Handover day on a new home is exciting. It is also the last real chance to look closely before the keys and the final payment change hands. A careful walk around the house now can save months of phone calls later. Here is what that day involves and how to prepare for it.

The rules behind handover come from state law and from your building contract. That means the details differ between states and they can change over time. The steps below use guidance from Queensland and New South Wales regulators as examples. Check with the building regulator in your own state for the rules that apply to you.

What practical completion means

Handover usually happens at practical completion. The Queensland Building and Construction Commission describes this as the point where all building work is done and the owner can move in. The home must be suitable for occupation. In plain terms it works as a normal home, has power and water connected and keeps the weather out.

A few minor items can still be outstanding at this stage. Small paint repairs are a common example. What the home must not have is any major defect. Your final payment is normally due at handover, so this is the moment your bargaining position is strongest.

Getting ready before the day

In Queensland the builder should give you 2 to 3 weeks of warning about the expected handover date. They must also give you at least 5 business days of notice before practical completion. Use that time well. Read your contract again and note anything it says about the final inspection, the final payment and the documents you should receive.

The QBCC suggests meeting your builder at the property about a week before the handover inspection. This gives both of you a chance to sort out remaining issues early. It also means the formal inspection is less likely to turn into a long list of surprises. Bring a copy of your plans and specifications so you can compare what was promised with what was built.

You can also engage a building inspector to look at the work on your behalf. A trained eye will often spot things a homeowner would miss. If you plan to do this, book early because good inspectors get busy. Make sure they can attend before you sign anything or pay the final amount.

Walking through the house

On the day, you and the builder walk through the home together and fill out a defects document. This lists the minor defects or omissions you both agree on. It also states when the builder will fix them. Take your time and do not let anyone rush you through the rooms.

Start outside and work your way in. Look at the roof line, gutters and downpipes, and check that water will run away from the house rather than pooling against it. Our guide to drainage problems in your landscaped garden explains why water sitting near the house matters. Check driveways, paths and fences for cracks, chips and loose fittings.

Inside, test everything that moves or turns on. Open and close every door, window and cupboard. Turn on each light and check each power point with a small lamp or phone charger. Run the exhaust fans and the air conditioning if it has been installed.

Water is where small problems become big ones. Run every tap, flush every toilet and look under sinks for drips. Watch how quickly basins and showers drain and look for damp marks on ceilings below bathrooms. Many of the warning signs in our piece on when it is time to update your home’s plumbing are worth checking in a new home too.

Look closely at glass, seals and flyscreens. Scratches and chips on windows are easy to miss under building dust. On a two or three storey home, upper windows can be hard to check from inside. Our article on 2 and 3 level window cleaning explains why high glass needs a careful approach, and the same caution applies when inspecting it.

Check surfaces at different angles and in different light. Paint, plaster, tiles and benchtops can look fine at a glance and show flaws in morning sun. Note anything that does not match the plans or the finishes you selected. Photograph every item you list and keep the photos with the date they were taken.

When you and the builder disagree

Sometimes you will believe something is a defect and the builder will not agree. Under the QBCC guidance, defects that only the owner believes exist must be listed separately on the document. Both the owner and the builder must sign it. This keeps a record of the disagreement without holding up the whole process.

Documents you should receive

Handover is also when paperwork changes hands. The QBCC lists several documents the builder should give you. Keep them together in one folder, as you will need them for insurance, future renovations or a sale. Use this list to check nothing is missing.

  • The practical completion certificate for a new home.
  • Certificates of inspection, including the final certificate.
  • Product warranties for installed appliances.
  • Reports, notices or documents from service providers such as electricity, gas, water and sewerage.

Some contracts say all certificates of inspection must be handed over before final payment. The QBCC recommends providing them before final payment even when the contract does not require it. Ask for them by name if they are not offered. Appliance faults after handover are a matter for the product supplier, which is why those warranties are worth keeping.

After you move in

Minor defects noted at handover should be fixed as soon as practical. You will need to give the builder reasonable access to the site, and your contract may set a timeframe. Keep a running list of anything new you notice in the first months. Living in a home reveals faults that an inspection cannot, like a door that sticks in humid weather.

Put any later defects to the builder in writing as a list. Both of you should keep copies of every letter and email. In Queensland the builder must repair defects noticed at handover or within 12 months of the work being finished. You must tell the builder about those defects within 12 months of noticing them.

Other states use different time limits. In New South Wales the Home Building Act 1989 gives statutory warranties of 6 years for major defects and 2 years for other defects. Building Commission NSW says homeowners should first try to resolve a problem with the builder. If that fails, a complaint can be lodged with the Commission. Owners may also need to apply to the NSW Civil and Administrative Tribunal before the warranty period ends.

Insurance is the other safety net. In New South Wales, home building compensation cover is mandatory for residential building work over $20,000. It can cover losses from defective or incomplete work if the builder becomes insolvent, dies or disappears. Queensland has its own Home Warranty Scheme and other states have their own arrangements, so check what applies where you are building.

Planning the next stage

Once the keys are yours, attention usually turns to the garden, blinds and other finishing touches. Hold off on major changes until the defects list is cleared, so it stays clear who is responsible for what. If you are buying materials for those projects, our tips on getting the most from your home building supplies can help you avoid waste. Keep receipts for anything you add so it does not get confused with the builder’s work.

Frequently asked questions

Can I refuse handover if there are defects?

Handover happens at practical completion, which in Queensland means the work must not include any major defects. Minor items can be listed on the defects document and fixed later. If you believe a major defect exists, raise it in writing and check your contract. A lawyer or your state building regulator can explain your options.

Do I need a building inspector?

It is not required, but the QBCC notes that owners can engage a building inspector to review the work on their behalf. Many people find it worth the cost on a new home. An inspector can also help you word the defects list clearly. Book them early so they can attend the handover inspection.

Who fixes a faulty oven or dishwasher after handover?

Problems with installed appliances after handover go to the product supplier rather than the builder. That is why the builder should hand over product warranties on the day. Register the appliances if the manufacturer asks you to. Keep the warranty papers with your other handover documents.

How long do I have to report defects?

It depends on your state and on the type of defect. In Queensland the builder must repair defects noticed at handover or within 12 months of completion. You must notify the builder within 12 months of noticing a defect. In New South Wales statutory warranties run for 6 years for major defects and 2 years for others.

This article is general information only and is not legal advice. Building laws and processes differ between states and change over time. For advice about your own contract or dispute, speak with a qualified lawyer or your state building regulator.