The building bond requirements for new strata buildings will start on 1 July 2017.
This reform introduces a building bond and mandatory defect inspection reports to enhance consumer protection if a new building has unresolved defective work.
There is no requirement for home building compensation (formerly known as home warranty insurance) for residential high rise strata buildings (those over three stories in height).
Developers will be required to lodge a bond with NSW Fair Trading equal to 2 per cent of the contract price for residential and mixed use high rise strata buildings. The bond will provide funds to fix any defective work that has not been fixed within required timeframes.
More details about how the building bond reforms will work in practice will be available when the new requirements commence in mid-2017.