NSW residential developers are no longer required to implement the defects bond scheme from 1 July 2017.
The NSW Parliament today passed the Electronic Transactions Legislation Amendment (Government Transactions) Bill 2017, which delays until 1 January 2018 the commencement of the NSW Strata Defects Regime set up under Part 11 of the Strata Schemes Management Act 2015.
This gives developers and builders a six month reprieve from the defects regime that was due to commence on 1 July 2017. This still means that developers and builders must amend their constructions contracts to deal with the implementation of a 2% “developer's bond” and to account for the two year defects identification period, but they now have more time in which to do it.
The main reason provided for the postponement is a delay by Standards Australia in the provision of a new national standard known as “AS4349.2 – Group titled properties”, which will form part of the defect inspection report to be applied by the regime.