Changes to Statutory Warranties Home Building Act

The Home Building Act includes a requirement that a Builder comply with Statutory Warranties.  The Statutory Warranty Scheme has been changed to now introduce the concept of “a Major defect” to replace the previous definition of “Structural defect”.  Major defects are covered by the six year Statutory Warranty with all other defects covered by a two year Statutory Warranty.  This means that if the faulty defective unworkmanlike work is not a major defect you will need to take action against the Builder without delay.

If rectification work is required, new laws covering home building suggest that the most sufficient way to resolve a dispute is for the original builder to fix the work.  That means NCAT (NSW Consumer Administrative Tribunal) will prefer to order rectification rather than monetary compensation.

This means a Fair Trading inspector/or Tribunal can issue “Rectification Orders” with stages and dates for completion of the different works.  They can include Orders requiring owners to pay money due under the Contract.