Property owner fined after home indemnity insurance mix-up

“The court was told that in 2013, Mr Reardon received owner-builder approval and a building permit for the construction of a two-storey home in Yanchep, which was completed the following year,” a statement from WA’s building regulator, Building and Energy, said.

“In 2016, Mr Reardon entered into a contract to sell the property but did not have a home indemnity insurance policy, which is required if an owner-builder sells the house within seven years of the building permit issue date.”

Commenting further, Building and Energy executive director Saj Abdoolakhan said the laws were designed to protect new owners from building defects.

“Owner-builders are responsible for their building work for seven years from when the building permit is granted,” he explained.

“Home indemnity insurance covers subsequent owners if the owner-builder fails to rectify faulty or unsatisfactory workmanship for reasons such as insolvency, death or disappearance.”