The Strata Building Bond and Inspections Scheme (SBBI) is an NSW Government initiative that requires developers of new strata buildings to lodge a bond with the Office of Fair Trading (OFT). The scheme is designed to protect purchasers in the event that defects are found in their new homes.
Under the scheme, developers must appoint an independent building inspector to carry out regular inspections of the construction work during the course of the project. The inspector will issue a report at each stage, which must be given to the OFT and made available to purchasers upon request.
The residential strata building bond and inspections scheme is an NSW Government initiative that requires developers of new strata schemes to lodge a security bond with the Department of Fair Trading. The scheme is designed to protect buyers of strata units from defective building work and unfinished common property in new strata schemes.
Image Source: Google
If defects are found after the completion of the project, the OFT will release funds from the bond to cover the cost of rectifying them. If there are insufficient funds in the bond to cover all repairs, purchasers may be able to claim compensation from the developer through the NSW Civil and Administrative Tribunal (NCAT).
Under the scheme, developers must lodge a security bond with the department prior to the sale of any strata lots in their development. The amount of the bond is determined by the type and size of the development. Once the development is completed and all common property has been handed over to the owner's corporation, an independent inspector will assess the quality of workmanship against contract documentation.
