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Building Defects in Strata Schemes

At The Strata Agency we represent many strata schemes from established properties through to newly constructed apartment blocks. From our experience we regularly liaise with strata scheme members of new buildings who inform us that their property has defects.

It is widely accepted that the majority of newly constructed properties have building defects. Some are relatively minor, while others can be more substantial. Clearly, new home-owners would appreciate these defects being fixed immediately. However the process towards defect rectification is not always as straight forward as it potentially should be. Rectifying defects can be a very challenging process due to the legislative system and the involvement of the original builder and developer.

At The Strata Agency we recommend the following course of action should you notice defects in your new property.

As an owner, the first step is to write to the appointed strata manager outlining any problems within your apartment, as it is possible that other owners are experiencing similar issues. For all common property defects, it is critical that the owners corporation establishes the applicable statutory warranty, insurance warranty and defect periods available. This includes the home owners warranty expiry date (if you are eligible for HOW Insurance) as well as the deadlines for the commencement of action against the builder, developer and other consultants involved with the original design and construction. It is our strong recommendation that the strata owners take some initial legal advice from an expert in construction defects regarding the stringent timelines and the best options available to your strata scheme.

Once the timelines are established for your strata plan, you will be in a better position to determine the next steps. Your appointed lawyer will also be able to point you in the right direction regarding the appropriate experts that can provide you with the necessary reports to determine the extent of the defects and if they are worth pursuing. Many developers and builders are willing to attend to all appropriate defects, however it is critical to have the right team on your side if your builder or developer proves to be difficult. Again, the appointment of an expert lawyer will be invaluable in representing the owners corporations interests and steering you away from the common issues raised by builders and developers in the process.

If you have any questions regarding defects in new buildings don’t hesitate to contact your strata manager at The Strata Agency.