From January 1, 2018, the developers of new residential strata buildings under the strata building bond scheme must pay a building bond equal to 2% of the building contract price to NSW Fair Trading.
This building bond might be the means to pay an identified rectification work if the developer didn’t do it. However, suppose after an independent building inspection and no defects are found. In that case, the bond is returned to the original property developer two years from the issue date of the occupation certification.
This scheme applies to several developments where:
- The building has more than four storeys. Those with less than four storeys remain covered by the Home Building Compensation Fund.
- The building will be used for residential purposes.
- The building contract between the builder and the developer was entered into on or after January 1, 2018.
NSW Planning Portal is the platform where strata building bonds must be lodged.
How to Lodge a Strata Bond Online?
Before you start the process, you must register on the NSW Planning Portal. If you lodged the DA or Development Application or your post consent certificates related to the project through the portal, then you have already done this step.
If you don’t have an NSW Planning Portal account and have issues with registration, this post will help you through the process.
The steps you need to follow for strata bond lodgement are outlined below.
Step 1: Engage Building Work Commencement and Nominate Practitioners
Step 2: Seek Occupation Certificate
Step 3: Start Off Your Strata Building Bond
Step 4: Respond to the Other Information Requests
Step 5: Input the Final Strata Bond Contract Amount
If you can pay a building bond, the application will now be reviewed by the Strata Building Bond, and you will be in touch.
Moreover, the Expected Completion Notice will be sent to the Fair Trading Occupation Certificate (OC) Audit team. This audit involves a review of documents and designs (including contracts) for building work and physical inspection.
If the development is chosen for an audit, the Department of Customer Service will carry out the inspections of the OCT Audit. This audit involves a review of documents and designs (including contracts for building work and physical inspection.
You may be asked to upload additional documentation into the NSW Planning Portal for review by the inspectors. If your development is not considered for an audit, you can apply for the occupation certification once the building bond is paid, if applicable.
Depending on the assessment outcome by the OC Audit Teams and Strata Building Bond, you can apply for an Occupation Certificate through the NSW Planning Portal.
According to NSW Environmental Planning and Assessment Regulation 2000, applicants need to pay a digital application processing fee for specific planning certifications and applications. You can see the full list of prices here.
The developer and practitioner resources page has plenty of resources to help practitioners and developers navigate the NSW Planning Portal.
Kindly visit NSW Fair Trading if you have any queries about the industry reforms in NSW. If you need more assistance, you can call us at 02 9613 3353 and one of our experts will be there to talk to you.