Do owner-builders need Home Warranty insurance when selling in Victoria?

Potentially, yes. If you sell a Victorian property within the prescribed period after completing owner-builder domestic building work, you may be required to obtain Home Warranty cover protecting the purchaser. The Building and Plumbing Commission advises owner-builders to confirm the applicable requirements before entering into a contract of sale.

What is the owner-builder insurance threshold in Victoria in 2026?

From 1 July 2026, the relevant threshold under Victoria's new regime is more than $20,000. This increased from the previous $16,000 threshold.

What is a Notice of Cover?

A Notice of Cover is evidence that Home Warranty cover has been issued under Victoria's statutory scheme. Where required for an owner-builder sale, the Notice of Cover must be included with the Section 32 Vendor Statement.

Do I still need an owner-builder defects report in Victoria?

Yes, where the owner-builder sale requirements apply. A compliant Defects Inspection Report must be prepared by a prescribed practitioner and generally must be no more than six months old when supplied.

How long after owner-builder work do I need insurance to sell in Victoria?

Victorian law contains prescribed periods relating to the completion of owner-builder work. Current guidance refers to periods of six years and six-and-a-half years depending on the obligation. If the work was completed within the last six-and-a-half years, confirm the requirements with the Building and Plumbing Commission and your conveyancer before selling.

How much does Victoria's First-Resort Home Warranty Scheme cover?

Victoria's First-Resort Home Warranty Scheme provides maximum cover of up to $400,000, subject to applicable limits, deductibles, exclusions and scheme requirements.

Can a purchaser claim for defects if the owner-builder is still alive?

Yes, potentially. Under the first-resort system, eligible claims are not limited to situations where the builder or owner-builder has died, disappeared or become insolvent. Eligible defective, incomplete or non-compliant work may be covered subject to the scheme.

Does selling my house remove my responsibility as an owner-builder?

No. Statutory warranties can continue after the property changes hands, and the Building and Plumbing Commission has powers to require rectification of relevant defective or non-compliant building work.

top of page

Selling an Owner-Builder Home in Victoria After 1 July 2026: New Home Warranty Rules

Stephanie Boyce

Aug 13

0 min read

Selling an owner-builder home in Victoria after 1 July 2026 – new Home Warranty rules

Comments

bottom of page