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Try to enforce the warranty

Before you can make a delayed claim you must be able to prove you have taken all reasonable steps to have the building work completed, or defective work rectified, by the builder or tradesperson. This is called ‘enforcing the statutory warranty’.

Examples of where you might be considered to have taken reasonable steps to enforce the statutory warranty include:

Can’t find the builder or tradesperson

If you can’t locate the builder or tradesperson, lodge a complaint with NSW Fair Trading. They will conduct their own searches and if unable to find them, they’ll issue you a letter saying the builder or tradesperson can’t be found.

You can then use this letter when making a claim to an insurance agent/insurer. It can be accepted as evidence that you believe the builder/tradesperson has disappeared and you’ve made all efforts to locate them.

You then shouldn’t be required to take any further action to enforce the warranty.