There are wholesale changes on the way for New South Wales strata property, including new bonds that will directly affect all owners.
In the July announcement from NSW Fair Trading, a new scheme was outlined to “increase builder and developer accountability, enable defects to be identified and fixed early, and prolong the life of the building”.
Essentially, the new bond is 2 percent of the final contract price of a construction, which will be used to fix any defective work in a development. If none is found, then developers get the entirety of the bond back.
A change for inspections
The scan for defects will be conducted by an independent building inspector, that the developer must pay for themselves. The first report is due 15-18 months after completion and the final version within two years. Owners corporations have to agree to the appointment of the inspector that developers select.
For owners, this means more protection against the risk of building work that requires extensive repairs down the line. If you own strata real estate in NSW that has been built in the last few years, you may be covered for defective construction work.
These are huge changes for strata, but they will not be enforced until midway through 2017. This gives people plenty of time to prepare any necessary changes to their finances, and if you are part of the owners corporation, to scrub up on the specifics of the legislation.
At the first AGM under the new scheme, a maintenance schedule will also be presented to all owners. This provides information about your obligations when it comes to repairs and maintenance from then on. As always, the team at Civium Strata is here to help with any ongoing concerns that may arise.