NSW building bond increase delayed, again

05 November 2024

Andrew Ferguson
Partner
Sparke Helmore Lawyers

Andrew Ferguson
Partner
Sparke Helmore Lawyers
t: +61 2 4924 7251

Andrew is an experienced property lawyer, known for providing exceptional service to his clients. Andrew looks for different ways to help and engage with his clients, taking the time to understand their needs, adding value to their projects.

Koreen Partridge
Senior Associate
Sparke Helmore Lawyers

Koreen Partridge
Senior Associate
Sparke Helmore Lawyers
t: +61 2 4924 7346

Koreen is an experienced property lawyer, with a background in conveyancing and planning law. She specialises in property acquisitions and disposals for a range of clients, leasing matters, strata titling and property disputes.

Insights - NSW building bond increase delayed, again

Developers of strata schemes in New South Wales of four storeys or higher were expecting the prescribed percentage of the building bond payable before the issuing of an occupation certificate, which is currently 2% of the contract price, to increase to 3% of the contract price as and from 1 July 2024. That increase was postponed to 2 November 2024.

The date for the increase has been further postponed to 1 July 2025, pursuant to amendments to the Strata Schemes Management Regulation 2016 (NSW). This is the third time the increase has been delayed and reflects the limited decennial liability insurance (DLI) products available in the market.

Developers are reminded that DLI is the NSW Government’s preferred protection measure for newly constructed strata schemes, and further delays to the increase may not be forthcoming.

Note: this insight is an update to our previous insights published on 14 May 2024 ‘Building bond to increase from 1 July 2024’ and 9 July 2024 ‘NSW building bond increase delayed’.