In our video series Michael Vumbaca, General Manager at Jamesons Strata discusses the how the new laws address development defects.
We all hear the horror stories on the news of the new development that has been built, and a year later is riddled with defects. Owners don’t know where to turn. They are spending money on special levies and fixing defects, and they cannot get the developer to come back and rectify.
As a result of these occurrences, the new legislation has imposed a 2% bond on the developers of new buildings. That bond will be held in trust throughout the course of the development and beyond, and is used to pay for defects that result out of the original development.
In order to have defects rectified in a new development, an owners corporation needs to notify the developer within this statutory warranty period. That period can vary from two to six years, so it’s very important you engage a consultant to work with your owners corporation to identify defects as quickly as possible after entering the new development.
This new piece of legislation is an incredibly positive step for the industry. It should change the mind-set of developers to make sure that the quality of their builds meets expectations. They should also be aware that if they don’t do a good job, they’re going to be held liable for the work that they’ve done.
Jamesons are a family run business that have provided Sydney residents with strata management services for over 50 years. If you would like more information regarding strata management, please contact Jamesons Strata Management on (02) 8969 3400.