Dummies guide to defects claims for SC

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  • 27/12/2016 at 2:52 pm #10814
    weetbix

      Hi there

      I am part of a new and fairly inexperienced SC (brand new 48 units, 5 storey, leaky underground carpark), a strata manager who has not been very helpful re defects management other than pass it on to developer.

      Can anyone point me to a dummy’s guide/article about defects from an SC’s perspective? So far, the fair trading advice is very general and I am learning based on other people’s experience here.

      This one here below was somewhat useful but what seems to be missing in this market is a step by step guide, the how to, the nitty gritty, the dos and don’ts

      https://www.ocn.org.au/sites/ocn.org.au/files/documents/100918Rectifying-apartment-building-defects.pdf

      These have also been good. 

      https://tinyurl.com/hzk88q6

      For example, so far I have learnt..

      1. document and submit defects to developer ASAP

      2. obtain all documents as per section 16 section 16 of the Strata Schemes Management Act to find out when stat warranties expire etc and for potential litigation

      3. SC to discuss at EC meeting? call a general meeting with motion to engage in legal and building advice

      4. Advise insurer?

      5. What to do if builder offers patch repairs

      6.Go out to tender for building defects report and construction/strata lawyer 

      7. etc. etc…

      Then I am stuck..

      Perhaps there is a thread here already supporting other SC members who have gone through this process and can share their experience?

      Many thanks in advance

      Weetbix

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    • 27/12/2016 at 9:41 pm #26057
      Sir Humphrey
      Strataguru

        I have heard Chris Kerin of Kerin-Benson Lawyers talk on this topic. He sounded very reasonable and apparently specialises in dealing with strata defects. A few years ago he gave some helpful written advice on a defects matter for our OC. Perhaps try him. 

        28/12/2016 at 7:26 am #26062
        Jimmy-T
        Keymaster

          Well, when considering legal advice, let’s not go past our sponsors Sachs Gerace Broome who have a stack of experience in this area.

          I think you have to be very careful how you go about the process becasue the clock statrts ticking on defects as soon as you identify them and if you leave it too long you could be out of time.

          My advice would be a much shorter check-list.

          1.  Have an initial survey of defects made to see how serious they are

          2. Hold a general meeting or add an item to your AGM to approve expenditure on legals and further inspections.

          3. Appoint an experienced and reliable strata lawyer or building surveyor to manage your claims.

          Be careful of builders patching defects or partial solutions as once work has been started it can be hard to claim further defects that are revealed.

          This is an area for experts and the sooner you get them involved – even if it’s to give your block a clean bill of health – the better.

          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.
          02/01/2017 at 5:03 pm #26103
          weetbix

            Thank you for your prompt reply JimmyT et al. Being a new building, I don’t think I will be very popular proposing special levies so I want to make sure I do this right. Perhaps others may benefit from my learnings.

            1. As the secretary, I would first like to informally brief the SC on issues related to defects we are dealing with as it is brand new news. Also to have informal discussions about roles since we are all very new etc. and also frame what motions to be added for next meeting. Question: am I breaching any legislation if this is not going through a proper SC meeting procedure by having an informal meeting?

            2. Then, I will call a formal SC meeting, once I have all the documents from original owners from our strata manager. Perhaps at this point, I can provide some profiles of legal candidates we could engage.

            I will then need to  add motions to agenda

            – to call for a general meeting of owners re: defects and perhaps other issues lot owners have not related to defects

            – present quotes or profiles of legal candidates and invite them to speak at GM 

            3. At the GM, (I guess the legal rep will probably assist with wording also), 

            at this point should I already have quotes, who is going to do it, price?

            If so , I will add resolution to 

            – approve the seeking of the legal advice or legal services for defects claim to developer /builder QUESTION: do I have to specify costs and whom we are appointing?

            – approve the seeking of building inspection defects/rectification report for defects claim against developer /builder 

            – Should I also add resolution to strike special levy at this point?

            I want to make the process as transparent as possible and keep owners informed so we are more likely to gain support if we need to strike special levies.

             Sorry that I am drilling down to the detail here but I have not been able to find a single document on the web which gives me the level of detail I need procedurally (in the absence of a knowledgable or helpful strata manager from our end). I have had to do this on my own with of course help from friends here on flat chat =) 

            I hope my post here and replies I received will help others.

            Any assistance in the wording of the motion/resolution would be helpful.

            Thanks in advance

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