- An independent engineer will monitor the basement structure for the next 10 years
- An ongoing maintenance program will be backed by a financial guarantee
- Strata Community Association has welcomed the announcement
The prohibition order on one of Sydney’s largest residential developments – the Skyview project – has been lifted after developer Toplace agreed to an ongoing inspection and maintenance program that is backed by a financial guarantee.
As part of the legally enforceable undertaking, an independent engineer will monitor the basement structure for the next 10 years.
Owners corporations will also receive a 20-year structural guarantee along with a 10-year commitment to rectify any future or consequential defects.
The order was put in place last month after defects were discovered in its basement. The order prevented buyers from moving in two of the high-rise towers in its development.
Kevin Anderson, the Minister for Better Regulation, said the lifting of the order had received engineering advice to confirm the defects impacting the basement had now been remediated.
“Through the introduction of robust legislation we have now armed the NSW Building Commissioner with powerful tools to better protect consumers,” Mr Anderson said.
“Buying a home is one of the most important investments most of us make. This agreement demonstrates the Government’s commitment to protect customers by standing in their corner and protecting their interests.”
Kevin Anderson, Minsiter for Better Regulation
“This resolution demonstrates the importance of quality certifiers,” added NSW Building Commissioner, David Chandler.
“I’m also pleased the developer has entered into this undertaking that confirms Toplace’s public commitment to stand behind the project. The agreement will enable an occupation certificate to be issued with ongoing protection for owners.”
According to NSW Fair Trading, there are eight active prohibition orders in place.
Strata Community welcomes the announcement
Chris Duggan, President of the Strata Community Association (NSW), told The Property Tribune the announcement is an excellent outcome for owners and praised its innovativeness.
“It is an exciting announcement,” said Mr Duggan.
“It places an appropriate liability on the developer … it sets up a good template for the long term.”
Mr Duggan added that if the defects hadn’t been discovered, the owners would have had to endure a costly and lengthy legal battle.
“By having a long-term financial responsibility, developers are more likely to think again about the quality of their buildings.”