Stage 2: Inspector appointment

A building inspector can only carry out inspections and produce reports for the SBBIS if they are a member of a strata inspector panel.

Once the building inspector has accepted the developer’s nomination (or when Secretary arranges the building inspector), the developer should review the builder details in the Strata Hub. To change the builder details, the developer needs to:

• email stratasystem@customerservice.nsw.gov.au or
• log into the Strata Hub and complete the online form in the 'Help' section at the bottom of the left side panel

Within 12 months after the occupation certificate issue

If the initial period of a strata scheme ends within the 12 months of the OC being issued, the developer must appoint a building inspector within that period even if the OC has been issued with conditions or as an interim OC.

The initial period ends when the owners corporation changes from being the original owner of the land (e.g. the developer) to the actual owners of the lots. For more information on the initial period, go to the starting the owners corporation page.

Owners corporation approves the building inspector

Once the developer has selected their building inspector, they must be approved by the owners corporation. To do this:

1. the developer uses the SBBIS on the Strata Hub to select, make disclosures and propose the building inspector to the owners corporation
2. the proposed building inspector also makes requisite disclosures (if any)
3. the owners corporation calls a general meeting to consider the proposed inspector and any disclosures from the developer and the proposed building inspector
4. the owners corporation must pass a resolution to approve or refuse the appointment of the building inspector. The general meeting resolution is determined by a simple majority. A developer or lessor of a leasehold strata scheme cannot vote (or exercise a proxy vote)
5. the owners corporation must use the SBBIS on the Strata Hub to provide notice to the developer and Fair Trading within 14 days of approving or refusing the appointment of the building inspector.

If the owners corporation rejects the proposed building inspector, the developer has the option to repeat the process until either the 12 months expires or the owners corporation approves an inspector.

Failing to agree on an inspector

If the developer fails to successfully appoint a building inspector within 12 months, they must use the SBBIS on the Strata Hub to advise the Secretary (i.e. Fair Trading) within 21 days. Fair Trading will then arrange a building inspector and notify the developer and owners corporation.

If Fair Trading arranges the appointment of the building inspector, owners corporation approval is not required and a service fee applies. The developer must pay the service fee in addition to all inspector costs, even when the inspector is arranged by Fair Trading.

Objection by an owner of a strata scheme lot

An individual owner of a strata scheme lot may object to the owners corporation approval of a building inspector, for any reason. The individual owner must lodge their objection with the Secretary (i.e. Fair Trading) within 14 days of the owners corporation approving the appointment.

The owners corporation will provide written notice to the lot owners of the approval of the building inspector. This notice contains a link to the SBBIS on the Strata Hub to lodge their objection.

Fair Trading will consider the objection and arrange the appointment of another building inspector if appropriate. Fair Trading will give written notice of the arrangement to the developer and owners corporation. If Fair Trading decides to not appoint an alternative building inspector, they will notify those concerned.

Documents provided to the building inspector

Within 28 days of appointing the building inspector, the developer must provide the building inspector with:

• the documents as listed under Stage 1 – Building bond lodgement (except the building bond), and
• a document that identifies any building defects in the building work of which the developer is aware, including any building defects considered at the first annual general meeting of the owners corporation and
• a copy of the initial maintenance schedule relating to the strata scheme.

The developer may protect/redact commercial in-confidence materials other than those details required to carry out the inspection before giving them to the building inspector.