My Building Inspection Found a Major Structural Defect — What Does This Mean?
If your building inspection report identifies a major structural defect, it deserves careful attention. But the terminology alone does not tell you whether the property is a bad purchase, how expensive the repair will be, or what rights you have under the contract.
What is a major structural defect?
A structural defect affects an element that contributes to the stability or structural performance of a building.
Depending on the construction of the property, structural elements can include foundations and footings, load-bearing walls, structural floor systems, beams, columns and parts of the roof frame.
A defect becomes particularly significant where deterioration, movement, failure or inadequate construction materially affects the performance of one of these elements or requires substantial rectification.
Examples of structural defects
Structural problems can present in many different ways. Examples that may warrant significant investigation or rectification include:
Significant structural cracking
Cracking associated with building movement, footing movement or failure of structural masonry can be more significant than ordinary cosmetic cracking.
Foundation or footing movement
Movement affecting the support of the building can result in cracking, distortion and continuing structural problems.
Structural roof defects
Failed, damaged, inadequately supported or substantially altered structural roof members can require significant rectification.
Load-bearing wall problems
Movement, deterioration or inappropriate alteration of load-bearing walls can affect the structural performance of the building.
Structural timber deterioration
Severe decay or timber pest damage affecting structural members may materially reduce their capacity and require replacement or strengthening.
Structural floor problems
Significant deterioration, movement or failure of structural flooring components may require extensive repair.
Major defect vs major structural defect
These terms sound similar, but they should not automatically be treated as meaning the same thing.
For example, substantial water ingress, extensive roof-covering deterioration or another expensive building problem may be very important to a purchaser without necessarily being a structural defect.
This distinction is particularly important when deciding what a building report means for an existing property contract.
Does a major structural defect mean the seller has to fix it?
In Western Australia, many residential property transactions use a building inspection condition concerned specifically with major structural defects.
This is why the distinction between a major defect and a major structural defect can matter considerably.
Where the contractual condition applies and a qualifying structural defect is identified within the required timeframe, the contract may provide a process for notifying the seller and allowing the seller an opportunity to rectify the defect.
However, this does not mean that every item described as a major defect in an inspection report automatically has to be repaired by the seller. The actual wording of the contract, the affected building element, the report and the contractual notice requirements all matter.
What if the seller disagrees with the inspector?
This can happen.
A seller may disagree that the reported condition is structural, dispute the severity of the defect, obtain another opinion or challenge whether the finding satisfies the requirements of the contract.
That is one reason a clearly written report is important. A useful finding should do more than simply apply the words “major structural defect”. It should identify the observed condition and provide enough information to understand why the inspector considers the defect significant.
Does a major structural defect mean I should not buy the house?
No. Not automatically.
A structural defect changes the information available to you as the purchaser. It does not make the purchasing decision for you.
What matters is the likely extent of the problem, whether the cause is understood, whether further deterioration is likely, the expected rectification work and how those costs compare with the property and the purchase price.
A serious classification does not tell you the repair cost
Two structural defects carrying the same classification can have very different repair implications. One may involve relatively localised rectification, while another may require substantial structural work. Understanding the likely scope of repair is therefore essential.
Can I negotiate the price?
Significant structural findings can become part of negotiations between the buyer and seller.
Depending on the circumstances, a buyer may seek rectification, negotiate a price adjustment, request additional information or decide to proceed with the property in its existing condition.
A negotiated price reduction is different from a contractual right to require rectification. A seller may agree to a reduction, reject it or propose another arrangement.
What should I do now?
Read the complete defect finding
Do not stop at the classification. Read what the inspector observed, where the problem is located and what further action or investigation has been recommended.
Understand the likely cause and repair scope
Determine whether the problem appears localised or widespread, whether the cause is known and what type of rectification may be required.
Check your contract and deadlines
If you are already under contract, check the relevant building inspection condition and any notice deadline. Contractual rights vary between jurisdictions and contracts.
Consider the defect in the context of the purchase
Consider likely repair costs, future risk and whether the defect materially changes the value or suitability of the property for you.
What if the report does not explain the defect clearly?
A buyer may receive a report containing the words “major structural defect” but still be unsure what the finding actually means.
The report should ideally make clear what was observed, the location of the problem, why it is considered significant and whether further investigation or rectification is recommended.
If the report contains many findings, it can also be difficult to determine which defects should receive immediate attention and which are lower-priority maintenance issues.
Frequently asked questions
Is cracking always a major structural defect?
No. Buildings can develop cracking for many reasons. The location, width, pattern, age, associated movement and underlying cause need to be considered before determining its significance.
Can a major structural defect be repaired?
Many structural defects can be rectified. The important questions are what caused the defect, whether the cause can be addressed and what work is required to restore satisfactory performance.
Does the seller automatically have to repair it?
No. That depends on the property contract, the inspection condition, the nature of the defect, applicable deadlines and the jurisdiction in which the property is being purchased.
Can I negotiate after a structural defect is found?
A significant defect can form part of negotiations between buyer and seller. A buyer may seek rectification, a price adjustment or another arrangement, but negotiation is different from an automatic contractual entitlement.
Should I walk away from a house with a structural defect?
The classification alone cannot answer that question. The decision depends on the extent and cause of the defect, likely rectification costs, ongoing risk, the purchase price and your individual circumstances.
Have a question about your building report?
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Contact BuyerReportGeneral information only. BuyerReport provides building inspection report review and property-condition information and does not provide legal or conveyancing advice. Contract rights vary according to the wording of the contract, jurisdiction and individual circumstances. Obtain advice from your conveyancer, settlement agent or solicitor regarding your particular contract and any applicable deadlines.