Stage 7 of the Strata Building Bond and Inspections Scheme is paying the building bond. This occurs slightly differently according to the following scenarios:
Scenario 1: Between 2-3 years with the consent of the developer and owners corporation, the bond may be released with the approval of the Secretary.
Scenario 2: NO defects identified in the Interim Report (Stage 3), the interim becomes the final report and the bond may be released with the approval of the Secretary.
Scenario 3: NO defects identified in the Final Report (Stage 5), the bond may be released with the approval of the Secretary.
Scenario 4: Defects identified in the Final Report, and the cost to rectify the defects that have been identified (Stage 6). The amount specified in the report will be released from the building bond to pay for the rectification works. If the amount is greater than the building bond the whole amount of the building bond will be paid to the owners corporation.
Stage 8 Completion of the process, is relevant to scenario 4 and will be described in the following blog.