Cracked walls and sinking foundations are every Sydney homeowner’s nightmare. If your property shows either of these defects, you may have a claim against your building contractor. Flash Conveyancing regularly assists clients dealing with building defect issues and the legal risks that follow.
Building defect claims are often complex and can involve multiple trades and causes. However, the key priority is identifying and rectifying the underlying issue. For example, defective tiling or waterproofing can lead to water ingress, which in turn contributes to structural damage. Early intervention is critical, as defects typically worsen—and become more costly—the longer they are left unresolved.
In Miles v Buildfix Group Pty Ltd [2025] NSWCATAP 260, the NCAT Appeal Panel considered the appropriate remedy for cracked walls and foundation movement. The parties disagreed on the cause and solution. The homeowners argued the defects were linked to waterproofing and ongoing water ingress, while the builder relied on its chosen repair methodology.
The Miles family had engaged Buildfix Group to stabilise their home’s foundations using resin injection. Despite the works being completed, the property continued to settle and crack. The builder argued that it had followed an accepted method and that foundation stabilisation is not an exact science.
The Appeal Panel rejected that approach and reinforced a “result over method” standard under section 18B of the Home Building Act 1989 (NSW):
- Outcome matters: It is not enough to follow a process (e.g. resin injection) if the result—such as a stable foundation—is not achieved.
- Statutory warranties apply: All residential building work must be reasonably fit for its intended purpose and use suitable materials.
- No contracting out: Builders cannot avoid liability by using vague language such as “improve” rather than “fix”.
Key takeaways for NSW property owners in 2026:
- Use outcome-based contracts: Terms should specify results (e.g. “stabilise foundation and prevent further subsidence”), not just methods.
- Verify past repairs: When buying, check warranty certificates and documentation for any remedial works to ensure compliance and protect resale value.
- Assess effectiveness: Properties with a history of foundation issues should be independently reviewed to confirm repairs have worked.
Flash Conveyancing recommends the following protections:
- Statutory warranties: Six years for major defects and two years for minor defects remain critical safeguards.
- Written records: Ensure all additional or remedial works are clearly documented.
- Contract conditions: Include clauses requiring the seller to provide full documentation of structural repairs.
Flash Conveyancing Advice:
If a builder refuses to guarantee an outcome, treat it as a warning sign. Your strongest protection lies in clear contracts and enforceable statutory warranties.
Flash Conveyancing, run by Julian & Renee, provides expert support for property transactions across New South Wales. With strong experience dealing with councils such as Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby, and Parramatta, they offer a reliable and tailored approach to every settlement. Whether you’re buying or selling in Acacia Gardens, Blacktown, Kellyville Ridge, Schofields, The Ponds, Castle Hill, Rouse Hill, or anywhere in Greater Western Sydney, they ensure your transaction is managed smoothly, transparently, and with confidence.