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Snapshot

  • A person who is the immediate successor in title to a developer who has done residential building work on land is entitled to the benefit of the statutory warranties against a developer as if the developer had done the work under a contract with that successor in title. In the context of a strata scheme, this is to be determined at the time of registration of the strata plan when the owners corporation comes into existence.
  • A developer includes the situation where the residential building work is done in connection with an existing or proposed dwelling in a building or residential development where four or more of the existing or proposed dwellings are or will be owned by the individual.
  • For the purpose of determining whether or not four or more of the existing or proposed dwellings are or will be owned by the individual, the intention of the alleged developer at the time the residential works were carried out is to be considered.

Under ss 18C and 18D of the Home Building Act 1989 (NSW) (Act), a person who is the immediate successor in title to a developer who has done residential building work on land is entitled to the benefit of the statutory warranties against a developer as if the developer had done the work under a contract with that successor in title.

In the recent case of The Owners-Strata Plan No.79707 v Trilogy Capital Services Pty Ltd [2015] NSWCATAP 171, the NSW Civil and Administrative Tribunal (NCAT) considered the situation of two entities having developed a mixed use strata development and a partition before registration of a strata plan. It was confirmed that, in the context of a strata scheme, the immediate successor in title for the purpose of s 18C of the Act is to be determined at the time of registration of the strata plan when the owners corporation comes into existence.

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