What Warranties Are Available For New Homes In Melbourne?

When undertaking the construction of a new home in Melbourne, homeowners expect that the work will be protected against structural defects by a number of different warranties. Some of these warranties are automatic (meaning that they exist as the result of construction), whereas others can be organized by the homeowner or the builder. What are the more common ones available?

• Implied Warranties: This is an unwritten guarantee of the quality of the workmanship, fitness and habitability of the home. These ‘reasonable expectations’ of the homeowner actually have a basis in the legal system.
• Express Warranties: This can be given to the new home by the builder; it will be provided at settlement (with a condensed version in the agreement) and gives up the right to implied warranties.
• Third Party: The custom home builder is required to purchase these warranties from independent third parties (who then assume responsibility for most of the claims). It ensures the integrity of the home.
• Supplemental Warranties: The homeowner may purchase an additional warranty that can be customised to their needs (such as specific repairs and replacements). No warranty will cover all sorts of damage.

There are a number of reasons that any of the above warranties may be voided when making a claim for new homes in Melbourne. If the home has not been properly maintained or there have been code violations, for example, the claim can be denied. This means that the homeowner will have to pay for any repairs or replacements out of their own pocket.