and the NT each have their own disclosure requirements too, generally embedded in the standard contract rather than a single separate statement — confirm the specific document that applies with a local conveyancer rather than assuming Victoria's Section 32 model applies elsewhere.
Practical checklist
Turning observations into checks
- List every material observation from your inspection and building report
- Match each one against the specific document or authority record that could confirm it
- Request those documents before relying on an inspection report alone
- Read the full property due-diligence guide for the complete legal and title checklist
Relevant Delora tool
Questions for a professional
- Given what I observed at inspection, which specific documents should I request before proceeding?
Official resources
Sources and methodology
- Conveyancing and contracts for sellers — Consumer Affairs Victoria (retrieved 30 Jul 2026)
- Seller disclosure statement (form 2) - Property Law Act 2023 forms — Queensland Government (Department of Justice) (retrieved 13 Aug 2026)
- Form 1 disclosure statement — Legal Services Commission of South Australia (retrieved 13 Aug 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.