What Is the Defects Liability Period When Building a Home?

Monday 27 July 2026

Building a new home is an exciting milestone, but the process does not necessarily end the day you receive your keys. Even with quality construction and thorough inspections, minor issues can sometimes become apparent once a home is occupied and everyday living begins.

This is where the defects liability period becomes important. It provides a structured process for identifying and rectifying certain defects after handover, helping give homeowners confidence that any eligible issues will be addressed.

Understanding how the defects liability period works, what it covers and how it differs from a building warranty can help buyers feel more informed throughout the building journey.

What Is a Defects Liability Period?

A defects liability period (often referred to as a DLP) is a period of time following practical completion and handover during which eligible defects can be reported to the builder for assessment and rectification.

The purpose of the defects liability period is to provide a clear process for managing defects that may not have been apparent during construction or final inspections.

While every builder's process may differ, the defects liability period generally allows homeowners to:

  • Identify potential defects after moving into the home

  • Notify the builder of any eligible issues

  • Have reported defects assessed

  • Arrange rectification works where required

The defects liability period is designed to ensure the finished home meets the agreed standards and provides homeowners with additional peace of mind after handover.

What Types of Defects Are Covered?

The types of defects covered during a defects liability period will vary depending on the building contract and the nature of the issue. Generally, the focus is on defects relating to workmanship, installation or construction quality. 

Many of the materials used to build a home contain moisture and although home-owners are not likely to feel it, there is a great deal of moisture around when you first move in. As the house is lived in and heated, it has to dry out. Timber, brick and plasterlined areas may shrink during this drying-out process, causing small cracks in these areas. Slight movement and shrinkage may occur. They will not affect your homes structural integrity.

Examples may include:

  • Cracking beyond acceptable tolerances

  • Doors or windows that do not operate correctly

  • Cabinetry requiring adjustment

  • Paintwork defects

  • Tiling issues

  • Fixtures or fittings that were not installed correctly

  • Other workmanship related concerns

Not every issue discovered after moving in will automatically be considered a defect. Some items may result from normal settlement, homeowner damage, lack of maintenance or factors outside the builder's control.

For this reason, it is important to document any concerns and report them through the builder's defect reporting process.

How Long Does a Builder Have to Fix Defects in Victoria?

One of the most common questions homeowners ask is how long a builder has to fix defects after they have been identified.

The length of the Defects Liability Period is outlined in your Master Builders Contract and may vary between homeowners. Rather than focusing on a set timeframe for individual repairs, it is important to understand how your builder manages defects throughout this period.

Eight Homes encourages homeowners to keep a list of any non urgent defects they identify after moving in. Rather than reviewing each item as it is reported, an inspection is arranged before the end of the Defects Liability Period to assess the reported items and determine what rectification works are required.

Urgent issues should be reported as soon as they are identified. This includes matters such as water leaks, security concerns like a door that won't lock, or any issue that could cause further damage to the home if left unresolved.

Once the inspection has been completed, any required rectification works are scheduled and carried out in accordance with the building contract and Eight Homes' defect management process.

Arco Interior

Jardene Interior

What Happens During the Defects Liability Period?

The defects liability process is usually straightforward and follows a series of steps.

First, the homeowner identifies and reports a potential defect. This may occur shortly after moving in or during the first few months of occupancy.

The builder then assesses the issue to determine whether it falls within the scope of the defects liability period. If rectification is required, appropriate trades are arranged to complete the work.

The process typically involves:

  • Reporting the issue

  • Assessment by the builder

  • Confirmation of any required rectification works

  • Scheduling of trades

  • Completion of repairs or adjustments

  • Review of completed works

Maintaining clear communication throughout the process helps ensure both parties understand the nature of the issue and the proposed resolution.

Defects Liability Period vs Building Warranty

Many homeowners confuse the defects liability period with a building warranty, but they are not the same thing.

The defects liability period is a short term process that applies after handover and focuses on identifying and rectifying eligible defects.

A building warranty provides broader protections that may extend well beyond the defects liability period and relate to specific statutory obligations under relevant building legislation.

At a high level:

Defects Liability Period

  • Applies shortly after handover

  • Focuses on defect identification and rectification

  • Covers eligible workmanship and construction issues

  • Provides a structured post handover process

Building Warranty

  • Provides longer term protection

  • Covers specific statutory obligations

  • May apply to major structural issues

  • Operates separately from the defects liability process

Understanding the difference between these protections helps homeowners know what support may be available throughout different stages of home ownership.

What Is Not Covered During the Defects Liability Period?

While defects liability periods provide important protections, there are limits to what is covered.

Items that are generally not considered defects may include:

  • Normal wear and tear

  • Damage caused by occupants

  • Lack of routine maintenance

  • Changes made by homeowners after handover

  • Issues outside the builder's contractual responsibilities

Appliance warranties for items such as ovens, dishwashers, heating and cooling systems, and hot water units transfer to the homeowner at settlement. If an issue arises with one of these products, homeowners should contact the supplier directly using their home address. Supplier details can be found on our website. 

Homeowners should always review their building contract and discuss any questions with their builder if they are unsure whether a particular issue falls within the defects liability process. 

Tips for Homeowners After Handover

Moving into a new home is exciting, but it is also a good opportunity to familiarise yourself with the property's features and identify any concerns early.

Some practical steps include:

  • Conduct a thorough inspection after moving in

  • Take photographs of any issues you notice

  • Keep records of all communications

  • Report concerns as soon as possible

  • Follow the builder's recommended reporting process

  • Maintain the home in accordance with the provided guidelines

  • As your new home dries out, observe doors, windows movement, potential cracks. Minor cracking is normal, larger cracks will require review.

Being proactive can help ensure any eligible defects are identified and addressed efficiently.

How Eight Homes Supports Homeowners After Handover

When you build with Eight Homes, you can trust that customer support continues after construction is complete.

All our homes include a 25 year structural guarantee, providing long term confidence in the structural integrity of your home. Following handover, any eligible defects identified during the Defect Liability Period can be reported to the Eight Homes service team for assessment and management.

This process is designed to provide homeowners with reassurance and support as they settle into their new home.

Building a home is a significant investment, and having a clear process for addressing post handover concerns helps ensure a positive ownership experience.

Why Eight Homes

Building With Confidence After Handover

The defects liability period is an important part of the home building process, providing a structured pathway for identifying and rectifying eligible defects after handover.

Understanding what the defects liability period covers, how it works and how it differs from a building warranty can help homeowners feel more confident throughout the transition into their new home.

By knowing what to expect and reporting concerns promptly, homeowners can work with their builder to address any eligible issues and enjoy greater peace of mind after moving in.

Frequently Asked Questions