A typical handover process takes the follow steps:
1. An occupancy permit is issued by your Registered Building Surveyor (“RBS”) and is sent to you by your Builder and/or the RBS direct.
2. A Final Claim is issued by your Builder to you.
3. You and your private (expert) inspector would then undergo an inspection with your Builder. You must create a detailed list of defects which is signed by you and your Builder. Most contracts provide that this occurs at the inspection, but the expert generally won’t complete their report for 2-4 business days. It is best to try and have the expert complete the list/report within 24 hours of the inspection and give you the list/report.
4. Your Builder is obliged to fix the defects (if any) as listed above.
5. We recommend organising with your Builder to inspect the works again.
6. It is common that the Builder will refuse to complete the defects or will say that it will fix the defects in the defects liability period.
7. The Final Claim is to be paid within 7 days’ notice after the defects have been fixed. It is important to request this date be extended if you are arranging a further inspection.
8. Once the defects are complete, then handover occurs on a mutually agreeable date between you and your Builder. It is important that you do not take possession before this date. You will pay the completion payment (less any liquidated damages) and the Builder will give you the keys. Each contract is different, and it is important to check with a lawyer as to what must occur under your own contract to ensure you are not waiving or breaching any of your rights.
If you would like assistance in completing the handover of your property, please contact us on 03 9629 2211.
This content is intended as commentary and should not be construed as legal advice.
For more information call Melissa Henderson on 03 9629 2211.
