Have found a good summary on obligations under the Home Building Act, 1989 (NSW). Unsure if it's been covered on the forum before but hope it is helpful:
An owner builder is someone who is involved in coordinating or supervising any work, or carries out any work, involved in: the construction of a dwelling; alterations or additions to a dwelling; or repair, renovation, decoration or protective treatment of a dwelling.
The Home Building Act places obligations on owner builders to:
- Be licensed at the time of the proposed works, that is, have an owner builder permit if the reasonable market cost of the labour and materials exceed $5,000 inclusive of GST. If you carry on as an owner builder without a licence you can be fined.
- Obtain home warranty insurance if you sell the property up to six years after the work was done. If you do not carry this insurance at time of sale you can be fined.
Statutory warranties
If an owner builder sells the property that the work was carried out on within six years of the work being completed then the purchaser is entitled to the benefit of the statutory warranties (promises) in the Home Building Act in relation to the work. The owner builder gives the same promises as a builder who entered into a building contract with someone to carry out work.
The promises include:
- that the work was performed in a proper and workmanlike manner.
- that all materials supplied are good and suitable for the purpose for which they are used and that, unless otherwise stated, the materials were new when used.
- that the work was done in accordance with and complied with the law in place at the time of building.
- that the work has resulted in a dwelling that is reasonably fit for occupation.
- that the work and any materials used in doing the work will be reasonably fit for the specified purpose or result, if the person for whom the work is done expressly makes the purpose or result known to the contractor, so as to show that the owner relies on the contractors skill and judgment.
An owner builder is someone who is involved in coordinating or supervising any work, or carries out any work, involved in: the construction of a dwelling; alterations or additions to a dwelling; or repair, renovation, decoration or protective treatment of a dwelling.
The Home Building Act places obligations on owner builders to:
- Be licensed at the time of the proposed works, that is, have an owner builder permit if the reasonable market cost of the labour and materials exceed $5,000 inclusive of GST. If you carry on as an owner builder without a licence you can be fined.
- Obtain home warranty insurance if you sell the property up to six years after the work was done. If you do not carry this insurance at time of sale you can be fined.
Statutory warranties
If an owner builder sells the property that the work was carried out on within six years of the work being completed then the purchaser is entitled to the benefit of the statutory warranties (promises) in the Home Building Act in relation to the work. The owner builder gives the same promises as a builder who entered into a building contract with someone to carry out work.
The promises include:
- that the work was performed in a proper and workmanlike manner.
- that all materials supplied are good and suitable for the purpose for which they are used and that, unless otherwise stated, the materials were new when used.
- that the work was done in accordance with and complied with the law in place at the time of building.
- that the work has resulted in a dwelling that is reasonably fit for occupation.
- that the work and any materials used in doing the work will be reasonably fit for the specified purpose or result, if the person for whom the work is done expressly makes the purpose or result known to the contractor, so as to show that the owner relies on the contractors skill and judgment.
