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[Floyd0]

The EC recently commissioned a building report of a block of 24 units that have extensive balconies circa 1972 construction. Building is very sound and however requires remedial waterproofing works such as brick point work.

One very surprising result in the report was that one unit has significant defects and spalling throughout the floor of their balcony. This unit is tenanted. The cost of remedial work in this particular unit is >$20k and in speaking with our Strata Manager they state that the managing agent mentioned to them that they had over years reported to the owner the balcony degradation after each tenant inspection report and claim that the owner said he wasn’t interested.

The OC has passed a motion to raise a special levy for the building remedial project, however several owners and EC members are quite annoyed that the above unit is in such a state that requires such a sum for repairs and believe the owner should be held to account for not raising this with the Strata Manager/EC and OC so that repairs could have been undertaken much earlier thus potentially at a much lower cost?

What recourse does an OC have in making a claim of negligence to this owner (bearing in mind that the owner has to contribute to the special levy) BTW at time of writing this Unit owner has not paid the 1st special levy instalment to date which was due 1st June)

Many thanks

Floyd0

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[Whale]

Floyd0 – the Property Manager for the affected Unit is effectively the “agent” for the Owner, and in that capacity they reported the balcony damage to your Strata Manager who, as that damage was to common property, should have as “agent” for the Owners Corporation immediately conveyed that information to the Executive Committee; not to the unit Owner.

So in my opinion, if anyone is to be blamed for the costs of repairs that are now greater than would have been the case if earlier advice of the spalling problem had been reported and presumably attended to, then it’s your Strata Manager.

Not the opinion that you wanted I expect, but I’m afraid that in the circumstances you describe your Strata Manager was remiss, and your Owners Corporation is stuck with the costs of repairs.

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[scotlandx]

The only query I have is when the managing agent reported the matter to the Strata Manager.  

FloydO says that the strata manager has advised that the managing agent told him that the agent raised it with the owner over a period of time, but it may be that the conversation between the strata manager and the managing agent only occurred recently when the damage came to the attention of the OC.

So – when did the strata manager become aware of the issue?  Were they only advised by the managing agent that the owner knew recently?  If that is the case then the ball may be back in the court of the owner for failing to raise this with the OC.

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[Floyd0]

Scotland’s, thanks for your insight and follow on question. The sequence of events are:

Nov 2015 EC commissioned Building report.

Feb 2016 Building report presented to EC (highlighting brickwork pointing and spalling spots) the Building is circa 1972 consisting of 8 levels 24×3 bed units and in general good solid condition) however whilst the scope of remedial works were consistent to brickwork pointing and other important parts of the external facade structure , the Unit in question balcony was reported to have significant spalling with floor lifting in many areas. All other balconies were not highlighted as being in any way problematic.

March 2016 – AGM approved motion for remedial works and special levy.

April/May 2016 – building contract confirmed and commenced works. Contractor requested to undertake inspection of areas in report prior to commencing so as to program works for residents/tenants. At this time some EC members were called upon by contractor to assist access with the tenanted unit in question and discovered the extensive degraded balcony. So degraded that the project management & contractor indicated the balcony could fail in the future!

 

June 2016 – EC approach Strata manager with question as to the level of “neglect” The Strata manager had no record of this and contacted the managing agent who stated that they had several times reported this to the owner who allegedly responded that “that’s the owners corporation problem”.

No doubt it is, however there is definite neglect and the OC support the overall remedial works of the building in a timely manner. Yet the significant degradation on only one balcony floor that risks failure is both a questionable safety and responsibilty concern as to whether the OC can pursue this owner for additional repair costs for his balcony. At the time of writing the owner has not paid the 1st instalment of his special levy that was due and has been paid by all other owners on 1st June.

There is now some concern as to the situation of this particular owner not having paid the 1st levy and whether the works in his balcony be programmed. We sense that a well documented letter be sent to the owner outlining the above. Also, as this is a tenanted unit surely there must be some concerns from the tenants and managing agent?

Thanks for taking the time to read the above.

best regards

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