Subsequent Owner Loses Claim For Breach Under The Home Building Act

In Allianz v Waterbrook [2009] NSWCA 224, the NSW Court of Appeal held that no loss was suffered by the subsequent purchaser of a property as they had full knowledge of the defects in the building work at the time of purchase. The Court held the fact the subsequent purchaser had full knowledge of the defects meant it could not claim there had been a loss suffered by a breach of statutory warranty under the Home Building Act 1989 (NSW).

Key points:

• The Home Building Act 1989 (NSW) implies into every residential building contract statutory warranties about the quality of a builder's work. A subsequent owner of the property can sue for a breach of these warranties for up to seven years.