Written by The NSW Supreme Court has handed down an important ruling for developers in The Owners – Strata Plan No 93543 v Zhang (No 3) [2025] NSWSC 571, clarifying how statutory warranty periods under the Home Building Act 1989 (NSW) are calculated in staged developments.
The dispute arose in a project involving two four-storey apartment blocks with a shared basement car park and common spaces. The developer argued that each block should be treated as a separate building under Section 3C(3) of the Home Building Act 1989 (NSW), which would mean different limitation periods applied to each. On that basis, the developer argued that proceedings for defects in one block were said to be out of time because they were filed more than two years after the issue of an interim occupation certificate.
The Court rejected this argument, finding that the shared basement car park, which could only be accessed from one building, resulted in the two buildings being functionally interdependent and therefore not “separate buildings.” Instead, both apartment blocks formed part of a single building, with the statutory warranty period running from the date of the final occupation certificate.
The ruling highlights the importance for developers and property owners to understand the requirements for valid occupation certificates and the timing of statutory warranty claims.