The Strata Building Bond and Inspections Scheme is Now in Force

From 1 January 2018, any building contract entered into by a developer and builder in NSW will need to adhere to the new strata building bond and inspection scheme.  The regime does not apply to building work if the building contract for carrying out the work was entered into before 1 January 2018 - therefore the scheme will not apply to off-the-plan purchasers where the contract was exchanged prior to this date.

The newly implemented building bond only applies to the construction of four or more storied residential or partial-residential properties, and includes both a building bond and compulsory inspection report analysing the defects in the construction. This is set to provide a structured and proactive approach to resolving nagging issues pertaining to the construction of strata buildings across NSW in a much quicker and more cost effective manner.

Key elements of the new strata building bond and inspection scheme

The recent implementation of the strata building bond and inspection scheme is expected to eliminate any kind of negligence on the part of the developer in the construction of the strata properties, and reassures buyers that they are cutting a good deal when it comes to the construction of the property that they are buying.

If you have any questions regarding the strata building bond and inspection scheme and would like to speak with someone in our Commercial Property team - please don't hesitate to get in touch with: