Apartment buyers warned over defect cover – PerthNow

People in the market for a new apartment are being urged to steer clear of developers lacking a star rating or defect insurance, four years after the mass evacuation of a cracked apartment tower in Sydney.
The Opal Tower in Sydney Olympic Park was emptied on Christmas Eve 2018 after cracks discovered in the 36-storey building sparked fears it could collapse.
Owners this year settled a class action with builder Icon, structural engineer WSP and the Sydney Olympic Park Authority, resulting in five-figure payments to 383 owners.
Reform in the sector, prompted by the evacuations of Opal and then several other residential developments, has resulted in a new star-rating system for developers, builders and other players.
The peak body for apartment owners says prospective unit owners shouldn't be dealing with anyone who does not have an iCIRT star rating.
Currently, only 37 industry players have received a rating of three stars or above under the state-endorsed scheme.
Owners Corporation Network of Australia executive director Karen Stiles also advised prospective purchasers against developments lacking developer-paid, 10-year defects insurance.
The insurance safeguards future owners from picking up the tab for poor construction standards and avoids a years-long tussle over who should pay.
"No questions asked, there's no fighting over it, it just gets fixed," Ms Stiles told AAP.
"It's a great way of knowing that if there is a defect, there's a solution without all that shocking rigmarole."
Under the scheme, developers can purchase a policy that will cover serious apartment building defects for 10 years.
Upon completion of construction, the policy transfers to the owners corporation for the long-term benefit of purchasers.
The fresh call comes as the government improves fire safety regulations after fire safety systems were found to be the second most common type of defect in residential apartment buildings.
The changes would broaden requirements to consult with Fire and Rescue NSW on new developments, and mandate the use of templates when detailing the list of fire safety measures in a building.
"The reforms have been designed to improve safety and reduce the risk of damage to property," Acting NSW Fair Trading Commissioner John Tansey said.
"Owners, and ultimately residents, also benefit by having fewer fire safety defects in their buildings."
The reforms come after the government created the Office of the Building Commissioner to reform the building and construction industry.

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