From 1 October 2026, property developers in the ACT must hold a property developer licence.
Who Needs a Licence?
Property developers in the ACT managing construction projects involving three or more residential dwellings, who want to:
- Sell dwellings off-the-plan
- Submit development applications
- Submit building approval applications
- Arrange for residential building work to be carried out
- Obtain a certificate of occupancy
Exclusions
The Property Developers Regulation 2025 contains a number of exclusions from the Property Developer Licensing Scheme, including:
- People who are only providing professional advice in relation to building work (for example, consultants)
- People who are only providing financial services
Licensing Requirements
Anyone applying for a Property Developer Licence must:
- Have the operational and financial capacity to undertake residential development activities; and
- Demonstrate they are suitable to undertake residential development activities by obtaining and submitting an iCIRT star-rating report.
Accountability for Defects
Licensed property developers will be responsible for rectifying serious defects for a period of 10 years.
If the property developer was a company that has since been wound up, liquidated or deregistered, the directors of that company can be held personally liable for any serious defects during the 10-year period.
Stop Work Orders
Stop work orders can be issued by the Construction Occupations Registrar if:
- Work undertaken or arranged by a property developer could result in damage or loss to potential occupiers of the residential building; or
- A party does not hold the correct licence for that work.
Practical Takeaways
- Property developers and their directors in the ACT should be aware of their obligations and liability under the new licensing scheme, and ensure they apply for any required licence before 1 October 2026.
- Contractors and subcontractors in the ACT should ensure that any property developers they contract with are appropriately licensed, and ensure that delay arising from stop work orders is properly addressed in their contracts.
