Strata defects regime mandatory requirements - what you need to know

In an effort to address defects in new high rise strata buildings, the 'Strata Defects Regime' commenced on 1 January 2018. The regime now makes the following mandatory:

• An interim and final inspection, as well as an interim and final report is to be conducted by an independent building inspector appointed by the developer; and
• A 2% building bond is payable by the developer in relation to any potential defects.

Who does this apply to?

• Strata complexes which hold 4 or more buildings.
• This applies to residential building work only (or on mixed schemes that include residential use).

The regime is not applicable to building work where a building contract was entered into before 1 January 2018.