Ace Woollahra Pty Ltd v The Owners—Strata Plan 61424

In *Ace Woollahra Pty Ltd v The Owners—Strata Plan 61424*, the New South Wales Court of Appeal considered an appeal concerning the enforceability of statutory warranties under the *Home Building Act 1989* (NSW). The dispute arose from a joint venture to construct aged person units. One joint venturer contracted with the appellant builder to erect the units on land registered in the name of the other joint venturer. The respondent owners corporation subsequently acquired title from the registered proprietor.

The central legal issue before the Court of Appeal was whether the owners corporation was entitled to the benefit of a statutory warranty, enforceable against the builder, by operation of section 18D of the *Home Building Act 1989*. This section deals with the assignment of statutory warranties.

The Court of Appeal reasoned that section 18D of the *Home Building Act 1989* did not operate to confer the benefit of the statutory warranty on the owners corporation in these circumstances. The Court found that the owners corporation, as a successor in title to the land, was not a party to the original contract with the builder and did not acquire the benefit of the statutory warranty through the operation of the Act. Consequently, the appeal was allowed, the primary judge's answer to the preliminary issue was set aside, and the owners corporation was found not to be entitled to enforce the statutory warranty against the builder. The owners corporation was ordered to pay the builder's costs of the proceedings at first instance and on appeal.