Just bought a new unit and was wondering if something structural/major breaks or doesnt work properly, whos fault is it and what steps can you take?
Such as the plumbing having a problem after a few months or damp problems in the walls roof.
Would it be the builder, or would we rely on the building insurance (this would put up premiums i expect if we claim).
Has anyone else been in this position?
Thanks guys, it was just something that we were thinking about.
Hi Rachster,
With a few exceptions new properties usually come with a 6 year warranty. Check out the builders services authority in your state for exact details. On top of this new properties also have a defect warranty period from time of practical completion (not settlement) – once again this may vary from state to state so a google search will be time well spent.
Your contract should also outline any obligations the builder has – getting them to do the work can sometimes be a bit of a challenge though
You may want to read this: High Rise Defects
This applies for NSW, so you will need to do your due diligence to ensure you don't get caught without cover.
thanks guys, much appreciated
I will scour through the contract to find it and also contact the building board here to find out.
rach
All this should be described in your contract, as well you should have some form of warranty on your new property. Also, like previous post suggested you might check if you have a defect insurance as well.
Derek thanks for clarifying. I absolutely agree with you that all buyers need to check if they have a warranty before buying the property.
Derek wrote:Hi Mattsta,Been a while since I had an understanding of NSW building warranties so double check.
My link is to the most recent developments in case law – effectively, there is no contract between the builder and the body corporate for issues with the common property (BC did not contract with them or buy etc) so there is no protection as the courts in NSW have left this to the legislators.
hi Scott,
Gee that is an interesting extension of issues with builders warranties.
Have NSW government made any efforts to address this matter?
This ruling could have, if it hasn't already, a knock-on effect to other states.
I haven't seen any further updates from the legal eagles. Basically the courts said that they wouldn't touch it. It may have a knock on effect in other states but each state's legislation is different.
I doubt the OFT will move too quickly on the issue. They'd prefer to remain a toothless tiger.
Hi Mattsta,
Not all new properties have warranty.
From memory NSW warranty does not apply to buildings higher than 3 storeys with underground carpark. I am sure this is what Scott's link was to. Been a while since I had an understanding of NSW building warranties so double check.
All buyers should check that the building they are buying has any form of warranty. Ring the building supervisory board in the respective states to check.
Edit (11/11/12) changed 4 storeys to 3 based on link to article provided by SNM
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