- Owner-builders failed to meet home indemnity insurance (HII) obligations when selling their Balingup home
- HII is required when an owner-built home is sold within seven years from issue of the building permit and the building work is valued at more than $20,000
- Building Commissioner stresses the importance of HII in protecting consumers
Owner-builders are being reminded of their obligations to obtain home indemnity insurance (HII) if they sell their home within seven years from when the building permit was issued and if the building work was valued at more than $20,000, with WA’s Building Commissioner saying it is a vital consumer protection.
The reminder follows a case in Bunbury Magistrates Court, where Peter Quartermaine and Vicki Lee Viney were each fined $2,500, and ordered to pay costs of $964.30, after pleading guilty to breaching the Home Building Contracts Act 1991.
The prosecution was brought by the Department of Local Government, Industry Regulation and Safety’s Building and Energy Division, WA’s building regulator.
Under the Act, if an owner-builder sells their property within seven years from the date the building permit was issued, the owner-builder is required to obtain an HII policy. This insurance provides protection for the purchaser if defects are later found and the owner-builder has died, become insolvent or cannot be located.
The court was told that in January 2023, Mr Quartermaine and Ms Viney were issued with a building permit for their Balingup home, which they sold in October 2024 without an HII policy in place.
In sentencing submissions on 16 April 2026, a lawyer for Building and Energy said Mr Quartermaine had previously been a registered building contractor and should have been aware of the HII obligations.
Defence submissions stated Mr Quartermaine and Ms Viney “immediately” tried to obtain retrospective cover when made aware of the HII issue, but were told it was unavailable. They also claimed that it was a “systemic failure” in that others involved in the sale had also not picked up on the lack of an HII policy
Magistrate Stephen Butcher accepted the pair’s early plea and lack of prior criminal record. His Honour cited a need for general deterrence, saying the importance of HII was greater than ever in the current climate.
Building Commissioner Phil Payne said the case was an important reminder for owner-builders to ensure they were fully aware of their responsibilities.
“Home indemnity insurance provides important protections to consumers,” he said.
“Information for owner-builder applicants, including about their HII obligations, is readily available on the Building and Energy website, through owner-builder education courses and on application and approval forms.”
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Media contact: BEmedia@lgirs.wa.gov.au
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