Victorian Consolidated Legislation

House Contracts Guarantee Act 1987 - SECT 10

Extension of guarantee in certain circumstances

10. Extension of guarantee in certain circumstances



(1) If-





   (a)  a builder has-

   (i)  under section 24 of this Act; or

   (ii) under section 27(3) of the Building Act 1993-



given to the approved guarantor notice of the builder's intention to construct
a dwelling-house otherwise than under a domestic building work contract
entered into by the builder; and

   (b)  the builder has not entered into a contract for the sale of the
        dwelling-house or any such contract has been rescinded; and

   (c)  another person becomes entitled to sell the land on which the
        dwelling-house is constructed and proposes to do so within the
        guarantee period-

the person referred to in paragraph (c) must, within the period of six months
before entering into a contract for the sale of the land-

   (d)  obtain from a recognised person and give to the purchaser before the
        purchaser signs the contract, a report containing such matters on the
        dwelling-house as are required by the Minister by notice published in
        the Government Gazette; and

   (e)  pay to the approved guarantor the amount fixed by it from time to time
        for the purposes of this paragraph.

Penalty: 10 penalty units.

(2) If subsection (1) is not complied with, the purchaser may rescind the
contract for the sale of the land at any time before the purchaser becomes
entitled to possession or to the receipt of rents and profits.

(3) A provision in a contract for the sale of land or in any other document
whereby the right conferred by subsection (2) on the purchaser is excluded,
limited, modified or restricted is void and of no effect.

(4) If subsection (1) is complied with and the contract for sale is entered
into during the guarantee period, the purchaser is, for the purposes of this
Act, to be treated as if the purchaser had purchased the dwelling-house under
a contract for sale entered into by the builder except that the guarantee
applicable by virtue of this subsection does not extend to defects identified
in the report on the dwelling-house obtained under this section.

(5) A person referred to in subsection (1)(c) must not complete construction
of or improve a dwelling-house referred to in this section unless-

   (a)  the person is an approved builder; or

   (b)  the work is carried out by an approved builder.

Penalty: 10 penalty units.