Media Release
Tuesday 2nd December
Attention Chief of Staff / Property Editor
HIGH COURT DECISION LEAVES BODIES CORPORATE THE VICTIMS OF DODGY BUILDERS
A decision by the High Court of Australia has sent alarm bells ringing in Queensland’s multibillion dollar strata title sector – especially in light of the current residential building boom in Queensland.
The peak industry body representing strata title properties is disappointed by a recent decision by the High Court of Australia that leaves bodies corporate with no common law recourse against builders who have failed to adequately construct or repair buildings.
Two cases have come to light recently of Bodies Corporate fighting legal battles against developers over what they claim to be faulty buildings, with repair costs estimated at upwards of $2 million.
The New South Wales Court of Appeal held last year that a builder owed an owners corporation a duty to exercise reasonable care in the construction of the building to avoid causing the owners corporation to suffer loss resulting from latent defects in the common property, provided the defects met certain criteria.
On recent appeal, the High Court of Australia held that a builder did not owe such a duty of care.
The peak industry body for Strata Title Management in Queensland, Strata Community Australia SCA (Qld) is deeply disappointed by this outcome and for bodies corporate which are left with no common law recourse, and only limited statutory rights against builders who have failed to adequately construct buildings at their schemes.
“I really feel for strata title owners in this situation. In addition to the actual repair bills, the legal costs are obviously astronomical but then there are also the high levels of stress and potential losses in property values,” said SCA (Qld) President, Simon Barnard today.
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“To avoid potential legal action, bodies corporate should ensure that they make a complaint to the Queensland Building and Construction Commission (QBCC) about any building defects, within the correct time period. This is generally within 6 years and 3 months after the completion of works, and complaints should be lodged within 3 months of detecting the defect.” Mr Barnard said.
“In particular, bodies corporate should obtain a comprehensive building report, identifying all defects, by a licensed, third party contractor prior to the expiration of the time limits.”
“The QBCC may then issue a direction to rectify to the building contractor and, if that is not complied with, the body corporate may have rights under the statutory insurance scheme admistered by the QBCC”
Recent reports have found Billionaire developer Harry Triguboff in the centre of a legal battle with a Southport body corporate who claim their property is in need of $2 million worth of repairs.
Residents of Silverstone Apartments on the border of QLD and NSW are also undertaking legal proceedings against developer Villa World for hundreds of alleged defects including extensive corrosion and rust, mould, leaks, cracking tiles, flaking paint, and rotting timber.
ENDS
Editor Note: Mr Barnard is President of the Queensland branch of Strata Community Australia – refer to SCA (Qld) please.
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Strata Community Australia (Qld)
www.qld.stratacommunity.org.au
Media Contact:
For legal queries
Andrew Suttie
SCA (Qld) Legislation Committee Chair
0477 485 112
For quoting:
Simon Barnard
President
Strata Community Australia (Qld)
0412 626 124
Released by:
Pat McGuire
Marketplace Communications
0412 748161
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Strata Community Australia (Qld)
www.qld.stratacommunity.org.au
About Strata Community Australia (Qld)
Strata Community Australia (Qld) Limited (SCA Qld) is the peak industry body for Body Corporate and Community Title Management in Queensland. Membership includes body corporate managers, support staff, committee members and suppliers of products and services to the industry. SCA (Qld) members manage property worth an estimated replacement value of $80billion.
There are more than 43,000 community titles schemes with 409,000 community titled lots in Queensland. 43.3% of all new dwelling approvals are expected to be lots in a body corporate scheme. SCA (Qld) proudly fulfils the dual roles of a professional institute and consumer advocate.
Website: http://qld.stratacommunity.org.au/
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Strata Community Australia (Qld)
www.qld.stratacommunity.org.au