How the QBCC warranty insurance scheme protects Queensland first home buyers from builder liquidation and price rises

Full transcript

That guarantees that the works are completed to the same size, spec and standard as in what was in the original contract. A really common concern that I come across is what happens if a builder goes into liquidation or, you know, can't complete the build.

In Queensland, the builder is to take out the QBCC warranty insurance scheme upon contract signing. What that means is that any monies that are paid to the builder are protected under that warranty insurance. If the builder can't complete the work due to the liquidation event or something was to occur, we basically have the insurance policy that we can then take to the QBCC. They'll go through a process where they'll appoint builders to tender on that job and then another builder will be appointed to step in and complete the works.

That guarantees that the works are completed to the same size, spec and standard as in what was in the original contract. The other thing as well is that you are protected against price rises. Let's say the new builder comes in and they believe that's $100,000 more to complete the works. The QBCC will actually pay the difference to that builder.

What that means is that you as a buyer in Queensland are protected no matter what. That means that once that contract is signed and the insurance scheme has been paid for by the builder, you are guaranteed that house at that same size, spec and standard as what's in the original contract.

Little thing to note, if you're not one of our clients and you are working with someone, just make sure that you do see a copy of the QBCC warranty scheme when you are signing a contract because that's really, really critical because if there's no insurance taken out, you are not covered.