3 Helpful Hints for Buyers of Owner Built and Renovated Properties
Buying a home is an exciting time. But it’s important to know what to do to protect your interests if you are buying a home that has been built or renovated by an Owner Builder.
Purchasing an Owner Built or renovated home comes with a few extra risks. The expertise, time and energy that have gone into the project can be highly variable. In our experience there has also been a higher rate of defects in Owner Built properties.
Protect yourself and your interests by following these easy steps:
1. Know how old the property and any renovations or extensions are.
- Ask for the date the Certificate of Occupancy was issued.
- If the building is less than 7* years old you need to find out who built it.
2. Find out if the property was constructed or renovated under an Owner Builder Permit.
Ask the Owner and Estate Agent in the early stages of inspecting the property who the Builder was or who construction works were completed under.
- Check with your local government.
- Ensure your Solicitor, Conveyancer or Settlement Agent are onto it, they’ll know what to ask for.
3. Know the Owner Builder Warranty Insurance rules in your state.
You may be entitled to a mandatory Insurance Policy provided by the Vendor which protects you if dodgy work is discovered after you have purchased the property for which the Owner Builder was responsible. It extends cover to you should the Owner Builder die, abscond or go bankrupt.
- In VIC, NSW and WA you have a mandatory entitlement to this policy, in the other states it’s optional or voluntary.
Check out Owner Builder requirements in your state on our services page or call 131 546 for more information.