New South Wales Consolidated Acts

HOME BUILDING ACT 1989 - SECT 96A

96A Obligations of developers in relation to insurance

(1) A developer must not enter into a contract for the sale of land on which residential building work has been done, or is to be done, on the developer's behalf unless a certificate of insurance evidencing the contract of insurance required under section 92 by the person who did or does the work for the developer, in a form approved by the Authority, is attached to the contract of sale.

: Maximum penalty--1,000 penalty units in the case of a corporation and 200 penalty units in any other case.

(1A) A developer must, before entering into a contract, give the other party to the contract a brochure, in a form approved by the Authority, containing information that explains the operation of the contract of insurance, and the procedure for the resolution of disputes under the contract.

: Maximum penalty--40 penalty units in the case of a corporation and 20 penalty units in any other case.

(2) Despite anything to the contrary in section 3A, a reference in this Part to a person who does residential building work--

(a) does not include a reference to a developer, and

(b) includes a reference to a person who does the work on behalf of a developer.

(3) Subject to subsection (3A), if a person contravenes subsection (1) in respect of a contract, the contract is voidable at the option of the purchaser before the completion of the contract.

(3A) A contract is not voidable as referred to in subsection (3) if--

(a) the person obtained a certificate of insurance evidencing a contract of insurance that complies with this Act in relation to the residential building work before entering the contract concerned, and

(b) before completion of the contract, the person served on the purchaser (or an Australian legal practitioner acting on the purchaser's behalf) a certificate of insurance, in the form approved by the Authority, evidencing that contract of insurance.

(4) This section does not apply to a sale of the land more than 6 years after the completion of the work.