54Subrogation of contractual rights

54 Subrogation of contractual rights (1) If— (a) building work was carried out for the developer of a community title scheme in anticipation of registration of the scheme or after its registration; and (b) the building work is defective; the body corporate is subrogated to the contractual rights of the developer to damages for the defects.

Section 55 page 38 Community Title Act 2001 (2) The body corporate may recover damages under this section on its own behalf (so far as the defects relate to common property) or for owners of lots other than common property affected by the defects. (3) The body corporate’s right of subrogation under this section does not operate to the exclusion of the developer’s rights and, if both the body corporate and the developer take action to recover damages for breach of contract, the damages may be apportioned between them as may be just.