Your Rights Under the Home Building Act 1989 (NSW)

If you are a homeowner having work done on your home - or a builder carrying out residential building work in New South Wales - the Home Building Act 1989 (NSW) sets out important rights and obligations. Understanding them is essential when a dispute arises over defective or incomplete work.

Statutory warranties

The Act implies a set of statutory warranties into every contract for residential building work. These warranties cannot be contracted out of, and they include that:

• the work will be done with due care and skill, and in accordance with the plans and specifications;
• all materials supplied will be good and suitable for the purpose;
• the work will comply with the law;
• the work will be done with due diligence and within the agreed time; and
• the work will result in a dwelling that is reasonably fit to live in (where that is the contract’s purpose).

These warranties extend not only to the original owner but, in many cases, to subsequent owners of the property.

Major and minor defects

The Act distinguishes between major defects and other (minor) defects, and this distinction affects the statutory warranty periods:

• A longer warranty period applies to major defects.
• A shorter period applies to other defects.

A “major defect” generally involves a major element of the building and causes (or is likely to cause) serious consequences - such as the inability to use the dwelling, or destruction of the building. Whether a defect is “major” can be a key issue in a dispute, because it determines how long you have to make a claim.

Time limits matter

Claims under the statutory warranties must be brought within the relevant warranty period, calculated from completion of the work. Because the periods differ for major and other defects, and because the consequences of missing a deadline are severe, it is important to act promptly and get advice early.

Other protections

The Act also deals with matters including:

• requirements for written contracts above certain values;
• licensing of builders and tradespeople;
• limits on deposits and progress payments; and
• home building compensation (insurance) cover.

Resolving home building disputes

Most residential building disputes in NSW are dealt with in the NSW Civil and Administrative Tribunal (NCAT). NCAT can make a range of orders, including for rectification of work or payment of money. The process has its own rules and time limits.

How we can help

We act for both homeowners and builders in home building disputes - from defect and payment claims to NCAT proceedings. If you are facing a residential building dispute, learn more about our home building and NCAT disputes service, or read about defective work claims.