47Common property of prescribed Class 2 building

47 Common property of prescribed Class 2 building The scheme's trust deed must require a certificate issued for guaranteed work in connection with a dwelling in a prescribed Class 2 building to specify that, in relation to any defective guaranteed work carried out on the common area of the building: (a) a claim may be made on behalf of all the beneficiaries (who are the current owners of the dwellings in the building); and (b) any payment made under the certificate to rectify the defective guaranteed work will reduce the beneficiary's cover under the certificate in equal proportions for the dwellings. Example for regulation 47 If there are 10 dwellings in the prescribed Class 2 building and the rectification work amounts to $40 000, the entitlement under the certificate in relation to each dwelling will be reduced by $4 000.

Chapter 3 Fidelity fund schemes and approved schemes Part 3.2 Approval criteria Division 6 Other matters Building (RBI and Fidelity Fund Schemes) Regulations 2012 28