Changes to Home Warranty Insurance in NSW
The NSW Government has announced major structural reforms to the states Home Warranty Insurance Scheme. The reforms will have a major impact on the building and construction industry in NSW. If you are a licensed builder or trade contractor in NSW we would encourage you to take steps to learn more and stay up to date with what is happening.
Visit the NSW Department of Fair Trading website for information on the new arrangements.
Fair Trading NSW Home Warranty Insurance
Fair Trading NSW New Home Warranty Insurance
The changes will come into effect in NSW on July 1, 2010.
In NSW, Home warranty insurance needs to be provided by:
- a builder or tradesperson before taking any money (including a deposit) from a home owner (including an owner-builder) under a residential building contract and before starting any work under that contract
- a ‘spec’ builder before starting any residential building work on a property owned by the builder
- a developer before entering into a contract for the sale of a property on which a builder is doing or has done residential building work for the developer
- an owner-builder (ie. a home owner who did owner-builder work under an owner-builder permit) before entering into a contract for sale of the property on which residential building was done within the previous 6 years.
Similar reforms have already occurred in Tasmania and the Victorian system looks set for a shakeup after two of the major insurers recently announced that they would be exiting the market.
The Home Warranty Insurance systems in NSW and Victoria have been surrounded in controversy for many years and it comes as no surprise that change is on the way. Better or worse, please stay up to date and we will continue to post information as it comes to hand.
Filed Under: Featured • Legislation • Trade Administration
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