AustraliaMy builder did a poor renovation job and water is leaking into the house. What are my rights?
You have rights under the Home Building Act and Australian Consumer Law to demand repairs, compensation, or termination of the contract if your builder failed to meet statutory warranties or consumer guarantees.
What the Law Says
In Australia, residential building work is protected by statutory warranties under state-based home building legislation and national consumer guarantees under the Australian Consumer Law (ACL). These laws require builders to carry out work with due care and skill, use suitable materials, and ensure the dwelling is reasonably fit for occupation — especially where water ingress indicates defective waterproofing or construction.
Under the Home Building Act 1989 (NSW), every contract for residential building work carries implied statutory warranties — including that the work will be done with due care and skill, in accordance with plans and specifications, and that the dwelling will be reasonably fit for occupation. Water leaking into the house may breach these warranties, particularly the warranty of fitness for habitation.
The ACL (Schedule 2 to the Competition and Consumer Act 2010) provides consumer guarantees that apply to building services. Section 54 guarantees that services will be rendered with due care and skill, and section 60 guarantees that goods (e.g., materials used) are of acceptable quality — which includes being free from defects and safe for normal use.
If the leak arises from a major defect — such as faulty waterproofing of bathrooms, balconies, or roofs — you generally have up to 6 years from completion to make a claim. For minor defects, the warranty period is 2 years.
Statutory TextThere is a warranty that the work will be done with due care and skill and in accordance with the plans and specifications set out in the contract.
— Home Building Act 1989 (NSW), s. 18B(1)(a) — Statutory warranties
Statutory TextThere is a warranty that the work will be done in a proper and workmanlike manner and that all materials supplied will be good and suitable for the purpose for which they are used.
— Home Building Act 1989 (NSW), s. 18B(1)(c)
Statutory TextThere is a warranty that the dwelling, when completed, will be reasonably fit for occupation as a dwelling.
— Home Building Act 1989 (NSW), s. 18B(1)(d)
Statutory TextA person who supplies services in trade or commerce must supply them with due care and skill.
— Competition and Consumer Act 2010 (Cth), Sch 2 s. 54 — Consumer guarantees
What to Do
Contact your builder in writing within 3 months of noticing the leak, describing the issue and requesting urgent inspection and repair.
Engage an independent building consultant to prepare a report identifying the cause and extent of the defect.
If the builder refuses or fails to act, lodge a complaint with NSW Fair Trading (or your state’s equivalent) or apply to NSW Civil and Administrative Tribunal (NCAT) for orders including rectification, compensation, or contract termination.
Check whether your home warranty insurance applies — in NSW, builders must hold insurance for contracts over $20,000 for work completed after 1 July 2010.
Keep all records: contract, quotes, correspondence, photos, and expert reports — these support your claim.
Sources
Same Question, Other Jurisdictions
IndiaNot legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.