Builder in Liquidation - Defects Claims and Risks for Purchase

I am looking at buying a strata commercial property. It is in a building that has been redeveloped relatively recently, with partial demolition and some new construction. The builder has since gone into liquidation (building is complete). The developer is a related party (same directors) as the builder now in liquidation. The developer is selling the property.

I am worried about the potential for building defects and how to make claim for any defects if the builder is in liquidation. Does anyone have any thoughts on this and any other risks involved in purchasing the property?

What recourse would an owner have if there are building defects?

Are there any other protections?

 

Insurance.

 

@Terry_w - There's no requirement for HOW insurance for commercial premises.

@Student - there's no recourse against the builder or developer.

 

Thanks, so it looks like I have to take the risk of whatever defects may be in the building.

 

LOL - You should expect that if the developer is in liquidation that after contracting you may be given a ATO notice to pay them and NOT the developer. This can see delayed settlements etc and legal advice will explain why and the common outcomes. Legal advice will explore a range of issues such as defect liability and likely matters expected to delay the sale progressing.

Title insurance can also assist.

 

You wouldn't usually have a warranty on existing commercial premises anyway so the risk profile isn't that different to most commercial transactions. Make sure you carry out the appropriate due diligence before being bound to purchase and that's about the best you can do.