IMPORTANT ANNOUNCEMENT REGARDING CHANGES TO THE STRATA LEGISLATION
The New South Wales Finance and Innovation Department issued a notice on 8 July 2016 advising the public that the reforms to the strata scheme legislation will come into force on 30 November 2016.
The new Strata Scheme Management Act and Strata Scheme Development Act 2015 will come into effect from 30 November 2016, however the Part 11 Building Defect Provisions which provide a new defective building work bond and an inspection regime for identifying defective building work within the first two years of the project will not come into force until 1 July 2017.
The delay in commencement of the bond and inspection scheme is to ensure that builders, developers and the strata community have sufficient time to prepare for the changes and comply with the requirements of the Act and its supporting regulations.
The bond and inspection regime will only apply to contracts entered into after the date the legislation comes into force, therefore developers and builders will have just under 12 months from now to assess their contractual and administrative arrangements for any contracts entered into after 1 July 2017.
The final regulations attending the Act are still to be published but are expected within the coming weeks.
To obtain further information on the Strata Scheme Changes please contact Kreisson or peruse our website for available articles, podcasts or PowerPoints applicable to this subject.