Liability to subsequent purchasers

Allens Arthur Robinson

The Supreme Court of South Australia has upheld the principle that a builder is not liable to a subsequent purchaser merely because the builder used a cheaper form of construction that had higher ongoing maintenance costs, especially in circumstances where the subsequent purchaser chose not to conduct an inspection that would have brought the issue to light. Such an approach by the builder does not amount to the creation of a latent defect. [Case ref: Roberts v Parletta Constructions Pty Ltd [2010] SASC 248.]

Reproduced with permission of Allens Arthur Robinson and in accordance with their terms of use.

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