Defects Bond For New Apartments
NSW Fair Trading implanted strata reforms in 2016. As part of this, they introduced a defects bond for the development of new apartments, at 2% the total value of construction costs.
The bond and inspections are starting to come online now with the first developments going through the new process.
The laws specifically put the onus on the Developer, and it is important that you deal in the spirit and intention of the new laws.
We would suggest using accredited strata managers and facilities managers with quality assurances to appropriately address the issues raised by inspectors. The bond doesn’t replace statutory warranties, so it is better to get the problem fixed rather than gloss over it. We are happy to help you get through this transitional period.