Flat Chat Strata Forum Common Property Current Page

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  • #7476
    hyacinth
    Flatchatter

      The carpets on the stairs of the common property in our 3 story block are  worn out with loose threads & no capping on the edges. Carpet app.30 yrs.old &  the dangerous state could cause someone to have a serious mishap. Replacement has been on the agenda of A.G.M for several years but despite the Strata Manager stressing the importance of replacement,,the Executive Committee refuses. As an absentee owner this distresses me greatly as I feel as well as being dangerous, it looks awful & devalues the property. Any suggestions as to what can be done to remedy the situation without causing  WW3?  hyacinth

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    • #13101
      Jimmy-T
      Keymaster

        Hyacith

        I'm guessing the caropet isn't the only thing that's been allowed to deteriorate and it sounds like you need World War 3.  It also sounds like the Strata Manager is sympathetic so you could ask to have a copy of the strata roll, then write to every owner and tell them how the value of their property is being harmed by the penny-pinchers in your building.  A couple of quotes from local real estate agents about how much the lack of basic maintenance is harming values would go a long way to helping.

        Also, your insurances may also not cover any accidents in the building if it can be shown thet the EC was warned about this – I think the phrase is “constructive negligence” or something like that – which means EC members could be personally liable if someone slips and breaks their leg (or worse).

        This is a typical story in an older building run by rusted-on residents who have no interest in the value of their property (because they have no intention of selling) and are trying to keep levies down because their incomes aren't rising to meet them.

        It's a shame but someone has to bite the bullet. If they are on pesnions, there will be untapped equity in their homes that they could use to get loans but that's no use if they are elderly and would rather hand their apartment on to their sons and daughters unencumbered than fulfill their responsibilities to the community in which they live.

        Have a chat with the strata manager about the best way to push this forward. Most investor-owners will realise the benefit of keeping the whole building in trim – it's good for values and for rents.  But doing nothing is not an option – and that's a message you need to get to all the owners.  If it does start WW3, so be it – just make sure you win.

         

        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.
        #13102
        Anonymous

          Jimmy mentions insurance in his insightful comments above. I have a question: I believe our EC has 'insured themselves' somehow if they are found to be 'personally liable' for such things as their collective 'negligence'. Could this be right? Could this also be why, in our particular strata, our EC are in no hurry to fix things up, and there's a lot to fix.

          #13103
          Jimmy-T
          Keymaster

            Ok, what I have been told is, to take a hypothetical example, if the EC has been told there is a potential problem with a wall and they decide not to do anything about it and it falls down, they are probably covered by their insurers because they have made a genuine mistake in not attending to it soon enough.

            However, if a builder or surveyor tells them there's a problem with the wall and it's likely to fall down,  but they decide not to do anything about it and it falls down (and hurts someone) then they have ignored reliable advice. That's not a mistake, it's negligence and many insurance policies would be invalidated by that.

            In this case, the Strata manger has told them several times that the carpet is potentially dangerous.  They have chosen to ignore that advice so they could be in trouble if someone falls and injures themselves and the insurer says, “look at the minutes for the last three AGMs – you ignored the advice given by a reliable professional.  We're not paying the bill, you can.”

            That's my understanding but if I'm wrong I'd be glad for a strata manager, lawyer or insurer to put me right.

            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.
            #13104

            Hi Hyacinth

            Carpets

            I suggest you:

            1.submit a written motion to the secretary of the OC requesting a resolution be passed to correct the defect asap; and

            2.if the OC fails to consider the motion after two months, lodge an application for an order by an adjudicator at the Consumer Trader & Tenancy Tribunal under section 138 of Strata Schemes Management Act requiring the OC to carry out the repair.

            Insurance

            EC members are insured for negligent acts. They are not insured for fraud or reckless behaviour and may be personally liable for loss arising from this conduct and may also face fines and the cost of a legal defence for breach prosecutions (for which they are uninsured). Fines and prosecution might arise for breaches of the Occupational Health and Safety Act 2000 (NSW).

            Let me know if you have any questions.

            Regards

            Chris Kerin

            Senior Lawyer

            #13112
            bpositive
            Flatchatter

              This is interesting:

               If EC members are not made aware of an OH&S issue (in writing or verbal) then they are not liable for prosecution. But if they are made aware and do nothing then there is a possibility to be sued for any damages. ( I think)

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