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ARTICLE · 14 DECEMBER 2016

NSW Strata Reforms – Introduction of the new Building Defect Bond Scheme

Coleman Greig Lawyers
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Developers and builders of high rise strata buildings should familiarise themselves with the Building Defect Bond Scheme.

AustraliaReal Estate and Construction
Raymond Frangi
Raymond Frangi
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Developers and builders of residential and mixed use high rise strata buildings are being urged to familiarise themselves with the introduction of the Building Defect Bond Scheme introduced under the new Strata Schemes Management Act 2015 (NSW) (the Act). The Building Defect Bond Scheme will commence on 1 July 2017, and will require developers to lodge a bond with NSW Fair Trading equal to two percent of the contract price for residential and mixed use high rise strata buildings.

The purpose of the Building Defect Bond Scheme is to increase consumer protections available to owners of strata buildings by securing funding for the payment (up to the amount of the bond) of the costs of rectifying defective building work not rectified within the two year statutory warranty period.

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