ACT loosens developer liability if they buy defect insurance
ACT's new rules let company directors avoid liability for serious building defects if they buy latent defects insurance.
The ACT has softened its developer licensing rules before they take effect on 1 October. Company directors can now avoid liability for serious defects if they buy a latent defects insurance policy.
The policy protects building owners for 10 years. This change aims to encourage developers to buy the cover.
Master Builders ACT says the focus should be on preventing defects, not just adding another cost to construction. The government is considering making the insurance mandatory for apartment buildings.
Other amendments aim to boost "missing middle" housing by letting a single licence cover a whole project. The Property Council said the government had acknowledged major flaws in the original scheme.
Its executive director said when an industry gets pushed off the edge of a cliff, a parachute is better than nothing. Prevention is better still.
- 10 years
- Insurance duration
- 1 October
- Effective date
- Chris Steel
- Planning Minister
- Ashlee Berry
- Property Council Executive Director
Why it mattersFuture homebuyers get 10-year protection if defects emerge. Developers now face less risk. This could lower building costs or shift risk to insurers.
AustraliaAffects ACT apartment buyers and builders; shows how defect protection works when developers have insurance backing.
✓ Claims checked against the source. checked 5 h ago
