Why a pre-purchase asbestos survey matters
When you buy a commercial property, you inherit everything in it, including any asbestos-containing materials. Once settlement goes through, the responsibility for managing those materials becomes yours. That includes maintaining an asbestos register, developing a management plan, and paying for any removal that's needed.
A pre-purchase asbestos survey tells you exactly what you're taking on before you commit. It's one of the most useful pieces of due diligence you can do on an older building, and it's often overlooked.
How it differs from a standard building inspection
A typical building inspection looks at structural integrity, weatherproofing, plumbing, and electrical systems. It might note the possible presence of asbestos materials, but it won't confirm them. Building inspectors generally aren't qualified to identify asbestos, and they don't take samples for laboratory analysis.
An asbestos survey is a separate, specialist inspection. A qualified asbestos surveyor will systematically inspect the building, collect samples from suspect materials, and send them for analysis at an accredited lab. The result is a detailed report listing every confirmed asbestos-containing material, its location, type, condition, and recommended management approach. Our guide on how to read an asbestos survey report explains what each section means.
Which buildings are most likely to contain asbestos
Any commercial building constructed or refurbished before 2000 could contain asbestos materials. The highest-risk period is from the 1950s through to the mid-1980s, when asbestos was used in thousands of building products.
Common locations in commercial properties include:
- Roof sheeting and guttering
- Eave linings and soffit panels
- Internal wall and ceiling linings (especially fibro sheeting)
- Vinyl floor tiles and backing
- Insulation around pipes, boilers, and ducts
- Electrical switchboard backing
- Fire doors and fire-rated partitions
Even buildings from the 1990s can contain asbestos. Products containing chrysotile asbestos were still being imported and used in Australia until the full ban took effect in December 2003. In New Zealand, asbestos-containing products were not fully banned until 2016.
Timing it with your due diligence
The asbestos survey should happen during the due diligence period, before you go unconditional. This gives you time to review the findings and factor them into your decision. A surveyor can typically complete the inspection and deliver results within one to two weeks, depending on the building's size and the lab's turnaround time.
If the contract has already gone unconditional, you can still arrange a survey before settlement, but you lose the ability to negotiate based on the findings. Getting in early is always better.
What to do if asbestos is found
Finding asbestos in a pre-2000 commercial building is common. It doesn't automatically mean you should walk away from the deal. What matters is the type, condition, and extent of the materials found.
Materials in good condition that won't be disturbed by planned work can usually be managed in place. This means maintaining an asbestos register, labelling the materials, and ensuring contractors are informed before doing any work in the building. The ongoing cost of management is relatively low.
Materials in poor condition, or materials that sit in areas where you're planning renovations, will likely need to be removed. Removal costs vary significantly depending on the type of asbestos (friable vs non-friable), the quantity, and the location. Getting a removal quote during due diligence lets you negotiate the purchase price or budget accurately for post-settlement work.
Negotiating based on findings
If the survey identifies asbestos that needs removal, you have several options:
- Negotiate a reduction in the purchase price to cover removal costs
- Request that the vendor arrange removal before settlement
- Accept the property as-is but with a clear understanding of the costs involved
Having a professional survey report and removal quotes gives you concrete numbers to work with, rather than guessing. It also protects you legally by documenting that you conducted proper due diligence.
After purchase: your obligations
Once you own the building, you become the person with management or control of the workplace (if it's a commercial property with workers or tenants). That triggers obligations under work health and safety law.
In Australia: You must maintain an asbestos register and management plan, ensure identified materials are regularly inspected, and engage licensed professionals for any removal work.
In New Zealand: Similar obligations apply under the Health and Safety at Work (Asbestos) Regulations 2016. You must identify and manage asbestos, maintain a register, and review it at least every five years.
If you had a pre-purchase survey done, it gives you a head start. The survey report can form the basis of your asbestos register, saving you from paying for a second inspection.