Showing posts with label defects. Show all posts
Showing posts with label defects. Show all posts

Thursday, October 9, 2014

High Court said builder not liable to body corporate

The High Court has unanimously held that listed developer Brookfield ­Multiplex, the builder of the $60 million Chelsea apartment tower in ­Chatswood Sydney, did not owe a duty of care to the Owners Corporation (in Queensland terminology -- the body corporate) which lost money from defects.  The Owners Corporation, which includes Mantra, appealed an earlier decision in the Court of Appeal in the Supreme Court of NSW and had won.  However, the full bench of the High Court has overturned that decision.

Lawyer Emanuel Confos, for Brookfield Multiplex, said the result would have significant consequences for the building industry.  "This is a landmark decision for the construction industry because it ­clarifies an issue that has been around for many years and that is whether a builder owes a duty in contract and tort for a commercial development," Mr Confos said.  "And I believe the High Court has unanimously decided that no duty in tort is required only duty in contract," he said.

Decision is here.

Monday, November 7, 2011

Disclosure of proposed or planned works

Here is a note from a reader, and it is a good reminder to do as many searches as possible and ask questions of as many people as possible before signing a contract for an apartment.

"Here is Winchcombe Place Apartments at 15 Vernon Terrace in Teneriffe (a.k.a. Newstead).  Underpinning of the building is taking place.  The front stairwells that exit to the street were recently underpinned as they had “parted” from the main building with cracks about 40mm in width appearing between the two. 

These photos show the huge cracks at the rear of the building which is currently being underpinned.  Several units in this complex were on the market prior to the work commencing.  I looked at one at an “open” a few months prior to the work commencing and was unaware this work was to occur.  Glad I didn’t buy one and then find this out.

The agent didn’t tell me anything about it when I inspected  the apartment in March 2011.  I’ve since learned a levy had been struck to pay for the underpinning.  I’m not saying the agent was dishonest, perhaps he did not know, only that I was not told. Perhaps I should have asked about proposed or planned works.  Had I made a successful offer, I would not have been very happy to discover this and the extra levy that records show had already been struck at the time of inspection in March. Buyer beware!"