The NSW Government has recently introduced a rating system for developers. The rating is aimed at sending a signal to prospective purchasers that they can have confidence when purchasing from that developer.
Good developers will get a 3 to 5 star rating, which deems them “trustworthy”.
Developers who are not rated are those who don’t achieve a trustworthy rating and therefore listed on a watch list.
Any project without at least a 3 star rating should be a red flag for buyers.
“The ratings initiative forms part of the NSW Government's Construct NSW transformation strategy to rebuild public confidence in residential construction. It will be key to the Government's plan to introduce Decennial Liability Insurance, establishing a special type of insurance taken out by the developer to guarantee against major defects for up to 10 years, which is not currently available in Australia”, said Kevin Anderson, the Minister for Better Regulation and Innovation.
Incidentally, the scheme also protects purchasers (from a low rated developer), by not obligating them to settle until the defects (if any) are rectified.
If you have any concerns about this new initiative, or require more information call us today or visit NSW Gov.