A security bond is a refundable bond that is lodged with the body corporate at the time a lot owner submits building application.(the amount varies on the type of development and may range from $2,000. through to $10,000). The security bond is a form of guarantee to protect the developer and the body corporate’s design code which may be used to repair or reinstate any damage that may occur during construction works.
This bond is held by the body corporate and is refunded to the applicant upon written advice that all works have been completed in accordance with the approved plans.
Prior to refunding the bond, a body corporate will inspect the verge area and surrounding properties to ensure that the area has been cleared and that no material has been dumped onto the verge and abutting properties
Building Bond provisions must be considered during the consulting phase of a new scheme and enshrined in documents such as the Design Code, the Community Management Statement By-laws and the Administration Agreements for Community Managers to ensure effective management, accounting and delivery.