Defect Investigation

Australia's Top 10 Most Common Building Defects

Published: 5 October 2023
14 min read
Building inspector examining common defects in an Australian residential property

Last updated: 10 February 2026

Building defects are a widespread problem across Australian residential and commercial properties. Research suggests that a significant proportion of new builds contain at least one notable defect, and older properties accumulate issues over time through weathering, settlement, and wear. Understanding the most common defects helps property owners identify problems early and take corrective action before minor issues become major expenses.

Whether you are purchasing a property, building a new home, or maintaining an existing one, awareness of these defects is essential. The following ten defects are the ones most frequently identified during professional building inspections across Australia.


1. Water Leaks and Waterproofing Issues

Water leaks and waterproofing failures are consistently the most reported building defect in Australia. They affect bathrooms, laundries, balconies, roofs, and basements, and the damage they cause can be extensive if left undetected.

Causes:

  • Poor application or failure of waterproofing membranes

  • Deterioration of sealants around wet areas
  • Substandard workmanship during construction
  • Movement in the building causing membrane cracking
  • Ageing of waterproofing materials over time

Warning signs:

  • Water stains on ceilings or walls below wet areas
  • Musty odours or visible mould growth
  • Peeling paint or bubbling plaster
  • Damp or soft flooring near bathrooms and laundries

Risks: Prolonged water exposure leads to structural timber decay, mould growth posing health risks, and damage to finishes and fixtures. Rectification of waterproofing defects can be costly, particularly where tiling and finishes must be removed to access the membrane.


2. Cracking in Walls and Foundations

Cracking is one of the most visible building defects and one of the most common findings during inspections. Cracks range from minor cosmetic hairline cracks to serious structural fractures.

Causes:

  • Foundation settlement on reactive soils
  • Thermal expansion and contraction
  • Moisture changes in surrounding soils
  • Poor construction practices or inadequate footings
  • Tree root activity affecting foundations

Warning signs:

  • Diagonal cracks above door and window frames
  • Horizontal cracks along mortar joints in brickwork
  • Cracks wider than 2mm or those that are growing
  • Doors and windows that stick or no longer close properly

Risks: Structural cracking can compromise the integrity of load-bearing walls and foundations. It allows water penetration, which accelerates deterioration. Crack monitoring over time helps determine whether movement is active or has stabilised.


3. Exterior Water Penetration

Exterior water penetration differs from internal waterproofing failures in that moisture enters the building envelope from outside. This is a particular concern in areas with high rainfall or exposure to driving rain.

Causes:

  • Failed or missing flashing around windows and doors
  • Cracks in exterior render or cladding
  • Deteriorated mortar joints in brickwork
  • Blocked or missing weep holes
  • Poor detailing at junctions between different materials

Warning signs:

  • Damp patches on internal walls after rain
  • Efflorescence (white salt deposits) on brickwork
  • Staining or discolouration on external walls
  • Mould growth on internal wall surfaces near external walls

Risks: Persistent moisture ingress damages wall framing, insulation, and internal linings. It promotes mould growth and can lead to corrosion of steel elements within the wall cavity.


4. Guttering Problems

Guttering and downpipe systems are essential for directing rainwater away from the building. When they fail, water can pool around foundations and penetrate the building envelope.

Causes:

  • Blocked gutters from leaf litter and debris
  • Incorrect fall or alignment causing pooling
  • Corrosion and deterioration of metal guttering
  • Insufficient gutter capacity for the roof area
  • Disconnected or damaged downpipes

Warning signs:

  • Water overflowing from gutters during rain
  • Rust stains or visible corrosion on gutters
  • Sagging gutter sections
  • Water pooling at the base of the building

Risks: Overflowing gutters direct water onto walls and around foundations, contributing to rising damp, foundation erosion, and external water penetration. Regular cleaning and maintenance significantly reduce these risks.


5. Defective Roof Coverings

The roof is the first line of defence against the elements, and defective roof coverings are a common finding in Australian inspections. Issues vary depending on the roofing material.

Causes:

  • Cracked, broken, or displaced tiles
  • Corroded or punctured metal sheeting
  • Deteriorated ridge capping and pointing
  • Failed or missing sarking
  • Storm damage and impact from falling branches

Warning signs:

  • Water stains on ceiling linings
  • Daylight visible through the roof space
  • Loose or displaced tiles visible from ground level
  • Rust stains running down from metal roof fixings

Risks: Roof defects allow water entry to the roof space, damaging ceiling linings, insulation, and structural timbers. In severe cases, compromised roof structures can pose a collapse risk during storms or heavy snowfall in alpine areas.


6. Plumbing Faults

Plumbing defects encompass a broad range of issues from leaking pipes and fixtures to non-compliant installations. They are frequently found in both new and older buildings.

Causes:

  • Corroded or deteriorated pipes, particularly in older copper and galvanised systems

  • Poor connections and joints
  • Non-compliant installations that do not meet the Plumbing Code of Australia

  • High water pressure causing stress on fittings
  • Tree root intrusion into sewer and stormwater lines

Warning signs:

  • Low water pressure or inconsistent flow
  • Slow draining sinks, basins, or showers
  • Unexplained increases in water bills
  • Wet areas around pipe penetrations

Risks: Plumbing faults can lead to water damage, mould growth, and health risks from contaminated water. Sewer line failures can cause significant property damage and pose serious hygiene concerns.


Tiling defects are among the most frequently reported issues in Australian residential properties, particularly in wet areas such as bathrooms, ensuites, and laundries.

Causes:

  • Insufficient adhesive coverage (lippage)
  • Failure to use flexible sealant at junctions and movement joints

  • Tiling over substrates that were not properly prepared

  • Grout cracking due to building movement
  • Incorrect waterproofing beneath tiles

Warning signs:

  • Hollow-sounding tiles when tapped
  • Cracked or missing grout lines
  • Loose or drummy tiles
  • Water seeping through tile joints

Risks: Failed tiling in wet areas compromises the waterproofing system underneath, leading to water damage to the substrate and structure below. Loose tiles also present a trip hazard.


8. Inadequate Fire Safety Measures

Fire safety defects are a serious concern, particularly in multi-storey residential buildings and older homes that may not meet current standards.

Causes:

  • Missing or non-functional smoke alarms
  • Incomplete or breached fire-rated construction
  • Combustible cladding on external walls
  • Blocked or inadequate fire exits
  • Non-compliant fire doors and seals

Warning signs:

  • Smoke alarms that are missing, expired, or disconnected
  • Gaps around penetrations through fire-rated walls and floors

  • Fire doors that do not close and latch properly
  • Combustible materials stored in common areas or fire stairs

Risks: Fire safety deficiencies place occupants at direct risk of injury or death in the event of a fire. Non-compliance with fire safety regulations also creates legal liability for building owners and strata managers. The use of combustible cladding on Australian buildings has been the subject of national audit programs since the Grenfell Tower fire in 2017.


9. Electrical Issues

Electrical defects range from minor non-compliances to serious safety hazards. They are particularly common in older properties where wiring systems have not been updated.

Causes:

  • Ageing wiring systems, including old rubber-insulated or cloth-insulated cables

  • DIY electrical work performed without a licensed electrician

  • Overloaded circuits from modern appliance loads on older systems

  • Missing or non-functional safety switches (RCDs)
  • Exposed or damaged wiring

Warning signs:

  • Frequently tripping circuit breakers or blowing fuses
  • Flickering lights or power fluctuations
  • Warm or discoloured power points
  • Burning smell from switches or outlets

Risks: Electrical defects are a leading cause of house fires in Australia. They also present a direct electrocution risk. All electrical work must be performed by a licensed electrician in compliance with AS/NZS 3000 (the Wiring Rules).


10. Building Movement (Subsidence and Heave)

Building movement, whether subsidence (downward movement) or heave (upward movement), is a significant concern across large parts of Australia, particularly in areas with reactive clay soils.

Causes:

  • Reactive clay soils that shrink and swell with moisture changes

  • Inadequate footing design for the soil conditions
  • Changes to drainage patterns around the building
  • Large trees drawing moisture from the soil near foundations

  • Plumbing leaks saturating the ground beneath footings

Warning signs:

  • Visible cracking in walls, particularly diagonal cracks
  • Uneven or sloping floors
  • Doors and windows that jam or fail to close
  • Gaps between walls and ceilings or floors

Risks: Ongoing building movement can render a property structurally unsound. Rectification often requires underpinning or other foundation remediation work, which is among the most expensive building repairs. Areas of Melbourne, Adelaide, and Western Sydney are particularly affected by reactive soils.


Why Pre-Purchase Inspections Matter

Many of these defects are not visible to the untrained eye or are hidden within wall cavities, roof spaces, and subfloor areas. A professional pre-purchase building inspection is the most effective way to identify existing and potential defects before committing to a property purchase. A qualified inspector will assess the property systematically, document findings in a detailed report, and provide guidance on the severity and likely cost of rectification.

Pre-purchase inspections are particularly valuable when buying older properties, apartments in large developments, or homes in areas known for reactive soils or high moisture exposure. Investing in a thorough inspection can save buyers from unexpected repair bills running into tens of thousands of dollars.


Frequently Asked Questions

Q

What is the most common building defect in Australia?

Water leaks and waterproofing failures are consistently the most commonly reported building defect across Australian properties. They account for approximately 40% of all reported defects in new apartment buildings.

Q

How can I tell if cracks in my walls are structural?

Structural cracks are typically wider than 2mm, follow a diagonal pattern, and may be accompanied by doors and windows that stick or no longer close properly. If cracks are growing over time, or if there are multiple cracks in a pattern, a professional structural assessment is recommended.

Q

Are building defects covered by home warranty insurance?

In most Australian states, home warranty insurance covers defects in new residential building work. Major defect claims typically have a six-year limitation period, while general defects must be claimed within two years. Coverage applies if the builder cannot or will not rectify the defects.

Q

How often should I have my property inspected for defects?

A professional building inspection is recommended at least every five years, or more frequently for older properties or those in areas with reactive soils. Inspections should also be carried out after significant weather events such as storms, floods, or prolonged drought.

Q

What are reactive soils and how do they cause building defects?

Reactive soils, predominantly clay soils, expand when wet and contract when dry. This movement exerts pressure on foundations and can cause cracking, uneven floors, and structural displacement. Large areas of Melbourne, Adelaide, and Western Sydney are classified as having highly reactive soils.

Q

Can I identify building defects myself without an inspector?

While some defects such as visible cracking, water stains, and damaged roof tiles can be spotted by homeowners, many defects are concealed within wall cavities, roof spaces, and subfloor areas. Professional inspectors have the training, tools, and access to identify defects that are not visible during a casual inspection.

Q

What should I do if I find a building defect in my property?

Document the defect with photographs and notes. Engage a qualified building inspector to assess the severity and scope of the issue. If the property is under warranty or covered by insurance, lodge a claim as soon as possible. Obtain quotes from licensed tradespeople for any rectification work required.

Q

How much does it cost to fix common building defects?

Costs vary widely depending on the defect type and severity. Minor repairs such as regrouting tiles or replacing gutters may cost a few hundred dollars. Waterproofing rectification in a bathroom can range from $5,000 to $15,000. Foundation underpinning can cost $10,000 to $50,000 or more depending on the extent of work required.

Q

Are new builds less likely to have defects than older homes?

Not necessarily. Research has shown that a high proportion of new builds in Australia contain defects. New builds may have defects related to workmanship, materials, and compliance with building codes. Older homes tend to have defects related to ageing, wear, and changes in building standards over time.

Q

What is the difference between a major defect and a minor defect?

Under Australian consumer protection law, a major defect is one that causes or is likely to cause the inability to inhabit or use the building, the destruction of the building, or a threat of collapse. Minor defects are all other defects that do not reach this threshold but still represent a departure from the expected standard of work.

Key Takeaways

  • Water leaks and waterproofing failures are the most common building defect in Australia
  • Cracking in walls and foundations can indicate structural movement that requires professional assessment
  • Exterior water penetration through failed flashing and cladding causes hidden damage to wall framing and insulation
  • Guttering and roof defects allow water into the building, leading to costly damage over time
  • Plumbing faults, tiling defects, and electrical issues are frequently found in both new and older properties
  • Fire safety deficiencies pose direct risks to life and carry significant legal liability
  • Building movement from reactive soils affects large areas of Melbourne, Adelaide, and Western Sydney
  • Pre-purchase building inspections are the most effective way to identify hidden defects before buying

Concerned About Building Defects?

Our licensed building inspectors identify defects across all property types throughout Australia. Book a comprehensive inspection today.

Book an Inspection

Related Topics:

building defectswater leakswaterproofingcrackingroof defectsplumbing faultsbuilding inspectionsAustralia