Flat Chat Forum From the Front Page Current Page

  • Creator
    Topic
  • #38409
    Jimmy-TJimmy-T
    Keymaster

    The news that the NSW government is offering an open-ended, low-interest loan to the Mascot Towers owners corporation (body corporate), to allow them to pay for evacuated residents’ emergency accommodation, is much more of a game changer than the casual observer might think.

    Forget the rights and wrongs of the situation, the precedent that it threatens to set for …
    https://www.flat-chat.com.au/crumbling-blocks-and-cladding-its-time-for-payback/

Viewing 2 replies - 1 through 2 (of 2 total)
  • Author
    Replies
  • #38439
    Avatarbrianpr
    Flatchatter

    How’s this for a suggestion? When we bought our unit, we had a choice of handing over a deposit of $73,000 (which could have disappeared if the builder went broke) or buying a Deposit Bond for $3,000. If you know how these work, skip the next paragraph.

    Deposit Bonds replace putting up a deposit for real estate. The Deposit Bond company puts up the money for you, for which you pay them a non-refundable fee of a few thousand dollars. When you settle, they get their money back. If you default, however (if you can’t raise the purchase price, say) they lose their money – and they come looking for you to pay them.

    The same basic system could be used to guarantee against faulty construction. Instead of the builder setting aside 2% of the build, he or she could pay a relatively small amount for a bond equivalent to, say 8% of the build. The bond issuer would have to pay for rectification work, and would then pursue the builder for compensation. Bond-issuing companies have the dollars and the legal muscle to get their money back.

    #38410
    Avatarfewin
    Flatchatter

    Building defects and liability need to include all buildings not just those less than 4 floors. Both sides of the NSW State Government have failed in protecting strata owners. Free standing house, townhouse, low rise, high rise we should have equal protection.

Viewing 2 replies - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.

Flat Chat Forum From the Front Page Current Page