The Property Developers Act 2024 (the Act) was passed by the Legislative Assembly on 27 June 2024. The Act targets multi-unit dwellings and does not apply to single dwellings and dual occupancies.
The Act establishes a licensing and regulatory scheme that will ensure that residential property developers are competent, transparent and have the capacity and capability to deliver high-quality builds. It will hold them accountable for the decisions they have control over and improve Canberrans’ confidence in the sector.
The Act aims to protect the public and increase confidence by:
- Requiring property developers to become licensed to operate in the ACT. This will include the requirement to obtain a specialist rating report, which will look at their capacity and capability to deliver residential property developments, as well as a fit and proper person test of key people.
- Publishing a public register.
- Giving the Government powers to issue rectification orders against developers, builders, or both jointly to rectify defects during and post construction.
- Establishing a Code of Practice that developers must follow.
- Encouraging developers to take out insurance that covers building defects for 10 years after people move in.
Commencement of the Act
The Act has a phased commencement.
From 11 July 2024, the Construction Occupations Registrar has powers to issue rectification orders, stop work orders and undertakings. These powers apply to developments which received development approval on or after 11 July 2024.
The remainder of the Act has not yet commenced. The ACT Government will continue to work with industry and the community to commence the licensing scheme. Work is underway to develop the licensing system and other elements, including regulations and a Code of Practice for property developers.
Questions
If you have questions, please email EPSDDBuildingReform@act.gov.au
