Recent Amendments to the Home Building Legislation
The NSW Government has recently implemented some significant changes to the Home Building Act 1989 (NSW).
Stage 1 commenced on 25 October 2011 and Stage 2 commenced on 1 February 2012.
Changes to the Home Building Act 1989 (HBA) include:
- Definition for the date of Completion to overcome the previous difficulties faced by Owners Corporations in establishing the date of Completion;
- Exclusion of the Civil Liability Act 2002 for residential building work;
- In respect of building contracts entered into after 1 February 2012, a claim to enforce statutory warranties must be commenced within 6 years for structural defects and 2 years for other defects from the date of completion of the works;
- Insurance Claims have an extension period of 6 months for any losses that become apparent in the last 6 months of the period of insurance;
- Beneficiaries must enforce statutory warranties after loss becomes apparent;
- Developer includes the owner of land who also owns or will own four or more units in the development even if not a party to the building contract.
- Insurance threshold increased to $20,000.
Application of Amendments
With limited exceptions, the amendments extend to:
- Residential building work commenced or completed before the amendments;
- A contract of insurance entered into before the amendments;
- A loss or liability that arose before the amendments.
Some important exceptions include the following:
- The amendments do not affect any Court or Tribunal decision made before the amendment.
- The 7 year statutory warranty is not reduced in respect of building contracts entered into before 1 February 2012. The new definition of completion, however, will apply.
If you would like any further information on this topic, please contact: