Rectification of Strata Title Building Defects
It was reported in the press this week that the Fair Trading Minister plans to restrict the right of Owner’s Corporations to pursue developers for building defects arising from faulty workmanship.
At present there is right to seek rectification of these defects for up to seven years after completion of the development.
It was reported that the Minister plans to cut this limitation period to two years which means that any defects which arise outside this period will have to be rectified by the Owner’s Corporation. If the Owner’s Corporation does not have sufficient funds to do this the unit owners will have to meet the cost, or part of it, by way of a Special Levy.
At this stage it is not known whether this proposed change will apply to existing as well as new developments and whether there will be an alternative means of dealing with building defects outside the proposed two year limitation period.
We will be monitoring progress of the proposed changes so should you intend purchasing a Strata Title unit, please contact us with any enquiry you may have, particularly if it is an ‘off the plan’ purchase or part of a new development.
For further information regarding these changes to Strata Title building defects please contact Tim Osborn on 4925 2077.