AustraliaA building inspector gave a negligent report and I bought a defective house based on it. Who is liable?
The building inspector may be liable in negligence for losses caused by their defective report, and you may also have rights against the seller under Australian Consumer Law.
What the Law Says
In Australia, building inspectors owe a duty of care to people who rely on their reports when making property decisions — including buyers. If they breach that duty by failing to exercise reasonable care, and that breach causes financial loss, they can be held liable in negligence.
A building inspector must carry out inspections with reasonable skill and care. This is a common law duty, reinforced by statutory consumer protections.
Under the Australian Consumer Law (ACL), professionals like building inspectors provide services 'in trade or commerce'. Section 60 of the ACL guarantees that such services will be rendered with due care and skill.
If the inspector’s report was misleading or deceptive — for example, by omitting major defects they should have identified — it may also breach ACL section 18, which prohibits misleading or deceptive conduct in trade or commerce.
You generally have up to six years from the date you suffered loss (usually settlement day) to start court proceedings for negligence in most Australian states and territories.
Statutory TextA person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
— Australian Consumer Law, s. 18 — Misleading or deceptive conduct
Statutory TextA person who supplies services in trade or commerce must supply them with due care and skill.
— Australian Consumer Law, s. 60 — Due care and skill
What to Do
Gather all documents: the inspection report, contract of sale, correspondence with the inspector, and evidence of defects (e.g., expert reports).
Seek legal advice promptly — limitation periods apply, and early action helps preserve evidence.
Consider sending a formal complaint to the inspector or their professional association (e.g., AIBS or HIA).
If appropriate, lodge a claim with your state’s civil and administrative tribunal (e.g., NCAT in NSW or VCAT in Victoria) for claims under $100,000.
Explore whether the vendor also breached ACL protections — e.g., by concealing defects or making false representations.
Sources
Not 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.