Implied Building Warranties Under the Building Act

When buying or building a home, many people aren’t aware that some of the most important protections aren’t written into the contract. These are the implied warranties under the Building Act 2004, which apply automatically to most residential building work in New Zealand.

When Do These Warranties Start?

Implied warranties begin from the date of practical completion – when the builder considers the work finished. Larger developers usually issue a Practical Completion Certificate (PCC), but smaller developers often rely on the Code Compliance Certificate (CCC) issued by the council. If no PCC is provided, the CCC date is generally used to start the 12-month and 10-year warranty periods.

Your conveyancer or legal executive can confirm the correct start date by liaising with the vendor/developer’s lawyers, ensuring you know when your warranty rights begin.

Key Warranty Periods

12-Month Defect Repair Period (s 362Q): Often called the “maintenance period,” this allows homeowners to request repairs for defects identified within 12 months. The contractor must fix them unless they can prove the issue isn’t their fault.

10-Year Warranty Period (s 362J): Covers serious defects and breaches of the Building Code. This aligns with the Weathertight Homes Resolution Services Act 2006, which also imposes a 10-year limit on claims.

What’s Covered – and What’s Not?

Example 1: Paint & Electrical Work

Industry practice limits warranties for paint and electrical work to 2–3 years. A claim for peeling paint after 5 years is unlikely to succeed unless the defect was obvious early on. Delayed complaints often point to poor maintenance, not defective work. Homeowners are often surprised to find that there is a reasonable obligation to repaint and/or maintain the exterior after a few years.

Example 2: Regulation Change During Defect Period

A property which had a compliant gap between the house and fence at the time of construction but was subject to new rules during the defect period may arguably be required to have a wider gap for trolley access (e.g. for gas). Since the change occurred within 12 months, this may fall under the defect warranty, but is arguable either way. Similarly, an “upgrade” requirement to fire that comes in after completion is often argued if some further works “triggers” the requirement.

Example 3: Leaky Cladding After 6 Years

Water ingress due to poor cladding installation discovered 6 years post-completion may be covered under the 10-year warranty, assuming it wasn’t caused by neglect, owner damage or something that was known or should have been known by the owner previously.

Example 4: Cracked Tiles Reported Late

Cracked tiles noticed 18 months after completion may not be covered unless the defect was evident earlier. After 12 months, the burden of proof shifts to the homeowner as it’s a minor defect and not a substantial defect covered by the 10 year long stop.

Example 5: Defective Chattels

Defective chattels are commonly raised with the developer/builder during the 12 months period. Owners move in and find their dishwasher, oven, heated towel rack, and/or heat pump have not been installed properly or is just deficient. These are the types of commonly covered defects during the first 12 months.

Final Thoughts

Understanding the difference between the 12-months defect period and the 10-year warranty is key. The first offers quick remedies to issues that tend to be minor in nature, the second protects against serious issues but requires stronger evidence and formal claims. Homeowners should document completion dates, report issues promptly, and maintain their property to preserve their rights and ensure they did not contribute to any property issues.

If you are ever unsure, please contact the experts at Queen City Law who are here to help.

Disclaimer: This article is general commentary only and is not legal advice. Always seek tailored legal advice before making investment or immigration decisions.