GJ Advisor - Helping you at every stage of your build

two girls by fireplace

contracts & approvals

What are implied warranties?

Date Friday, 11 March 2016 11:21 AM

All new builds come with implied warranties.

Building a new home is an exciting time! After all, you aren't just making an incredibly valuable step up on the property ladder - you are building your dream home

The Housing Industry Association reports that more than 200,000 homes are forecast to commence construction in the current financial year in Australia. There are some great benefits to building a new home that people are looking to take advantage of.

One of them is the fact that building a new home comes with warranties that are enforced by Australian law. Like the warranties that come with any expensive piece of electronics or equipment, this will help give you a peace of mind that you're getting what you pay for.

Let's take a look at how these warranties actually work.

All forms of domestic building work are immediately eligible for warranties

Implied warranties

As mentioned by Consumer Affairs Victoria, all forms of domestic building work are immediately eligible for warranties, no matter how big or small the project is and whether or not it was written on a contract. Furthermore, the effects of these warranties last ten years and will transfer to anyone else who owns the home within that time frame. The same principle applies across all of Australia.

What it means

According to the Domestic Building Contracts Act, builders and tradesmen are required to:

  • Ensure all materials used are appropriate, of good-quality and are new, unless noted in the contract.
  • Make sure that the new home is suitable to live in when finished.
  • Build the house in a proper and correct way as directed by the contract and design plans.
  • Do all work with a reasonable level of skill, care and awareness, and complete it by the contract-specified date.
  • Carry out the project in a legal and lawful manner.
Take a look at your contract to see what your warranty rights are.Check your contract to see what your warranty rights are.

Building insurance

On top of these warranties, it is a legal obligation for home builders and tradespeople to have domestic building insurance on any building work worth over $16,000. Therefore, it is safe to say your new home will be over that figure.

This insurance will give you limited cover, protecting you in the instance that the home builder can't complete the project or remedy any issues due to becoming insolvent, disappearing or dying.

With these warranties and insurances covering so many aspects of construction, it can certainly give you peace of mind when you build your own home.

Style Diary

A place to browse popular styles


Images and photographs may depict fixtures, finishes and features either not supplied by G.J. Gardner Homes or not included in any price stated. These items include furniture, swimming pools, pool decks, fences, landscaping. Price does not include all facades shown. For detailed home pricing, please talk to a new homes consultant.