What if the defects aren’t fixed when I pay for the property?
As mentioned, when you pay for the property there will still be defects.
When this happens, some investors want to withhold money from the developer.
This is understandable. You don’t want to hand over $800k for a property that still has outstanding issues.
But your lawyer will tell you this isn’t possible. You must legally pay for the property once the developer has issued a “settlement notice”.
To fix the defects you need to put pressure on the developer to fix the important ones. And you will need to wait for the developer to correct minor defects.
Remember, you get two automatic protections when a builder puts the property together. These come from the Building Act:
- A 12-month defect repair period (defect cover)
- A 10-year guarantee on the structure of the building (implied warranty)
There is no set time frame for the developer to fix these defects. The law just says, “a reasonable timeframe.”
So, if there are issues you’ll work with your lawyer to see what’s possible.
If you’re working with Opes Partners we will chase major defects until you settle the property. Our job is to make sure the property is tenant-ready.
You’ll work with your property manager and solicitor to get minor defects fixed. That happens after settlement.
Because you’ve sent your building inspection report to the developer, they have to fix them.