Short answer, No. A property can not “fail inspection”.
Long answer… A home or commercial inspection is an examination and assessment of the current condition of a property. It is not a ‘market value appraisal’ or a ‘council compliance inspection’.
A property inspection will give you a detailed run-down of a properties condition, indicating what may need to be repaired or replaced. However, a good, unbiased, independent inspector will help you make the right decision in determining if a property is worth your time and money. I suppose that is the true indicator of whether a property has ‘failed’ an inspection or not.