Strata defects and Project Intervene NSW (From 2 November 2022 to 30 June 2023)
Surprise! There are generally lots of defects in strata buildings (39% having serious defects from 2014). These defects range from waterproofing defects, fire safety defects, structural defects and the other so-call “minor” defects (which when combined, can be very expensive). This is according to the new report from the still current NSW Building Commissioner, David Chandler.
Given the high-profile and costly problems (including those from overseas), it is not surprising that the NSW Government is attempting to play catch-up and reform the industry.
We have previously written about, to name a few, the legislative framework:
- The new Design and Building Practitioners Act 2020 NSW (DBPA) – about the new duty of care and case law against various building practitioners retrospectively covering losses arising from the last 10 years or so (came into force on 11 June 2020);
- Part 11 protections under the Strata Schemes Management Act 2015 (SSMA) – about the new 2% developer bond and inspection scheme affecting strata residential building works entered into after 1 January 2018 that involves are 4 or more storeys in height;
- Home building compensation insurance – about insurances up to 3 storeys high;
- Combustible cladding legislation – about the flammable coverings to high-rise buildings and fire safety.
There are of course a myriad of legislation that deals with building defects. And yes, we have not forgotten about the Home Building Act 1989 (NSW) which is in the process of being reviewed – but more on that later, no doubt!
Taking a step back from the legislative remedies, NSW Fair Trading CURRENTLY has partnered with Sedgwick Australia to provide a FREE inspection report of strata buildings with the Fair Trading’s “Intervention Team”. Notably, the details as follows:
- Complaints to Project Intervene – This needs to be lodged between 2 November 2022 to 30 June 2023;
- An authorised member of the strata committee or the strata manager to lodge the matter with Fair Trading;
- No invasive inspection (other than on a case by case basis);
- The developer (or builder) needs to be active (eg: not insolvent or bankrupted);
- An occupation certificate was issued within the last 6 years (so, still within the statutory warranty under the Home Building Act 1989);
- The residential apartment building needs to be 4 stories or more;
- The building is identified as having serious defects in the key building elements of the common property, which can include fire safety systems, waterproofing, structural issues (such as load bearing, foundations, footings, floors, walls or roof building enclosure such as external cladding and façade) and key services such as plumbing, electrical and lifts.
After the inspection report is issued, a Building Work Rectification Order (BWRO) will be issued to the developer. In special cases, a Prohibition Order can be issued, to prevent an occupation certificate from being issued for very new buildings (PO), which can be relevant to off-plan purchases of properties.
It appears to be a much needed incentive from NSW Fair Trading to raise awareness from strata lot owners to activate their rights under the Home Building Act 1989 (NSW) and the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020, which of course, are not simple!
Takeaway
If you or you know someone that requires assistance in dealing with building defects (or you know they are, or no one looked at the defects at your building properly), we can help! From experience, even a quick call with us can resolve many of these building related issues which can include the drafting of the necessary strata motions and you and the strata scheme can be on the right track in no time!!
More Information
Please contact our Property/Strata law team at Matthews Folbigg Lawyers on 9635 7966 if you would like advice or assistance or email Eadz Tang at Eadzt@matthewsfolbigg.com.au.
