When a building works are done any defects are covered by statutory warranties. In NSW the Home building Act 1987 (NSW) can apply. Major defects are covered by a 6 year warranty and for other defects the warranty is 2 years. This means that if you build or renovate a property and there is a defect within 6 years of the date from the completion of the work, you could be liable to compensate the new owner of the property. This happened in a recent NSW case where the former owner had to pay the new owner more than $42,000 in damages. You can still be liable even if you used builders – they might have to be joined as parties to any litigation or you might have to sue them to recover any money. NSW Case Stevenson v Ashton  NSWSC 1689 Stevenson v Ashton - NSW Caselaw See two articles by Anthony Cordato Can a home buyer claim compensation for a water leak after settlement? Can a home buyer claim compensation for a water leak after settlement? - Lexology and Is a seller responsible to fix a water leak after settlement of the sale of a house? Is a seller responsible to fix a water leak after settlement of the sale of a house? I don't practice in the area of litigation - this is not my area of interest, but thought I would post because this is relevant to property and not many know this could happen.