DID YOU KNOW?

There are two instruments under NSW Law that are most commonly referred to in strata matters, and they are:

  • Home Building Act 1989
  • Strata Schemes Management Act 2015 (Part 2 2016)

Statutory Warranties

The following warranties set out what you are entitled to under the contract between you and your builder. Even if these warranties are not written into the contract you sign, the law says that they still apply. Statutory warranties are in effect for 6 years from the date that any form of Occupancy Certificate is issued for the building. For the first two years, all defects are warrantied and for the remaining four years the warranty is limited to major defects.

These warranties are:

  • the work will be performed with due care and skill
  • the work will be in accordance with any plans and specifications set out in the contract
  • all materials supplied will be suitable for the purpose for which they are to be used
  • materials will be new, unless otherwise specified
  • the work will be done in accordance to, and will comply with, the Home Building Act 1989 or any other law
  • the work will be done with due diligence and within the time stated in the contract, or otherwise in a reasonable time
  • the work will result in a dwelling that is reasonably fit to live in, if the work includes:
    i) construction of a dwelling
    ii) making of alterations or additions to a dwelling
    iii) repairing, renovation, decoration or protective treatment
    of a dwelling the work will be done with due diligence and within the time stated in the contract, or otherwise in a reasonable time
  • the work and any materials used in doing the work will be reasonably fit for the specified purpose or result that the owner has advised the contractor, while indicating that the owner relies on the contractor’s skill and judgment.

Law