Building Defects in Victoria: Your Rights as a Home Owner

Building & Construction 10/03/2026

Building & Construction10 March 2026

Discovering defects in your new home or renovation is stressful and expensive. Victorian law provides strong protections for home owners, but understanding the process, and acting within the time limits, is critical. As building and construction lawyers in Frankston, we act for home owners across Melbourne and the Mornington Peninsula in disputes with builders and developers.

Types of Building Defects

Building defects in Victoria fall into two broad categories:

Structural defects: problems that affect the structural integrity of the building, such as cracking foundations, defective framing, non-compliant waterproofing, and subsidence.
Non-structural defects: issues such as poor paintwork, tiling defects, inadequate drainage, window leaks, and defective fixtures.

Whatever the type of defect, section 8 of the Domestic Building Contracts Act 1995 (Vic) implies warranties into every domestic building contract, regardless of what the written contract says. They include that the work will be carried out in a proper and workmanlike manner, with good and proper materials, in accordance with the plans and specifications, and in compliance with the law.

Steps to Take When You Discover Defects

1. Document the defects. Take photographs and videos of every defect. Note when you first became aware of each issue and whether it is getting worse over time.

2. Notify your builder in writing. Send a written notice to the builder identifying the defects and requesting rectification within a reasonable timeframe (usually 14 to 28 days). Keep a copy of all correspondence.

3. Obtain an independent expert report. Engage a registered building practitioner or building consultant to inspect the property and prepare a report identifying the defects, their cause, and the estimated cost of rectification. This report is essential for any formal dispute.

4. Apply to the Building and Plumbing Commission. If the builder fails to rectify the defects, you can apply to the dispute resolution service of the Building and Plumbing Commission (BPC), which took over the work of Domestic Building Dispute Resolution Victoria on 1 July 2025. The BPC offers a free conciliation service, which must be used before you can take the matter to VCAT for most domestic building disputes.

5. Apply to VCAT. If conciliation does not resolve the matter, you can apply to the Victorian Civil and Administrative Tribunal (VCAT) for an order that the builder rectify the defects or pay compensation. For claims exceeding VCAT’s jurisdiction, proceedings may be commenced in the County Court of Victoria.

Home Warranty Insurance

For domestic building contracts entered into from 1 July 2026, builders must take out Home Warranty cover through the Building and Plumbing Commission for eligible work on homes of up to three storeys valued at more than $20,000. Home Warranty is a first-resort scheme. You may be able to claim if the work is incomplete, defective or non-compliant and the builder is unable or unwilling to complete or fix it, even if the builder is still trading. If the builder is still trading, you must first give them a complaint notice and allow time for a response. The maximum assistance is $400,000 per home.

For contracts entered into before 1 July 2026, the earlier domestic building insurance still applies. It was required for work valued at more than $16,000 and generally responds only if the builder has died, disappeared or become insolvent.

Time Limits

Acting promptly is important. Under section 134 of the Building Act 1993 (Vic), a building action generally cannot be brought more than 10 years after the occupancy permit or certificate of final inspection was issued, whether the defect is structural or not. Where neither was issued, the general limitation periods under the Limitation of Actions Act 1958 (Vic) may apply instead. Home Warranty has its own, shorter periods: up to six years after completion for major defects and up to two years for other defects. If you are aware of defects, seek legal advice as soon as possible.

Talk to a Building Dispute Lawyer

Professional Edge Lawyers acts for home owners in building defect claims across Frankston, the Mornington Peninsula, Melbourne’s south-east, and greater Victoria. We handle matters at the Building and Plumbing Commission, VCAT, and in the courts. Contact us on 1800 776 529 to discuss your building dispute.