Duty of care not owed by builder to owners corporation for defects in serviced apartments

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23 October 2012

Developers and builders should be aware of a recent case in the Supreme Court of NSW where an owners corporation (OC) failed in its attempt to sue a builder for alleged defective works in a serviced apartment scheme.

The OC conceded that the contractual defects liability period had expired and that it did not have the benefit of the statutory warranties under the Home Building Act (which only relates to residential buildings) but argued that the builder was liable in negligence because it owed the OC a common law duty of care.

The decision confirmed that owners corporations will have great difficulty establishing that builders are liable for defective works in developments that are used for commercial and other non-residential purposes.


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The content of this publication is for reference purposes only. It is current at the date of publication. This content does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.


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