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ARTICLE · 01 NOVEMBER 2011

Changes to home building in NSW have implications for builders, developers, owners and owners corporations

Colin Biggers & Paisley
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New time-frames will impact on insurance claims, statutory warranty periods and home building contracts.

AustraliaReal Estate and Construction
Julian Mellick
Julian Mellick

In brief – the Home Building Amendment Act commenced in NSW on 25 October 2011

The Home Building Amendment Act 2011 (NSW) was introduced into Parliament on 12 October 2011 and commenced on 25 October 2011. Some parts, however, have delayed commencement and are likely to come into effect from 1 February 2012 (according to the Department of Fair Trading).

Four key impacts now in effect

Developers: the owner of land on which a developer does residential building work is now deemed to be a developer. There are limited exceptions.

Insurance: there are new timeframes and requirements for notifying losses and making claims under home owners warranty (HOW) insurance.

Proportionate liability: liability for breach of statutory warranty claims under the Home Building Act can no longer be apportioned to other concurrent wrongdoers.

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