#25509
Sir Humphrey
Strataguru

    @Susanp said:
    Hi I was told by our strata manager, that if a sinking fund plan is made up by owners/owner (this is in NSW) and they put their name to it (ie sign it), then they can potentially run the risk of being sued if something is incorrect, even if this owner later sells – does this information sound right to all of you – to me it sounds a little far fetched.  

    Sounds odd to me. If the plan was adopted by general meeting resolution and all were given ample time to scrutinise the plan before the OC as a whole agreed to adopt it, then it would seem to be only the entire OC that could be held responsible. And then, who is the OC responsible to except to itself. Perhaps an individual could be liable if it could be shown there was some deliberate deception involved but I can’t see how a simple failure to predict the future perfectly could result in a liability. 

    It would be wise to include in any plan some sort of contingency component. This would give some latitude to cover the possibility that one or more future cost might turn out to be more than had been reasonably expected or some expense might might be required sooner than had been reasonably expected or that something entirely unexpected shows up.