In NSW on, 6th May 2014, there was a announcement in regards to the removal of Home Owners Warranty obligations for owner builders. In other words owner built homes will be sold with no home owners warranty protection for the new purchaser. This decision will significantly impact the viability of owner building in NSW.
Home owners warranty insurance is a consumer protection mechanism in the legislation. Owner builders are required to take out home owners warranty insurance should they decide to sell their owner built residence within the home warranty period.
In NSW, Home Building Amendment Bill 2014 will make owner builders ineligible to obtain home owners warranty insurance. Subsequently purchasers of owner built residences will be confronted with a consumer warning, noting the property is being sold without any statutory warranty. The severity of this type of notice will certainly achieve the governments and the industry bodies goal of preventing Australians to build, renovate or erect a front fence.
