Why Victoria's 'Buyer Protections' law misses the mark

Over the last few weeks there’s been a lot of controversy over the new ‘Buyer Protections’ legislation in Victoria

Frankly, this law will not do what it says on the box - i.e. create buyer protections, because it oversimplifies that all building disputes are builder error.

I’ve been working in this field for years and as often as I see a builder claim, I see insurance claims, professional liability claims, neighbour claims, owners corporation claims and vendor claims arising out of building issues.

Just because there’s an issue in a building doesn’t mean it’s a builder cause! It could be so many different things depending on a proper investigation of the cause.

When cases aren’t so simple DBDRV just becomes a slow down of claims making a way to proper adjudication.

Buyer protection to me is about making our legal system for any claim cheaper and more efficient. Preferably keeping all of those potential claims in the one forum.

It could be builder fault, but the same building issue could be:

1. Design or surveyor professional liability. E.g. Slab design or approval of an unsafe building material. This is Professional liability or an apportionable claim;

2. An insurance claim under a property or strata policy. E.g. Damage to a roof from a storm that wasn’t discovered immediately. This is an insurance claim;

3. Nuisance claims or water act claim. E.g. A building might be cracked due to tree roots, slab heave arising from an underground water main leak - this is neighbour, council or water authority liability and claim;

4. Owners corporation liability. In strata, it could be the OC failing to repair common property or failing to ensure another lot owner does the same. This is common and often there are issues with committees not acting to save money or stacking votes to protect interests;

5. Vendor, real estate agent or building inspector liability or even conveyancer or solicitor liability. E.g. A buyer can run into issue by virtue of so many issues.

The biggest mistake I see homeowners make is assuming the cause of a problem. This law does the same thing.

This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Tagged as:

• property disputes
• regulatory compliance