Strata Building Defects


Building defects in new Strata Building

It seems we all know someone who has had a problem with a strata unit. A recent High Court decision has not made it any better. Brookfield Multiplex –v- Owners Corporation Strata Plan 61288 was the case and the critical points arising from that case are:

  1. The rights of strata lot owners to sue the builder of their building through their Owners Corporation for negligence in the building process have had their rights cut back.
  2. From 1st December 2014, it is anticipated that most new strata lot owners who suffer either strata lot building defects or common property building defects will in effect have two years to sue the builders and or developers due to the Home Building Act amendments which came into effect on that day.

This means that owners of strata lots will need to be vigilant and ensure that if any building defects are becoming apparent in either their unit or the common property that they bring it to the attention of their strata manager or the strata committee as soon as possible. The time for it being only two years from the completion of the units.

This amounts to a reduction in time for bringing actions against negligent builders. If they are not done within two years then the only action available to the unit owners is for special levies to be struck to repair the damage.

It would appear to be a reduction in the rights of purchasers of units.