96Insurance in relation to residential building work not carried out under contract

#### 96 Insurance in relation to residential building work not carried out under contract 96 Insurance in relation to residential building work not carried out under contract > > (1) A person must not do residential building work otherwise than under a contract unless a contract of insurance that complies with this Act is in force in relation to that work. > > > > Maximum penalty—1,000 penalty units in the case of a corporation and 200 penalty units in any other case. > > > (2) A person who does residential building work otherwise than under a contract must not enter into a contract for the sale of land on which the residential building work has been done, or is to be done, unless a certificate of insurance evidencing the contract of insurance required under this Part for that work, in a form approved by the Authority, is attached to the contract of sale. > > > > Maximum penalty—1,000 penalty units in the case of a corporation and 200 penalty units in any other case. > > > (2A) (Repealed) > > > (2B) A person who does residential building work otherwise than under a contract must, before entering into a contract for sale of land on which the residential building work has been done, or is to be done, give the other party to the contract a brochure, in a form approved by the Authority, containing information that explains the operation of the contract of insurance, and the procedure for the resolution of disputes under the contract. > > > > Maximum penalty—40 penalty units in the case of a corporation and 20 penalty units in any other case. > > > > Note. > > > > Part 6B (see section 104B) provides that the requirement to obtain insurance under this section may be met by obtaining coverage through an alternative indemnity product. > > > (3) This section does not apply— > > > > > (a) to a person who does owner-builder work (whether as the holder of an owner-builder permit or for the holder of such a permit), or > > > > > (b) (Repealed) > > > > > (c) to an individual who is exempted by the regulations from the requirements of section 12, or > > > > > (d) to a sale of the land more than 6 years after the completion of the work, or > > > > > (e) if the reasonable market cost of the labour and materials involved does not exceed the amount prescribed by the regulations for the purposes of this section. > > > > > (f) (Repealed) > > > (3A) Subject to subsection (3B), if a person contravenes subsection (2) in respect of a contract for the sale of land, the contract is voidable at the option of the purchaser before the completion of the contract. > > > (3B) A contract is not voidable as referred to in subsection (3A) if— > > > > > (a) the person obtained a certificate of insurance evidencing a contract of insurance that complies with this Act in relation to the residential building work before entering the contract concerned, and > > > > > (b) before completion of the contract, the person served on the purchaser (or an Australian legal practitioner acting on the purchaser’s behalf) a certificate of insurance, in the form approved by the Authority, evidencing that contract of insurance. > > > (4) A contract of insurance that is in force in compliance with this section in relation to residential building work (the original work) done by a person extends to any residential building work done by the person by way of rectification of the original work. > > > > Note. > > > > Accordingly, this section does not require a separate contract of insurance in relation to the rectification work. > > **s 96:** Subst 1996 No 122, Sch 4 \[3\]. Am 1997 No 147, Sch 2.13 \[2\]; 1999 No 26, Sch 1 \[13\] \[14\]; 2000 No 56, Sch 1 \[2\] \[3\]; 2001 No 51, Schs 6 \[15\] \[16\], 8 \[27\]; 2002 No 17, Sch 1 \[2\]; 2004 No 101, Schs 4 \[1\] \[3\], 6 \[4\] \[5\]; 2006 No 120, Sch 3.11 \[2\]; 2011 No 52, Sch 1 \[21\] \[22\]; 2014 No 24, Sch 1 \[88\]–\[90\]; 2017 No 28, Sch 1 \[15\] \[17\]; 2018 No 65, Sch 8.4\[2\].