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Home warranty report

Owner Builder Warranty Insurance is a compulsory insurance required by the Home Building Act 1989 as from 1st May 1997.

Generally, “Home Warranty Insurance” can be defined as the insurance cover provided on a new or renovated house costing $20,000 or more who intend to sell their home within 6 years of completion of any work under an Owner Builder permit to provide an Owner Builders Warranty Insurance policy for the benefit of the purchaser of the property.

We examine all aspects of construction, and report the findings in a clear, easily understood format. Our reports are a comprehensive knowledge of all construction aspects and Australian Building Codes and Standards.

Our reports are:

  • Accepted by insurers
  • Same or next day report issue
  • Expert knowledge
  • Reduce stress and hassle
  • Avoid sale loss

It is important to note that this type of Home Warranty Insurance will only cover a successive purchaser, for the balance of the 6 year period, from the date of completion of the Owner Building project.

So for instance, if an Owner Builder completed the building work on the 1st March 2003, and has sold the property to a purchaser on the 1st March 2007, then the purchaser would only be covered until 1st March 2009 – the balance of the 6 year period, which is 2 years.

Obligations of Owner Builders when selling property

Under S 95 (2) of the Home Building Act 1989, it is strictly illegal for Owner Builders to enter into a contract for the sale of their properties, unless more than 6 years has passed since the date of building or major renovation completion on the property – S 95 (3), without attaching a valid Home Warranty Certificate to the contract.

The contract for the sale of the land must also include disclosure of the fact that an Owner Builder Permit was issued in relation to the work and that the work done under the permit requiring Home Warranty Insurance.

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