The 2% Building Bond Scheme which was designed to apply to residential and mixed use strata buildings not covered by the Home Building Compensation Fund was scheduled to commence from 1 July 2017.
Fair Trading NSW has now confirmed that the implementation date for the 2% Building Bond Scheme has now been delayed until 1 January 2018.
This represents a set back for consumers who stand to benefit from the protections the building bond introduces for schemes which do not have the protection of the Home Building Compensation Fund.
The glacial pace of implementation of the 2% Building Bond scheme and the late decision to alter the commencement date also brings with it unwelcome uncertainty for building projects.
We have previously set out the key features of the 2% Building Bond Scheme in our October 2016 article " 2% Building Bond Scheme – It's Coming Are You Prepared?". Those features haven't changed.
Fair Trading NSW has identified on its website that further time to implement the scheme is required to allow for:
"[F]inalisation of:
- the standards and procedures relating to strata-specific building inspections
- the new digital business processes to support bond lodgement and processing of the scheme".
We will continue to monitor developments in relation to the implementation of this legislative reform. Should you require strategic advice on the building bond scheme or assistance with the mechanics of the scheme please do not hesitate to contact the writer.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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