3 November, 2020 - Important information about new residential apartment buildings in NSW

Oct 24, 2026

Uploaded by Jasmine

Letter from Kevin Anderson, Minister for Better Regulation and Innovation in NSW, to multi-unit developers, builders, and advisors outlining improvements to the standard of new multi-unit residential buildings. It explains new NSW laws introduced to prevent incidents, including key restrictions on deposits and settlement timing, requirements for certifiers, and obligations to lodge as-built drawings and strata bonds before occupation certificates. It also summarizes the RAB Act effective 1 September 2020 and the DBP Act effective 1 July 2021, covering stronger commissioner powers, audits, penalties, E-Construction processes, and duties of care.

LanguageEnglish

CategoryHealthcare

FormatPDF

Pages3

Reading Time8 min

AccessFree to download

Important changes for developers and certifiers

Deposit and settlement restrictions

Compliance, enforcement, and audits under the RAB Act

Design and building obligations under the DBP Act

What the changes mean for participants

3 November, 2020 Important information about new residential apartment buildings in NSW Dear Multi-Unit Developers, Builders and Advisors, My name is Kevin Anderson and I am the Minister for Better Regulation and Innovation in NSW. Iam writing to let you know how we are working to improve the standard of new multi-unit residential buildings and how we can help all involved save time and money. Over the last year we have introduced new laws affecting multi-unit residential buildings in NSW in order to prevent incidents like Mascot or Opal Towers from happening again. I have also established a new Office of the Building Commissioner to help lift the standard of residential buildings and ensure that people feel confident to purchase again. Here are some of the important changes that you should be aware of: 1. Developers are not permitted to request or use the deposit of apartment purchasers for any purpose other than holding them in trust until settlement; 2. Developers are not permitted to ask buyers to settle on the purchase of an apartment before Occupation Certificate is issued by an accredited certifier; 3. Certifiers are required to perform their role with integrity and independence, following the requirements set out in a new Certifiers Practice Standard ; and 4. For all projects contracted after the 1st January 2018 there are requirements to lodge as-built drawings and strata bonds prior to an Occupation Certificate. More information can be found here. The NSW Government has also introduced two very important pieces of legislation designed to protect consumers who buy new apartments off the plan, and owners of existing apartments which are up to 10-years old. These laws preserve the right of strata building owners to take action against the people and businesses that constructed their building. These are very detailed pieces of legislation and you should obtain advice from suitable adviserson how they may affect the strata developments you undertake. Here are the two new pieces of legislation: 1. The Residential Apartment Buildings (Compliance and Enforcement Powers) Act. This is known as the RAB Act and it took effect from 1 September 2020. This law gives the NSW Building Commissioner significant powers to help residential apartment owners. Inspectors can now enter projects both under construction and when completed. They can view documents, stop work or order the opening up of work, and issue orders to builders to rectify defects. The RAB Act also requires that developers give the NSW Building Commissioner at least 6 months’ notice of their intention to achieve an Occupation Certificate. There are significant penalties and consequences for non-compliance. Audits of a portion of those buildings which have given notice, will be inspected. The Building Commissioner will select a sample of the notified projects and conduct an independent audit of the remaining phase of the project and review the developer’s builder and certifier inputs ahead of a Certificate of Occupation being issued. In instances where inspectors believe there could be serious defects in the building, they can stop an Occupation Certificate from being issued. When inspectors take this course of action the Orders that they make will be published on the NSW Fair Trading website. It is important to understand that the Building Commissioner can also inspect projects after an Occupation Certificate has been issued. Where defects are found this could lead to very serious consequences for the workers involved, including fines and suspending building professionals’licenses. 2. The Design and Building Practitioners Act This is known as the DBP Act and it will come into effect 1 July 2021. This law will require all developers to engage design consultants who are properly accredited to prepare and submit declared designs into E-Construction. In addition, developers will need to engage contractors who construct buildi

FAQs

What are the key restrictions on developers regarding apartment purchaser deposits and settlement timing?

Developers cannot request or use purchaser deposits for any purpose other than holding them in trust until settlement. They also cannot ask buyers to settle before an Occupation Certificate is issued by an accredited certifier.

What does the Residential Apartment Buildings (Compliance and Enforcement Powers) Act (RAB Act) enable the Building Commissioner to do?

The RAB Act gives the NSW Building Commissioner significant powers, including entering construction and completed projects, reviewing documents, stopping work or ordering opening up of work, and issuing orders to rectify defects. It also supports audits and can prevent an Occupation Certificate from being issued if serious defects are suspected.

When does the Design and Building Practitioners Act (DBP Act) take effect, and what new obligations does it impose?

The DBP Act takes effect on 1 July 2021. It requires developers to engage properly accredited design consultants to prepare and submit declared designs into E-Construction, and to engage contractors to build in accordance with those declared designs, including preparing and lodging as-built drawings and declarations of compliance.

Oct 24, 2026

Uploaded by Jasmine