Finding a major defect in your building inspection report can be unsettling, especially when the home looked well kept at the open. Structural movement, serious moisture, roof damage and timber decay can all sit behind fresh paint. A major defect doesn’t automatically mean you should walk away. It means you need to understand the issue, the likely repair cost and your options before you commit further. 

The short answer: A major defect doesn’t automatically mean you should pull out, and it doesn’t automatically let you cancel the contract. Ask the inspector to explain the finding, get a specialist to confirm the cause and cost, then speak to your solicitor or conveyancer before any deadline passes. 

At CBR Property Inspections, our Canberra and ACT pre-purchase building inspection combines a structural building condition assessment with a timber pest inspection. The building report is assessed against AS 4349.1, and the pest inspection follows AS 4349.3. If a major defect is found, the report gives you documented evidence to take to specialists and your solicitor. 

What Is Considered a Major Defect? 

A major defect is more than a cosmetic issue or routine maintenance item. Under AS 4349.1, it is generally serious enough to need rectification to avoid an unsafe condition, loss of a building element's intended use or further deterioration. 

Classification depends on the issue's nature and extent. A wall crack, for example, is not automatically a major structural defect. Its pattern, location and likely cause matter, and the inspector assesses the visible evidence within the agreed inspection scope. 

Examples that may warrant serious attention include: 

• Structural movement: significant cracking, movement or distortion affecting walls, floors, footings or other supporting elements. 

• Roof or water ingress problems: substantial roof damage, persistent leaks or moisture that may be affecting structural materials. 

• Timber deterioration: decay or damage that weakens important timber components. 

• Timber pest damage: termite or borer activity that has affected structural timber. 

• Safety concerns: defects that create a risk to occupants or make an area unsafe to use. 

These are examples, not automatic classifications. A specialist may need to investigate the cause and extent before the full impact can be confirmed. Where timber damage is involved, our guide to termite warning signs explains common evidence and why further inspection matters. 

What to Do After a Major Defect Is Found: 5 Steps 

The inspector records the finding, its location and relevant observations in the report. Photographs can help you understand the issue, and the inspector may recommend further assessment by a specialist. 

CBR Property Inspections supports findings with photographs and uses thermal imaging alongside the visual inspection to help identify possible moisture, missing insulation and other concealed issues. Thermal imaging can highlight unusual temperature patterns, but it does not confirm the cause by itself. Most reports are delivered within 24 to 48 hours. 

1. Read the Report and Identify the Main Concern 

Read the report summary, photographs and comments together. Note the affected building element, where the issue was found, any access limitations and whether the inspector recommends specialist assessment. A defect may have several possible causes, and further testing may be needed to confirm its extent. 

2. Ask the Inspector What the Finding Means 

Ask the inspector to explain the defect in plain language and clarify whether it needs monitoring, maintenance, repair or specialist investigation. Useful questions include: What was visible? Does it affect a structural element? Is there an immediate safety concern? What further assessment is needed? Were any areas inaccessible? Could the issue extend beyond the visible damage? 

A building inspection is generally visual and non-invasive, so it cannot confirm every concealed condition or replace specialist testing. 

3. Arrange a Specialist Assessment 

If the report recommends a specialist, book one before you negotiate. A specialist confirms the cause and extent, which gives your next conversation with the seller real weight. Depending on the defect, the report may recommend: 

Finding in the report	Specialist who may be needed
Significant cracking or suspected foundation movement	Structural engineer
Roof leaks or damaged roof elements	Roofing contractor or relevant building specialist
Persistent moisture or suspected plumbing leak	Licensed plumber or leak detection specialist
Termite activity or damaged timber	Qualified pest management professional and, where needed, a builder or engineer
Electrical safety concern	Licensed electrician

Ask the specialist for written findings and confirm whether testing or opening up concealed areas is needed. Further defects may become visible once work begins. 

Haven’t booked your inspection yet? Our building and pest report covers the structure and timber pests in one visit, so you know about major defects before you sign or bid. 

4. Obtain a Repair Scope and Cost Estimate 

Once the cause and extent are clearer, request a written repair scope and estimate from a suitably qualified contractor. Ask what work is required, whether engineering design or approval is needed, whether access or demolition is involved, and whether further damage could be uncovered. Confirm the expected timeframe and any ongoing maintenance. 

A building inspection is not necessarily a detailed repair specification or fixed-price quotation. A separate contractor's assessment helps establish the likely scope, cost and urgency. 

5. Speak to Your Solicitor or Conveyancer About the Contract 

A major defect does not automatically give every buyer the right to cancel a purchase. Your options depend on the contract, sale method and stage of the transaction. 

Send the report to your solicitor or conveyancer promptly. Ask them to check whether contracts have been exchanged, whether a cooling-off period or relevant contract condition applies, whether any period has been waived, and what notice or deadlines govern your options. Any agreed change should be recorded in writing and reviewed by your solicitor. 

Can You Withdraw from the Purchase in the ACT? 

Under the ACT Civil Law (Sale of Residential Property) Act 2003, a cooling-off period generally ends at 5 pm on the fifth working day after the day the contract is made. 

There are exceptions. The period does not apply to sales by auction or tender, purchases by corporations, certain properties passed in at auction where the buyer was recorded as a bidder, or where the buyer has validly waived or shortened the period. A buyer who rescinds under the statutory cooling-off right forfeits 0.25% of the purchase price. 

This is a statutory right, not an automatic right created by a major defect. After the cooling-off period ends, your options depend on the contract and circumstances. 

If you are considering bidding at auction, arrange the inspection before the auction. Do not assume you will be able to inspect afterwards and then withdraw because the report identifies a defect. 

What Are Your Options if You Still Want the Property? 

A major defect does not always make a property unsuitable. You may still proceed if the issue is understood, the cost is manageable and the purchase price reflects the work involved. 

Depending on the report and your contract, possible approaches include: 

Negotiate the Purchase Price 

You can ask for a price adjustment supported by specialist findings and a written repair estimate. 

Request Repairs Before Settlement 

You may request repairs before settlement. Record the agreed work, evidence and timing in writing, and have your solicitor review the variation. 

Proceed with a Repair Plan 

You may buy and complete the work after settlement, but first understand the likely cost, urgency, approval requirements and risk of further concealed damage. 

Reconsider the Purchase 

If the defect creates a safety concern or involves costs you are not prepared to take on, you may decide not to proceed. Check with your solicitor before you act, as your ability to withdraw depends on your contract. 

Major Defect vs Approval or Compliance Issue 

A deck can be structurally sound but built without approval, and an approved extension can still have a structural defect. 

A structural defect and an approval issue are different. A building condition inspection does not necessarily confirm that extensions, decks, sheds, carports or other structures have the required approvals. 

For a broader ACT check, CBR Property Inspections offers a Building, Pest and Compliance Report, which adds a compliance assessment to the structural and timber pest components. 

Why Get Your Canberra Building Inspection Before You Commit 

An inspection is most useful when it gives you time to investigate concerns before making a decision. CBR Property Inspections' building assessment is carried out in person by a licensed builder with more than 15 years of residential construction experience. It follows AS 4349.1, with the timber pest component carried out to AS 4349.3. 

Our building inspection service assesses the roof, subfloor, walls, floors and footings, with photographs supporting the findings. 

Final Thoughts 

When a building inspection finds a major defect, the next step is to understand the issue rather than make a rushed decision. Read the report, ask the inspector for clarification, obtain specialist advice and a written repair estimate, and speak to your solicitor or conveyancer about your options under the contract. 

A major defect may lead to further investigation, negotiation, repairs or a decision not to proceed. The right response depends on the property, likely costs and your legal position. A pre-purchase inspection from CBR Property Inspections helps identify concerns before you buy in the ACT. 

Frequently Asked Questions 

Does a major defect mean I should not buy the property? 

Not necessarily. The impact depends on the defect, its cause, repair requirements, likely cost and your plans for the property. Obtain specialist advice where needed and consider the findings before making a decision. 

Can I cancel a property purchase if a building inspection finds a major defect? 

Not automatically. Your rights depend on the contract, the sale method and the stage of the transaction. In the ACT, a statutory cooling-off period generally applies to residential contracts, subject to exclusions and waiver rules. Ask your solicitor or conveyancer to explain your position before taking action. 

Who pays to repair a major defect found during an inspection? 

The seller is not automatically required to repair every defect identified in a buyer's inspection. You may negotiate for repairs or a price adjustment, but any agreement depends on the seller's response and the contract. 

Should I get a structural engineer after a major defect is found? 

You may need one if the report identifies significant cracking, suspected foundation movement, structural distortion or another concern that requires engineering assessment. Follow the inspector's recommendation and ask the specialist to provide written findings. 

Can a building inspection estimate the cost of major repairs? 

A building inspection can identify defects and recommend further investigation, but it is not always a detailed repair quotation. For a major issue, obtain a written scope and estimate from a suitable contractor after the cause and extent have been assessed. 

Should I arrange an inspection before buying at auction? 

Yes. In the ACT, auction sales do not have the usual statutory cooling-off period. Arrange the building and pest inspection before bidding so you can consider significant findings before making an unconditional commitment.