Discovering a crack in the wall or a leaking shower shortly after moving into a new home is a disheartening experience. The excitement of settlement quickly fades when you realise the property might not be as perfect as it looked during the final walkthrough. Many homeowners feel they have lost their leverage once the keys have changed hands and the final payment is made. However, Western Australian law provides several layers of protection that ensure a builder’s responsibility does not end at the front door on settlement day.
The initial defects liability period
Most residential building contracts in WA include a specific window known as the defects liability period. This is a contractual agreement rather than a statutory one, and it typically lasts for about four months, or 13 weeks, following practical completion. During this time, the builder is obligated to return and fix minor issues that arise as the house settles or as you begin to use the appliances and fixtures.
This period covers things like sticking doors, minor plaster cracks, or cabinet hinges that aren’t quite aligned. It is a practical way to handle the small “snag list” items that often only become apparent once someone is actually living in the space. It is vital to report these issues in writing as soon as you spot them. Most builders prefer a consolidated list toward the end of the period, but urgent faults like a leaking pipe should be raised immediately to prevent further damage.
Statutory warranties and the six year rule
Beyond the short window of the contract, the Building Services (Complaint Resolution and Administration) Act 2011 offers a much broader safety net. In Western Australia, a builder is generally liable for faulty or unsatisfactory workmanship for six years from the date of practical completion. This protection is not restricted to the original owner who signed the building contract. If you purchase a two year old home from someone else, you still have the right to hold the original builder accountable for defects.
This six year period is often misunderstood as only covering “structural” issues like a collapsing roof or a sinking foundation. In reality, the builder’s liability covers any work that was not carried out in a proper and proficient manner. This can include waterproofing failures, electrical faults, or poor drainage. However, it does not cover general wear and tear. You cannot claim for a worn carpet or a faded paint job that has simply aged naturally over several years of use.
Identifying major versus minor defects
Distinguishing between a minor blemish and a major defect is important when deciding how to proceed with a claim. A major defect is typically something that makes a part of the building unusable or poses a safety risk. For example, a balcony that is pulling away from the main structure or a bathroom where water is seeping into the wall studs are serious issues that require urgent intervention.
Minor defects are more aesthetic in nature and do not threaten the integrity of the building. While the builder is still liable for these within the statutory period, the process for getting them fixed can sometimes be more drawn out. If you find yourself in a dispute about whether an issue is a defect or just a result of the house “breathing,” it is often worth hiring an independent building inspector. Having a professional report that cites specific Australian Standards can give you significant leverage when negotiating with a builder.
How to lodge a formal claim
If a builder refuses to acknowledge a defect or ignores your requests for repairs, the next step is a formal complaint through the Building Commissioner. This process is designed to be a more accessible alternative to the court system. You must show that you have attempted to resolve the matter with the builder first, usually by providing them with a formal notice and a reasonable timeframe to fix the work.
When you lodge a complaint, the Building Commission can investigate the workmanship and issue an order for the builder to rectify the faults. If the builder has gone out of business or lost their registration, you might be able to claim through your Home Indemnity Insurance. This insurance is mandatory for most residential building projects over $20,000 in WA and serves as a final backstop for homeowners.
Protecting your investment long term
The best way to handle defects is to be proactive from the moment you take possession. Keep a dedicated folder for all your building documents, including the original contract, the certificate of occupancy, and any correspondence with the builder. Taking photos of issues as they appear provides a clear timeline of when a problem started and how quickly it has progressed.
Living in a new home should be a period of enjoyment, not a constant battle with repairs. By understanding the timeline of liability and the pathways for recourse, you can ensure that your home remains the safe and high quality investment you expected it to be. Don’t be discouraged by a builder who tells you that settlement was the end of their responsibility. The real estate law in Western Australia is clear that they must stand behind the quality of their work for years to come.
