Owner-builder warranty & selling (NSW)

What is owner-builder warranty?

Owner-builder warranty is a selling-related requirement that may apply when an owner-built property is sold within a certain period after completion.

It is designed to provide protection to future purchasers for certain defects — it is not insurance that protects you during construction.

What it is not

• It is not construction insurance
• It does not cover site accidents or damage during the build
• It does not replace Contract Works or Public Liability insurance
• It does not apply just because you were an owner-builder

When does owner-builder warranty apply?

In NSW, if you sell your property within 7 years and 6 months of obtaining your owner-builder permit, you must include a consumer warning in the contract of sale. This informs potential buyers that work done by the owner-builder is not covered by home building compensation insurance.

• The period runs from obtaining the permit, not from completion of the work.
• Omitting the consumer warning when required is an offence and may result in fines.
• If you do not sell within that period, the consumer warning requirement does not apply.

SIRA (State Insurance Regulatory Authority) regulates this requirement. Confirm the current wording and rules when selling (see official references below).

Why this matters in practice

• Real estate agents and conveyancers will ask about owner-builder work
• Missing records can delay or complicate a sale
• Buyers may request evidence of approvals and inspections
• Warranty obligations (if applicable) must be addressed before settlement

Records that matter when selling

Even if warranty is not triggered, buyers and professionals commonly request:

• Planning approvals (DA or CDC)
• Construction documents and approved plans
• Inspection records and compliance certificates
• Final approvals (Occupation Certificate or Certificate of Completion)
• Evidence of variations and changes