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ARTICLE · 07 FEBRUARY 2018

NSW Fair Trading: new strata development bond regime

Colin Biggers & Paisley
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A new regime requires developers of new strata developments to lodge a building bond with NSW Fair Trading. .

AustraliaReal Estate and Construction
Chris Rumore
Chris Rumore

IN BRIEF - A NEW REGIME HAS COME INTO EFFECT FOR NEW STRATA DEVELOPMENTS FROM 1 JANUARY 2018.

Where a developer enters into a building contract from 1 January 2018, the scheme will apply to require the lodgement of a building bond.

The bond has to be lodged in relation to any residential or partial residential development projects where the requirement to have Home Building Act insurance does not apply (for example, where the residential building work relates to the construction of a building that has a rise in storeys of more than 3 and contains 2 or more separate dwellings).

The developer must lodge a building bond equal to 2% of the contract price with NSW Fair Trading which is to be used as security for the rectification of building defects.

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