Statutory warranty
A statutory warranty is implied by law into NSW residential building contracts under the Home Building Act 1989, covering workmanship, materials, and fitness.
Ask Chalkline about this →A statutory warranty is a warranty that the law implies into every residential building contract in NSW regardless of what the contract says, under the Home Building Act 1989 (NSW) s 18B. A builder cannot contract out of them.
The implied warranties require that: work is done with due care and skill; materials are good and suitable for their purpose (new unless otherwise agreed); work complies with the law; and, where the contract is to build a dwelling, the premises are reasonably fit for occupation on completion (verified 2026-05-08). Warranty periods run from practical completion: 6 years for major defects (structural, foundation, waterproofing, fire safety) and 2 years for other defects. Subsequent owners of the property inherit the benefit of the unexpired warranty under s 18D.
Also known as: implied warranty, HBA warranty.
Category: Contracts and commercial.
Related
- Owner-builder vs licensed builder: contract and legal differences in NSW
- Defects liability period
- HBCF (Home Building Compensation Fund)
See also
Last updated: 2026-05-08. Verified: 2026-05-08. Quarterly review for currency.