Discovering defects after you have moved into your new home is one of the most stressful experiences in the residential construction process. The builder has been paid. You have signed the practical completion certificate. And now the shower is leaking, the skirting boards are gapping, the doors are sticking and the paint is cracking. The good news is that Australian homeowners have strong legal protections - under both the building contract's defects liability provisions and the statutory warranty legislation that applies in every state, as outlined in our complete guide to building a house in Australia. The bad news is that those protections only work if you use them correctly - reporting defects in writing, within the right timeframes, following the escalation pathway when the builder does not respond. This guide tells you exactly what to do.
Your rights when defects are found after handover
Australian homeowners have two layers of protection against building defects found after handover.
The contractual defects period governs the agreed rectification process. It does not necessarily cover every later issue, and statutory remedies have separate deadlines.
A contractual defects liability period is separate from statutory warranties, regulator complaint deadlines, court limitation periods and insurance notification rules. In NSW, statutory warranties generally run for six years for major defects and two years for other defects from completion. Queensland structural insurance cover generally runs for six years and six months from the earliest event specified by the scheme, with separate notification requirements. Victoria's outer building-action limitation is not a universal ten-year structural warranty. Check the remedy, trigger date and deadline for the defect.
Together these two protections mean that homeowners who discover defects after handover have a clear pathway to having them rectified - provided they follow the correct reporting and escalation process.
Defect types and builder obligations
| Defect type | Examples | Builder's obligation | Time limit for reporting | What legislation applies |
|---|---|---|---|---|
| Minor defect - cosmetic | Paint runs, skirting gaps, door adjustments, grout inconsistencies | Check the applicable project and jurisdiction requirements | Check the applicable project and jurisdiction requirements | Building contract defects liability provisions |
| Significant defect - non-structural | Waterproofing failure, tile cracking, joinery misalignment, drainage problems | Rectify - may require specialist assessment to confirm cause | Defects liability period - statutory warranty for ongoing or concealed defects | Building contract and state home building legislation |
| Major structural defect | Foundation movement, structural cracking, load-bearing wall failure, roof structure failure | Rectify - or compensate - statutory obligation regardless of contract | Check the applicable project and jurisdiction requirements | Home Building Act NSW, Domestic Building Contracts Act VIC, QBCC Act QLD |
| Subsidence or settlement | Differential slab movement causing wall cracking, floor unevenness, door and window distortion | Structural engineer assessment required - builder must rectify if caused by defective design or construction | Check the applicable project and jurisdiction requirements | State home building legislation |
| Safety defect | Non-compliant balustrade, incorrect RCD installation, unflashed roof penetration | Rectify urgently - safety defects cannot wait for a reasonable notice period | Report immediately - do not use affected area or system if safety risk | Building contract plus NCC compliance obligation |
How to report defects correctly - step by step
Good documentation habits carried over from your final inspection checklist before handover make post-handover defect reporting far easier.
Photograph every defect clearly before reporting - include a wide-angle image showing the location and a close-up image showing the defect detail
Write a defect report document - not a verbal complaint, not a text message - listing every defect with its location, a description and the date first observed
Attach all photographs to the defect report
Send the defect report to the builder by email - to the builder's principal or project manager, not just the site supervisor - and request a read receipt or written acknowledgement
Keep a copy of the sent email and all responses - your correspondence file is your evidence
Allow the builder a reasonable time to respond - typically 5 to 10 business days for an initial response
If the builder acknowledges the defects - request a written rectification schedule specifying what will be done and by what date
Follow up in writing when the rectification date arrives - confirm what has been completed and what remains outstanding
Report new defects as they are discovered - do not accumulate defects and report in batches, as the defects liability period is running
What the builder must fix
The builder's obligation to rectify defects depends on two things - whether the defect falls within the defects liability period or the statutory warranty period, and whether the defect is caused by defective workmanship or materials rather than normal wear and tear. Whether work is "defective" is judged against the published construction tolerances used in Australia - the agreed reference for what counts as acceptable workmanship versus a defect.
What the builder must fix
- Defects caused by defective workmanship - work that did not comply with the contract specification, the NCC or the relevant Australian Standards
- Defects caused by defective materials - materials that failed prematurely due to inadequate quality or incorrect specification for the application
- Defects that were concealed at practical completion - waterproofing failures that only became apparent after the building was used, structural movement that developed after handover
What the builder does not have to fix
- Normal wear and tear - materials and finishes that have degraded through normal use over time
- Damage caused by the homeowner - physical damage to finishes or fixtures caused by the homeowner's own actions
- Items that were excluded from the building contract - the builder is not responsible for defects in work they did not perform
- Maintenance items - items that require regular maintenance and have failed because maintenance was not performed
What to do if the builder won't fix defects
Send a formal written notice - by email with read receipt - giving the builder a final opportunity to rectify within a specific timeframe, typically 14 to 21 days for non-urgent defects and 48 to 72 hours for urgent or safety defects
If the builder does not respond within the notice period - contact the relevant state building regulator: Queensland: QBCC - qbcc.qld.gov.au - lodge a complaint online; New South Wales: Building Commission NSW - complaints can be lodged at nsw.gov.au; Victoria: Building and Plumbing Commission - BPC - complaints submitted through the BPC portal; Western Australia: Building and Energy WA; South Australia: Consumer and Business Services
Engage an independent licensed building inspector to prepare a formal defect report - this report is the primary evidence in any regulatory or tribunal process
If the regulator process does not resolve the dispute - escalate to the relevant state tribunal: Queensland: QCAT; New South Wales: NCAT; Victoria: VCAT
If the builder has become insolvent and cannot respond - contact your home warranty insurance provider immediately - do not delay as claim lodgement timeframes apply
Do not attempt to rectify significant defects yourself without the builder's written agreement - self-repair without agreement may affect your rights and your warranty claims
Escalation pathway by state
| State | Step 1 - builder notice | Step 2 - regulator complaint | Step 3 - tribunal | Home warranty insurer |
|---|---|---|---|---|
| Queensland | Written notice to builder - reasonable time to respond | QBCC complaint at qbcc.qld.gov.au - QBCC can conduct inspection and issue rectification direction | QCAT - Queensland Civil and Administrative Tribunal | QBCC Home Warranty Scheme |
| New South Wales | Written notice to builder | Building Commission NSW complaint - inspector can be appointed | Check the applicable project and jurisdiction requirements | icare Home Building Compensation Fund |
| Victoria | Written notice to builder | BPC complaint - Building and Plumbing Commission - via vba.vic.gov.au during website transition | VCAT - Victorian Civil and Administrative Tribunal - Building and Property List | Check the applicable project and jurisdiction requirements |
| Western Australia | Written notice to builder | Building and Energy WA complaint | State Administrative Tribunal - SAT | Home indemnity insurance - various approved insurers |
| South Australia | Written notice to builder | Consumer and Business Services - CBS - complaint | South Australian Civil and Administrative Tribunal - SACAT | Check the applicable project and jurisdiction requirements |
The 12-month inspection - your most important protection
The single most important action in the post-handover period is the independent building inspection at 10 to 11 months - conducted before the defects liability period expires.
Arrange an independent inspection early enough to meet contractual reporting requirements; it cannot guarantee that concealed or later defects will be identified.
Notify defects promptly in writing using the contract’s notice process. A late contractual notice does not automatically extinguish separate statutory rights.
Book the inspection at 9 to 10 months - to allow time to receive the report and send the defect notification before the 12-month expiry.
Safety defects - what to do immediately
If a safety defect is discovered after handover - a non-compliant balustrade, a faulty RCD, an unflashed roof penetration, a gas leak - the response is different from the standard defect reporting process.
- Do not use the affected area, system or fitting until it is made safe
- Contact the builder immediately - by phone first, followed immediately by email confirming the conversation and the safety defect
- For electrical safety defects - contact the relevant state electrical safety regulator if the builder does not respond within 24 hours
- For gas safety defects - contact the gas network operator and the relevant state authority immediately
- For structural safety defects - engage a structural engineer to assess the safety risk before occupation of the affected area continues
- For safety defects that create an immediate danger - contact the relevant emergency service
Red flags in defect management
Builder does not acknowledge written defect reports - every communication should receive a written response
Builder acknowledges defects verbally but does not provide a written rectification schedule
Builder attributes all defects to normal settling without inspecting them or providing specific justification
Builder rectifies some defects but consistently delays or refuses others - particularly significant or expensive defects
Builder becomes uncontactable after the final payment has been released
Builder suggests you repair defects yourself and they will reimburse you - without written agreement this rarely results in reimbursement
Waterproofing-related damage - soft walls, paint bubbling, mould - is not being treated with appropriate urgency
Defects liability period is approaching expiry and the builder has not rectified all notified defects - escalate immediately
BUILTLY and lasting project records
Defect correspondence - the written record of what was reported, when it was reported and how the builder responded - is among the most practically important documentation for any residential property, and our guide on how to document defects for disputes and claims covers this in detail. A future buyer or their solicitor who can access a complete defect history for a property they are purchasing has independently verifiable information about the building's post-construction performance that self-reported summaries cannot provide.
BUILTLY is building a record of completed Australian homes that credits the builder, designers and trades behind each one.
Frequently Asked Questions
What should I do if I find defects after handover in Australia?
Report every defect to the builder in writing - email with photographs and a clear description of each defect's location and nature. Send to the builder's principal or project manager, not just the site supervisor. Allow a reasonable response time of 5 to 10 business days. Request a written rectification schedule specifying what will be done and by what date. Follow up in writing as rectification dates approach. If the builder does not respond or refuses to rectify - escalate to the relevant state building regulator. QBCC in Queensland, Building Commission NSW in NSW, BPC in Victoria. Do not attempt to repair significant defects yourself without the builder's written agreement.
How long does a builder have to fix defects in Australia?
A contractual defects liability period is separate from statutory warranties, regulator complaint deadlines, court limitation periods and insurance notification rules. In NSW, statutory warranties generally run for six years for major defects and two years for other defects from completion. Queensland structural insurance cover generally runs for six years and six months from the earliest event specified by the scheme, with separate notification requirements. Victoria's outer building-action limitation is not a universal ten-year structural warranty. Check the remedy, trigger date and deadline for the defect.
What if the builder refuses to fix defects after handover?
Send a formal written notice giving a final timeframe for rectification - typically 14 to 21 days for non-urgent defects. If the builder does not respond, lodge a complaint with the relevant state building regulator - QBCC in Queensland, Building Commission NSW in NSW, BPC in Victoria. Engage an independent building inspector to prepare a formal defect report as evidence. If the regulator process does not resolve the dispute, escalate to the relevant state tribunal - QCAT in Queensland, NCAT in NSW, VCAT in Victoria. If the builder has become insolvent, contact the home warranty insurer immediately.
What is a major structural defect in Australian residential construction?
See the relevant section above for the applicable process and retain the project records.
What is home warranty insurance and when does it apply?
In Victoria, legacy domestic building insurance remains relevant to earlier contracts. Eligible new contracts signed from 1 July 2026 for work valued at more than $20,000 use Home Warranty, which is not limited to builder insolvency, death or disappearance. Obtain the project-specific Notice of Cover or applicable legacy certificate and notify the insurer promptly.