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Recent Amendments to the Home Building Legislation

The NSW Government has recently implemented some significant changes to the Home Building Act 1989 (NSW).

Recent Changes

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.

Download a printable version of this newsletter on Recent Amendments to the Home Building Legislation here.

Further Information

If you would like any further information on this topic, please contact:

David Glinatsis

David Glinatsis

Solicitor Director
+61 2 8239 6502
Email David
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