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ARTICLE · 19 MAY 2018

Does the Domestic Building Contracts Act 1995 (Vic) apply to developers?

Holding Redlich
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Developers should become familiar with the Act, and with any rights or obligations stemming from this legislation.

AustraliaReal Estate and Construction
Jordan Barling
Jordan Barling
Michael Cain (Formerly With Holding Redlich)
Michael Cain (Formerly With Holding Redlich)
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Background

Melbourne's housing market has boomed over the last two decades, resulting in a spate of cases concerning the application of the Domestic Building Contracts Act 1995 (Vic) (the Act) to property developers. Government intervention and various court rulings have created uncertainty about developers' rights and obligations under the Act. The recent case of H Buildings v Owners Corporation [2017] VSC 802 has provided much needed guidance on the Act's scope and application.

Developers generally enter into two types of contracts that are subject to the Act:

off-the-plan contracts of sale with purchasers; and construction contracts with builders.

Off-the-plan contracts of sale

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