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Home warranty insurance needs to be provided by:
A builder or tradesperson before taking any money (including a deposit) from a home owner (including an owner-builder) under a residential building contract and before starting any work under that contract
A ‘spec’ builder before starting any residential building work on a property owned by the builder
A developer before entering into a contract for the sale of a property on which a builder is doing or has done residential building work for the developer
An owner-builder (ie. a home owner who did owner-builder work under an owner-builder permit) before entering into a contract for sale of the property on which residential building was done within the previous six years.
There are some exemptions from the requirement for Home Warranty Insurance. Details are outlined on the Department of Fair Trading web site.
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