Purposes for which bond amount may be used An owners corporation for a strata scheme that is paid the whole or part of an amount secured by a building bond must, within a reasonable time, use the amount paid—
for or in connection with rectifying the defective building work identified in the final report (whether or not the work affects the common property or any other part of the parcel), or
for costs related to the rectification.
An amount secured by a building bond cannot be used to meet the costs of an inspection or a report under Division 2, including any fee for the appointment of a building inspector by the Secretary, except in the circumstances (if any) specified by the regulations for the purposes of this section.
Repayment of excess amounts to developer An owners corporation must repay to the developer any amount of a building bond that is not required for a purpose specified in subsection (1) and must give the developer written notice of the completion of the rectification of the defective building work.Maximum penalty—10 penalty units.
Owner not entitled to building bond This Act does not confer on the owner of a lot any entitlement to be paid any part of an amount secured by a building bond that is paid in respect of defective building work affecting the owner’s lot.
Payments with consent not affected This section does not prevent the owners corporation from retaining any part of a building bond, and using it for any purposes, with the consent of the developer.