Building the home of your dreams is an exciting time as a home owner – whether it’s in a master-planned community or on a rare block of land in an established suburb. It’s your chance to create exactly what you want, but there are lots of things to consider. One of those is builders warranty, which you’ll need to understand before construction begins in earnest.

What to do Before You Start

Builders warranty goes by many different names depending on where you’re located within Australia. It may also cover different elements of the build, be for a shorter or longer period than other states, and may or may not be mandatory depending on government legislation.

For anyone who hasn’t previously built a home in New South Wales, the subject can get a bit confusing if you’re not sure what to look for. That’s why it pays to do your own research into builders warranty (and additional insurances), as well as have a candid conversation with your chosen builder and contractors about the warranties they provide.

Builders Warranty in NSW

It’s good to know that in New South Wales there are a number of safeguards built to protect both home owners and contractors from any potential hiccups during and after the property’s construction. In NSW, contracts for new homes automatically come with a warranty known as the ‘defects and liability period’. This is usually for 13 weeks following the final date of construction for your new home, but speak to your builder as the period covered may be different.

Remember: paperwork is important. Make sure you confirm in writing all the warranties and guarantees provided by your contractors. Keep a copy of those records in a secure location where you can easily access them, and take care to always hold on to the latest updated records in case there are warranty issues down the track.

What is The Home Building Compensation Fund?

The good news is you aren’t only covered for 13 weeks under the defects and liability period. It’s your builder’s responsibility to ensure the property is free from major defects for six years after the build’s completion, and two years for all other defects.

This falls within the remit of a statutory product now known as the Home Building Compensation Fund (HBCF). Better known simply as ‘home owner insurance’, HBCF “covers the homeowner (and subsequent owners) where the contracted building work is incomplete or defective and the builder has either died, disappeared, become insolvent, or the licence of the builder is suspended for failure to comply with a compensation order in favour of the homeowner made by a Court or the NSW Civil & Administrative Tribunal (NCAT)”.

It lasts for up to six years after the build’s completion or termination of the building contract. To ensure you and your builder are compliant with any updates, keep an eye on the latest changes to HBCF reforms.

Structural Guarantee

Despite what you may think, different builders offer different guarantees on their constructions. Many will have lifetime structural guarantees built into their contracts so you won’t have to worry about it over the life of the home, however others may offer 25-year guarantees or shorter.

It’s your responsibility as the buyer to ensure you’re across all the details. The easiest thing to do is enquire with each builder so you understand what they are offering and can make an informed decision.

How to Ensure You’re Covered

It is your builder’s responsibility to purchase the correct Certificate of Insurance under the latest HBCF scheme on behalf of you, the home owner. This insurance covers all residential building projects over $20,000 so be sure to double-check with your builder before construction begins – and get them to provide a photocopy of the certificate for your own records.

Your Chance to Win a New Car With Your New Home

If you’re ready to create the new home of your dreams, you can enjoy an added bonus when you build your home in a master-planned community. For a limited time, AVID is offering home buyers a chance to win 1 of 5 brand-new Volkswagen Golf 110TSI Trendlines.

All you need to do is purchase a selected block and exchange contracts by 29 November 2019 in the stylish village community of Waterford and you’ll go straight into the draw. The prize pool is valued at more than $150,000 and is the perfect added bonus when building your home. What could be better than upgrading to a new home, living in a master-planned community and winning a new Volkswagen Golf?


Waterford is an exciting new development set to become one of the most enviable suburbs in Chisholm, East Maitland. Enjoy natural beauty and spacious surrounds with all the convenience of stylish village living.

Enquire today to find out more about land and house-and-land packages at Waterford.

Live in your dream home.

Build a brand new home with one of Waterford’s Home & Land packages or select your ideal block and build your dream home for life.

Close Menu