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What Should You Do If Your Building Inspection Report Shows Serious Defects?

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Opening a building inspection report and seeing the word "major" or "structural" next to a finding can be alarming. Your first instinct might be to panic, or to assume the worst about your property or your builder. Take a breath. A report flagging serious defects is not a disaster, it is the system working exactly as intended, catching problems while you still have options. What matters now is how you respond. Handled methodically, even serious findings can usually be resolved without drama. Here is what to do, step by step.

First, Understand What the Report Is Actually Telling You

A good building inspection report does not just list problems, it prioritises them. Reputable inspectors grade defects by severity, separating major issues that need proper attention from minor ones that are cosmetic or easily managed. Before you do anything else, read the report carefully and note how each defect has been classified and what the inspector recommends.

Pay particular attention to the difference between structural and cosmetic findings. A hairline crack in plaster and a stepped crack tracking through brickwork are very different things, even though both appear as "cracks." The report should make this distinction clear, along with guidance on what each defect means and how urgently it needs to be addressed. Understanding the report properly is the foundation for every decision that follows.

Work Out How Serious the Defect Really Is

Not every "serious" defect carries the same weight. Structural issues, such as movement in footings or problems with load-bearing elements, and safety issues, such as faulty wiring or gas hazards, sit at the top of the priority list. Cosmetic and minor defects, while worth fixing, rarely need the same urgency.

For genuinely structural findings, your inspector may recommend a further assessment by a structural engineer. This is normal and sensible for the most serious cases, and a good inspector will tell you when it is warranted rather than leaving you to guess. The point is to match your response to the real severity, so you neither overreact to a minor issue nor underreact to a serious one.

If It Is a New Build: Raise It With Your Builder

When serious defects appear during construction, the most important step is to raise them with your builder promptly and in writing. Defects identified while the build is still underway are far easier and cheaper to rectify than ones discovered after completion, which is exactly why staged inspections exist.

A detailed report from a construction stage inspection gives you the documented evidence to have the work put right, at the responsible party's cost, before the build moves on. Domestic building work in Victoria also carries statutory warranties, so structural defects caused by defective work can typically be raised with your builder for a period after completion as well. Keep your communication in writing, reference the specific findings in the report, and ask for a clear timeline for rectification. Then, crucially, arrange for the fix to be checked before the next stage covers it.

If It Is a Rental Property: Act on Safety Defects Immediately

For a rental property, the calculus changes, because safety-critical defects carry a legal and moral duty to act fast. Findings such as a gas leak, a faulty safety switch or dangerous wiring are not items to schedule for next month. They need to be isolated or repaired without delay to protect the people living in the property.

As a rental provider you have clear obligations to keep the property safe and compliant, and a report from a rental property inspection tells you exactly what needs attention and how urgently. Prioritise anything safety-related, arrange qualified tradespeople to carry out the repairs, and keep the renter informed. Addressing serious defects promptly is not just good practice, it is part of your responsibility as a landlord, and documented action protects you if a dispute ever arises.

Keep Everything Documented

Whatever the context, documentation is your best friend. Keep the original report, dated photographs, and a written record of every conversation and instruction relating to the defects and their repair. This paper trail matters enormously if you need to rely on a warranty, make an insurance claim, or resolve a dispute with a builder or contractor.

If a defect is ever contested down the track, the party with clear, dated, professional documentation is always in the stronger position. Treat your report and the records around it as important assets, not just paperwork to file away.

Arrange a Re-Inspection to Confirm the Fix

This step is the one people most often skip, and it is one of the most important. Do not take "it's fixed" on trust. A defect that has been patched rather than properly rectified will often return, sometimes worse than before, and by then the trades may be long gone.

A re-inspection confirms that the work was actually done correctly and closes the loop on the issue. It converts "the builder says it's sorted" into documented proof that it is, which is exactly the certainty you want before you move on, settle a payment, or consider the matter closed.

The Bottom Line

A building inspection report showing serious defects is not the end of the world, it is the reason you commissioned the inspection in the first place. Understand what the report is telling you, gauge the true severity, raise the issue with the right party in writing, act immediately on anything safety-related, document everything, and confirm the fix with a re-inspection. Follow that sequence and even serious findings become a manageable process rather than a crisis, leaving you with a property you can trust and a clear record to prove it.

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