Defects at Handover

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The final payment at practical completion is due only once the home:
• Has been completed in accordance with the contract and all relevant statutory requirements
• Has been completed without any omissions or defects, or with only minor omissions or minor defects, and
• Is reasonably suitable for habitation.

The DBCA sets out requirements for documenting defects (whether agreed by both parties or not) at the final inspection. These requirements can be summarised as follows:

Where You and the Homeowner AGREE on the Defects & Omissions
If you and the homeowner agree that there are minor defects or minor omissions, then you must provide the homeowner with a ‘defects document’ that lists these defects and omissions at the time of the final inspection. The list must state by what date you are to correct each agreed minor defect or minor omission. You must sign the defects document and make all reasonable efforts to have the owner sign.

NOTE: You must not receive all or part of the completion payment until the homeowner has been given a defects document.

Where You and the Homeowner DO NOT Agree on the Defects & Omissions
The defects document must also list any minor defects or minor omissions which the homeowner believes exist but you do not agree exist. You should attempt to resolve these issues by discussion with the homeowner.