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A Perth man will be feeling the pain in his pocket after he was fined for not having the right insurance when he sold his home he built himself.
Jonathon Reardon has been fined $2,400 after he pleaded guilty to an offence under Western Australia’s building contract laws.
Mr Reardon received owner-builder approval and a building permit in 2013 to build a two-storey home in Yanchep, 50 kilometres north of Perth.
He completed the home in 2014, and in 2016 he sold the property but did not have a home indemnity insurance policy, which is required if an owner-builder sells the house within seven years of the building permit issue date.
The laws are designed to protect new owners from building defects, Building and Energy acting executive director Saj Abdoolakhan said.
“Owner-builders are responsible for their building work for seven years from when the building permit is generated,” he said.
“Home indemnity insurance covers subsequent owners if the owner-builder fails to rectify faulty or unsatisfactory workmanship for reasons such as insolvency, death or disappearance.”
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