Yes. The WA Government’s guidance dated 20 May 2025 says an owner-builder who wishes to sell their property within seven years from the time the building permit was granted must obtain home indemnity insurance (HII). The HII certificate of insurance must be provided to the prospective purchaser before settlement occurs. Figures checked 1 October 2026.
How do the timing rules work?
The owner-builder sale requirement has separate timing points:
- The proposed sale: It must be within seven years from the time the building permit was granted.
- The insurance: The owner-builder must obtain HII.
- The certificate: It must be provided to the prospective purchaser before settlement occurs.
The certificate therefore needs to reach the prospective purchaser before settlement; obtaining the insurance without arranging that delivery does not complete the proposed-sale requirement.
What does HII protect against?
HII protects owners against the loss of a deposit or other financial loss where the builder cannot complete the work or meet a valid claim for faulty or unsatisfactory building work because a relevant circumstance exists in relation to the builder.
Relevant circumstances can include an individual builder dying, disappearing or becoming insolvent. They can also include a non-individual builder ceasing to exist or becoming insolvent. Cancellation or non-renewal of a builder’s registration because the builder failed to meet prescribed financial requirements can also be a relevant circumstance.
How can the HII certificate be checked?
During the building approval process, the permit authority must check that the builder submitted an HII certificate for the proposed work and that the certificate is watermarked. The certificate must have been issued by QBE, and its details must match QBE’s Builders Warranty Insurance Certificate Register.
An HII eligibility certificate or a builder’s construction or public liability insurance certificate cannot be supplied instead of the HII certificate. Building and Energy can advise about approved HII providers.
What should the owner-builder do before settlement?
A practical checklist is:
- Check when the building permit was granted against the proposed sale date.
- Obtain HII if the sale will occur within seven years of that date.
- Provide the HII certificate to the prospective purchaser.
- Ensure the certificate is provided before settlement occurs.
A copy supplied earlier in the building approval process does not replace the separate requirement to provide it to the prospective purchaser for the proposed sale.
This is general information, not financial or legal advice. Check the current WA Government regulator page and the applicable policy’s PDS for the precise requirements and cover.
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FAQ
When does the seven-year period start?
It starts from the time the building permit was granted.
Is providing the certificate on settlement day sufficient?
No. The WA Government’s guidance says the certificate must be provided to the prospective purchaser before settlement occurs.
Does a certificate already supplied to the permit authority cover this requirement?
No. The proposed purchaser must receive the HII certificate before settlement. A copy supplied only as part of the building approval process does not satisfy that separate delivery requirement.
What if the project may be exempt from HII?
If a builder claims an exemption and there is uncertainty, check with Building and Energy before proceeding. Exemptions may apply under the Home Building Contracts (Home Indemnity Insurance Exemptions) Regulations 2002, but the supplied guidance does not determine whether a particular project qualifies.
Does landscaping performed alone under a separate contract require HII?
No. The WA Government’s guidance says HII is not required for associated work performed alone under a separate contract, including landscaping. This is separate from the HII requirement associated with residential building work.
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