IN BRIEF - LEGISLATION APPEARS TO HAVE BEEN DEFERRED UNTIL 1 JANUARY 2018
In October last year, we identified some key concerns about the proposed "developer bond regime" to be introduced by the new Part 11 of the Strata Schemes Management Act 2015 (NSW) in our article " Seven things every developer, builder, financier and strata manager should know about the imminent application of Part 11 of the Strata Schemes Management Act 2015".
The regime entails (amongst other things) the provision of a 2 per cent bond by developers engaged in residential building work associated with the creation of a strata scheme, and a defects inspection procedure that provides a trigger either for the ability of the strata scheme to call on that bond, or for the return of the bond to the developer.
This legislation was due to take effect from 1 July 2017 in respect of applicable building contracts executed on or after that date.
However, it appears now that the relevant date will be deferred until 1 January 2018. The deferral is contained within the omnibus Electronic Transactions Legislation Amendment (Government Transactions) Bill 2017 (NSW), introduced into the New South Wales Legislative Council on 24 May 2017. The bill's second reading speech contains the following explanation for the deferral:
Construction and engineering
Colin Biggers & Paisley
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