23New home contract requirements

23  New home contract requirements

  The new home contract requirements, in relation to a contract for the construction of a new home that is a relevant property, are that the applicant or  applicants for the arrangement have entered into a contract that meets all the following requirements:

 (a) the contract is a fixed‑price contract under which the purchase price for the property does not exceed the price cap for the area in which the property is located;

 (b) the contract is with a builder who holds all the licences and registrations required by law in order to perform the work required by the contract in the relevant jurisdiction;

 (c) insurance policies are in place in relation to the construction of the new home, as required by law;

 (d) the contract is entered into on an arm’s‑length basis;

 (e) the contract requires the builder to construct a fully completed dwelling on the land, up to and including the point at which the new home is certified as fit for occupation.