Understanding the Property Developers Act 2024 (ACT): Enhanced Protections and Liabilities

The Property Developers Act 2024 (ACT) is new legislation introduced by the ACT Government to tighten control over how property development is carried out in the Territory. It was created in response to ongoing concerns about poor‑quality construction, building defects, and consumers being left without practical recourse when things go wrong.

At its core, the Act is about who is allowed to develop property, how they must operate, and how long they remain responsible for what they build.

What is the Property Developers Act 2024?

The Property Developers Act 2024 is a comprehensive regulatory framework that applies to people and companies who develop residential property in the ACT. Its key objectives are to:

• Lift the standard of residential development in the Territory

• Make it harder for “phoenix” developers to walk away from defective projects

• Give purchasers and owners clearer rights and longer timeframes to pursue claims

• Align developers’ incentives with long‑term building performance, not just short‑term profit

To achieve this, the Act introduces a licensing scheme for developers, sets out ongoing compliance obligations, and significantly extends how long developers can be held responsible for defects.

Who does the Act apply to?

The Act typically applies to:

• Property developers who undertake, arrange, or manage residential development projects in the ACT

• Company directors and officers involved in development entities

• Related parties who might otherwise try to hide behind complex company structures

It is particularly relevant to multi‑unit residential projects (such as apartments and townhouses), where the consequences of defects are often widespread and expensive to fix.

How does it regulate developers?

The Act regulates developers in three main ways:

1. Licensing and registration

   Developers must be licensed to operate in the ACT. This means they are vetted for:

   • Financial capacity

   • Fit‑and‑proper‑person criteria

   • Relevant experience and competency

2. Ongoing monitoring and compliance

   Licensed developers must comply with conditions that can include:

   • Keeping adequate records

   • Cooperating with inspections and audits

   • Ensuring projects are delivered in line with approved plans and legislation

3. Accountability and enforcement

   The regulator is given stronger tools to:

   • Suspend or cancel licences

   • Issue penalties and enforcement notices

   • Pursue directors personally in certain circumstances

Key Provisions of the Act

Mandatory Licensing Requirements

Under the Act, all property developers operating in the ACT must hold a valid licence. This ensures that only vetted and accountable entities can undertake development activities. The licensing regime includes:

• Stringent eligibility criteria for applicants

• Financial capacity assessments

• Professional competency requirements

• Ongoing compliance obligations

Enhanced Building Standards and Documentation

While builders and certifiers still have their own obligations, the Act pushes responsibility up the chain so that developers cannot simply blame others. Developers must be able to demonstrate that:

• Appropriate design, supervision, and quality assurance processes were in place

• Construction complied with the Building Code and relevant Australian Standards

• Critical elements (such as structure, fire safety, and weatherproofing) were properly documented and verified

This includes more rigorous expectations around how systems like waterproofing are specified, installed, and recorded.

Extended Liability Periods

One of the most significant aspects of the Act is the extension of liability periods for construction defects. Developers now face:

• 10‑year liability for major structural defects (including serious waterproofing failures that affect structural performance or safety)

• 6‑year liability for non‑structural defects that affect the building’s functionality

• 2‑year liability for minor defects

These extended timeframes recognise that many defects, particularly water ingress issues, may not become apparent immediately after completion.

Why this matters for building performance (and waterproofing)

Before looking specifically at waterproofing, it is important to understand the intent: the Act is designed to link financial and legal responsibility to long‑term building performance. That naturally draws attention to high‑risk areas like waterproofing, cladding, and structure, because these are the elements that most often lead to expensive, complex disputes when they fail.

The Growing Problem of Leaking Buildings

Water ingress and leaking buildings have become an epidemic in modern construction, causing billions of dollars in damage across Australia. Common causes include:

• Inadequate or improperly installed waterproofing membranes

• Poor detailing around penetrations and junctions

• Use of substandard materials to reduce costs

• Insufficient oversight and quality control during construction

• Failure to comply with Australian Standards

The consequences of water ingress extend far beyond aesthetic concerns. Leaking buildings can experience:

• Structural deterioration and concrete cancer

• Mould growth affecting occupant health

• Degradation of internal finishes and fixtures

• Significant devaluation of property

• Costly and disruptive remediation works

Enhanced Liability Under the Act

The Property Developers Act 2024 significantly strengthens the legal position of affected property owners by:

Personal Liability for Directors

The Act can impose personal liability on company directors and officers where poor‑quality construction results from deliberate cost‑cutting, negligence, or failure to implement adequate quality control measures. This provision prevents developers from simply liquidating companies to avoid responsibility for defects.

Statutory Warranties

Developers must provide statutory warranties that their buildings are:

• Constructed in accordance with approved plans

• Fit for habitation and suitable for their intended purpose

• Constructed with proper materials and in a proper manner

• Compliant with all relevant building codes and standards

These warranties are automatically implied and cannot be contracted out of, providing robust protection for purchasers.

Penalties for Non‑Compliance

The Act introduces substantial penalties for developers who fail to meet their obligations:

• Significant financial penalties for breaches of licensing conditions

• Suspension or cancellation of development licences

• Criminal liability for serious breaches involving fraud or gross negligence

• Public disclosure of enforcement actions

What This Means for Property Owners

If you own or are considering purchasing a property in the ACT, the Property Developers Act 2024 provides you with:

• Greater protection against defective construction work

• Extended timeframes to identify and pursue claims for building defects

• Multiple avenues for seeking remedies, including direct action against developers

• Increased accountability from developers who can no longer hide behind corporate structures

The Importance of Quality Waterproofing

Given the enhanced liability framework, developers are now under greater pressure to ensure proper waterproofing from the outset. Quality waterproofing systems are essential because:

• Water ingress is one of the most common and costly building defects

• Remediation costs often far exceed the cost of proper installation initially

• Developers now face extended liability periods, making quality work a financial imperative

• Waterproofing failures can trigger other defects, compounding liability

Professional waterproofing should never be viewed as an optional extra or an area to reduce costs. It is a critical building element that protects the structural integrity of the building and the health and safety of its occupants.

What to Do If You Have a Leaking Building

If you suspect water ingress or have identified leaks in your property:

1. Document everything: Take photographs, keep records of when leaks occur, and note any related damage

2. Engage qualified professionals: Obtain independent assessments from licensed building inspectors and waterproofing specialists

3. Notify the developer: Provide formal written notice of the defects within the liability periods

4. Understand your rights: Familiarise yourself with the protections available under the Property Developers Act 2024

5. Seek legal advice: Consider consulting a construction lawyer if the developer is unresponsive or disputes liability

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The Role of Professional Waterproofing Services

Professional waterproofing specialists play a crucial role in both preventing and remedying water ingress issues. Services include:

• Pre‑construction waterproofing design and specification

• Installation of compliant waterproofing systems

• Independent inspections and quality assurance during construction

• Diagnostic investigations to identify the source of leaks

• Remedial waterproofing and building restoration

• Expert reports for legal proceedings

Engaging qualified waterproofing professionals ensures compliance with Australian Standards and the requirements of the Property Developers Act 2024, protecting both developers from liability and building owners from defects.

Conclusion

The Property Developers Act 2024 (ACT) marks a watershed moment in construction regulation and consumer protection. By dramatically extending liability periods and increasing accountability, the Act sends a clear message: poor‑quality construction, particularly involving waterproofing failures, will no longer be tolerated.

For property owners, this legislation provides powerful tools to pursue remedies for defective building work. For developers, it creates strong financial incentives to prioritise quality construction and proper waterproofing from the outset.

As the construction industry adapts to this new regulatory environment, the emphasis on quality waterproofing and compliance with building standards has never been greater. Whether you're a developer, property owner, or construction professional, understanding the implications of the Property Developers Act 2024 is essential for navigating the evolving landscape of construction liability in the ACT.

For expert advice on waterproofing compliance, remediation, or building defect investigations, contact qualified waterproofing professionals who understand the requirements of the Property Developers Act 2024 and can help protect your interests.