Page 32 - Real estate: a guide for buyers and sellers
P. 32
Real estate: A guide for buyers and sellers
Vacant land However, insurance cover is limited to six
years for structural defects and two years
If you are buying vacant land to build on, for non-structural defects.
consider obtaining a soil test beforehand.
This could avoid problems and extra A builder still operating a business
costs when building and excavation is responsible for fixing defects or
commences. completing building work according to
plans and specifications in the contract.
BUYER’S TIP
Consumers and builders can get free
Never sign a contract for an owner-built advice and assistance on domestic
property before checking the property building disputes by contacting Building
carefully. If there is an issue with defective Advice and Conciliation Victoria (BACV)
or incomplete work, check with your local on 1300 557 559.
council or ask the property owner for
information. For more information about domestic
building, visit consumer.vic.gov.au/
Domestic building insurance building.
A builder must be registered in order Owner-built properties
to carry out domestic building work
over $5000. If the contract is more than If an owner-builder sells a property within
$12,000, the builder must have domestic six years of obtaining a certificate of
building insurance. occupancy or final inspection, they must
obtain a defects inspection report from a
Domestic building insurance prescribed building practitioner. This report
will protect a home owner from will be attached to the contract of sale.
defective or incomplete building
works if the builder: Any defects that arise and are not listed
in the report will be covered under the
• dies builder’s domestic building insurance. For
• becomes insolvent, or properties built after June 2005, owner-
• disappears. builders must also have a certificate of
consent issued by the Building Practitioners’
Board for the domestic building works.
An owner-builder must have domestic
building insurance if the property is sold
within six years of completion.
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