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What happens if the defect is on common property?

Posted 20 May 2024

Category: Building Defects, eBooks

Notwithstanding the statutory warranties imposed under the HBA, Owners Corporations will rarely avoid the cost of rectifying building defects to the common property. Unfortunately, the various legal and insurance avenues available do not provide strata owners with a complete safety net.

However, there are various options that should first be explored. Some of these include:

  • Establishing whether Home Owners Warranty Insurance is applicable for the construction of the building;
  • Obtaining confirmation from NSW Fair Trading that the developer has lodged the required Strata Building Bond and Inspection Scheme and that it applies;
  • Lodging a complaint with NSW Fair Trading against the builder and/or developer;
  • Checking the statutory warranties for rectifying defects with the builder and developer;
  • Entering into a contract with the builder and/or developer to rectify building defects; and
  • If necessary, commencing legal proceedings.
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This is an extract from our Bannermans Building Defects 2023 Guide.

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Bannermans Lawyers

Published 20 May 2024