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HOME BUILDING ACT 1989 - SECT 100
Requirements for insurance of work not done under contract
100 Requirements for insurance of work not done under contract
(1) A contract of insurance in relation to residential building work required
by section 96 must insure a purchaser of the land on which the work is done
and the purchaser's successors in title against the risk of being unable,
because of the insolvency, death or disappearance of the contractor
concerned-- (a) to have the contractor rectify a breach of a statutory
warranty in respect of the work, or
(b) to recover compensation from the
contractor for a breach of a statutory warranty in respect of the work.
(2)
If a partnership contracts to do residential building work, the insolvency of
any of the partners constitutes the insolvency of the contractor for the
purposes of a contract of insurance required by section 96 in relation to the
work. The contract of insurance must include provision to that effect.
(3) In
this section--
"contractor" means a person to whom section 96 applies doing
residential building work otherwise than under a contract.
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