Changes to Home Building Act affecting a Contract for Sale of Land
[87]
Section 95
Omit the section. Insert instead:
95
No insurance for owner-builder work
(1) A contract of insurance under this Part cannot be entered into in relation to owner-builder
work carried out or to be carried out by a person as an owner-builder.
Note Insurance under the Home Building Compensation Fund cannot be offered or obtained for ownerbuilder work done by an owner-builder. This does not affect the requirement of section 92 for
insurance to be obtained for owner-builder work done under a contract.
(2) A person who is the owner of land in relation to which an owner-builder permit was issued
must not enter into a contract for the sale of the land unless the contract includes a
conspicuous note (a consumer warning) stating:
(a) that an owner-builder permit was issued in relation to the land (specifying the date on
which it was issued), and
(b) work done under an owner-builder permit is not required to be insured under this Act
unless the work was done by a contractor to the owner-builder.
Maximum penalty: 1,000 penalty units in the case of a corporation and 200 penalty units in any
other case.
(3) The requirement for a contract of sale to include a consumer warning does not apply:
(a) to a sale of land more than 7 years and 6 months after the owner-builder permit was
issued, or
(b) if the reasonable market cost of the labour and materials involved does not exceed the
amount prescribed by the regulations for the purposes of this section, or
(c) if the owner-builder work carried out under the owner-builder permit is of a class
prescribed by the regulations.
(4) The requirement for a contract of sale to include a consumer warning applies to a person as
the owner of land whether the person is the person to whom the owner-builder permit was
issued or a successor in title to that person.
(5) If a person contravenes this section in respect of a contract, the contract is voidable at the
option of the purchaser before the completion of the contract.
Note. Prior to its amendment by the Home Building Amendment Act 2014, section 95 required an ownerbuilder to obtain insurance under this Part before selling the land concerned. Schedule 4 provides
for the continued application of the previous requirements of section 95 to sales of land before the
amendment to that section.
[91]
Section 96B
Insert after section 96A:
96B
Obligations of sellers of excluded dwellings (houses and units used for
commercial purposes)
(1) A contract for the sale of land comprising a house or unit that is excluded from the definition
of dwelling in this Act because it was designed, constructed or adapted for commercial use as
tourist, holiday or overnight accommodation must contain the warning required by this
section if work has been done on the land in the previous 6 years that would have been
residential building work had the house or unit not been excluded from the definition of
dwelling.
(2) The warning required by this section is a prominent statement to the effect that the property
does not have the protection of the Home Building Act 1989.
(3) A person must not as vendor enter into a contract for the sale of land that is required to
contain a warning under this section unless the contract contains the required warning.
Maximum penalty: 1,000 penalty units in the case of a corporation and 200 penalty units in any
other case.
(4) If a person contravenes this section in respect of a contract, the contract is voidable at the
option of the purchaser before the completion of the contract.