Insurance on development units after sale

[Gazz]

I am about to complete a 3 unit survey strata development with practical completion of the units occurring in the next week.

I engaged one of the larger residential building companies in Perth to build the units and they have taken out builders warranty insurance policies for each of the units. I have received a copy of all of the insurance policies.

I originally intended to keep the three units upon completion as rental properties but have now decided to sell them. The units are held in my name and not through a company/trust, etc.

When I sell the each unit I assume that the builders warranty insurance will automatically cover the purchaser. Is this correct?

As the 'developer' of the properties am I liable for any building defects or any other liabilities after they are sold or are the units treated the same a PPOR that I might build and later sell? Should I be taking out some kind of insurance to cover any liabilities I might have to the purchasers?

Thanks for your advice.

 

[Scott No Mates]

Although you may be the developer, you didn't take out the home warranty insurance, the builder did. They are liable for their defects, not you.

The terms of the insurance policy is assignable to all future owners until the expiry of the warranty period without having to notify the insurer/builder.

 

[Ausprop]

all for what it's worth, which is little. firstly the builder has to die, disappear or become insolvent (meaning if he is hanging around just refusing to do anything then you can't claim) and it is capped at $100k anyway. I thought there was some debate about getting rid of this insurance altogether?