#62995
Jimmy-T
Keymaster

    Are you talking about the 10 year capital works fund plan?

    D’OH! I completely misread that and thought the OP was referring to 10-year management contracts.

    Section 80 of the Act says schemes must, by law, have a 10-year maintenance plan and it must be reviewed at least every five years.  As for enforcement, any owner could take their committee to NCAT seeking orders that they comply or, presumably, face removal and replacement with a compulsory manager.

    Section 81 merely says that schemes have to estimate how much money they want to put into the funds.  Therefore a scheme could ignore potential big ticket items like lift replacement and instead agree to maintain a small fund for minor works but reserve the right to apply for strata loans or issue special levies as and when they are required.

    The importance of this is that it is discussed and minuted so the future purchasers know they may be up for repairs of equipment worn out by previous owners, some of whom may be selling out before the bid ticket items come around.  This is an issue that should be raised and minuted at your AGM, if only for the sake of transparency.

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.