How buying off the plan just become safer
Effective from the 1st September 2020, buying off the plan just become safer in New South Wales with the new building commissioner, David Chandler taking up his new role. Targeting the ‘signature for sales’ problem head on – builders, developers and certifiers have been put on notice.
With Mr Chandler’s first 15 inspectors beginning audits in September, they will have the power to enter and inspect building sites, prevent the issue of occupation certificates, call for documents, and order any or all on-site work to be halted. Inspectors will work in teams of three made up of a builder, an architect, and an engineer.
This means that you can buy off the plan with more confidence, get a brand-new home to call your own and even get more for less as developers embrace pre-sales. So, with the increase to inspections and additional scrutiny over the issuing of occupation certificates you can be assured that, when buying off the plan, you are getting what you expect to get.
A new building commissioner signals a new era of building safety
Mr Chandler has issued a powerful warning to certifiers of buildings that the days of a small number of them choosing to act as ‘signatures for sale’ is over.
"If they think they can continue to treat the issuance of occupation certificates lightly, then it is time to think again. I will be landing on them. I am over the signatures for sale," Mr Chandler said in a recent interview with The Sydney Morning Herald. Citing that a small number of certifiers seem more about the signatures for sale rather than their responsibility as public officials when assessing whether or not buildings were fit for occupancy.”
From The Sydney Morning Herald article:
Mr Chandler said certifiers were personally liable for ensuring they performed their duties as public officials, regardless of whether they worked for councils or private companies.
Concerns have been raised about potential conflict of interest when certifiers are paid by developers to carry out inspections and determine whether buildings are fit for people to move in.
The Association of Accredited Certifiers said all practitioners from builders and designers to tradespeople and certifiers had a responsibility to ensure quality outcomes.
"If all practitioners are accountable for the work they produce, this will drive better outcomes for consumers," the association's chief executive, Jill Brookfield, said.
How does this make it safer to buy off the plan?
The key power of the new NSW Building Commissioner will be the ability to withhold occupation certificates. In turn, this will prevent developers or builders from forcing buyers to settle on any property with defects. So, if you are planning your new home or investment property off the plan you can feel more comfortable that it will be free from defects once an occupation certificate is issued.
It is not expected that this greater scrutiny will increase the cost of construction. In fact, it is anticipated that these measures will stop the practice of ‘cost shifting’ to owners by those developers and builders who cut corners.