According to Consumer Affairs Victoria, in guidance updated 8 April 2026, Victorian implied building warranties transfer to a new owner if the property is sold within up to 10 years from completion of the work. The period runs from completion, not from the buyer’s purchase date; the warranties apply automatically regardless of the work’s cost or whether there is a written contract, and they cannot be signed away.
Figures checked 1 October 2026.
What does “up to 10 years” actually mean?
The transfer rule has four key elements:
| Point | Meaning |
|---|---|
| When the period starts | At completion of the building work |
| When the right transfers | When the property is sold within that period |
| Length of the period | Up to 10 years from completion; a sale does not restart it |
| If the work is older than 10 years | Consumer Affairs Victoria recommends seeking legal advice |
A contract term that purports to remove these statutory protections does not change the result: consumer guarantees and implied warranties apply by law and cannot be signed away.
Do the warranties still apply to low-cost work or work without a written contract?
Yes. Consumer Affairs Victoria says implied warranties automatically apply to all domestic building work, regardless of its cost or whether a written contract exists. A building contract should identify the client’s warranty rights even if it is not a major domestic building contract.
The law describes the relevant obligations as:
- warranties under the Domestic Building Contracts Act 1995; and
- consumer guarantees under the Australian Consumer Law.
Consumers have rights under both laws.
What obligations can transfer with the property?
The implied warranties cover matters including:
- proper and workmanlike performance in accordance with the contract’s plans and specifications;
- reasonable care and skill;
- completion by the date or within the period stated in the contract;
- compliance with applicable laws and legal requirements;
- materials that are good, suitable for their purpose and new, unless the contract states otherwise;
- new homes, extensions, renovations, repairs and kit homes being suitable for occupation when completed; and
- other work and materials being reasonably fit for their intended purpose.
If the property is sold while the relevant warranty period remains available, those warranty rights can pass to the new owner.
Is the $16,000 building insurance threshold the same thing?
No. The $16,000 threshold concerns domestic building insurance, not the availability of implied warranties.
| Protection | Consumer Affairs Victoria’s position |
|---|---|
| Implied warranties | Apply automatically to all domestic building work, regardless of cost or a written contract, and cannot be signed away |
| Domestic building insurance | Required for all work over $16,000 and provides limited cover in specified circumstances |
Registered builders and tradespeople must have domestic building insurance for work over $16,000. It can help clients if the builder or tradesperson dies, becomes insolvent or disappears and cannot finish the project or fix defects. It is additional to contractual obligations and warranties, not a replacement for them.
The cited guidance’s transfer rule concerns the warranties themselves. It does not state that a domestic building insurance policy transfers with the property, so the two protections should not be treated as interchangeable.
What should a buyer check?
- Review the contract. It should identify the warranty rights, even if it is not a major domestic building contract.
- Check the completion and sale dates. The 10-year warranty period is measured from completion of the work.
- Request insurance documents before paying. Where domestic building insurance is required, the builder or tradesperson must provide the policy and a certificate covering the property before any deposit or other money is paid.
- Check the current policy terms. Domestic building insurance provides limited cover, so read the policy’s PDS rather than assuming it covers every defect or loss.
- Check renovation cover. Before work starts, confirm with a home and contents insurer whether the renovations are covered; extra cover may be required.
This is general information, not financial or legal advice. Check Consumer Affairs Victoria’s current regulator page and the relevant policy’s PDS before making a decision. If the building work is older than 10 years, seek legal advice.
Sources
FAQ
Do implied warranties apply if there is no written building contract?
Yes. They automatically apply to all domestic building work, regardless of cost or whether a contract is in writing, and they cannot be signed away.
Does a sale give the buyer a new 10-year warranty period?
No. Consumer Affairs Victoria says the warranties transfer if the property is sold within up to 10 years from completion. The sale does not restart the completion-based period.
What happens if the building work is older than 10 years?
The cited guidance does not state that the warranties transfer in that situation. Consumer Affairs Victoria recommends seeking legal advice for work older than 10 years.
Are domestic building insurance and implied warranties the same?
No. Implied warranties are legal obligations that cannot be signed away. Domestic building insurance is separate, provides limited cover in specified circumstances and is additional to contractual obligations and warranties.