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The new owner does not have any right to keep the money.
Agreed and the OP should be contacting their bank too. But even the banks can be limited with BPAY reversals and might refer the OP to the biller.
Looking at some instances of this, they can take quite a while to resolve. They are messy because the funds went into the new lot owner’s account and were then transferred out of that account, fully or partially, to the OC’s account as levy payment. That’s how it appears in the StrataMax system that many SMs use. So the funds are not actually in the new lot owner’s account any more. Neither the SM nor the OC has likely done anything wrong as anyone can pay a lot’s levy if they wish – it’s very commonly done – they don’t need to be a lot owner.
One can understand that SMs have to be cautious about refunding from a lot owner’s account. It’s the new lot owner that should be approving that or returning the funds themselves.
Hope it works out for the OP soon.
I think it’s a bit more complicated than “keeping money that isn’t theirs”.
This issue comes up quite a bit. It’s usually because an owner has accidentally paid into right strata account but for the wrong lot.
You have accidentally paid into another lot’s account. You effectively paid that lot owner, not the SM or the OC.
SMs have restrictions on how money is used and refunded from lot accounts. They would generally need the lot owner’s permission to make any refund. And there would have to be enough funds in the lot owner’s account to make that refund. No doubt the other lot’s levy has already been paid to their OC from their lot owner account, so there’s likely now not enough funds left to give you a refund anyway. Until the lot owner pays their levy that is.
You are in a situation similar to if you accidentally paid anyone. You’d usually have to ask the person you accidentally paid for a refund, not the institution that handled the funds transfer.
Or this case ask them to pay their levy.
According to this factsheet (which admittedly is seven years old) it’s a joint responsibility beween the contractor and the client.
Except that the client has to be a “person conducting a business or undertaking” and that the actual legislation specifically exempts residential stratas. That’s Work Health and Safety Regulations 2011, Regulation 7 (1).
I’ve also gone directly the the WHS authorities and that’s the answer they have given me.
how are individual contractors supposed to ensure that a strata block’s equipment is work safe? The simple answer would be the provision of a certificate by the strata manager or committee to prove installations like roof anchors had been checked.
Agreed. But that’s up to the contractor or their employer. Eg they might have to competence to perform the check themselves if those certificates do not exist. Or they might require that the certification is done first.
So can make sense for stratas to do those things anyway.
Unless it was an indication of seepage from outside that was potetially damaging the structure?
I think that’s right. Which is why the OC should get professional advice. Sometimes it can be part of the design or harmless. I know of several buildings like that. Other times it might be a important building defect.
I am happy to be proved wrong if someone can come up with a definitive answer.
As your link states, an OC must “engage any worker as an employee” else it is exempt from WHS legislation.
While it’s possible for an OC to engage a worker as an employee, AFAIK it’s rare. Engaging a worker as an employee means deducting taxes, paying superannuation, supplying leave allowances etc. None of my OCs, including the ones that have on-site building managers, do that. They engage the worker as a contractor.
It’s the contractors or their actual employers that must ensure that the workplace meets the WHS requirements for the work they are doing.
I agree that the OC should seek professional advice.
And to note that wet walls in underground parking areas are actually quite common and are not necessarily a building fault. Those areas are are typically NCC/BCA Class 7, even if the building above is Class 2.
Class 7 areas have different waterproofing requirements and need not be 100% dry. Walls can even be purposely designed to get wet, in which case, while they don’t look pretty, interior waterproofing of them can be a mistake. AFAIK, those types of walls are not the structural elements of the building.
Does anyone have any comments about these rights?
As a “tenant”, you have all the rights that the Owners Corporations Act states that you have as an “occupier”.
Also, I believe tenants can now take problems to VCAT
That’s right, for all matters where an occupier is allowed to commence an action against another party under the Owners Corporations Act. It’s not everything. But it’s many things.
I should note that it’s not always an easy path for a tenant to take, especially considering that a tenant could decide, perhaps much more easily, to simply rent somewhere else.
Could you advise if we are liable for these repairs.
An OC must repair common property. The lot owner, who “owned” the burst pipe might be liable for the costs. That would depend on all the details. Negligence usually needs to be established.
Regardless of liability, damage to the building and common area contents and even damage to lot fixtures and fittings will be covered by the OC’s compulsory building insurance. Both the OC and the lot owners have that cover. Probably either could make a valid claim.
Who pays the excess is another matter. That’s legislated in some states. Where it’s not legislated, I’ve seen opinions that whoever makes the insurance claim should pay the excess. And I’ve seen opinions that it should be an OC decision.
Damage to lot contents is also another matter. That’s for the contents owner to decide. They can either claim on their contents insurance or make a claim against those they deem liable.
Would appreciate any advice as to who may be responsible
Regardless of who may be responsible, compulsory strata building insurance will often cover “reasonable exploratory costs You necessarily incur in locating the source of bursting, leaking, discharging or overflowing of tanks, apparatus or pipes used to hold or carry liquid of any kind.” (example from a CHU residential strata PDS)
That cover is for the building. It shouldn’t matter if the pipe is considered a lot or an OC/BC maintenance responsibility.
So check with the OC/BC’s insurance company to see if it’s covered.
My question is about how to check the validity of the allocation of an additional eight big storage cages to the commercial offices and one storage room to a residential unit.
I agree with the SM. If the allocations are on the registered strata plan, that’s what counts. The plan, of course, must be the registered plan.
But why are they “additional”? Is there an earlier registered strata plan that does not include them? In which case the latter registered strata plan shows a re-allocation of some common property? To alter the strata plan requires considerable approvals, including OC approvals and legal work.
The three visitor parking spaces are another matter. They are common property and probably should not have been re-allocated to anyone if that was contrary to the DA.
Perhaps the OP’s driveway needs redoing or the OC has anticipated that it will need resurfacing some years from now?
Yes, that might be it. In villa unit strata schemes in Victoria, the common driveway is the often the only common property. There can however be common services. And OCs can also decide, by vote, to maintain lot property.that must have been agreed by a general meeting so there should be some justification given, which may or may not be a reasonable justification.
Totally agree. It would be good if the OP could supply a bit more information. Levies need a budget. Budgets need an approval. Approvals should be documented.
I assume that Victoria, like other jurisdictions, requires an Owners Corporation (OC) to have a Sinking Fund Plan (SFP), usually for 10 years
Unfortunately Sir Humphrey, that assumption is incorrect. In Victoria only a prescribed (read large) OC needs a Sinking (Maintenance) Fund. For most OCs it’s optional. None of my smaller OCs do it, but it’s up to them.
And in Victoria, villa stratas, as described by the OP, usually have very little common property. Often just the driveway. Lot property usually includes the lot villa buildings. So an OC’s usual major annual expense is building insurance. There’s not much else an OC needs to do or maintain. And that seems to be reflected in the OP’s post ($400/quarter levies).
So why the levy hike? I think there might be a bit more to the OP’s situation?
Is there a govt body I can complain to?
In Victoria, the government body you can contact about Owners Corporations matters is Consumer Affairs Victoria. https://www.consumer.vic.gov.au/
That said, OC fees being raised for a “sinking fund” (called a Maintenance Fund in Victoria) should be detailed in the OC’s Annual Budget. A Proposed Annual Budget should be supplied to each lot owner along with the Notice of Annual General Meeting. That budget then needs to be approved by the lot owners at the AGM.
On Friday the DHHS clarified the situation regarding apartments that building work is only allowed if the WHOLE building is empty.
Thank you for posting the DHHS clarification on <span class=”post-title__text blog-post-title-font blog-post-title-color”><span class=”blog-post-title-font blog-post-title-color”>Renovations during COVID-19 Stage 4 Lockdown. </span></span>
I note that Strata Community Association now has it in their website too:
https://www.vic.strata.community/post/renovations-during-covid-19-stage-4-lockdown
Does the strata plan insurance cover accidental damage by a non owner in the common property areas?
Yes, it should. It doesn’t matter who caused the damage. But give the strata insurance company (or the broker) a call to confirm. And be aware that if a claim is made, the strata insurance company will then have a right to pursue any other party that they consider liable. So they might eg pursue your cleaner.
Does your cleaner have insurance? If so, that might be a path to first investigate.
A claim on the strata’s insurance will likely mean there’s an excess to pay. Some states cover who pays that in their strata legislation. So check it for your state. But be aware that you might have pay it.