A new Residential Building Cover will be introduced come January next year assisting investors with new builds, according to recent announcements.
From January 1st 2013, legislation will be brought in to protect those in the Northern Territory with building properties, business minister, Peter Chandler, indicated while responding to concerns from Master Builders Association.
"The Country Liberals drove the previous Government’s agenda surrounding the introduction of legislation protecting Territorians building their own homes,” Mr Chandler said.
"Territorians undertaking the considerable investment associated with building a home deserve to be protected from unforeseen circumstances.”
This package, currently earmarked, will include the establishment of a fidelity fund to provide cover in the event of death, disappearance or bankruptcy of a builder, regulated process payments and the establishment of a Commissioner of Residential Building disputes.
Maintenance of $50,000 net tangible assets by builders will also be required.
This is seen by Mr Chandler as especially necessary due to six building firms collapsing across the NT in the last four years.
Minister for lands and planning, Gerry McCarthy, has also previously announced support for the changes that will replace the Home Building Certification Fund 1993.
“This is great news for Territory builders and consumers as they will enjoy the confidence that comes with growth in the industry and consumer protection,” he said.
The Master Builders Association will control the industry fidelity fund through which claims will be made. It only applies to work which involves a registered builder, including new builds and extensions, but may not include verandahs, sheds and carports.