What First Home Buyers Should Know About Builder Warranties and Guarantees

Buying your first home is an exciting milestone, but it can also feel overwhelming. Why, you ask? You must understand all the paperwork and legal protections that come with the home. Among the most important protections are builder home warranties and guarantees. These ensure that your new home meets certain quality standards and that you’re protected if things go wrong. Here’s what you should know about these important safeguards.

What Are Builder Warranties and Guarantees?

Builder warranties and guarantees might sound identical, but they’re quite different. A builder warranty (sometimes called a statutory warranty) promises that your builder will fix specific defects for a set period. A builder guarantee is broader protection that covers various aspects of your home’s construction quality.

Your builder can’t escape these responsibilities easily. They’re legally bound to honour these protections.

What Do They Typically Cover?

Every state in Australia has statutory warranties. These are automatic legal protections that apply to all new homes. You don’t need to ask for them – they’re built into every building contract.

Here’s what statutory warranties typically cover:

• Major defects: Structural problems, waterproofing failures, and safety issues get 6-10 years of protection. This includes foundation cracks, roof leaks, and faulty electrical work.
• Minor defects: Cosmetic issues like paint problems, door alignment, and small cracks get 1-2 years of coverage. These might seem trivial, but they can affect your home’s value.
• Manufacturer warranties on appliances, fixtures, and fittings may vary and are usually separate from the builder’s warranty.

The coverage periods start from your home’s completion date. Mark this date in your calendar – it’s crucial for any future claims.

The Defects Liability Period

Contracts for new homes come with a warranty known as the ‘defects and liability period’ (usually 13 weeks for new homes). This is your golden window to spot and report problems.

During this period, your builder must fix any defects at no cost to you. Use this time wisely:

• Walk through your home methodically, room by room
• Test all fixtures, switches, and appliances
• Check windows and doors for proper operation
• Look for paint imperfections and finish quality issues
• Document everything with photos and detailed notes

Don’t rush this process. Take multiple inspections over several weeks to catch issues that might not be immediately obvious.

Why Are They Important for First Home Buyers?

As a first home buyer builder, you may not have experience spotting construction issues. As such, having a builder’s warranty provides peace of mind. However, if something goes wrong after you move in, you can have it repaired without paying out of pocket. Warranties also protect your financial investment, increase resale value, and ensure the builder’s accountability.

What Should You Check Before Signing?

Before you sign a building contract, read the warranty and guarantee details carefully. Confirm the time frames and coverage, and ask the builder about any additional guarantees offered. In addition, check if the builder is licensed and insured. Most importantly, understand your responsibilities, such as maintaining the home properly, which may be a condition of the warranty

Feeling unsure about the warranty? Have a solicitor or conveyancer review the documents.

What If There’s a Problem?

If you discover a defect or issue after you move in, notify the builder in writing as soon as possible. Additionally, give the builder a chance to inspect and fix the problem. However, if the builder refuses or delays, contact your local building authority or consumer protection agency. Most importantly, keep detailed records of all correspondence, photos of the issue, and repair attempts.

Final Thoughts

Builder warranties and guarantees ensure your home is built to a satisfactory standard. They also give you a clear pathway to resolve defects if they arise. However, like any other contract, review the warranty details carefully before signing. Also, don’t hesitate to seek legal or professional advice if you’re unsure. After all, buying your first home is one of the biggest investments you’ll ever make. Make sure you’re protected.