Building Permits and Warranties

Some people start renovation and extension work without getting the necessary permits, so if you are looking to buy, it is imperative that you check this out before purchasing a property.

Most structural work that has been carried out on a property needs a building permit. And, in some cases, building warranty insurance may apply.

It becomes a matter of ‘buyers beware’ and your first stop should be to your local council to find information about permits.

From an overall perspective, though, before any work is started a building permit is generally required. This probably will entail written approval from a registered surveyor to show that the planned work complies with the building regulations.

To protect the owners and future owners of the property, most renovations and the standard of workmanship and materials used are covered by warranties and guarantees.

These, however, can vary depending on when and where the renovation was done. As the value of work of the renovation has changed under some Acts, make sure you skill up on what the different requirements were at the time.

For example, a building contract entered into between May 1996 and June 2002 in Victoria requires building insurance for work over $5000 and the period of insurance was for six years and six months. However, contracts entered into on or after 1 July 2002 need insurance for work valued over $12,000 and the period of insurance differs depending on whether is it a structural or non-structural defect. Also, a registered builder must carry out renos costing over $5000 as they fall under the ‘major domestic building contract’.

If you buy a property that has a warranty, this will be passed on to you, allowing you to claim for any breach that may occur.

Details of permits, warranties and guarantees should be included in your contract of sale, but it is also worth checking them out before you get to this stage of the buying process.