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  • #10694
    TrulEConcerned
    Flatchatter

      At a recent AGM, the majority of owners decided to repair a balcony.

      1. REPAIRS

      The balcony is leaking.

      The balcony is not common property.

      Presumably, regardless of ownership, the leaks have to be fixed.

      (a) Can the EC merely present 2 quotes – for a gold plated repair job costing approx $6,000 per lot owner – to the OC?

      (b) Can my request for an independent engineer/plumber/handyman etc to establish the actual (not assumed) cause of the leaks (and who will not be enriching himself by both diagnosing and doing the repairs) be rejected? (Note in this strata most folk are old and are easily led. Sweet music to the EC).

      (c) If originally the balcony was erected with tiles assuming the role of a membrane, must the OC NOW lay down a new membrane (as is being demanded by interested parties) or can it limit its responsibility to fixing the leaks, perhaps by cheaper means?

      2. COMPENSATION

      The owner of the balcony sought and was granted compensation by the OC for “inconvenience” to him while the balcony repairs take place. Is this legal? And if so, is their a limit to what he the OC can pay him?

      Please advise. Thank you.

    Viewing 7 replies - 16 through 22 (of 22 total)
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    • #25779
      Lady Penelope
      Strataguru

        To TrulEConcern

        (1) I am of the opinion that if the balcony is a slab type balcony, even if it is on the Title of apartment 5, it is still the OC’s responsibility to maintain. This is because the structure of the building includes the structural slab of the balcony.

        (2) It is obviously a defective balcony if it is leaking. It doesn’t  matter particularly, at this stage, why it is leaking the fact is that it must be fixed by the OC. The OC has a duty to do so (Section 62 Strata Schemes Management Act 1996).

        (3) Please be aware that the OC can still be responsible for the maintenance and repair of certain common property elements within the boundary of a Lot Owner’s Title. I have listed these (from the Office of Fair Trading web site) in a previous comment

        (4) Please read this summary of a very important 2013 decision regarding Section 62 and claim for damages. It may assist you with the claim for rent relief and inconvenience:  

        https://casenotes.curwoods.com.au/?p=2361

        You might also like to read the Seiwa case, an older case, which dealt with a defective balcony in a Strata scheme: https://www.managementrightsnsw.com.au/files/9413/5777/7188/An_Important_Warning_For_Owners_Corporations_in_NSW.pdf 

        And a comparison between the two cases and their ramifications here: https://www.lookupstrata.com.au/important-new-case-repairs-maintenance/

        (5) See also strata and landlord insurance definitions of what makes a property inhabitable or habitable when repairs and maintenance are undertaken by the OC: 

        https://www.whitbread.com.au/the-whitbread-channel/an-insight-strata/what-does-loss-of-rent-really-cover-/

        #25785
        TrulEConcerned
        Flatchatter
        Chat-starter

          Thank you ScotlandX and proudsceptic for your advice.

          I will study your comments today.

          #25794
          TrulEConcerned
          Flatchatter
          Chat-starter

            Re: Proudsceptic 14/11/16 at 10:49

             

            You say:

            I would investigate whether the Owner of the balcony contributed in any way to the leak in the balcony. If the lot Owner has interfered with the membrane in some way such as by piercing it then the Lot Owner would be Contributory Negligent and should pay a proportion of the repair.

             

            I agree. This has been my chief frustration. Nothing of the sort took place and my approaches to the Chairman to tell the Sec. of my concerns seems to have fallen on deaf ears or a clueless Chairman.

            The Sec (who is in charge of the EC by virtue of him dictating to the Chairman how to vote) and the Tsr (ie lot owner of the balcony) chose not to get an independent opinion on why the balcony was leaking. They instead obtained two tradesmen to quote on fixing the problem (as explained to the tradesmen no doubt by the secretary). The tradesmen would not know there was no membrane unless they were told or their investigations indicated this. The Sec may well have told the tradesmen to quote for a membrane rather than ask ‘how can the leaks be stopped in the most economical way’?

            When I rang Fair Trading about this lack of transparency, I was told that for complexes under 100 units there is nothing stopping an EC obtaining a quote or more than one quote and then making the repairs they want. There is nothing requiring an independent transparent process to be undertaken, that will minimise any potential conflict of interest or what I call “corrupt conduct”.

            #25795
            TrulEConcerned
            Flatchatter
            Chat-starter

              Re: ScotlandX 14/11/2016 – 4:44 pm

              You say that:

              “your threshold question is whether or not the balcony, including the slab and the membrane, is common property or if it forms part of the lot.  That then determines if the OC is responsible for any repairs or the owner.

              I don’t know if your solicitor is an expert on strata, but you need to get an answer to that question before you start worrying about what the problem is with the balcony.  If your solicitor is not a strata expert I strongly suggest you seek advice from an expert”.

              I too don’t know if my solicitor is a strata expert but I know he makes sense when he says:

              The strata map shows a vinculum between the balcony and the lot concerned.

              I, TruleEConcerned, understand that a vinculum indicates that both areas are to be treated as one, as in “the one lot or one parcel”. Hence, the balcony cannot be part of common property. Please correct me if my logic is flawed.

              Are you saying it is possible that the entire balcony could be part of a lot, including the tiles, everything under the tiles and the slab? And not just the airspace above the (allegedly) original tiles. Note there never was a membrane.

              If this is what you are suggesting, it is intriguing. How can I determine this?

              That is, what records should I or my solicitor access?

              Please advise.

              #25806
              Lady Penelope
              Strataguru

                In most strata schemes, the lot owner owns the inside of the unit but not the main structure of the building. The balcony slab in my opinion would form part of the main structure of the building. However the structural engineering drawings of your scheme may reveal something different. 

                The common property also includes the ceramic tiles originally attached to a common property surface (eg. the floor or boundary wall). If the tiles have been changed then they do not form part of the common property.

                #25808
                TrulEConcerned
                Flatchatter
                Chat-starter

                  Proudsceptic – I understand what you’re saying.

                  Later today I will look into the links you provided illustrating prior cases on this issue. I’ll no doubt have a few questions. Thanks again for your valuable assistance.

                  #25809
                  Lady Penelope
                  Strataguru

                    To TrulEConcern

                    You wrote that your solicitor stated that:

                    The strata map shows a vinculum between the balcony and the lot concerned.

                    In my opinion that fact is irrelevant to the issue of the balcony floor as common property and its structural defects.

                    An explanation of the lines on a strata plan:

                    Thick or dark lines:These lines refer to structural common property walls and are the owners corporation responsibility to repair and maintain. They include tiles, as well as the structure. Painting and wallpaper are not included and are the owners responsibility to repair and maintain.

                    Fine or thin lines: These are boundary lines marking the boundary of the lot. You will notice that they may be fences or the boundary of your carspace.

                    Curved lines: This curved line is called a ‘vinculum’ and relates to two parts of a lot that are joined together. You may see these on a plan joining a courtyard or balcony to a lot. That, however, would make the airspace of the balcony part of the lot, not its actual structure.

                    It should be noted that all floors, ceilings and stairways are common property except if the strata plan states otherwise or a special by-law has been registered.

                    Below are two documents which may help you to understand the differences between slabs and walls and boundaries and how the common property issue fits into these elements:

                    https://rgdirections.lpi.nsw.gov.au/strata_schemes/miscellaneous/pre_1974_plans

                    And

                    https://rgdirections.lpi.nsw.gov.au/__data/assets/pdf_file/0005/143078/Strata_Plans_Fast_Facts.pdf

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