NSW-based property specialist Kerin Benson Lawyers says it is investigating a potential class action against the trustees of the ACT’s Master Builders Fidelity Fund Scheme.

The law firm has opened an online registration service for property owners who think they may be eligible for compensation from the insurance scheme.

"The precise course of action will depend on who the members in the class are,” Principal Christopher Kerin told insuranceNEWS.com.au today. "It’s a question of who comes forward and the circumstances as to how we might run it.”

People who have purchased a freestanding house or an apartment in a building that is no higher than three storeys may be eligible if the property is suffering from defects.

The class action will be run on a “no win, no fee” basis, with a third party funder paying for the associated costs.

“This means that you will not have to pay any fees unless the claims are successfully resolved and you get financial compensation, in which case the third party funder will only be paid out of any compensation you recover,’ the law firm says.

“If the class action is unsuccessful and the court makes an adverse costs order, the third party funder will pay the other side’s costs and it will not cost you anything.”

Licensed builders in the ACT must obtain complying residential building work insurance or a Fidelity Fund certificate from the scheme for projects worth $12,000 or more.

The scheme, managed by an independent board of trustees, was established in 2002 to protect consumers in the event of builder insolvency, disappearance or death during the contract period. Claims can also be made for building defects in the statutory warranty period.

For more information on the class action, click here.