The patio concrete is supposed to meet the house below the weep screed and below the level of the foundation that the outer wall of the house is built on. If it isn’t, water will be driven into the wall of the house and most likely will create dry rot. This weep screed is usually below the foundation sill. The purpose is to shed water outwards if any manages to get in.

http://www.stuccoguru.com/resources/article.cfm?articleID=B-05300&resourceID=3

[quote Scarlett]How concerned shall I be about the first issue, does it have to be fixed sooner than later and how much can it cost[/quote]

Sooner. There is a possible remediation method listed in the link above.