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Strata Building Bond and Inspections Scheme 

What is this about?  

The NSW Government is introducing the Strata Building Bond and Inspections Scheme (SBBIS) as a way to rectify defects early in the life of new high-rise strata buildings.

From 1 January 2018, developers will be required to lodge a bond of two per cent of a building’s contract price with NSW Fair Trading for residential and mixed-use high-rise strata buildings of four storeys and over.

To help administer the Scheme, the Government has developed three supporting documents:

  • Building Bond Guidelines
  • Strata Inspector Panel Guidelines
  • Building Inspection and Report.

Before releasing the documents to support the Scheme, we are seeking your comments.

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What’s happened so far?  

The SBBIS is the second component of major changes made to strata law that started on 30 November 2016. The Scheme is designed to ensure there is a clear process to incentivise developers and builders to minimise any building issues in new residential high-rise structures and make sure any defects are readily identified so they can be fixed promptly and cost-effectively. 

Providing additional protection for owners in strata schemes, it does not replace an owners corporations’, developer’s or builder’s existing rights to pursue legal action under the Home Building Act or other laws.

The introduction of the SBBIS is being supported with an online portal. 

The online portal will:

  • assist developers to lodge their bond, provide written notifications and appoint building inspectors,
  • support building inspectors to lodge and provide copies of their reports to the required persons through the platform
  • provide notifications to key users (including representatives of the owners corporation)
  • enable approvals to be issued through the system
  • allow users to view documents relevant to them.

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Have your say  

The NSW Government is seeking your feedback on the following guidelines, developed to support and help administer the Strata Building Bond and Inspections Scheme.

Building bond guidelines

The Building Bond Guidelines (Word, 28KB) set out what information needs to be included when submitting the building bond.

Email your comments by Friday 29 September 2017 with the subject line “Building Bond Guidelines” to: stratabond@finance.nsw.gov.au

Strata inspector panel guidelines

The Strata Inspector Panel Guidelines (Word, 861KB) sets out the process that the Secretary of the Department of Finance, Services and Innovation will follow when appointing a building inspector.

Email your comments by Wednesday 4 October 2017 with the subject line “Strata Inspector Panel” to: stratainspections@finance.nsw.gov.au

Building inspection and report

The Building Inspection and Report (Word, 116KB) provides a template for the initial and final defects inspection and gives guidelines on how to complete the defects report.

Email your comments by Wednesday 4 October 2017 with the subject line “Strata Inspector Panel” to: stratainspections@finance.nsw.gov.au

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Next steps  

The NSW Government will consider all comments before finalising these guidelines for the Strata Building Bond and Inspections Scheme. However, your comments may be given more consideration if you provide an alternative solution to what is already presented in the documents (rather comments similar to ‘don’t agree’ or ‘don’t think it will work’).

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