Yes. Consumer Affairs Victoria’s guidance, updated 8 April 2026, says implied warranties transfer to a new owner if the property is sold within 10 years of completion, for up to 10 years from completion. The same guidance says the warranties apply automatically to all domestic building work, regardless of its cost or whether there is a written contract, and cannot be signed away (figures checked 1 October 2026).
What does the 10-year transfer rule mean?
There are two connected points:
- The property must be sold within 10 years of the work being completed.
- The implied warranties transfer to the new owner for up to 10 years from completion.
The completion date—not the date of sale—sets the transfer period. Selling the property does not reset that period. If the property is sold after the 10-year period, this transfer right does not apply.
The warranties remain connected to the original building work. A new owner should therefore establish when the relevant work was completed and when the property changed hands, particularly if the transaction involved older work or unclear records.
Does the job price or a missing written contract change the answer?
No. Implied warranties apply automatically to all domestic building work, whatever it costs and whether or not the parties signed a written contract.
A written contract should identify the client’s warranty rights, whether or not it is a major domestic building contract. However, a clause cannot remove the legal rights that apply automatically.
Consumer Affairs Victoria describes these rights as warranties under the Domestic Building Contracts Act 1995 and consumer guarantees under the Australian Consumer Law. Consumers have rights under both laws.
What does the builder or tradesperson have to do?
The implied warranties set baseline requirements for domestic building work. Builders and tradespeople must:
- carry out the work properly and in a workmanlike manner;
- follow the plans and specifications in the contract;
- comply with all laws and legal requirements;
- use reasonable care and skill;
- complete the work by the date or within the period specified in the contract;
- supply materials that are good and suitable for their purpose and are new, unless the contract states otherwise;
- ensure new homes, extensions, renovations, repairs and kit homes or similar are suitable for occupation when completed; and
- ensure other work and materials are reasonably fit for their intended purpose.
These are legal obligations, not merely optional promises that depend on the builder agreeing to them in writing.
What if the building work is older than 10 years?
The 10-year period runs from completion of the work. If the work is older than 10 years, Consumer Affairs Victoria recommends seeking legal advice, particularly if the completion date, sale date or available records is uncertain.
Legal advice may also be appropriate where:
- the property was sold after the transfer period;
- the original contract is unavailable;
- one party disputes when the work was completed; or
- there is a disagreement about whether the work was domestic building work.
The precise facts and documents can affect the available rights, so older work should not be assessed solely by applying the 10-year rule without advice.
Are implied warranties the same as domestic building insurance?
No. Implied warranties are legal obligations. Domestic building insurance is separate and provides only limited cover in particular circumstances.
| Issue | Consumer Affairs Victoria guidance |
|---|---|
| When insurance is required | Builders and tradespeople must have domestic building insurance when the cost of the works exceeds $16,000. |
| What it is additional to | The insurance is additional to the builder’s contractual obligations and warranties. |
| When it may respond | It protects clients where the builder or tradesperson cannot finish the project or fix defects because they have died, become insolvent or disappeared. |
| Defect cover | It covers costs up to $300,000 to fix structural defects for 6 years and non-structural defects for 2 years. |
| Unfinished work | Claims for work that was not completed may be limited to 20% of the contract price. |
| Court or tribunal orders | A policy issued on or after 1 July 2015 also covers the builder’s failure to comply with a final order made by VCAT or a court. |
These insurance amounts and periods should not be confused with the separate rule allowing implied warranties to transfer to a new owner for up to 10 years from completion.
In ordinary cases where the domestic building insurance does not respond, the builder or tradesperson is still required to fix or complete the works in accordance with the contract.
What should a homeowner or new owner check?
Before work starts or a payment is made:
- Check the contract. It should identify the warranty rights, even if it is not a major domestic building contract.
- Ask for insurance evidence. Request the builder’s current certificate of public liability insurance.
- Check domestic building insurance documents. Where the work exceeds $16,000, the builder or tradesperson must provide a copy of the policy and a certificate covering the property before any deposit or other money is paid.
- Check your home insurance. Ask your home and contents policy insurer whether renovations are covered, as extra cover may be needed.
- Read the policy PDS. Check the product disclosure statement for the cover, limits, conditions and claim process.
- Check dates for an older property. Compare the completion and sale dates, and seek legal advice if the work is older than 10 years or the transfer position is unclear.
This is general information, not financial or legal advice. Check Consumer Affairs Victoria’s current regulator page and the relevant policy PDS before relying on a particular right or making a claim.
Sources
FAQ
Do implied warranties transfer if the property is sold after 10 years?
No. The transfer right applies when the property is sold within 10 years of completion. For older work, seek legal advice about the circumstances and available rights.
Does the 10-year period restart when a new owner buys the property?
No. Consumer Affairs Victoria states that the period is measured from completion of the work, not from the sale date.
Do implied warranties apply to inexpensive or unwritten work?
Yes. They apply automatically to all domestic building work regardless of its cost or whether a written contract exists.
Can a building contract remove the implied warranties?
No. Consumer guarantees and implied warranties apply by law and cannot be signed away, even if a written contract is used.
Does domestic building insurance cover every building defect?
No. It provides limited cover and is additional to contractual obligations and implied warranties. Its scope depends on the policy, including its amounts, periods and conditions.
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