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ARTICLE · 03 MAY 2018

Defects in strata buildings in NSW – the strata building bond explained

Bartier Perry Solicitors
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The bond should mean the early identification and rectification of defective building work in certain strata schemes.

AustraliaReal Estate and Construction
Irene Horan (Formerly With Bartier Perry)
Irene Horan (Formerly With Bartier Perry)
Sharon Levy
Sharon Levy
Melissa Potter
Melissa Potter
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Defects in newly constructed high-rise developments are becoming more and more prevalent, especially in Sydney.

With the aim of addressing this, there are now new obligations on property developers in New South Wales pursuant to Part 11 of the Strata Schemes Management Act 2015.

Under the new scheme, buildings must be checked by an independent building inspector and the original property developer (not the builder) must pay a bond to cover the cost of rectifying any defects.

When does it apply?

This scheme only applies to developments where:

  1. the building has four or more storeys; and
  2. the building will be used for residential purposes (or a mix of residential and commercial purposes); and

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