Settlement and early ownership
Building problems found after settlement
Statutory building warranties, and the two different builder-insurance regimes — DBI for contracts before 1 July 2026, Home Warranty from that date — plus how a building dispute is actually resolved through the BPC.
- Statutory building warranties last 10 years from the occupancy permit or certificate of final inspection, regardless of ownership changes.
- Domestic Building Insurance (contracts before 1 July 2026) only pays out if the builder died, disappeared or became insolvent — a narrow, last-resort scheme.
- Home Warranty (eligible contracts from 1 July 2026) is a first-resort scheme covering incomplete, non-compliant or defective work as soon as it's identified.
- Domestic Building Dispute Resolution Victoria (DBDRV) is now part of the Building and Plumbing Commission (BPC) — the current single entry point for a dispute.
Statutory building warranties
Statutory building warranties set the standard of workmanship for domestic building work and apply for up to 10 years from the date the occupancy permit or certificate of final inspection was issued — even if the property has since been sold to you, not the original owner (Consumer Affairs Victoria, verified 31 Jul 2026). This matters for an established home as much as a new build: a defect in work done several years ago on a house you're now buying can still be within warranty.
Two different insurance regimes, depending on the contract date
Which insurance scheme actually applies depends on when the building contract was signed, and the two work very differently.
Contracts signed before 1 July 2026: Domestic Building Insurance (DBI)
Under the earlier Domestic Building Insurance scheme, cover can only be claimed in narrow, "last resort" circumstances — generally where the builder has died, disappeared or become insolvent. It applies to work worth more than $16,000, and cover lasts 6 years (Consumer Affairs Victoria, verified 31 Jul 2026). If the property's relevant building work was contracted before 1 July 2026, this is the regime that applies, and existing DBI policies continue under their original terms — they don't convert to the new scheme.
Eligible contracts signed from 1 July 2026: Home Warranty
From 1 July 2026, Victoria's Home Warranty scheme applies to eligible domestic building contracts signed on or after that date, generally for building work valued over $20,000. Unlike DBI's last-resort model, Home Warranty is a "first resort" scheme — cover can be claimed once a building issue is first identified, including incomplete, non-compliant or defective work, without waiting for the builder to die, disappear or become insolvent (Victorian Government (vic.gov.au), verified 1 Aug 2026). It provides broader, earlier protection than DBI, administered by Victoria's Building and Plumbing Commission (BPC).
If you're buying a property with recent or in-progress building work, confirm the building contract date with your conveyancer before assuming which regime — and which insurer — actually applies.
Making a claim or raising a dispute
If you find a problem you believe is covered:
- Document the issue with photographs and dates before anything changes.
- Contact the builder directly first — your council can help identify who they are if you don't already know.
- Notify the relevant insurer (DBI or Home Warranty, depending on the contract date) if the builder disputes the issue or won't act.
- Raise a formal dispute if it's still unresolved: Domestic Building Dispute Resolution Victoria (DBDRV) is now part of the Building and Plumbing Commission (BPC), which is the current single entry point for a domestic building dispute — free conciliation generally has to be tried before an application to VCAT (Consumer Affairs Victoria, verified 1 Aug 2026).
- Get technical or legal advice for anything involving safety, a large repair cost, or an insurer or builder that disputes liability.
Worked example
Three years after settlement, an owner notices water pooling against a retaining wall built as part of the original construction seven years earlier — under a contract signed well before 1 July 2026. Because it's within the 10-year statutory warranty period for domestic building work, they contact the original builder directly rather than assuming it's solely their own problem to fix, and confirm which DBI policy (not Home Warranty, given the contract date) might apply if the builder can't be reached.
Practical checklist
If you find a building problem after settlement
- Document the issue with photographs and dates
- Check whether the work falls within the 10-year statutory warranty period
- Confirm the original building contract date to know which insurance regime applies
- Contact the builder directly first
- If unresolved, raise it with the Building and Plumbing Commission (BPC)
Questions for a professional
- Does this issue fall within the statutory warranty period, and who was the builder?
- Was the relevant building work contracted before or after 1 July 2026, and which insurance scheme actually applies?
Official resources
- Consumer Affairs Victoria: Building problems after property settlement
- vic.gov.au: Better domestic building insurance (Home Warranty)
Sources and methodology
- Building problems after property settlement — Consumer Affairs Victoria (retrieved 31 Jul 2026)
- Apply to Domestic Building Dispute Resolution Victoria (DBDRV) — Consumer Affairs Victoria (retrieved 1 Aug 2026)
- Victoria's First Resort Home Warranty Scheme — Victorian Government (vic.gov.au) (retrieved 1 Aug 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.