Builders Warranty

Builders warranty is a guarantee to a principal that the builder will complete the home in accordance with the building contract, and that the home will be free of defects.

Builders warranty provides peace of mind to principals and financiers that they will not suffer in the event that the builder experiences financial or other issues which might otherwise rebound on the homeowner, or in the event that the construction of the home is defective.

Builders warranty is required by law to be provided by home builders in Australia, and recent events in New Zealand indicate that builders warranty or builders bonds will be required by law in the not too distant future.

Building warranties are often demanded by banks and insurance companies when a building is being constructed.