Purchased a house in auction: Building Inspector identified major defects
Just bought a house in Melbourne and the building inspection has revealed some serious issues — need advice on next steps and whether insurance will cover any of this
**Background**
We recently signed a contract for a brick veneer home in Melbourne's northern suburbs. After signing, we commissioned an independent building and pest inspection which has come back with 4 major defects and over 13 minor defects. The property has had owner-builder renovation works done — an alfresco extension, kitchen expansion and roof extension. We are now seriously questioning whether we should proceed to settlement.
Would love to hear from anyone who has dealt with similar issues, particularly builders, structural engineers, conveyancers or anyone who has been in a similar situation.
**Major Defect 1 — Roof Tiles: Widespread Failure**
The concrete roof tiles are in seriously bad condition across multiple sections of the roof. We are talking broken, missing and crumbling ridge caps, slipped tiles, open gaps, and heavy moss and lichen growth suggesting this has been deteriorating for years. This isn't a couple of cracked tiles — the inspector flagged the entire roof as being at or past end of life.
We have also been verbally advised by our inspector that there appears to be additional timber framing added inside the roof void as part of the owner-builder works. The roof void could only be partially inspected due to insulation and access limitations — the inspector rated the undetected defect risk in the roof void as HIGH.
Question: Are we looking at a partial re-roof or full replacement? What would this realistically cost in Melbourne right now?
**Major Defect 2 — Brickwork Step Cracking at Multiple Locations**
Diagonal step cracking is visible through mortar joints at several separate points on the external walls. In some locations the cracking runs through the face of the bricks themselves, not just the mortar. The inspector says this may indicate foundation settlement, structural movement or moisture ingress and has recommended a structural engineer assessment before purchase.
The fact that it appears at multiple separate locations around the building is what worries us most — it suggests this isn't isolated.
Question: For those who have dealt with brickwork step cracking — what did your structural engineer find? Are we potentially looking at underpinning?
**Major Defect 3 — Suspected Previous Brickwork Repair with No Documentation**
At the rear wall there is clearly visible evidence of previous brickwork repairs around a window opening — completely mismatched brick colour, different mortar finish, misaligned courses, and a visible gap at the base of the wall where brickwork meets the slab. No building permit, no engineering documentation, no explanation from the vendor.
The inspector rated this as Major Defect — Further Investigation Required and flagged that the repair may have been done without permits, engineering design or certification.
Question: Has anyone dealt with unpermitted brickwork repairs? What is the process for getting this retrospectively certified and what happens if the council finds out?
**Major Defect 4 — Front Porch Support Posts Out of Plumb**
The inspector measured the front porch support posts with a digital level and found deviations of 5mm to 14mm from vertical. You can see it with your own eyes — the posts are visibly leaning toward the front of the porch. The cause could not be determined during the visual inspection — it could be footing settlement, post deterioration, or active ongoing structural movement.
Rating: Major Defect — Structural Assessment Required.
Question: Has anyone had leaning porch posts? Was it a simple fix or did it turn out to be a footing issue?
We are planning to engage a structural engineer to assess all four of these issues before we make any decision about proceeding to settlement. We want them to physically access the roof void to assess the additional timber framing, assess the brickwork cracking for foundation movement, review the suspected repairs at the rear wall, and assess the porch footing situation.
Has anyone used a structural engineer for a pre-settlement inspection in Melbourne? How long did it take to get a report? Any recommendations for engineers experienced in residential brick veneer properties?
**Insurance Question**
This is a big one for us. If we do proceed to settlement and these defects lead to further damage down the track — say the roof fails completely, or the foundation movement worsens — would home and contents insurance cover any of it?
Our concern is that insurers will argue these are pre-existing defects and refuse to pay out. Has anyone had a claim knocked back on this basis? And does it matter whether the damage was known at the time of taking out the policy?
We understand the owner-builder works may also complicate insurance given there are questions around permits. Any experience with this would be really helpful.