New build by owner builder risks

Hi all,

Looking at a brand new property in Sydney which is complete and built by owner builder. Usually focus on established properties so am pretty new to this.

What are the risks associated with owner builder builds?
Still worthwhile to get a building and pest inspection?

Thanks

Panda

 

Do they have warranty insurance?

 

Guessing no as there's a warning below in the contract with no other reference to contractor warranty.

"Work done under an owner-builder permit is not required to be insured under this Act
unless the work was done by a contractor to the owner-builder."

 

So you're going to carry the risk of structural faults etc? What experience does the OB have?

Unless the OB is a super talented tradie, they would have used subbies who would be required to provide insurance. So I'd be expecting plumbing, electrical, concretor, bricky, chippy (framing & fixout), roofer, joiner, tiler, waterproofer, painter, gyprocker, carpet layer, a/c, stormwater etc each to provide insurance.

I'd be getting the best inspector possible.

 

Great question. No idea at the moment but will see what the REA says.

How does getting rectification work typically work? Does the buyer get a long list of who did what and it's up to the buyer to chase any defects? Or does the buyer chase the owner builder with the defects as they come up? Either way, I see a high risk of poor and slow response time, if any.

Thanks. I was wondering how much a builder can tell from a visual inspection as everything is nicely painted and tidied up.

 

Ask your solicitor too, don't believe the agent, they bat for the other side

Should still be able to pick up most issues.