Thanks Whale. Very interesting. It all helps!
In our case:
2011: The Insurer offered us insurance, short-term letting was declared by the OC. The Insurer issued PROVISOS with the insurance:
“..If the Owners Corporation approve such occupancy, then it is the responsibility of the OC to ensure the lot owners comply with all relevant laws and regulations pertaining to this type of occupation. Failure to do so may prejudice a claim under your Policy.”
2012: Insurer – “That the OC take reasonable steps to get offending lot-owners to cease this practice. This would be in the form of a letter to all lot-owners confirming they are in breach of the occupation certificate on their building and as such must not continue to lease their lots on this basis.”
NO ACTION TAKEN BY THE OC
2013: Insurer – “No change to the terms of our Policy.”
Still NO ACTION TAKEN BY THE OC.
Late 2013: Council issues ORDER TO STOP short-term letting, describing it as an “Illegal Use”.
2014: Those short-term letting are disputing Council’s Order – this includes every Executive Committee Member.
I’m not a heavy weight ‘Legal dude’, in fact many would, in line with the Industry in which I work, would put me in the category of a ‘professional air-head’. That said, and considering the above, I’d still very much reckon our Insurance is compromised – full stop