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Home buyers will be better protected with the introduction of the new Strata Building Bond and Inspections Scheme (“the Scheme”), according to Minister for Better Regulation Matt Kean.

The Scheme is the first of its kind in Australia, and provides a structured process to rectify defects early in the building life cycle.

Minister Kean explained how the new Scheme follows extensive industry consultation, and aims to reduce costs for both developers and buyers, cut time delays in rectifying issues, and minimise expensive and time consuming legal action.

He said: “Developers will now be required to lodge a building bond equal to 2% of the contract price with NSW Fair Trading.

“The building bond can then be provided to owners’ corporations to rectify any defects – protecting consumers from developers walking out on dodgy or unfinished work.”

The Scheme will enhance NSW Fair Trading’s ability to verify the contract price provided by a developer via an independent assessor.

Minister Kean added: “There will also be a mandated independent building inspector so everyone involved can have confidence that they’re getting a fair go.

“The inspections and reports document will also ensure a consistent approach to the identification and rectification of defects across NSW.”

For more information about the Strata Building Bonds and Inspection Scheme here. ​