Legal and Compliance Essentials Every Property Developer Needs to Know in NSW

Adam Bahrami
Sep 29
3 min read

Property development in New South Wales is full of opportunities, but also full of regulations. From the National Construction Code (NCC) to the Design and Building Practitioners Act 2020 (NSW), developers face a complex web of rules designed to protect consumers, improve building standards, and ensure safe, compliant outcomes.

For developers, compliance isn’t just about avoiding fines — it’s about protecting your investment, safeguarding purchasers, and ensuring your project can move smoothly from acquisition to occupation. At OwnerDeveloper, we’ve seen firsthand how a proactive compliance strategy can save time, money, and stress.

1. Zoning, Land Use and Approvals

Every project starts with land. Before buying or building, developers must ensure their site’s zoning allows for the intended use — whether it’s low-rise residentia l, mixed-use, or medium-density housing.

Key approvals may include:

Development Application (DA) – submitted to council, assessing planning compliance.
Construction Certificate (CC) – required before building starts.
Occupation Certificate (OC) – required before residents can move in.

Failure to secure the right approvals or overlooking zoning restrictions can delay or derail an entire project.

2. The National Construction Code (NCC)

All building work in NSW must comply with the NCC, which sets standards for safety, accessibility, and energy efficiency.

For developers, this means:

Designing projects with BASIX sustainability requirements (water, energy, thermal comfort).
Ensuring builders follow the latest construction standards.
Building in line with fire safety, structural, and accessibility requirements.

Non-compliance with the NCC can lead to fines, stop-work orders, or refusal of occupation certificates.

3. Licensing, Insurance, and Registration

Only licensed and insured practitioners can legally carry out most building work in NSW. As a developer, you must ensure:

Builders hold the correct licence under the Home Building Act 1989 (NSW).
All practitioners are registered under the Design and Building Practitioners Act.
Proper insurance is in place, including the Home Building Compensation (HBC) Scheme for projects over $20,000.

Engaging unlicensed or uninsured practitioners exposes developers to liability and can void approvals or contracts.

4. The Design and Building Practitioners Act 2020 (NSW)

This legislation has transformed developer obligations. It imposes a statutory duty of care, which is non-delegable. In simple terms, developers remain 100% responsible for defects, even if subcontractors caused them.

Key responsibilities include:

Verifying all practitioners are registered.
Lodging design compliance declarations before construction.
Managing variations properly through the NSW Planning Portal.
Lodging a building compliance declaration before applying for an occupation certificate.

Developers who fail to meet these obligations can face stop-work orders, rectification orders, fines, or prohibition orders preventing settlement.

5. Security of Payments and Contracts

Cash flow is critical in development. NSW’s Security of Payment laws ensure contractors and suppliers can claim progress payments for work performed.

For developers, this means:

Setting clear, compliant payment terms in construction contracts.
Managing disputes quickly to avoid delays.
Understanding that contractors may issue payment claims enforceable by law.

Well-structured contracts and financial oversight protect both the project and relationships with builders and trades.

6. Customer and Purchaser Obligations

Developers have legal responsibilities to purchasers, including:

Providing accurate disclosure statements.
Meeting warranty obligations under the Home Building Act.
Lodging strata building bonds (for multi-unit projects).

Good compliance is also good business: transparency and customer care build trust, reduce disputes, and improve resale value.

7. Health, Safety and Environmental Compliance

Every development site must meet WHS (Work Health and Safety) standards, with the principal contractor managing day-to-day safety. However, developers still owe a duty of care to ensure safe systems, proper supervision, and risk management are in place.

Environmental compliance is equally important. From erosion control to sustainable design, NSW authorities enforce strict environmental standards, particularly under BASIX and local planning laws.

Health, Safety and Environmental Compliance

Why Compliance Protects Your Bottom Line

The risks of ignoring compliance are severe: delays, penalties, personal liability, reputational damage, and even project cancellation. But with the right systems and expert guidance, compliance becomes a strength — reducing risk, protecting profits, and creating projects that stand the test of time.

At OwnerDeveloper, we guide clients through the full legal and compliance landscape. With more than 25 years’ experience and hundreds of projects delivered, we know how to protect developers from costly mistakes while helping them achieve long-term success.

Final Word

Legal and compliance essentials aren’t optional — they’re the foundation of every successful development. By staying across zoning, approvals, licensing, NCC requirements, and the Design and Building Practitioners Act, developers can deliver safe, high-quality projects that meet both regulatory standards and market demand.