Understanding Warranties: What You're Really Covered For
Understanding Warranties: What You're Really Covered For
Most clients assume their builder's warranty ends after handover — or worse, after the 3-month maintenance visit. But under Victorian law, there are statutory protections, structural guarantees, and insurance-backed rights that run for years. The problem? Almost no one explains how they work — or where they fall short. This guide separates the marketing from the legal, so you know exactly where you stand if something goes wrong.
Because building shouldn't feel risky.
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Understanding Structural Guarantees vs Maintenance Warranties
When you build a new home, you’ll hear terms like “maintenance warranty” and “structural guarantee” used often — in contracts, brochures, or builder handover packs. But very few people take the time to explain the difference — or how long you’re actually protected for.
Here's what each one really means:
Maintenance Warranty (Builder-Provided)
This is a short-term warranty that covers minor, non-structural issues that appear shortly after handover.
- Usually provided directly by your builder, not required by law
- Covers cosmetic or functional issues like cracked grout, leaking taps, loose handles, or paint defects
- Often applies once — you submit a list of issues and the builder returns for a one-time fix
- Timeframes vary (often 3–6 months) depending on the builder
This is more of a courtesy clean-up period than a legal protection.
Structural Guarantee (Statutory and Builder-Extended)
This warranty covers the core integrity of your home — like the slab, frame, and load-bearing walls.
- Statutory coverage: All builders in Victoria must guarantee structural soundness for 6 years by law
- Builder-promoted guarantees: Many builders offer "25-year" or "lifetime" structural warranties with additional terms
- Protects against serious issues like slab movement, roof frame failure, and wall separation
- Some builder-backed versions include exclusions or maintenance requirements — always read the fine print
Key Differences at a Glance
| Maintenance Warranty | Structural Guarantee |
|---|---|
| Short-term (builder controlled) | Long-term (6+ years) |
| Cosmetic and minor defects | Core structural integrity |
| Typically one-off service | Legally enforceable |
| Offered as part of builder process | Backed by law and/or builder guarantees |
Guardian Tip: Don’t confuse a builder’s maintenance service with your structural warranty rights. One is about early touch-ups. The other is your legal fallback if something serious goes wrong. Ask to see both in writing — and know which one will actually protect you when it matters.
“Whatever it is, the way you tell your story online can make all the difference.”
The 3-Month Maintenance Period vs Your Actual Warranty
Most builders will offer what they call a maintenance period — typically 3 months after handover. During this time, you can submit a list of minor issues for one scheduled fix-up visit. It’s often positioned as the final checkpoint in your build journey.
But legally, it’s not.
According to Consumer Affairs Victoria, the builder’s responsibility doesn’t end after three months — not even close.
Under the Domestic Building Contracts Act 1995 (VIC), you are protected by statutory warranties that extend well beyond the builder’s maintenance period:
- Structural defects — covered for up to 6 years
- Non-structural defects — may be enforceable for up to 2 years, based on law and precedent
These rights apply whether your builder offers a maintenance period or not — and they are automatically implied by law in every domestic building contract over $16,000.
| Builder’s Maintenance Period | Statutory Warranties |
|---|---|
| 3 months (typically) | 2 years (non-structural), 6 years (structural) |
| One-time return visit | Ongoing legal coverage |
| Often only for cosmetic items | Covers structural failure, water ingress, poor workmanship |
| Voluntary and limited | Legally enforceable |
Guardian Tip: The 3-month visit is a builder convenience — not the end of your rights. Keep documenting new issues after handover. If something arises 8, 12, or 18 months in, you may still have a valid claim. Just make sure it’s in writing, and if the builder doesn’t act, seek advice from a building consultant or legal professional.
“Whatever it is, the way you tell your story online can make all the difference.”
What Statutory Warranties Actually Cover
Statutory warranties aren’t just legal jargon — they’re real obligations that apply to every major building contract in Victoria over $16,000. They exist to protect homeowners from poor workmanship, unsafe construction, or shortcuts that appear after handover.
These warranties are laid out under the Domestic Building Contracts Act 1995 and are explained in detail by Consumer Affairs Victoria.
Builders are legally required to ensure the work:
- Is carried out in a proper and workmanlike manner
- Uses materials that are good and suitable for their intended purpose
- Matches the plans and specifications in the contract
- Complies with all relevant laws and regulations
- Is completed within the timeframe specified in the contract
- Results in a home that is fit for occupation at handover
- Is delivered with reasonable care and skill
- Will be free of structural defects for 6 years
- Will be free of non-structural defects for 2 years (enforceable through DBI or VCAT)
These warranties apply automatically by law and cannot be removed, shortened, or ignored by builder contract wording.
Transferability
These statutory warranties transfer with the property. If you sell your home, the new owner receives the remaining balance of the warranty protection — no extra paperwork required.
Guardian Tip: Your contract doesn’t need to mention “warranty” for these protections to apply. These are legal rights — and they override whatever the builder’s sales brochure or maintenance booklet says. If a builder tries to limit them in writing, that part of the contract may not be enforceable.
“Whatever it is, the way you tell your story online can make all the difference.”
Structural vs Non-Structural Defects – What’s the Difference?
Not all defects are treated equally — and understanding the difference between a structural defect and a non-structural one can impact whether it’s covered under warranty, how long you’re protected, and who’s responsible.
Structural Defects (Covered for 6 Years)
These relate to the core integrity and safety of your home. They affect the building’s ability to stand, remain stable, or resist weather.
- Cracking or movement in the foundation or slab
- Roof frame failure or sagging
- Load-bearing wall failures or separation
- Serious water ingress from roofing or external envelope issues
- Major structural cracking in brickwork
These issues can cause physical danger or long-term failure of the home’s structure and are protected under statutory warranty for six years.
Non-Structural Defects (Typically Enforceable for 2 Years)
These affect the appearance, finish, or functionality of the home — but not its structural performance.
- Peeling paint or cracked plaster
- Misaligned doors, windows, or cabinetry
- Loose tiles, grout issues, or waterproofing failure in showers
- Leaking taps, blocked drains, faulty light switches
- External cladding or render imperfections
These are usually covered for 2 years — either through the builder directly or via Domestic Building Insurance if the builder is no longer around.
Guardian Tip: Just because a defect isn’t structural doesn’t mean it’s your problem to fix. If it impacts the finish, usability, or agreed quality of your home — and it appeared within the coverage window — you may still have the right to request a repair. Always document it, and escalate if ignored.
“Whatever it is, the way you tell your story online can make all the difference.”
Domestic Building Insurance – When It Kicks In and What It Covers
Domestic Building Insurance (DBI), sometimes called Home Warranty Insurance, is a last-resort safety net for homeowners in Victoria when a builder can no longer meet their warranty obligations.
It is mandatory for all domestic building work over $16,000 and must be taken out by the builder before you pay a deposit or any money under the contract.
DBI is administered in Victoria by the Victorian Managed Insurance Authority (VMIA).
When DBI Applies
DBI only applies if your builder:
- Dies
- Becomes insolvent (goes broke)
- Disappears (unable to be located or refuses to engage)
If your builder is still active but refuses to act — DBI does not apply. You’ll need to pursue them directly.
What DBI Covers
- Up to $300,000 in claims for structural defects (6 years from completion)
- Up to $300,000 in claims for non-structural defects (2 years from completion)
- Loss of deposit or incomplete work
- Legal and rectification costs for qualifying claims
Your builder is required to give you a copy of the DBI certificate for your project. You can also confirm coverage directly with the VMIA online DBI portal.
Guardian Tip: Always request your DBI certificate before paying a deposit. Without it, you may have no insurance protection at all if your builder collapses or walks off the job.
Learn more at Consumer Affairs Victoria – DBI Checklist.
“Whatever it is, the way you tell your story online can make all the difference.”
Why Some Builder Warranties Aren’t What They Seem
Many builders proudly promote “25-year warranties” or “lifetime guarantees” — but what do those terms actually mean? In most cases, the fine print tells a very different story.
Common Warranty Clauses to Watch For
- “Non-transferable” warranties — Some builders try to limit warranty coverage to the original owner only. But statutory warranties under Victorian law must transfer when the property is sold.
- “Annual inspection required” clauses — These state that if you don’t complete a yearly check-up (often with their nominated inspector), your extended warranty is voided.
- “Lifetime warranty” on components — Often this only applies to a specific product (like a window frame or roof tile), and only if the manufacturer remains in business. Installation or water damage is usually excluded.
- Exclusion-heavy contracts — Some builders list pages of exceptions that allow them to avoid responsibility, including for settlement cracks, movement in timber, or drainage issues.
Many of these warranties are written for marketing — not for real-world protection.
Statutory vs Builder-Backed
Builder warranties are a separate thing from the statutory warranties backed by law. Builder warranties can be written however they like — and they’re only enforceable to the extent the contract allows.
Statutory warranties, by contrast, are non-negotiable and legally binding under the Domestic Building Contracts Act 1995 (VIC). They apply no matter what the builder says — or leaves out.
Guardian Tip: If it sounds too good to be true, ask to read the actual warranty document — not the brochure. Check who administers the warranty, what voids it, and what’s excluded. Then check whether you still feel protected.
“Whatever it is, the way you tell your story online can make all the difference.”
How and When to Enforce Your Warranty Rights
Knowing your rights is one thing — enforcing them is another. If a builder refuses to fix a defect, delays action, or blames you for the problem, you still have options.
Step 1: Notify the Builder in Writing
Put your concerns in writing, clearly identifying the issue, where it appears in the home, and when you first noticed it. Always keep a copy and timestamped photos. This creates a paper trail and proves you gave the builder a chance to respond.
Step 2: Seek Advice
If the builder pushes back, get advice early. A qualified building consultant can assess whether the defect is legitimate. For unresolved or disputed claims, contact:
- Consumer Affairs Victoria
- Domestic Building Dispute Resolution Victoria (DBDRV)
- A construction lawyer if the matter is serious or financial loss is likely
Step 3: Know the Timeframes
- For non-structural defects: raise it within 2 years
- For structural defects: raise it within 6 years
- DBI coverage also follows the same 2 and 6-year split — but only applies if your builder disappears, dies, or becomes insolvent
Don’t wait until it gets worse. If something doesn’t seem right — act.
Guardian Tip: Builders often bet on silence. Many issues go unresolved because clients feel unsure or uncomfortable pushing. You don’t have to be aggressive — just informed. If you’re being dismissed, document everything and escalate. Your home is too valuable to let defects slide.
“Whatever it is, the way you tell your story online can make all the difference.”
Why Legal Advice Matters — and What We’re Here to Do
Understanding your rights is one thing — enforcing them is another. This guide is here to help you see what’s fair, what’s legally expected, and what many builders won’t explain unless asked.
But we’re not lawyers. And even with everything you’ve just learned, some warranty issues will come down to interpretation, evidence, and how far you're willing to take it.
If you're facing pushback, delay tactics, or unclear answers from your builder, legal advice is always the right next step. A good construction lawyer or building dispute specialist can review your contract, interpret the fine print, and guide your next move.
Statutory rights only protect you if you know about them — and have the confidence to stand your ground. Most people get taken advantage of not because they were wrong, but because they were unsure.
Guardian Tip: You don’t need to be a legal expert. But if you know what to ask, when to document, and where to push — you won’t get bullied into silence. That’s what this guide is about.
“Whatever it is, the way you tell your story online can make all the difference.”
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