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What Happens if Your Building Inspection Misses Key Defects? Here Are Your Options

October, 4th
Settled Team
Conveyancing Tips
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Buying a property is one of the biggest investments most of us will make. In Australia, many buyers rely on professional building inspections to flag any potential issues before they commit to the purchase. But what happens if your inspection misses something major? It can be frustrating – and potentially expensive – but there are steps you can take to address the situation.

What to Do if Defects Are Discovered After Purchase

If you’ve moved in and discover defects that were missed in the building inspection, here is what you can do: 

1. Document the Issues

Start by documenting the defects in detail. Take clear photos and videos, and note down when you first noticed the problems and any steps you’ve taken to investigate them. This will be important if you need to seek compensation or take further action.

2. Review Your Contract and Inspection Report

Next, go through your purchase contract and the building inspection report carefully. Check for any clauses that mention the inspector’s liability, warranties, or guarantees. Confirm the defects you’ve found should have been identified during the inspection.

3. Contact the Building Inspector

Once you’ve collected your evidence, reach out to the building inspector. It’s best to do this in writing, explaining the defects and including all your documentation. Most reliable inspectors will be willing to reassess the property, discuss the situation, and work towards a solution.

4. Get a Second Opinion

If you need more support for your case, you can consider hiring another qualified inspector or a specialist to assess the issues. They can provide a detailed report on the defects and estimated repair costs. This second opinion can be useful when negotiating with the original inspector or if legal action becomes necessary.

Your Options if Defects Are Missed

If the inspector missed key defects and you’re not satisfied with their response, here are some steps you can take.

1. Negotiate with the Inspector

Often, the first step is to negotiate directly with the building inspector. Present your evidence and any second opinions you’ve obtained. Some inspectors may offer to cover repair costs, provide a partial refund, or offer some kind compensation for the oversight. However, this may not always be the case. 

2. Lodge a Formal Complaint

If negotiation doesn’t lead to a satisfactory outcome, you can lodge a formal complaint. In Victoria, you can reach out to:

  • The Victorian Building Authority (VBA)
  • Consumer Affairs Victoria
  • The Australian Institute of Building Surveyors (if your inspector is a member)

These bodies may be able to help mediate the situation and may offer dispute resolution services, potentially resolving the issue without the need for legal action.

3. Consider Legal Action

If all else fails, legal action may be an option, especially if the missed defects are significant and costly to fix. You’ll need to consult with a construction lawyer to determine if the inspector was negligent or breached their contract. Keep in mind that legal action can be time-consuming and expensive, so weigh the potential benefits before moving forward.

Can a Conveyancer Protect Your Interests? 

If you discover a defect missed in the building inspection after moving in, a conveyancer may have limited options to help. However, by involving a conveyancer early in the buying process, you’re far better equipped to avoid or resolve issues before they become bigger problems.

Protect Your Investment with Expert Help from Settled

Buying a home involves many steps, and your rights as a buyer can sometimes be confusing. Understanding what’s covered and knowing your rights is essential to protecting your investment. Having a conveyancer on your side from the beginning helps keep you informed, protected, and supported throughout the process. Speak to the expert conveyancers at Settled today to make sure your property purchase is as smooth and stress-free as possible.

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