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JT and Austman – My point is that there has never been a Special Resolution moved and approved regarding this renovation, therefore, the OC responsibility under [s108] would not apply.
I agree that the Council will chase the OC first as they are the easiest to get money out of, and to get results from. However, the issue should not rest there.
If the OC is required by Council undertake work and to pay for anything regarding this issue then the OC should then chase the current Owner for any monies that the OC has expended in sorting this matter out. This is permitted under [s120] – Owners corporation may carry out work required to be carried out by others. The power to enter is contained within [s122(1)(b)].
If the current owner refuses to pay then the matter should go to the Tribunal. The power is contained within [s132]. The OC should not be chasing the previous owner.
If the current owner ends up having to foot the bill then they can chase the previous owner if they wish to do so, although in my opinion, it is the current owner who will end up wearing the cost.
Whenever a unit is purchased there should be due diligence investigations of the strata records pertaining to the purchased Lot. Red flags should have been raised when the purchaser saw that renovations had been done on the unit and yet there were no records of their approval. Did the current owner even conduct a search of the strata records? Many people don’t do this.
This issue has the potential to cost the OC a whole heap of money so don’t capitulate. In my opinion, just because the OC may have the capacity to bear the full cost of fixing this mess doesn’t mean that it should.