Home Building Amendment Act 1998 (NSW)

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New South Wales

Home Building Amendment Act 1998

No 56

Contents

Page

1 Name of Act 2
2 Commencement 2
3 Amendment of Home Building Act 1989 No 147 2
Schedule 1 Amendment of Home Building Act 1989 3
New South Wales

Home Building Amendment Act 1998

No 56

Act No 56, 1998

An Act to amend the Home Building Act 1989 in relation to caveatable and other interests in land under contracts to do building work or to supply kit homes, the insurance of work done under contract for owner-builders, and in other respects. [Assented to 30 June 1998]

Section 1 Home Building Amendment Act 1998 No 56

The Legislature of New South Wales enacts:

Name of Act

This Act is the Home Building Amendment Act 1998.

Commencement

This Act commences on a day or days to be appointed by proclamation.

Amendment of Home Building Act 1989 No 147

The Home Building Act 1989 is amended as set out in Schedule

1.

Home Building Amendment Act 1998 No 56

Amendment of Home Building Act 1989 Schedule 1
Schedule 1 Amendment of Home Building Act
1989

(Section 3)

[1]        Section 7D

Omit the section. Insert instead:

7D Interests in land under contract

(1)

A contract does not give the holder of a licence or any other person a legal or equitable estate or interest in any land, and a provision in a contract or other agreement is void to the extent that it purports to create such an estate or interest.

(2)

Accordingly, the holder of a licence or any other person may not lodge a caveat under the Real Property Act 1900

in respect of an estate or interest prohibited by
subsection (1).
(3) However, subsection (1) does not apply to a provision in
a contract that creates a charge over land if:

(a)

the land the subject of the charge is land on which the contract work is, or is to be, carried out, and

(b)

the charge is in favour of the holder of a licence who is a party to the contract, and

(c)

the charge is created to secure the payment to the holder of the licence by another party to the contract of money due under the contract, but only

if a court or tribunal has made an order or

judgment that such payment be made, and

(d)

in the case of a charge over land under the Real Property Act 1900—the party to the contract against whom the judgment or order is made is the registered proprietor of the land.

Home Building Amendment Act 1998 No 56

Schedule 1 Amendment of Home Building Act 1989
(4) A charge referred to in subsection (3) over land under the Real Property Act 1900 ceases to operate if the party to the contract against whom the judgment or order is made ceases to be the registered proprietor of the land so charged.

[2]        Section 16DD

Omit the section. Insert instead:

16DD Interests in land under contract

A contract does not give the holder of a licence or any other person a legal or equitable estate or interest in any land, and a provision in a contract or other agreement is void to the extent that it purports to create such an estate or interest.

Accordingly, the holder of a licence or any other person may not lodge a caveat under the Real Property Act 1900 in respect of an estate or interest prohibited by subsection (1).

However, subsection (1) does not apply to a provision in
a contract that creates a charge over land if:

the land the subject of the charge is land on which

the kit home is, or is to be, erected, and

the charge is in favour of the holder of a licence
who is a party to the contract, and

the charge is created to secure the payment to the holder of the licence by another party to the contract of money due under the contract, but only if a court or tribunal has made an order or judgment that such payment be made, and

Property Act 1900—the party to the contract in the case of a charge over land under the Real
against whom the judgment or order is made is the
registered proprietor of the land.

Home Building Amendment Act 1998 No 56

Amendment of Home Building Act 1989 Schedule 1

(4)

A charge referred to in subsection (3) over land under the Real Property Act I900 ceases to operate if the party to the contract against whom the judgment or order is made ceases to be the registered proprietor of the land so charged.

Section 92 Contract work must be insured

Insert after section 92 (5):

(6) To avoid doubt, this section extends to residential
building work that is also owner-builder work.

Section 98 Employees and others not required to insure

Insert at the end of the section:

(2)

Subsection (1) does not apply in the case of a person who contracts to do owner-builder work on behalf of an owner-builder. Such a person must insure that work if otherwise required to do so by section 92.

Schedule 4 Savings and transitional provisions

Insert at the end of clause 2 (1):

Home Building Amendment Act 1998

Insert after clause 47:
Schedule 4, Part 5
Part 5 Provisions consequent on enactment of
Home Building Amendment Act 1998
48 Interest of licensee in land under contract

The amendments by way of repeal and re-enactment of sections 7D and 16DD made by the Home Building Amendment Act 1998 do not affect the validity of:

(a)

any caveat lodged in accordance with the Real Property Act 1900, or

Home Building Amendment Act 1998 No 56

Schedule 1 Amendment of Home Building Act 1989
before the amendments commenced.

49 Insurance requirements for persons carrying out work

for owner-builder

The amendments to sections 92 and 98 made by the Home Building Amendment Act 1998 do not affect any work for which a contract was entered into before the amendments commenced.

[Minister’s second reading speech made in—

Legislative Assembly on 29 April 1998
Legislative Council on 3 June 1998]

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