owner builder ins requirements

Discussion in 'Legal Issues' started by fernfurn, 9th Jun, 2015.

  1. fernfurn

    fernfurn Member

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    I know you have to get insurance on an owner builder home, but is there a period after which you don't have to. It sticks in my mind that once it has been built 7 years you don't have to have insurance if you sell
     
  2. Scott No Mates

    Scott No Mates ...and people wonder why?

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    It varies between states. Refer to the OFT or VCAT websites.
     
  3. Paul@PFI

    Paul@PFI Tax, SMSF & Planning

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    NSW :

    Insurance under the Home Building Compensation Fund is no longer available for owner-builder work done by an owner-builder. Should an owner-builder or a successor in title to that person decide to sell their home within 7 years and 6 months after an owner-builder permit was issued, the contract for sale must include a note (a consumer warning) stating that: an owner-builder permit was issued in relation to the land on the date it was issued.

    Work done under an owner-builder permit is not required to be insured under the Home Building Act 1989 unless the work done by a (licensed !!) contractor to the owner-builder is worth more than $20,000.

    If the consumer warning is not included in the contract of sale, the purchaser can void the sale contract before settlement.

    Warning! - As an owner-builder you are guaranteeing the work you undertake. The next immediate owner of the property is entitled to the benefit of the statutory warranties set out in the Home Building Act 1989, and can take you, the owner builder, to the NSW Civil and Administrative Tribunal to enforce their statutory warranty rights. This may result in a money order against you.