Stage 7: Paying the building bond

What happens in this stage

The payment of the building bond can happen in these circumstances:

1. With consent of the developer and owners corporation at any time 2 years after the date of building completion, if there is no final report.
2. If no defects were found in the interim report and the developer successfully applied to waive the requirement of a final report, the interim report becomes the final report. If the Secretary thinks it appropriate in the circumstances of the case to enable the building bond to be cancelled and  will be returned within 90 days of the final report. The building bond will be returned to the approved issuer.
3. Defective building work is identified in the final report (as per stage 5) and will be paid for from the building bond. This happens between 2 to 3 years after the date of occupation certificate being issued. If the cost to rectify the defective building work is more than the building bond, the whole amount is paid to the owners corporation.
4. If the final report identifies no defective building work, it is likely the building bond will be held until three years after the issue date of the occupation certificate.

Fair Trading will provide the owners corporation, the developer and the builder 14 days’ written notice of any proposed payment from the building bond.

If Fair Trading is satisfied that the developer or builder was unreasonably refused access to the building to rectify the defective building work, the release of an amount of the bond to the owners corporation may be refused or the amount otherwise payable, can be reduced.