James – I’m inclined to agree with you about your decision to purchase being naive, as was your decision to undertake and pay for any works that should have been paid for from funds held in your Owners Corporation’s (O/C) accounts.
The easiest answers first…….
- Regarding the sinking fund (or the probable absence thereof), a two (2) lot scheme is exempted from having a sinking fund if the buildings comprising each of the lots are physically detached, and each building is contained wholly within the boundaries of its lot, and the O/C (i.e. the two owners) has unanimously resolved at a General Meeting not to have that fund, and;
- That same criteria applies to the requirement for an O/C to hold building insurance, so it could be that under-insurance is not an issue in your situation if the above has been unanimously resolved, and;
- There’s no requirement for a two (2) lot scheme to have its accounts audited.
Now I’m a little confused about who it is that you expect to pay half of your costs particularly in circumstances where the O/C, who you indicate may have some funds in its accounts, is in fact you and your neighbouring owner.
So I have some questions to assist in further responses by me and others:
- What half of your expense has been paid – for the back boundary fence, for the gyprock, or both, and does your reference to “my strata plan neighbours” mean those in the adjoining villa or in a different property on the other side of the back boundary fence?
- Who if anyone took over the management of your scheme after the cessation of self-management in 1995?
- Is there currently a strata managing agent for your scheme; it sounds like one was compulsorily appointed, and if that’s the case what were the terms of any appointment and is it ongoing?
- What exactly are you hoping to resolve post mediation?