Developers are required to lodge a 2% bond for residential and mixed-use high-rise strata buildings of 4 or more storeys.
The proposed amendments to the building bond is to enhance the ability of the Department of Fair Trading to verify the building contract price (which is the basis of the bond) and to clarify the role of the building inspector in the scheme.
Below are the proposed amendments:
- Developers must lodge a building bond before applying for the occupation certificate.
- 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.
- New powers for the Department of Fair Trading which will enable the verification of the amount of the contract price or building bond.
- New entry to premises and search warrant powers.
- An increase in the maximum penalty for failing to lodge the building bond from $22,000 to $1.1 million.
- An offence for to provide false / misleading information to the Secretary in relation to the contract price or the building bond.
- 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.
To see more information on the Regulations Amendment, use the link below:
Please also view the Department of Fair Trading for even more information.