Monday, October 26, 2020

Strata Schemes Management Act 2015 No 50

Part 11
Division 3
Section 209

When amount secured by building bond payable | Section 209

(1)  The whole or part of the amount secured by a building bond may be claimed or realised by the Secretary for payment as follows—

(a)  to the owners corporation to meet the costs of rectifying defective building work identified in the final report on the work, if the report identifies the defective building work,

(b)  to the owners corporation, with the consent of the developer, on application to the Secretary by the owners corporation and the developer.

(2)  An application under subsection (1) (b) must be made within the period prescribed by the regulations for the purposes of this section.

(3)  A building bond must be claimed or realised under this section—

(a)  2 years after the date of completion of building work for which it is given, or

(b)  within 60 days after the final report on the building work is given to the Secretary by the building inspector,

whichever is the later.

(4)  The developer must take any necessary steps to enable the Secretary to claim or realise an amount of building bond given by the developer and required for payment in accordance with this Division.

Maximum penalty—10 penalty units.

(5)  The Secretary may refuse to claim or realise an amount, or reduce the amount otherwise payable, under this section if the Secretary is satisfied that the developer or the builder responsible for defective building work was unreasonably refused access to the strata parcel for the purposes of rectifying that work.

(6)  The Secretary must give the owners corporation and the developer of a strata scheme written notice of any proposed payment under this section in relation to the strata scheme

© State of New South Wales Department of Customer Service. For current information go to www.nsw.gov.au.

Disclaimer: Reproduced from the Strata Schemes Management Act 2015 . This website does not give legal advice or other professional advice. You should seek legal or other professional advice before acting and not rely on any of the content on this website.

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