Div 2Statutory warranties

Division 2—Statutory warranties 32—Statutory warranties (1) This section applies to a contract entered into on or after 22 January 19871. (2) The following warranties on the part of the building work contractor are implied in every domestic building work contract: (a) a warranty that the building work will be performed in a proper manner to accepted trade standards and in accordance with the plans and specifications agreed to by the parties; (b) a warranty that all materials to be supplied by the contractor for use in the building work will be good and proper; (c) a warranty that the building work will be performed in accordance with all statutory requirements; (d) if the contract does not stipulate a period within which the building work must be completed—a warranty that the building work will be performed with reasonable diligence; (e) if the building work consists of the construction of a house—a warranty that the house will be reasonably fit for human habitation; (f) if the building owner has expressly made known to the contractor, or an employee or agent of the contractor, the particular purpose for which the building work is required, or the result that the building owner desires the building work to achieve, so as to show that the building owner relies on the contractor's skill and judgment—a warranty that the building work and any materials used in performing the building work will be reasonably fit for that purpose or of such a nature and quality that they might reasonably be expected to achieve that result. (3) A person who has purchased or otherwise acquired a house succeeds to the rights of the person's predecessor in title in respect of statutory warranties. (4) If a person has purchased a house from a building work contractor who performed domestic building work in relation to the house, the purchaser has rights under statutory warranties as if the house had been purchased from a third party for whom the vendor had performed the building work under a contract subject to statutory warranties. (5) Proceedings for breach of a statutory warranty must be commenced within five years after completion of the building work to which the proceedings relate. (6) The period of limitation prescribed by subsection (5) may not be extended. (7) In proceedings for breach of a statutory warranty, it is a defence for the defendant to prove that the deficiencies of which the plaintiff complains arose from instructions insisted on by the building owner contrary to the advice in writing of the defendant. 1 22 January 1987 was the date of commencement of the corresponding section of the repealed Builders Licensing Act 1986.