The Home Building Amendment Act 2014 was passed by the
NSW Parliament on 28 May 2014. The Act contains numerous amendments
to the Home Building Act 1989
("HBA"). NSW Fair Trading has announced
that the changes to the HBA in relation to the statutory warranties
scheme will commence from 15 January 2015. As well, new regulations
(the Home Building Act Regulations 2014) have been
proposed and are expected to commence at the same time as the
amendments to the HBA.
The amendments to the HBA will abolish the current distinction
between structural and non-structural defects. Of particular
significance is the introduction of the concept of a "major
defect". Under the amendments, a "major defect"
would require a building to be uninhabitable or under threat of
collapse. The six year statutory warranty period will only apply in
the case of "major defects". For all other defects, the
statutory warranty period will be limited to two years.
