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We live in an eight apartment block on the lower north shore. Cost of two bedroom apartments is $1.4m and three bedrooms $1.7m.
A builder told us we have concrete cancer in some of our balconies and advised the cost would be $85k to $110k per balcony. The engineer we employed has said we need to jackhammer up all balcony tiles, put a membrane down, reinforce our balcony balustrades which are brick with render, replace our balcony doors, etc.
We are on the ground floor less than 1m off the ground which means we do not need to comply with the building code but our committee has employed a lawyer which has advised us we will need to take on all liabilities for the balustrades which includes future owners. We have advised we will not accept the bylaw and its liabilities.
We have now agreed to the balcony reinforcement which will mean a large loss of our balcony’s area which is already small. The engineer has recommended to build another 13cm thick wall to reinforce the existing 13cm wall.
The owners corporation has now employed a legal firm against us which has cost approximately $5k so far without seeking owners corporation approval. The strata manager, who was named in the ABC 2 ‘The Strata Trap’ has advised because each invoice is below $3k they do not need to ask owners corporation approval.
Is this right? If a legal firm divides their invoices so that they are under $3k even though the total is $5k+ does that mean they do not need owners corporation approval.
Thank you so much for your thoughts.
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There’s a lot to unpack in this but it’s best to start with the simple fact that as an owner, you are jointly responsible, with all the other owners, for the maintenance and repair of common property, and you have to pay your share of the costs, proportionate to your unit entitlements (the amount by which your levies are calculated). But let’s look at the indivdual issues.
A builder told us we have concrete cancer in some of our balconies and advised the cost would be $85k to $110k per balcony.
See my comment above. You will be expected to pay your calculated share of the total cost.
… our committee has employed a lawyer which has advised us we will need to take on all liabilities for the balustrades which includes future owners. We have advised we will not accept the bylaw and its liabilities.
This sounds like they are saying you need a common property by-law for your balcony if you want to not be part of the general repair. What they are asking you to do is put your money where your mouth is – if you are saying your balcony doesn’t need repair, they are saying, okay, then take responsibility for it, now and into the future.
That doesn’t sound unreasonable to me. Right now, the OC (body corporate) is responsible for all the balconies and has a legal duty to repair and maintain them. If you want to opt out, it can only be on the basis that you accept ongoing responsibility. But even that won’t remove your responsibility for your share of the repairs to the other balconies.
Someone has to be legally responsible for every part of any strata building. Strata law is structured so that if the OC gives up responsibility for a part of common property, then someone, usually that the lot owner, has to take over that responsibility.
We have now agreed to the balcony reinforcement which will mean a large loss of our balcony’s area which is already small. The engineer has recommended to build another 13cm thick wall to reinforce the existing 13cm wall.
This is worth questioning, at least to see if there is a better solution that doesn’t impact on your space. If that level of work is demonstrably not necessary, then you could get the OC to agree to take it off the work schedule – it will protect your space but only save money from the overall bill.
If a legal firm divides their invoices so that they are under $3k even though the total is $5k+ does that mean they do not need owners corporation approval.
Some strata management companies have become notorious for “creative” practices but that doesn’t mean everything their strata managers do is dubious. Also, it would cost you more to hire a lawyer to prove that there was some jiggery-pokery here than you would save from your share of the legal fees – and all the additional charges that will accrue as the OC’s lawyers ramp up their fight against you – and seek all costs as well.
Don’t forget, the dodgy lawyer’s five favourite words: “It’s a matter of principle.”
In your position, I would not waste another iota of energy or a cent of money fighting this. But I would ask the other owners if there is a compromise solution that will cost everyone less and would have less of an impact on you directly.
And I would be pressing the OC to examine the best way of financing the work – including a strata loan – so that you are not hit too hard when the bills have to be paid.
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I think something was lost in translation.
My bad. I was confused by the amount of additional detail.
Firstly, $3k seems awfully low for a ceiling on unauthorised legal bills. However, if you can show that what arrived as multiple low-ball bills should have been presented as one bill, then you have a case. What you would do with that case is another matter entirely and I have to say I’m at a loss except to suggest that you ask the OC to set a more realistic limit at your next AGM so as to avoid future shenanigans.
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The OC is obliged by law to charge everyone for work done on common property, the costs shared according to their unit entitlements. However, if you feel the work on your balcony in not necessary, and you are being unfairly impacted, you can apply to Fair Trading and NCAT for orders that the work not be done. The cost saving to you will be minimal, but you will be spared the disruption and loss of space and amenity. Have a look at section 232 and consider raising the issue through mediation at Fair Trading, in the first instance.
Regarding the legal fees, if you do go to NCAT and the OC loses, then the cost of their legal action against you must be raised from a special levy from which you must be excluded. That said, you have to take it to NCAT and you have to win.
I would forget the issue of the $3000 limit. It would cost you more to argue that in the Tribunal or a court than you would save.
Going back to your original post, you say the OC’s lawyer: “has advised us we will need to take on all liabilities for the balustrades which includes future owners. We have advised we will not accept the bylaw and its liabilities.”
This is standard practice when one owner wants something done differently with common property attached to their lot. If you are sure your balustrade is building code compliant, why not go with this?
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