Many purchasers of apartments or units in Queensland are unaware that they may be vulnerable because the current statutory home warranty insurance scheme only covers the construction of, extension, addition, alteration, renovation or repair to multi-dwelling buildings only up to 3 stories.
Although the QBCC can direct the builder to rectify structural defects within 6 years 3 months, fines for noncompliance may be insignificant compared to the cost of rectification. Some builders may avoid costly rectification by going into voluntary administration, while others who have numerous companies may simply wind up a company, leaving apartment owners with their only option being to pursue them through the court system.
Although the QBCC do have the ultimate power of cancelling a builder's license if they fail to rectify, this is no comfort where builders have retired, wound up or gone into voluntary administration. Furthermore, the QBCC's directions are discretionary and can be appealed through the Queensland Civil and Administrative Tribunal.
This means it is extremely important to get a building inspection when purchasing a unit or apartment in a dwelling that is more than 3 stories to ensure you know if the building is structurally sound before you commit to buying. You can contact us for more information or book a building inspection with us today.