What Is a Statutory Warranty?
A statutory warranty is a legal guarantee automatically implied into residential building contracts by state legislation. Unlike a manufacturer’s warranty or a contractual promise, statutory warranties exist by operation of law — they apply whether or not the builder mentions them in the contract. They protect homeowners by ensuring that building work meets minimum standards of quality, compliance, and fitness for purpose.
What Statutory Warranties Cover
While the exact wording varies by state, statutory warranties generally guarantee that:
- Work will be performed with due care and skill and in a proper and workmanlike manner
- Materials used will be good and suitable for the purpose
- Work will be done in accordance with the plans and specifications agreed in the contract
- Work will comply with all relevant laws, including the National Construction Code and Australian Standards
- The building will be reasonably fit for occupation as a dwelling
- Work will be completed within the agreed timeframe or a reasonable time
Warranty Periods
| State/Territory | Structural Defects | Non-Structural Defects |
|---|---|---|
| QLD | 6 years 6 months | 6 months (QBCC direction) |
| NSW | 6 years | 2 years |
| VIC | 6 years | 2 years |
| WA | 6 years | 6 years |
| SA | 5 years | 5 years |
| TAS | 6 years (common law) | Varies |
| ACT | 6 years | 2 years |
Subsequent Owners
Statutory warranties typically pass to subsequent owners of the property, meaning if you purchase a home within the warranty period, you can make a claim against the original builder for defective work — even though you were not party to the original contract.
How It Relates to Licence Verification
Statutory warranties are only enforceable against licensed builders. If you hire an unlicensed builder, you may lose your statutory warranty protections entirely. Verifying a builder’s licence through TradieVerify before signing a contract ensures your statutory warranty rights are preserved and enforceable.