ByLawyers News and Updates

Combustible cladding – Conveyancing – QLD

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New regulations for combustible cladding

From 1 October 2018, amendments by the Building and Other Legislation (Cladding) Amendment Regulation 2018 (QLD) (the Regulation) to the Building Regulation 2006 (QLD) require owners of private buildings to undertake a three-stage process, managed through an online system, to identify whether a building is affected by combustible cladding.

Buildings covered by the Regulation are class 2-9 buildings of Type A or Type B construction for which building approval was given after 1 January 1994 and before 1 October 2018.

The Queensland Building and Construction Commission (QBCC) is the regulator responsible for the online checklist and register.

For further information on the three-stage rollout, see the QBCC website.

Duties of an owner on sale of affected property

A change of building ownership attracts statutory duties for building owners. If one or more of the relevant stages has been completed, an owner must give the new owner:

  • notice, in the approved form, about the extent to which the original owner has complied with Part 4A; and
  • copies of each document given by the original owner to the QBCC under Part 4A.

They must also give the QBCC a copy of the notice given to the new owner. Failure to do so may attract a maximum penalty of up to 20 penalty units.

The By Lawyers Conveyancing (QLD) publication has been updated accordingly.

Combustible cladding ban – Home building warranties

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From 15 August 2018, certain combustible cladding, being any cladding with a core comprised of more than 30% polyethylene, is banned in NSW, with limited exceptions. The state-wide prohibition affects any form of the combustible building material used in external cladding, external walls, external insulation, facades or rendered finishes for certain multi-storey residential and commercial premises. The ban is retrospective and applies to buildings built before 15 August 2018.

The use of such cladding is considered a major defect for the purposes of the home building statutory warranties. This means that owners have a period of up to six years in which legal proceedings can be commence against the builder. There is another six months added to the warranty period if the defect only becomes apparent after five and a half years.

The strata defects bond scheme will continue to operate normally. The introduction of the ban does not stop an owners’ corporation from pursuing a claim under the strata defects bond scheme. An owners’ corporation can use all or part of the bond to pay for the rectification of any defective building work that is identified in a final inspection report, including the use of a banned building product.

The Department of Planning and Environment has released a draft Environmental Planning and Assessment Amendment (Identification of Buildings with Combustible Cladding) Regulation 2017 that will require owners of buildings with combustible external wall cladding to register the building with the government and undertake a fire safety assessment within set deadlines.

The By Lawyers Sale and Purchase commentary and our Reference Guide 1001 Conveyancing Answers (NSW) has been updated to reflect these changes.

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