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ARTICLE · 30 NOVEMBER 2022

Security of Payment 101

A must read for homeowners, owners corporations and strata managers. All about SOPA eg. when does it apply & when can it be used?

AustraliaReal Estate and Construction

A must read for homeowners, owners corporations and strata managers

What is the SOPA?

The Building and Construction Industry Security of Payment Act 1999 (NSW) (SOPA) is legislation which assists with cashflow for builders by providing a mechanism for quick dispute resolution regarding payment for 'construction work'.

The SOPA regime has strict timeframes. These timeframes can catch unsuspecting homeowners off guard and have unforgiving consequences if they are not complied with.

Does SOPA apply to work done in my home?

Yes, SOPA applies to work done in residential homes, including strata schemes.

From 1 March 2021, the SOPA regime applies to building work done to residential properties where the person who engages the builder resides or proposes to reside.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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