A person who does residential building work otherwise than under a contract (for example a builder building on its own land) must not do it unless a contract of insurance complying with the Act is in force for the work, and must not enter a contract to sell the land unless the certificate of insurance is attached to the contract of sale; before contracting to sell they must also give the buyer the Authority-approved brochure explaining the cover and dispute procedures (40 penalty units for a corporation, 20 otherwise). Exclusions: owner-builder work, individuals exempt from s 12, sales more than 6 years after completion and work below the prescribed cost. A sale contract without the certificate is voidable by the purchaser before completion unless insurance was obtained before contracting and the certificate served before completion. The cover extends to rectification of the original work. Maximum penalty for the insurance and certificate duties 1,000 penalty units for a corporation and 200 otherwise.
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