Defects – information to owners

Defects – information for owners

You are provided with protection under Queensland legislation for items considered to be defects that may not have been apparent during the pre-settlement inspection or occurring afterwards. This does not cover dents and scratches that can be attributed to wear and tear. Defects are classified under two separate categories as outlined below.

WHAT IS A DEFECT?

There are many construction standards and codes in Australia including for example the National Building Code of Australia, and various Australian Standards. In relation to defect rectification, we believe the Queensland Construction and Building Commission (QBCC) provides the easiest and clearest explanation.

The QBCC defines defects in the following categories:

1. CATEGORY 1 STRUCTURAL DEFECTS These defects are described as items that:

• adversely affect the structural performance of a building • adversely affect the health and safety of a person residing in or occupying a building • adversely affect the functional use of a building • allows water penetration into a building

Due the original builder going into liquidation and in line with the relevant legislation, Category 1 defects are covered by the home warranty insurance by under the Queensland Home Warranty Scheme which was taken out by the original builder on your behalf. This policy is active for 6 years 6 months from the time the policy took effect on 13 February 2020, so coverage under the policy for Category 1 defects will cease on 12 August 2026.

2. CATEGORY 2 NON-STRUCTURAL DEFECTS

Category 2 defects are items that do not meet the category 1 criteria and are best described, but not limited to, items such as minor plasterboard cracking and sticking doors and windows.

Essentially these are appearance items which are not the result of damage caused by the occupants use of the dwelling. For example, a dent in a wall caused by an object impact post-handover is not considered a builder defect for rectification. However, if you experience cracking in your paint or plaster due to movement in the building, this would be considered a Category 2 defect which will be fixed by the builder.

Under the relevant legislation, your builder is obligated to rectify Category 2 items up until the expiration of the 12 month period, immediately following the date of Practical Completion of your dwelling.

HOW TO IDENTIFY A DEFECT

Defects can sometimes be subject to personal interpretation of what is an acceptable standard of construction. In an effort to provide clarity to both consumers and builders, the QBCC as the relevant authority, has defined how a defect is to be identified.

When identifying a defect, this should be done where possible from ‘a normal viewing position at a distance of 1.5m or greater.’ The diagram below demonstrates how to view a defect under the guidelines.

REPORTING DEFECTS TO FRASERS PROPERTY AND YOUR BUILDER

THE FIRST 12 MONTHS

Once you have moved into your new home, we request you take a few weeks to get comfortable and live in your property. During this time you might identify items that may have been missed during the final construction quality checks and your pre-settlement inspection.

As the property owner you will have been given access to the Frasers Property myProsperity portal. In order to help us support you, we request you log the items in the portal.

This will ensure Frasers Property are aware of any issues, allowing us to liaise with the builder to arrange defect rectification. This will continue to be the process for any defects you may identify during the first 12 months.

In the instance that you spot more than one defect, it can be helpful to log them all at one time to enable Frasers Property to attempt to limit the same tradespeople from entering your home on multiple occasions.

As Category 2 items cease to be defects for the builder’s rectification when the 12 month period after Practical Completion expires, it is important to all parties involved that these issues are identified and attended to prior to the expiration date. Frasers Property will make contact with you prior to the expiration date. To preserve your legislative rights when it comes to defect rectification, it is important that as an owner you can evidence that you have notified the builder in writing of any issues that require attention. If you are unhappy with the response you receive from your builder, you can make a complaint to the QBCC. Further details on the complaints process can be found on the QBCC website.

REPORTING A MAJOR CATEGORY 1 DEFECT

If you notice a Category 1 defect prior to 12 of August 2026, please follow the same process for reporting the issue by using the myProspertiy Portal and we can give you further information on making a claim with the QBCC. It’s important that you promptly notify us of a Category 1 defect, as if a claim for the Category 1 defect is not lodged with the QBCC within 3 months of you noticing the defect, you will be “timed out” from making a claim.

Practical Completion

Non-Structural Defective Work (Category Two)

Move In Defect Identified

Builder’s Rectification

Frasers Property will contact you prior to the end of this 12 month period

Process starts at Practical Completion Date 12 months