Question: What should lot owner’s know at the First AGM regarding building defects? Do we need to know about enforcing statutory warranties?
Answer: The owners corporation needs to enforce the statutory warranties – depending on the contract date for the works.
The system is based on self- help. The owners corporation needs to enforce the statutory warranties – depending on the contract date for the works, the owners corporation may have 2 year/6 years warranties for non-major and major defects respectively.
The Owners Corporation will need to engage expert specialists to assist in determining the nature of each defect, this will report will assist with negotiations and legal proceedings if negotiations are unsuccessful in addition to properly determining a core list of defects within the building.
Of course, if the developer was “honourable”, then they would be fixing the defects at their own costs but in some cases, it does require an owners corporation to take legal action to enforce its warranty rights.
Please note that this article is provided for information purposes only and is not a substitute for professional legal advice.