Gables Building
Inspections

Two years or six: which NSW warranty applies to a defect

The Home Building Act sets two clocks, and the difference matters.

Gables 2765 · 7 April 2026

In short: How the major defect test decides whether you have two years or six.

Two periods

The Home Building Act 1989 provides statutory warranties of six years for major defects and two years for other defects, from completion.

The major defect test

Broadly, a defect in a major element that causes or is likely to cause the home to be uninhabitable or unusable, or to collapse or be destroyed. Waterproofing is treated as a major element.

Why the label matters

An item that is not major must be raised within two years. Waiting can cost you the right to have it fixed.

Evidence

Dated reports from stage and handover inspections show when an item was first identified.

Where to go

The builder in writing, then NSW Fair Trading, then NCAT's Consumer and Commercial Division.

Written by our local inspection team from work carried out in Gables. Licensed building practitioners, NSW Fair Trading licence 366177C.

Guides

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FAQ

Questions Gables owners ask about this

Is a leaking balcony a major defect?

Waterproofing defects can qualify. Get advice on the specific item.

When does the clock start?

Generally from completion of the work.

What about HBCF?

Home Building Compensation Fund cover applies in limited circumstances, such as builder insolvency.

Is this legal advice?

No. It is general information.

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