Current Page

[SnOwl]

Dear Flat Chat Members,

We are a medium size strata (less than 100 units) based in NSW and, you guessed it, we have some serious building defect issues.

The Owners Corporation (OC) has sought legal advice and investigated the
defects. End result – we have little chance of successfully suing those responsible and the cost to rectify the defects is considerable.

Now to get on with addressing the larger defect issues, the OC is about to embark on a strata loan. There is no alternative given the level of costs involved however, it feels as though we take one step forward, two steps back in the decision process.

I’m wondering if anyone on this forum has experience where their OC has taken out a loan? 

If yes, what was your experience?

•   Did you engage any financial or legal advice beforehand?
•   Were any owners allowed to pay their contributions upfront in a single
     payment – how was this tracked?
•   Encounter any issues (e.g. how did you address owners who fell behind
     on payments whilst still maintaining repayments on the loan)?
•   Alternatively is there anything you might have chosen to do differently
     when taking out the loan?

Any insights would be most appreciated.

Thank you
SnOwl

Topic