On 15 January 2015, the Home Building Amendment Act 2014 changed the terminology and definitions for building defects from structural to “major” and from minor to “in any other case” i.e. non-major.

So, what is the new definition of a major building defect?

In these two recent NSW Civil and Administrative Tribunal (NCAT) Appeal Panel decisions they have considered the definition of major defect and how to establish whether a defect meets this definition, providing some useful guidance on this topic How to Establish a Major Building Defect.

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

A recent decision of the NSW Court of Appeal has found that the owners corporation of a leasehold strata scheme located in Manly, Sydney and owned by the Roman Catholic Church, had no right to make a claim against the builder or developer of its scheme for building defects.

Are owners corporations of leasehold strata schemes required to foot the bill for the costs to repair building defects?   Leasehold Strata Schemes and Building Defects

Do you need advice on building defects and/or leasehold strata schemes, speak to the experts?

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

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.

Many strata buildings built since the 1990’s contain some form of external cladding as part of their construction.

A significant number of these strata buildings contain cladding that is highly flammable and combustible such as The Lacrosse Building Fire in Melbourne in 2014, and the Grenfell Tower disaster in London in 2017 which now lay bare.

Building owners including owners corporations are now left to deal with what steps to now take to rectify the problem.  A number of buildings, including strata residential buildings of two storeys or more, with certain types of cladding systems, have recently had to register their building under the planning regulation.

In the meantime, whilst we wait for the outcome, what can you do to mitigate and minimise risk? Combustible Cladding By-laws

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

Cracked walls and failing waterproof membranes are two of the common issues which owners corporations have to deal with.

Difficulties may arise where, if the owners corporation takes no action, there may be further consequences in terms of damage to other common property, damage to particular lots, and damage to the property of lot owners.

For some owners corporations, the backing of an insurer can be a “life saver” in a situation like this – but what should the owners corporation do if their insurer declines coverage or otherwise refuses to pay for all or part of the damage which the owners corporation (or a lot owner) is seeking to have fixed?

So, what happens when the insurer refuses to pay? Owners Corporations Common Property and Repairs

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

Following the tragic fire at the Grenfell Tower in London in 2017 and the fire at the Lacrosse Building in Melbourne in 2014, new laws have been made for buildings with combustible cladding.

Under the Regulation, owners of certain buildings with external combustible cladding are required to register their building with the NSW Government through the simple, user friendly NSW Cladding Registration portal.

To avoid missing the deadline register here now. 

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

Earlier this week, the NSW Government announced plans to make new laws to improve the building and construction industry.

The Government intends to introduce laws that will make builders liable for defects in a wider variety of circumstances.

One of the key announcements is the Government’s plan to impose on builders a duty of care to enable owners corporations of commercial and mixed use buildings to take action against builders for defects.

The Government also proposes to: require builders and designers to be registered; require designers and engineers to declare that building plans comply with the Building Code of Australia; and force builders to declare that buildings have been built according to their plans.

There is also a proposal to appoint a Building Commissioner to take over part of NSW Fair Trading’s role in the building and construction industry.

The Government’s announcement comes hard on the heels of the public outcry following the recent problems experienced by owners in Sydney’s Opal Tower.

The announcement acknowledges that there are significant problems in the building and construction industry and indicates that the Government proposes to adopt most of the key recommendations made in the Shergold Weir Report.

With a State election just around the corner, it remains to be seen if anything comes from the Government’s announcement. We will certainly watch on with interest.

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

Strata apartment living is the fastest growing form of property ownership across Australia with more than half of these apartments located in the greater Sydney area.

Alarmingly, recent and extensive research* has found that up to 85% of these buildings built in NSW since the year 2000 have some form of building defects.

Sydney Olympic Park Opal Tower

The recent controversy surrounding the Opal Tower located in the Sydney Olympic Park precinct highlights the seriousness of some of these defects, leaving home owners lives turned upside down. So, what are their rights?

Statutory Warranty Scheme

Under NSW law all residential buildings:

• Less than 6 years old are covered by a ‘statutory warranty scheme’ for major defects
• Major defects claims can be made for up to 6 years
• Any non-major defects can be claimed for up to 2 years
• Buildings older than 6 years may have different warranty periods and it is recommended to seek legal advice

All owners who are still covered by these warranties have the right to pursue the developer and builder for rectification of building defects.

How do building defects affect strata levies?

Strata levies are a critical and essential part of ensuring the value of a property is protected.

The owners corporation has the statutory duty to ensure common property is safe and kept in good repair, therefore apartment owners in structurally unsafe buildings could face increased special levies.

When a building defect is on common property the owners corporation should add the repair of the defect to the agenda of a general meeting for consideration and resolution.

The good news is that Opal Tower home owners are covered under the statutory warranty scheme however the not so good news is that it leaves home owners forced to find alternative accommodation or perhaps live in unsafe conditions with the possibility of facing a hefty special levies bill whilst the situation is being resolved.

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

*University of NSW City Futures Research Centre.

To contact us during this period please leave a message and we’ll get back to you on our return.

The Supreme Court has recently delivered a very firm warning to all owners corporations and litigants that the Court will not easily grant a litigant permission to use an expert’s report that is prepared very late in the case.

The Court will not assist an owners corporation if it has failed to take steps quickly and efficiently in preparing its experts’ report for use as evidence in a building defect case brought against a builder or developer under the Home Building Act.

In a recent case involving AV Jennings the Supreme Court refused to grant permission for an owners corporation to rely on an expert’s report that was prepared very late in the day Building Defects Experts Reports Case.

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