How to read your inspection report
Understanding major vs minor defects, safety hazards, and how to act on your building inspection report.
Quick answer
Building inspection reports categorise findings as major defects (structural/safety issues requiring immediate action), minor defects (maintenance items that should be fixed but aren't urgent), and safety hazards (immediate risks of injury). Use the report to negotiate repairs, price reductions, or decide whether to proceed with the purchase.
What's in a standard inspection report?
Australian building inspection reports follow AS 4349.1 and typically include:
- Executive summary: High-level overview of major findings
- Property details: Address, inspection date, weather conditions
- Detailed findings by area: Roof, exterior, interior, subfloor, etc.
- Photographs: Every defect documented with images
- Recommendations: Suggested actions and specialist referrals
- Limitations: Areas that couldn't be accessed
How are defects categorised?
Major defects
Issues that significantly affect the building's structural integrity, safety, or habitability. Examples:
- Major structural cracks in walls or foundations
- Serious water damage or rot in load-bearing timber
- Active termite infestation causing structural damage
- Unsafe electrical wiring or missing safety switches
- Failed or inadequate waterproofing in wet areas
- Collapsed or severely sagging roof structure
Action required: Get quotes for repairs, request specialist reports (engineer, electrician), and negotiate with the seller before settlement.
Minor defects
Maintenance issues that should be addressed but don't pose immediate structural or safety concerns. Examples:
- Cracked roof tiles (a few, not widespread)
- Peeling paint or minor plaster cracks
- Dripping taps or loose fixtures
- Blocked gutters or downpipes
- Minor timber damage in non-structural areas
Action required: Budget for repairs after settlement, or negotiate a small price reduction if there are many minor issues.
Safety hazards
Immediate risks of injury that must be addressed before occupancy. Examples:
- Unsafe balustrades or handrails (wrong height, too much gap)
- Exposed electrical wiring or damaged outlets
- Trip hazards (uneven paving, loose steps)
- Pool barrier non-compliance
- Asbestos in poor condition (friable)
Action required: These must be rectified before moving in. Insist the seller fix them or refuse to settle.
Understanding the limitations section
Every report includes a limitations section noting areas the inspector couldn't access:
- Locked rooms or areas blocked by furniture
- Roof too steep or unsafe to walk on
- Subfloor sealed or inaccessible
- Wall and ceiling cavities (hidden from view)
Important: Limitations mean potential defects could exist in those areas. If critical areas weren't inspected, consider arranging access for a follow-up inspection.
How to use your report for negotiation?
1. Get repair quotes
Contact licensed trades (builders, electricians, plumbers) to quote the cost of fixing major defects. This gives you a dollar figure for negotiation.
2. Request specialist reports if needed
For major structural issues, active termites, or serious electrical problems, your inspector will recommend specialist follow-up reports. Get these done during your cooling-off period.
3. Present findings to the seller
Options for negotiation:
- Price reduction: Request the cost of repairs be deducted from the purchase price
- Seller repairs: Ask the seller to fix major defects before settlement
- Split the cost: Negotiate to share repair costs
- Walk away: If defects are too extensive, withdraw during cooling-off period
Red flags that should make you walk away
Some findings are deal-breakers:
- Widespread structural movement requiring underpinning ($50,000+)
- Major termite damage throughout the property
- Illegal building work without council approval
- Asbestos requiring full removal ($20,000–$100,000+)
- Foundation failure or severe subsidence
Common questions about reports
How long is an inspection report valid?
Reports are a snapshot of the property on the day of inspection. They're typically considered valid for 3 to 6 months, but conditions can change (new leaks, termite activity, etc.).
Can I rely on the report if something goes wrong after settlement?
Inspection reports are not guarantees. Inspectors are covered by professional indemnity insurance for negligence (missing obvious defects), but they can't predict future issues or detect hidden defects in inaccessible areas.
What if the inspector missed something obvious?
If a major defect was visible and accessible but not reported, you may have grounds for a professional negligence claim against the inspector. Document the issue immediately and seek legal advice.
Next steps
Once you understand your report, act quickly — your cooling-off period is short. Get repair quotes, arrange specialist reports if needed, and negotiate with the seller before the deadline.
Need an inspection? Get up to 3 quotes from licensed inspectors in your area.
Key facts
- ✓Major defects need immediate attention (structural cracks, unsafe wiring, serious water damage)
- ✓Minor defects are maintenance items (cracked tiles, peeling paint, minor leaks)
- ✓Safety hazards pose immediate injury risk (unsafe balustrades, exposed wiring)
- ✓Reports include photos of all defects for verification
- ✓Use repair quotes to negotiate price reductions with the seller
- ✓Follow-up specialist reports may be needed for structural or pest issues