WA's building regulator is urging owner-builders to ensure they fully understand their obligations after a Perth man was fined $2,400 for selling his house without the necessary home indemnity insurance.
At Joondalup Magistrates Court on 1 November 2019, Jonathon Robert Reardon pleaded guilty to an offence under WA's home building contract laws following a prosecution by Building and Energy.
The court was told that in 2013, Mr Reardon received owner-builder approval and a building permit for the construction of a two-storey home in Yanchep, which was completed the following year.
In 2016, Mr Reardon entered into a contract to sell the property but did not have a home indemnity insurance policy, which is required if an owner-builder sells the house within seven years of the building permit issue date.
Building and Energy A/Executive Director Saj Abdoolakhan said the laws were designed to protect new owners from building defects.
"Owner-builders are responsible for their building work for seven years from when the building permit is granted," he explained.
"Home indemnity insurance covers subsequent owners if the owner-builder fails to rectify faulty or unsatisfactory workmanship for reasons such as insolvency, death or disappearance."
See the Building and Energy website (www.commerce.wa.gov.au/building-and-energy/owner-builders or via dmirs.wa.gov.au) for a range of useful owner-builder information.
