85Subrogation of contractual rights

### 85 Subrogation of contractual rights > > (1)  If – > > > > > > (a) building work was carried out for the developer under a registered scheme in anticipation of registration of the scheme or under the terms of the registered scheme; and > > > > > > > (b) the building work is defective – > > > > the body corporate is subrogated to the contractual rights of the developer to damages in respect of those defects. > > > (2)  The body corporate may recover damages under this section on its own behalf (so far as the defects relate to common property) or on behalf of owners of lots 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.