Buying a house in Tasmania

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Buying a house in Tasmania comes with unique challenges and risks.

This guide explains how to avoid common traps, understand defect limits, and buy with confidence.

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Navigating a Tasmanian Real Estate Contract

Real estate contracts in Tasmania have unique terms, especially around defect limits and inspections. Unlike other states, many Tasmanian contracts include a “defect clause” that can affect your ability to negotiate or withdraw after an inspection.

This guide explains the key clauses to watch for, how defect limits work, and why the right inspection is essential before you sign. Whether you’re a first-time buyer or an investor, knowing the fine print can save you thousands.

Hobart Building Inspections – licensed builder Chris Westcott on ladder during inspection

Buying a House in Tasmania

Buying a house in Tasmania comes with unique challenges — and some hidden risks.
The right building inspection and contract advice can save you thousands and give you peace of mind when making such a big investment.

Building inspector in Hobart checking roof gutter for hidden defects and insulation issues

Understanding a Tasmanian Real Estate Contract

Property contracts in Tasmania are different from those in other states. Most include a defect clause with a defect limit that directly impacts your ability to negotiate or withdraw after an inspection.
Understanding these limits — and acting quickly — is essential. Without the right inspection and advice, you could be locked into a property with major problems.

Thermal imaging building inspection Hobart detecting concealed defects in brick wall

Understand the Defect Limit

In Tasmania, contracts almost always include a defect limit:
Before May 2017: usually fixed at 1%.
Today: can range from 1% to 5%, sometimes even as high as 10%.
💡 Tip: Always negotiate a defect limit of 1% or cap it at $10,000 to protect yourself. Anything higher can shift expensive repairs onto you.

Rust damage at steel post base found during Hobart building inspection

Why a High Defect Limit is Dangerous

Imagine buying a $1,000,000 home with a 3% defect limit — that’s a $30,000 allowance.
If your inspection uncovers $25,000 in repairs, you’d be forced to proceed, covering the cost yourself.
To rely on the defect clause, you also need formal quotes. Agents may demand proof within 7–14 days, but Tasmanian trades are often booked weeks ahead. This makes obtaining quotes stressful — and sometimes impossible.

Moisture meter detecting damp problems during Hobart building inspection

Choose Your Own Inspector

You always have the right to pick your own inspector.
An agent cannot dictate who inspects the property or influence the outcome of the report.
🚩 If an agent insists on “their” inspector, treat it as a warning sign. Protect yourself with an independent inspector you trust.

Timber balcony with rot and decay found during Hobart building inspection in New Town

Why Credentials Matter

A building inspection is one of the most important steps in your purchase. Always check:
Licensing – Confirm your inspector is a Licensed Builder with the Department of Justice Tasmania.
Insurance – They must hold Professional Indemnity insurance. Without it, they can’t certify defects in a dispute.
Report quality – Avoid tick-box reports. Choose a photographic report with every defect documented for clarity and protection.

Severe rust and holes in corrugated roof sheet found during Hobart roof inspection

7

Book Your Inspection Early

Where possible, line up your inspector before you sign. This lets you use the 3-day cooling-off period to your advantage and reduces the risk of being locked into a bad deal.

Cracked brick chimney with structural damage identified during Hobart building inspection

Negotiation Tips

Keep the defect limit low.
Insist on at least 7–10 days for the inspection (21 days over Christmas).
Always include a cooling-off period.
Be prepared to walk away if the seller refuses a fair limit.

Bathroom leak under house with moisture damage found during Hobart building inspection

Don’t Skip Legal Advice

Trying to handle the legal process yourself might save a small fee, but it can cost you dearly. A good lawyer or conveyancer can protect you from costly mistakes and ensure your rights are preserved.

Hobart building inspector checking leaking roof pipe penetration and flashing damage

Insure the Property Immediately

In Tasmania, buyers become legally responsible for the property once contracts are exchanged — not at settlement.
That means you should arrange building insurance immediately after signing. I’ve seen vacant homes broken into after exchange, leaving uninsured buyers to cover the damage.

Hobart building inspector Chris from Hobart Building Inspections on site

Final Word

Buying property in Tasmania without an inspection is like playing Russian roulette with your savings.

✔ Always include a building inspection clause.
✔ Keep the defect limit at 1% (or $10,000).
✔ Allow enough time for the inspection.

Every month, I hear from buyers who skipped these steps and now face expensive repairs. Don’t let that be your story — protect yourself with a thorough, independent inspection.

What Clients Say

⭐⭐⭐⭐⭐156+ 5-Star Google Reviews

“Chris was phenomenal. He checked our future home in Howrah and did an extensive review. I would 100% recommend Chris, especially for people who may not be from Hobart or Tasmania.” – Harrys C.

“Your property is your biggest investment and ideally you don’t want to be spending more than $10k when you purchase a house. So, never waive the building inspection clause.” – Liz J.

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