New home building laws which will protect home owners from poor workmanship if they renovate, build or buy their home, will come into force on January 15.
As part of the changes, NSW Fair Trading will have improved powers to crack down on illegal “phoenixing’’, where a building company collapses and starts up again under a new name to avoid debts and scrutiny by the regulator.
The state member for Campbelltown, Bryan Doyle, has welcomed the new laws.
“An important element of the Home Building reforms was the new ‘major defect’ definition, which now recognises fire safety and waterproofing issues as major elements in a building’s structure,’’ Mr Doyle said.
“By including fire safety systems and waterproofing as major elements of the building, the new definition broadens the scope of what may be considered a ‘major defect.’
“This provides access to the six year warranty period, offering consumers greater protection from poor workmanship.
“The new laws also clearly define statutory warranties to avoid costly litigation over defective work. The warranty period for major defects in buildings continues to be six years and two years for all defects.
“Legal clarity will save owners and owners’ corporations tens of thousands of dollars in legal costs fighting litigation,’’ Mr Doyle said.
NSW Fair Trading will now be able to refuse or revoke a licence if a builder has a history or involvement in a failed company or an unreasonable number of complaints or disciplinary matters against them.
While a number of changes start January 15 some parts of the Act that require changes to contract requirements will come into effect on March 1, giving builders and industry time to make the transition to new requirements.
For more information visit the NSW Fair Trading website or call 13 3220.
