Changes to the Home Building Amendment Act (HBA) 2014 are set to commence on Thursday this week, following its passage on 28 May 2014 by the NSW Parliament.

The changes, in relation to the statutory warranties scheme, will include numerous amendments to the HBA 1989. New regulations (the HBA Regulations 2014) are also expected to take effect at the same time as the amendments to the HBA.

One of the vital amendments is abolishing the current distinction between structural and non-structural defects in real estate properties. 

It shall also introduce the concept of a “major defect” which would require a building to be uninhabitable or under threat of collapse.  The six-year statutory warranty period will only apply in the case of major defects.  Other types of defects will see the statutory warranty period limited to two years.