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Developer responsibility for building defects post build

Discussion in 'Development' started by MsAli, 17th Jul, 2015.

  1. MsAli

    MsAli Well-Known Member Premium Member

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    Hi guys,

    Someone we know bought an OTP property and they feel it has a number of defects. The previous owner was a developer and paid someone to build the place. In this situation, how can the previous owners be pursued to resolve the issues under the warranty?

    DFT page suggests:
    http://www.fairtrading.nsw.gov.au/ftw/Tradespeople/Home_warranty_insurance.page

    Any thoughts on how they can be asked to rectify the defects? Should they have received something with the signed documents? Do developers pay for insurance to cover the warranty period of 6 years?

    Many thanks,
    MsAli
     
    Last edited: 17th Jul, 2015
  2. Pistonbroke

    Pistonbroke Well-Known Member

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    Unit builders are exempt from the HOW insurance scam.
     
  3. Chilliblue

    Chilliblue Well-Known Member

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    Michael Teys has a company called Block Strata. He has years of experience of all legal issues pertaining to Strata.
     
  4. MsAli

    MsAli Well-Known Member Premium Member

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    Actually it's a duplex. How can duplex be treated? Just realised Micahel Teys is the guy on Lomas shows
     
  5. Pistonbroke

    Pistonbroke Well-Known Member

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    Duplexes are treated as houses with HOW. It wouldn't surprise me if the builer liqudates and walks.
     
  6. MsAli

    MsAli Well-Known Member Premium Member

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    Yeh. @Be Developer suggested to ask Soli for occupational certificate and home warranty...

    Also may be worth calling DFT..
     
  7. Be Developer

    Be Developer Property Developer Business Member

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    I thought I best post answer here..may benefit to others.

    If you buy from developer, best to get HOW documents and store them in safe place. 7 years is a long time and you may need to refer to HOW over time.

    In this case @MsAli,

    Best buyer contacts solicitors
    Get solicitors to write to vendors solicitors (record keeping and compliance)
    Solicitors should have obtained HOW certificate as part of conyncing process.


    Best to write builder (registered post) outlining issue and give 7-14 days to rectify defects

    If builder fails to respond, raise a complaint at DFT.

    Must follow above process or you may not have a valid calim.
     
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  8. MsAli

    MsAli Well-Known Member Premium Member

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    Thanks for the tip Chilliblue. Tweeted then emailed him :) He may shed some light. He said this - In NSW, there is: 2 yr builders warranty from date of completion - need to give early notice and allow builder reasonable opportunity to repair ...
     
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  9. Chilliblue

    Chilliblue Well-Known Member

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    Glad I could help
     
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  10. MsAli

    MsAli Well-Known Member Premium Member

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    Further he said: there is compulsory insurance for insolvent developers for small blocks
     
  11. Chilliblue

    Chilliblue Well-Known Member

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    I am using his services for a client and the knowledge he has in his head is incredible