Residential building advice

All residential building work in New South Wales is regulated by the Home Building Act 1989 (NSW), ranging from small owner-builder projects to large strata developments. As a homeowner or builder, it is crucial that you are aware of your rights when undertaking residential building works.

Key Rights and Obligations

1. Statutory Warranties

Statutory warranties, which in simple terms hold both the builder and the developer liable for any defects in the building work that are noticed within 2 years (for minor defects) and 6 years (for major defects) following the completion of the building work. You should know that even if you have just purchased a property and were not involved in the building works, the statutory warranties still apply to you.

2. Contract Requirements

Entering into a residential building contract is a significant commitment both financially and legally. It is not uncommon in this space for homeowners to enter into a one-sided contract (in favour of the builder). We frequently see issues relating to unclear risk allocation or non-compliance with mandatory requirements. Builders must have written contracts outlining specific details to ensure enforceability. Failure to comply may void the contract. To ensure your interests are fully protected, seek legal advice before signing.

3. Insurance

If you’re a builder undertaking residential building work valued over $20,000 (inclusive of GST), you are required to have insurance under the Home Building Compensation Scheme. This applies to all types of residential building work including renovations and alterations. This insurance protects homeowners in the case of any breaches of the statutory warranties or in circumstances where the builder cannot complete the project due to insolvency, death, disappearance or a license suspension.

Need Residential Building Advice?

Whether you are a homeowner or builder, navigating the complexities of residential building work can be challenging. Our team is here to provide you with the legal guidance you need to ensure your project runs smoothly and in compliance with all regulations.

Get in touch with us for professional advice on your contracts, statutory warranties and insurance requirements.