Home Building Contracts (Home Indemnity Insurance Exemptions) Amendment Regulations 2004 (WA)

16 November 2004 GOVERNMENT GAZETTE, WA 5049

CE301*

Home Building Contracts Act 1991

Home Building Contracts (Home Indemnity

Insurance Exemptions) Amendment

Regulations 2004

Made by the Governor in Executive Council.

1.            Citation

These regulations may be cited as the Home Building Contracts
(Home Indemnity Insurance Exemptions) Amendment
Regulations 2004.

2.            The regulations amended

The amendments in these regulations are to the Home Building
Contracts (Home Indemnity Insurance Exemptions)
Regulations 2002*.

[* Published in Gazette 19 December 2002, p. 2103-15.

Regulation 6(1) and (2) are amended by inserting after
"Schedule 1" —

" Form 1 ".

For amendments to 5 August 2004 see Western Australian Legislation Information Tables for 2003, Table 4, p. 180.]

3.             Regulation 4 amended

Regulation 4(1) is amended by inserting after "Schedule 1" —
" Form 1 "

4.            Regulation 6 amended

5050 GOVERNMENT GAZETTE, WA 16 November 2004

5.            Regulation 7 replaced

Regulation 7 is repealed and the following regulations are inserted instead -

7.           Giving a copy of the builder's notice to a

purchaser - developers

(1) This regulation applies to a developer of a multi-storey

multi-unit development who is given a notice under
regulation 4(1), or 6(1) or (2) (the "builder's notice").

(2) After receiving the builder's notice, the developer

must -

(a) the development, give a copy of the builder's
notice to the other party to the sale contract (the

before entering into a sale contract in respect of 6 years of practical completion of the building work in respect of which the builder's notice was given; and

(b) give a copy of the builder's notice to each person (each "purchaser") with whom the developer has already entered into a sale contract in respect of the development, within 10 days after the day on which the developer received the builder's notice.

Penalty: $5 000.

(3) If the developer fails to comply with

subregulation (2)(a) the purchaser may rescind the sale

contract.

(4) A purchaser referred to in subregulation (2)(b) may

rescind the sale contract unless the developer gave the

into the sale contract. Form 2 before the purchaser and the developer entered purchaser a notice in the form set out in Schedule 1

(5) A purchaser who may rescind a sale contract under
subregulation (4) may not do so until the purchaser has
received the copy of the builder's notice referred to in
subregulation (2)(b) or the 10 days referred to in
subregulation (2)(b) have elapsed.

(6) To rescind a sale contract, a purchaser must give notice

of the exercise of the right to rescind to the developer,
before the earlier of—

(a) the expiration of one month after the day upon which the purchaser received the copy of the builder's notice; or

(b) settlement.

16 November 2004 GOVERNMENT GAZETTE, WA 5051

7A.	Giving a copy of the builder's notice to a purchaser -persons other than developers
(1)	This regulation applies to a person, other than a developer, who is given a notice under regulation 4(1), or 6(1) or (2) (the "builder's notice").
(2)	After receiving the builder's notice, the person must,
before entering into a sale contract in respect of the
building work, give a copy of the builder's notice to the
party to the sale contract if settlement is to occur within
6 years of practical completion of the building work in
respect of which the builder's notice was given. "

6.            Regulation 8 amended

Regulation 8 is amended by deleting "the notice in Schedule 1" and inserting instead -

Schedule 1 Form 1 ".

7.            Schedule 1 amended

(1) Schedule 1 is amended by deleting the heading to the Schedule
and inserting instead -

Schedule I - Notices

(2) Schedule I is amended by deleting "[r. 4(1), 6(1) and (2)]" and
inserting instead -

Form 1

[r. 4(1), 6(1) and (2)]

Home Building Contracts (Home Indemnity Insurance Home Building Contracts Act 1991

Exemptions) Regulations 2002

Builder's notice

(3)	Schedule 1 clause 9 is amended by inserting after "regulations)" -
"

unless you were given a developer's notice before you

entered into the contract

(4)	Schedule 1 clause 10 is amended by deleting "This means that" and inserting instead -
44

If you have a right to rescind the contract ".

5052 GOVERNMENT GAZETTE, WA 16 November 2004

(5) Schedule 1 is amended by inserting the following form at the
end of the Schedule -

33

Form 2

[r. 7(4)]

Home Building Contracts Act 1991

Home Building Contracts (Home Indemnity Insurance

Exemptions) Regulations 2002

Developer's notice

Important notice about home indemnity insurance for

multi-storey multi-unit developments where a developer sells

off-the-plan to a purchaser before engaging a builder

The development or dwelling unit concerned

This notice is about ................................................

[insert details of the development/dwelling unit]
Background to home indemnity insurance

2. The Home Building Contracts Act 1991 requires that the builder take out home indemnity insurance for residential building work costing over $12 000, unless there is an

exemption.

Generally, home indemnity insurance covers the person for whom the builder is doing the work against financial loss if the builder is unable to complete the work or meet a valid

claim for faulty workmanship because the builder has died,
disappeared or become insolvent. The insurance also covers
any other person (in this case, you) obtaining the property

from that person. In most cases the insurance policy must

cover the construction period and the 6 years after practical

completion of the building work.

Exemption from the requirement to have insurance

4.	exempt from the requirement for the builder to take out home indemnity insurance, provided that the builder of the development gives a notice (known as a builder's notice) to the person for whom the builder is doing the work. See the	Building work on multi-storey multi-unit developments is Insurance Exemptions) Regulations 2002.
5.	Once the developer engages a builder and the builder has given the developer the builder's notice, the developer must give you a copy of the builder's notice within 10 days after receiving the notice.

16 November 2004 GOVERNMENT GAZETTE, WA 5053

Why did you get this notice?

6. This notice is to warn you that —

(a)	the developer has not yet engaged a builder to carry out the building work for the development;
(b)	it is likely that the builder will not take out home indemnity insurance for the building work; and
(c)	you may not be in a position to assess the risk resulting from the builder not having home indemnity insurance for the building work (should that be the case).

7. If the builder does not have home indemnity insurance for

the building work it means that —

(a)	the developer; and
(b)	you, as a person purchasing the property from the developer,

are not insured against financial loss if the builder is unable
to meet a valid claim for faulty workmanship because the

builder has died, disappeared or become insolvent.

8. If you are in doubt about your rights, or you don't

understand this notice, you should seek legal advice or contact the Department of Consumer and Employment Protection Call Centre on 1300 30 40 54 (local call).

Developer

Date

I acknowledge that I have read this notice:

Person to whom the developer has given this notice

Date

,,

By Command of the Governor,

M. C. WAUCHOPE, Clerk of the Executive Council.