First home buyer's guide to new build defects

Defects in new builds are more common than most buyers expect, but they don’t have to become your problem. If you know what to look for, how to document what you find, and how to use the legal protections available to you, you can get almost anything fixed — at no cost — before you hand over a single dollar to a tradie.

This guide is written for first home buyers who are about to reach practical completion, have just handed over, or are in the middle of their defects liability period and aren’t sure what their rights are.

What is a building defect?

A building defect is any aspect of the completed work that doesn’t meet the standard required by the contract, the building code, or accepted trade practice. That covers a wide range — from a cracked tile in the bathroom to a structural beam that wasn’t installed correctly.

Defects broadly fall into two categories:

Minor defects are cosmetic or functional issues that don’t affect the structural integrity or habitability of the home. Paint drips, door adjustments, grout gaps, and misaligned fixtures typically fall here.

Major defects are more serious. They involve structural elements, essential services, or anything that would cause a reasonable person to not inhabit the home — think subsidence, roof framing failures, rising damp, or waterproofing that fails. Major defects carry significantly longer warranty periods than minor ones.

Most new builds will have some minor defects at handover. That’s normal. What matters is catching them, documenting them properly, and making sure your builder fixes them before your defect liability period expires. It’s also worth understanding the difference between major and minor defects — the classification affects how long you have to make a claim.

The inspection timeline — four stages to know

Your rights to identify and document defects don’t begin at handover. They start long before that, at each stage of construction.

Slab stage

After the concrete slab is poured and cured, it’s inspected before framing begins. The slab inspection covers cracks, inconsistencies in the slab profile, and whether the slab matches the approved plans in terms of dimensions and fall.

Most buyers organise an independent building inspector at each stage — it costs a few hundred dollars per inspection but can catch problems while they’re still easy and cheap to fix.

Frame stage

The timber or steel frame goes up after the slab. This frame stage inspection checks that the frame matches the structural plans, that bracing and connections are correctly installed, and that the frame is plumb and square. Frame issues that go unchecked become expensive problems later.

Lock-up stage

Lock-up is when the home becomes weatherproof — windows, doors, roofing, and external walls are in place. This lock-up inspection checks that the envelope is correctly sealed, that roofing materials are properly fixed, and that window and door frames are correctly installed.

Practical completion inspection (PCI)

The practical completion inspection is your most important inspection as a buyer. It happens just before your builder formally hands the home over to you.

At the PCI, you walk through the entire property — room by room, inside and out — and document every defect you find. Your builder will be there too. Any defects you identify at this point should be recorded on a defect schedule, agreed between both parties, and fixed before you take possession (or within a clearly defined timeframe if some items need materials or specialist trades).

Do not sign off on practical completion if there are defects you’re not satisfied with, unless you have written commitment to have them fixed. Once you sign, your leverage drops significantly.

What to check at the practical completion inspection

Exterior and structure

Render or cladding: cracks, bubbling, incomplete coverage, uneven finish
Roof: damaged or missing tiles, inadequate flashings, gaps around skylights and penetrations
Gutters and downpipes: securely fixed, correct fall, connected to stormwater
Windows and doors: operate smoothly, seals intact, correct hardware, no cracked glass
Brickwork or blockwork: mortar consistency, weep holes present, no cracks
Driveway and paths: no cracking, correct drainage fall away from the building

Internal — walls and ceilings

Plasterboard: cracks, tape lines visible, corners not properly set
Cornice: gaps, cracks, insufficient fixing
Paint: runs, drips, missed areas, inconsistent sheen, paint on glass or fittings
Skirting and architrave: mitre joints tight, no gaps, evenly fixed

Wet areas

Bathrooms, laundries, and kitchens deserve the most attention.

Tiles: correct grout coverage, no cracked or lippy tiles, uniform spacing
Silicon joints: continuous, neatly finished, no gaps at wall-to-floor junctions
Shower recess: screen installed correctly, no leaks around base, waterproofing membrane visually intact where possible
Taps and fixtures: operate correctly, no drips, correctly centred
Exhaust fans: installed and operational

Electrical

Every power point working (bring a phone charger)
Every light switch working
Switchboard correctly labelled
Safety switches (RCDs) present and operational
Smoke alarms installed in required locations and working

Plumbing

Hot water at all fixtures
No slow drains
No drips or running toilets
Water pressure consistent throughout

Cabinetry and joinery

Doors and drawers opening smoothly, soft-close functioning
No gaps at joins, consistent reveals
Correct hardware and finishes per contract

The defects liability period — your ongoing safety net

Even if you’ve signed off on practical completion and moved in, your builder’s obligations don’t end. The defects liability period (DLP) is the window after completion during which your builder must return and fix defects at no cost to you.

The DLP length is usually specified in your building contract — commonly 3 to 12 months. Check your contract for the exact term. Some states set a minimum by law.

During the DLP, you should:

Keep a running list of defects as you notice them — small things you missed at PCI, things that only become apparent after moving in (a door that swells in humidity, a floor creak, a tile that cracks after settlement)
Group your notices rather than sending individual emails for every minor issue — this is more efficient for everyone and avoids antagonising your builder over small items
Give formal written notice before the DLP expires — even if you’re still waiting on things to be fixed, a written notice dated before the DLP end date locks in your rights

Statutory warranty — longer-term protection beyond the DLP

Beyond the DLP, Australian law provides statutory warranty periods that your builder cannot contract out of. These vary by state but typically cover:

Major structural defects: 6 to 10 years (depending on state)
Non-structural defects: 2 to 5 years

In New South Wales, major defects are covered for 6 years under the Home Building Act 1989. In Victoria, structural defects carry a 10-year warranty under the Domestic Building Contracts Act 1995. Queensland’s statutory warranty under the QBCC framework covers major defects for 6 years and 6 months from completion.

These warranties exist regardless of what your contract says. If your builder tries to limit their liability below the statutory minimums, that clause is unenforceable.

How to give a defect notice that your builder can’t ignore

Verbal complaints carry almost no weight. Your defect notice needs to be in writing, specific, and properly delivered.

A good defect notice includes:

Property address and your name
Date of notice
For each defect: location, description, when first noticed, and whether it’s causing ongoing damage
A request for written acknowledgment and a proposed rectification timeframe

Send it by email (with read receipt if possible) and by registered post. Keep a copy. If you’re using Checka, you can generate a formatted defect report directly from your inspection and send it with a single tap — each item logged, photographed, and described, with your details and the property address pre-filled.

If your builder won’t engage

Most builders will respond and fix defects when the process is clear and professional. But if yours goes quiet, here’s the escalation path:

Second written notice — reference the original notice date and the lack of response
Formal dispute resolution — most contracts require mediation or conciliation before litigation
State building regulator — QBCC (QLD), NSW Fair Trading (NSW), DBDRV (VIC), DEMIRS (WA), CBS SA (SA). Each can investigate and issue direction-to-rectify notices
Tribunal or court — NCAT (NSW), VCAT (VIC), QCAT (QLD), ACAT (ACT) handle building disputes. These processes can order a builder to fix defects or pay compensation

Common mistakes first home buyers make

Not organising independent inspections at each stage. Your builder’s progress payments are tied to stage completion — their incentive is to pass. An independent inspector has no such incentive.

Only documenting defects in conversation. If it’s not in writing, it didn’t happen. Every defect conversation needs a written confirmation, even a short email summary after a phone call.

Signing practical completion without a written defect schedule. If you agree verbally to “a few things being fixed later,” you have very little recourse if they’re not.

Not knowing when the DLP expires. Mark it in your calendar the day you receive it. Send your final notice at least two weeks before it ends.

Assuming things will “settle and fix themselves.” Some things do. Many don’t. Cracks widen. Leaks spread. What costs a tradie $200 to fix in year one can cost $10,000 to rectify in year three.

Key takeaways

New build defects are common and expected — your job is to find them, document them, and notify your builder formally before your defects liability period expires.
The practical completion inspection is your most powerful opportunity — walk every room methodically and don’t sign off until you’re satisfied.
Organise independent stage inspections if your budget allows — they catch problems when they’re cheapest to fix.
The DLP is your immediate safety net; statutory warranty periods (6–10 years for structural defects) are your longer-term protection.
Always give defect notices in writing with specific descriptions and photos — vague verbal complaints carry no weight.
If your builder doesn’t respond, escalate through your state building regulator: QBCC, NSW Fair Trading, DBDRV, or their equivalent.
Consistent documentation from the start is your strongest protection — thorough records make disputes easier to resolve and harder for builders to contest.