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Topic
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I have a friend who bought a strata unit in Sydney and lives in it (about 18 units in the block). After the recent wet summer the bedroom became an unpleasant place due to high levels of mildew. Six weeks ago the skirting boards were discovered to be falling apart and further investigation showed that water was underneath the carpet, damaging it and the floorboards. For health reasons she has been sleeping in the lounge.
She reported this to the SM and, after issues with a deliberately obstructive little Napoleon on the EC, finally managed to get an engineer out to investigate the problem. The report showed that water was pooling in raised flower beds outside (large concrete ones built in as part of the complex) and because of insufficient drainage the water was held against the external brickwork for a long period of time. This then seeped through into my friend’s unit.
I have lived in strata for 20 years (been on the EC most of that time) and am bemused that this issue has taken so long to resolve. I’d like to ask for verification on aspects of this issue:
1) Is the OC responsible for the cost of engineer reports and the work needed to fix the problem?
2) Is the OC responsible for the cost of fixing the inside of the bedroom from the water damage?
3) Is the EC required to deal with this issue immediately?
I am assuming the answer to all three is ‘yes’ but welcome the knowledge of those more experienced.
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Hi
Actually, while I agree with you (and would say yes to each of the points); according to the world of strata the following applies:
1) Is the OC responsible for the cost of engineer reports and the work needed to fix the problem?
Yes
2) Is the OC responsible for the cost of fixing the inside of the bedroom from the water damage?
No – strictly speaking the skirting boards and the carpet should be covered by the owners own insurance policy; the cost of opening the owners’ insurance claim should at the very least be borne by the OC. However, for me, if the OC is opening a claim to fix damaged property (ie the floorboards and or waterproofing membrane/drainage to the flower beds) then I think the OC insurance should just cover the lot.
3) Is the EC required to deal with this issue immediately?
Yes – and while six weeks is a long time for your friend, it isn’t negligent on the EC part given that water penetration is never usually a straightforward issue, and that the cause is now known. They should of course now set about fixing it ASAP. Also, depending on how the EC structure themselves and the total likely cost to repair, it should be authorised either at the EC meeting or by majority via email: if the costs exceed the spending powers of that particular EC, then an EGM might need to be called…but this is usually unlikely.
While I mostly agree with Mattb’s reply, I’m going to take issue with item two. I know that the “Who’s responsible for what …” Memorandum states (bizarrely, if you ask me) that the OC is responsible for repairs to personal property required when it has been damaged in the course of repairing common property, but the OC is not required to repair damage to personal property (like paint and skirting boards) caused by the failure of common property in the first instance.
I have said many times that I reckon this is nonsense and a proper court of law (rather than the CTTT) would find that damage caused by a failure of common property was the liability of the OC and not the individual owner. That said, if you were to take this to a CTTT tribunal, they would sneak a look at the Memorandum and probably decide in favour of the OC.
It may only amount to a few dollars here or there but if your insurance didn’t kick in or you weren’t insured, I’d raise a small claims case at your District Court, rather than going through the CTTT’s extremely unpredictable processes.
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@JimmyT said:
It may only amount to a few dollars here or there but if your insurance didn’t kick in or you weren’t insured, I’d raise a small claims case at your District Court, rather than going through the CTTT’s extremely unpredictable processes.
I’ve got to disagree with you here Jimmy the paint and skirting boards are part of the fixtures and fitting and so they are Strata’s insurance responsibility, NOT the contents policy. The carpets and curtain are contents, and so would be covered by the contents policy.
What the memorandum says is irreverent if it is an insurance claim.
Strata insurance covers the whole property not just the common property.
So it basically depends on whether the Strata accepts responsibility or passes it to it’s strata insurance company.
Our OC has been in a similar situation. A failure of Common Property (leaks in the roof) led to interior lot water damage. The OC’s insurnace (liability cover I think) covered the interior lot damage repair, minus the excess which the OC will pay. The OC’s insurance did not cover the roof leaks repair which were deemed building defects.
kiwipaul said
I’ve got to disagree with you here Jimmy the paint and skirting boards are part of the fixtures and fitting and so they are Strata’s insurance responsibility, NOT the contents policy. The carpets and curtain are contents, and so would be covered by the contents policy.
I don’t actually see how you are disagreeing with me but, in any case, what i said has nothing to do with insurance policies which differ from insurer to insurer, strata scheme to strata scheme and owner to owner. It’s about liability.
If something I own causes a problem for something you own, I am liable. If I am insured for liability, then that’s fine. If I’m not, then that’s tough on me – I still have to pay.
If the OC is insured for this liability then that’s fine but even if they’re not ured for it, they are still liable.
It’s often easier to claim against your own insurance than go through the rigmarole of trying to get a recalcitrant Executive Committee or strata manager to claim against theirs but that’s a commercial decision. It doesn’t change liability.
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