Building contractors commencing residential building work in relation to the construction of a multi-storey (high-rise) building on or after 31 December 2003 are not required to arrange home warranty insurance in respect of the work.

A developer who enters into a contract for sale of land on which exempted work has been done, or is to be done, is not required to attach a certificate of home warranty insurance to the sale of contract.

For the purposes of the exemption, a multi-storey building is a building that:

• has a rise of more than three storeys
• contains 2 or more separate dwellings.

A rise in storeys has the same meaning here as in the Building Code of Australia.

Important. A storey does not include a space within a building which is only intended to accommodate vehicles.

Off the plan sales of multi-storey buildings before 31 December 2003

Developers who entered into a contract for the sale of land before 31 December 2003 (but the residential building work did not commenced until on or after 31 December 2003), and have complied with their responsibility to include in the contract information on home warranty insurance, are required to notify purchasers in writing that:

• the work is exempt from the home warranty insurance requirements
• the terms in the sale contract informing the purchaser that the building work is required to be insured and that a certificate of insurance will be provided, no longer have effect. 

Developers selling property where the construction commenced before 31 December 2003 will still need to provide a certificate of home warranty insurance to purchasers.