New residential houses, townhouses, villas and home units under three storeys require insurance under the Home Building Compensation Fund (HBCF, formerly known as Warranty Insurance).
There is currently no requirement for HBCF insurance for residential high rise strata buildings (those over three storeys in height). Under the new laws, developers will be required to lodge a bond with NSW Fair Trading in the form of a financial security equal to 2% of the contract price for residential and mixed use high rise strata buildings. An occupation certificate will not be issued until the bond has been lodged with NSW Fair Trading.
The bond will provide the funds necessary to fix defective work that has not been rectified within the necessary timeframes.
The new requirements will only apply to building work commenced, or contracts entered into, after the commencement of the reforms.
The bond is not payable until it is time to get an occupation certificate. Developers will be required to engage and pay for an independent building inspector to carry out an interim and final inspection report.
Sydney Building Reports has qualified Building Consultants that can liaise with you and carry out interim and final inspection reports.
Call us on 1300 131 270 to make an appointment.
