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Building Act 2004

Consumer rights and remedies in relation to residential building work - Implied warranties

362H: When provisions relating to implied warranties apply

You could also call this:

“These rules explain when the law protects you if someone builds or sells you a home.”

Sections 362I to 362K apply to certain contracts made on or after this section starts. These contracts include residential building contracts (written or spoken) and contracts for selling one or more household units by an on-seller. These sections apply even if the contract says otherwise.

For sections 362I to 362K, when an on-seller sells one or more household units, it’s treated as a contract for the building work. The on-seller has the same responsibilities as a building contractor in a residential building contract.

An on-seller is someone who builds a household unit themselves or with help, arranges for it to be built, or buys it from someone who built it or arranged its construction to sell it. It also includes someone who buys a household unit to avoid the rules in this section.

However, if you’re a registered MCM (Modular Component Manufacturer) certified to make household units, you’re not considered an on-seller when you make a household unit.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6371127.

Topics:

Housing and property > Buying and selling homes

Housing and property > Home safety and repairs

Business > Industry rules

362G: Regulations may prescribe content, etc of residential building contract, or

“Rules can say what must be in a house-building agreement to make sure it's fair for everyone.”

362I: Implied warranties for building work in relation to household units, or

“ Promises about good building work for homes that are always part of the agreement ”

Part 4A Consumer rights and remedies in relation to residential building work
Implied warranties

362HWhen provisions relating to implied warranties apply

Sections 362I to 362K apply—
to any of the following contracts entered into on or after the date on which this section comes into force:
1. a residential building contract, whether written or oral; or
2. a contract for the sale of 1 or more household units by, or on behalf of, an on-seller; and
despite any provision to the contrary in any agreement or contract.

For the purposes of sections 362I to 362K, a contract by or on behalf of an on-seller for the sale of 1 or more household units—
is taken to be a contract for the building work already carried out or still to be carried out in building the household unit or units; and
is taken to incorporate as the obligations of the on-seller the obligations of the building contractor under a residential building contract.

In subsection (1)(a)(ii), on-seller means a person who does any of the following things in relation to a household unit for the purpose of on-selling the household unit:
builds the household unit by himself or herself or with the assistance of others:
in trade arranges for the household unit to be built or acquires the household unit from a person who built it or arranged for it to be built:
acquires the household unit in a transaction that is intended to defeat the purpose and effect of subsection (2).

However, subsection (3)(a) does not apply to the manufacture of a household unit by a registered MCM who is certified to manufacture the household unit.

Notes

Section 362H: inserted, on 1 January 2015, by section 56 of the Building Amendment Act 2013 (2013 No 100).
Section 362H(4): inserted, on 7 September 2022, by section 78 of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).