What if I am an owner-builder?
An owner-builder must not carry out domestic building work on his or her land or in respect of the building on the land, if the cost of the work is estimated to be more than $12,000.00, unless the owner has been issued with a certificate of consent for the work, is a registered builder or architect, the Director of Housing or is carrying out the work with an emergency order, or a building order or notice.
An owner-builder who wishes to sell a domestic property within 6 years and 6 months after the completion date of the building works must obtain insurance where domestic building works have been carried out and the cost of the works are more than $12,000.00. A failure to obtain insurance may result in the owner-builder be found to have committed a criminal offence and be liable for fines. In addition, the purchaser may be able to avoid the contract before settlement.
The owner-builder must provide certain warranties pursuant to the legislation in the contract of sale and where the owner-builder is not a registered builder a report listing any building defects is required, however if the owner-builder is a registered builder there is no requirement to provide a report to the purchaser. The defects report must be obtained no more than 6 months before the contract is signed. The insurance does not usually cover the specified defects. Failure to meet the warranty or report requirements may also result in the purchaser being able to avoid the contract before settlement.
An owner-builder who wishes to sell a commercial building within 6 years and 6 months after the completion date of the building works must obtain a defects report, where the owner-builder is not a registered builder. Insurance is required where the commercial building has domestic building works carried out and those works are valued at more than $12,000.00. Where the works fall below the monetary threshold and/or outside the definition of domestic building work, no insurance is required.
