Victorian Consolidated Legislation

House Contracts Guarantee Act 1987 - SECT 3A

House and land packages

3A. House and land packages



(1) This section applies where a contract is entered into for the sale of land
on which a dwelling-house is being constructed or is to be constructed before
completion of the contract.

(2) If the builder is the same person as the vendor, a domestic building work
contract is, for the purposes of this Act, deemed to have been entered into
between the purchaser and the builder on the date on which the contract for
the sale of the land is entered into.

(3) If the builder is not the same person as the vendor, the approved
guarantor is liable for loss or damage suffered by the purchaser before the
completion of the contract for sale where-

   (a)  the builder knew or ought reasonably to have known at the time when
        the domestic building work contract was entered into between the
        builder and the vendor that the vendor had entered into or was likely
        to enter into, before completion of the domestic building work
        contract, a contract for the sale of the land; and

   (b)  the loss or damage suffered arose out of the builder's failure to
        fulfil the builder's obligations under the domestic building work
        contract or the builder's bad workmanship, as the case requires.

(4) The rights and liabilities conferred by or arising under this section are
additional to, and do not take away from, those conferred by or arising under
any other provision of this Act.