You’ve signed the contract, booked a building inspection, and the report has come back with some serious findings. Now what? Understanding what happens when a building inspection finds major problems helps you make informed decisions before settlement.
At Bestwest Building, our extensive team of highly experienced registered builders have completed over 50,000 inspections across Perth and WA. We have seen the full range of outcomes, from minor cosmetic items to structural defects that change the entire negotiation. This guide covers what counts as a major defect, your options, and how to move forward.
In this article:
- What Counts as a Major Defect?
- What Are Your Options as a Buyer?
- Minor Defects Are Normal
- How to Read the Severity Ratings in Your Report
- When to Get Further Specialist Advice
- Book Your Pre-Purchase Building Inspection
- Frequently Asked Questions About Building Inspection Problems
| What to Know When Major Defects Are Found |
|---|
| • Major defects include structural cracking, roof frame deterioration, active termite activity, and significant roofing issues |
| • Your building inspection clause determines your rights and timeframe for action |
| • Options include negotiating repairs, requesting a price reduction, or withdrawing from the contract |
| • Always get a professional to quantify the cost of repairs before negotiating |
| • Minor defects are normal in established homes and rarely justify walking away |
| Get a free instant quote at bestwestbuilding.com.au/instant-quote/ |
What Counts as a Major Defect?
Not all defects are equal. A building inspection report will typically categorise findings by severity. Understanding the difference between major and minor defects is essential for deciding your next steps.
Major defects can vary significantly, however in the most basic form, they are significant defects which require rectification to avoid further deterioration, loss of utility or unsafe conditions.
Stepped cracking through brick mortar joints on a Perth home exterior
Structural cracking
Stepped cracking through brick mortar joints, horizontal cracking along courses, or cracking wider than 5mm can indicate foundation movement or structural issues.
Active termite damage or activity
Live termite activity or significant termite damage to structural timbers is a serious finding. Termite damage is not covered by standard home insurance policies in WA, and the cost of treatment and timber replacement can be substantial. If a timber pest inspection identifies active termites, the next steps typically include a treatment quote from a licensed pest manager and a scope of repair from a builder.
Roof frame deterioration
Roof frame movement or deterioration is a serious structural concern. This can include rafter to ridge board separation, underpurlins rolling, or visible deflection in roof framing members. These issues affect the structural integrity of the roof system and may require significant remediation work.
Significant roof covering defects
Severely spalled clay roof tiles, widespread corrosion on metal roofing, or failed flashings can compromise the weatherproofing of the home. Spalling is the progressive erosion of the clay tile surface, typically seen in homes over 30 to 40 years old. A full roof replacement can be one of the most expensive repairs a homeowner faces.
| KEY TAKEAWAY Not every defect is a deal-breaker. Focus on items rated as major structural or major non-structural. These are the findings that may affect your purchase decision or safety. |
What Are Your Options as a Buyer?
When your pre-purchase building inspection identifies major structural issues, you generally have three options, depending on the terms of your contract.
Negotiate repairs
You can request that the seller complete specific repairs before settlement. This works best for clearly defined issues with straightforward fixes. Get written quotes from qualified tradespeople to support your request.
Negotiate a price reduction
If the defects are significant but you still want the property, you may be able to negotiate a lower purchase price to account for the cost of repairs. This is often the most practical approach, as it gives you control over how and when the work is done.
Withdraw from the contract
If the defects are severe enough, you may have the right to terminate the contract under the building inspection clause. This depends entirely on the wording of your contract and the timeframe specified. Speak to your settlement agent or lawyer before taking this step.
Split strut in the roof frame. Major structural defect requiring rectification. Struts transfer roof load to the walls, and when they fail, surrounding timbers take on stress they weren’t built for.
Minor Defects Are Normal
Established homes will almost always have some defects. Hairline cracking in render, minor wear to fixtures, small areas of peeling paint, and older plumbing fittings are all common findings that do not typically affect the safety or structural integrity of the home.
The most common defects found in Perth homes include minor drainage issues, deteriorated silicone seals in wet areas, and surface-level cracking. These are maintenance items, not deal-breakers.
How to Read the Severity Ratings in Your Report
Most professional building inspection reports rate each finding by severity. At Bestwest Building, our reports use a clear classification system so you can quickly identify the items that need attention. For a detailed guide, read our blog on how to read your building inspection report.
Below is a summary of how defect severity is categorised:
| Category | What It Means |
|---|---|
| Major Structural Defect | A defect of sufficient magnitude where rectification has to be carried out to avoid unsafe conditions, loss of utility or further deterioration. Relates to structural components. |
| Major Non-Structural Defect | Same magnitude threshold as a Major Structural Defect, but relating to non-structural components. |
| Minor Defect / Maintenance Item | Common defects including minor blemishes, corrosion, cracking, weathering, and general deterioration. Managed as part of normal ongoing maintenance. |
When to Get Further Specialist Advice
Your building inspector may recommend further investigation by a specialist in certain cases. This could include a structural engineer for foundation movement, a licensed electrician for non-compliant wiring, or a licensed plumber for drainage issues.
These referrals are a normal part of the process. The building inspector’s role is to identify the issue and recommend the appropriate specialist, not to diagnose every underlying cause.
| WHY IT MATTERS A building inspection gives you the information. What you do with it is your decision. The inspector’s job is to make sure you have the full picture before settlement. |
Book Your Pre-Purchase Building Inspection
The best way to avoid surprises before settlement is to book a thorough building inspection early. Bestwest Building provides same-day digital reports with full-resolution photographs, so you have the information you need to make confident decisions.
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Frequently Asked Questions About Building Inspection Problems
Can I pull out of a house purchase after a building inspection in WA?
It depends on your contract. Most WA purchase contracts include a building inspection clause that allows you to withdraw if significant defects are found, provided you act within the specified timeframe. Speak to your settlement agent or lawyer to understand your specific rights.
How much does it cost to fix major defects found in a building inspection?
Costs vary widely depending on the type and extent of the defect. Structural cracking repair can range from a few thousand to tens of thousands of dollars. Termite treatment and timber replacement can also be significant. Always get written quotes from qualified tradespeople before negotiating with the seller.
Should I still buy a house with termite damage?
It depends on the extent of the damage and whether the termites are still active. Properties with past termite damage can still be a sound purchase if the damage has been repaired, treated, and a termite barrier installed. Get a timber pest inspection and treatment quote to understand the full picture before deciding.
Does a building inspection include asbestos testing?
No. A building inspection under AS4349.1 does not include asbestos testing. If the inspector observes materials that appear to be consistent with asbestos-containing materials, this will be noted in the report. A specialist asbestos assessment is a separate engagement requiring physical sampling and laboratory analysis.
