Building defects in new NSW apartments: the warning signs

How common they are

Defects in newer NSW apartment buildings are widespread: waterproofing failures, facade and structural problems, and fire-safety shortcomings are the most frequent and the most costly. When the owners corporation and the builder fall out over who pays, it goes to the tribunal or the courts.

For a buyer, a building in a defect dispute is carrying an unresolved, and often unfunded, problem.

Reading the public record

Defect fights leave a public trail. Tribunal and court decisions naming the scheme, building-work rectification orders, and the builder's record across other schemes are all visible. A building with several matters, or one under an active order, deserves close attention.

StrataAuditor classifies each tribunal matter from the decision's own catchwords, so you can see whether a scheme's disputes are about defects, repairs, levies, or by-laws, never inferred.

What to confirm

If the record shows a defect dispute, ask whether the work has been rectified, who paid, whether the builder's statutory warranty still applies, and whether the original builder is still solvent. The builder's cross-scheme history is a useful tell: a company named at many schemes is worth checking before you rely on its warranty.