Do you know?

NSW Fair Trading has now provided an additional specialist resource to assist with the implementation of the Strata Building Bond and Inspections Scheme (SBBIS).

You may remember that Strata Building Bond and Inspections Scheme began on 1 January 2018 and applies to:

• Building contracts executed from this date
• Buildings with no written contract
• Building works that commence from this date
• Construction of residential or partially-residential strata properties that are four or more storeys high

Online Portal

The Strata Building Bond and Inspections Scheme is now administered by an online portal.

At any time before the occupation certificate is issued developers can register to use the portal to:

• Enter project details
• Upload documents as they become available, at anytime

PLEASE NOTE: These documents should reflect the completed building just before any occupation certificate is issued (not the start of the build).

 Owners Corporations and Strata Managers

Owners Corporations who are eligible should familiarise themselves with the portal to access information if and when needed. You may also refer to this information specifically developed for owners corporations and strata managers.

For any portal assistance, you may call 13 32 20 (8:30am to 5.00pm, Monday to Friday) or email stratabond@finance.nsw.gov.au or refer to more details online about the Strata Building Bond Scheme here.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

At the commencement of 2018 the new strata building bond and inspection scheme started.

The strata building bond and inspection scheme is designed to incentivise developers ensuring that there is a clear process for builders to minimise any building defect issues in new residential high-rise strata blocks.

 Proposed regulations and Amendments

Proposed amendments to the Strata Building Bond and Inspection Scheme have recently been announced.

Currently, under the scheme developers are required to lodge a bond of 2% for residential and mixed-use high-rise strata buildings of 4 or more storeys.

The proposed amendments to the strata building bond and inspection scheme seek to enhance the ability of Fair Trading to verify the building contract price (on which the 2% building bond is based) and to clarify the role of the building inspector in the scheme.

So, what are the specific proposed amendments?

• Developers must lodge a building bond before applying for the occupation certificate (rather than at any time before an occupation certificate is issued, as is currently required)
• The owners corporation and the developer must agree on the amount to be released from the bond to meet the costs of fixing identified building defects. If they cannot agree, the Secretary will determine this amount
• New investigative powers for Fair Trading to enable verification of the amount of the contract price or building bond, including new entry to premises and search warrant powers
• An increase in the maximum penalty for a developer failing to lodge the building bond from 200 penalty units ($22,000) to 10,000 penalty units ($1.1 million)
• An offence for developers to provide false or misleading information to the Secretary in relation to the contract price or the building bond
• A new ‘good faith’ liability protection for building inspectors, and the professional associations that appointed them, which excludes them from liability for anything done (or omitted to be done) in ‘good faith’ in conducting an inspection

 Have your say!

The deadline to have your say on the proposed Bill and/or Regulation amendments is 11 May 2018, visit NSW Fair Trading to have your say.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

1 December 2014 the home building legislation in NSW will change. The changes to the legislation may mean that some owners corporations will lose all of their rights to make claims for building defects.

• 34 Days until 1 December 2014!
• Do not get caught out!
• The time to act is now!
• Have your buildings inspected by a building consultant to check for defects!
• Avoid losing your rights to make a building defect claim!

At JS Mueller & Co we work with a number of reputable building consultants and engineers. We can organise a building inspection for any building that you manage to check for defects before the 1 December deadline.

But you must act quickly otherwise you may run out of time.

If you would like to discuss the changes to the NSW home building legislation or have JS Mueller & Co organise a building inspection, please contact us now on the details below.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.