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  • #10375

    The building is just over a year old and the executive committee raised a rather substantial special levy to get legal advice and an independent building defect inspection at the last AGMIt was passed by those present. 

    Now there is to be an EGM to change this. 

    Is it standard practice to get one of these inspections for new buildings or is the Executive committee being gung ho?

Viewing 7 replies - 1 through 7 (of 7 total)
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  • #24657
    Jimmy-T
    Keymaster

      I don’t know if defect inspections in a new building are standard practice but they are a very good idea.

      Currently the time limit for claiming rectification of non-major defects is two years (and major defects six).

      Non-major defects are basically anything that needs repair but doesn’t mean the building or apartments in it can’t be occupied. Cracked tiles or ceilings, leaking roofs, wobbly balcony balustrades etc etc etc all come under “non-major”.

      Your EC is to be congratulated on getting on top of this before time runs out.

      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.
      #24690

      Thank you.  

      However there is now a snag with the developer who owns two of the ten units calling an EGM to overturn the whole thing. 

      Interesting times ahead. 

      #24691
      Jimmy-T
      Keymaster

        There is no special resolution required so the developer would need to gather more than 50 percent of the Unit Entitlements (as I am sure they or someone else will call for a poll vote) rather than the 25 percent needed to block as special resolution.  That means the pro-survey owners need to get their act together but you probably just need six of the other units to vote in person or by proxy.

        I’m not sure where you stand on this, but I repeat, if you don’t identify defects and make a claim within two years of the block being completed, you will lose any right to claim for any but the very, very worst defects – i.e. those that render the building or part of it uninhabitable. 

        Small scale developers are notoriously ignorant of strata law, and if I was in your building I would explain to him that even if he succeeded at the EGM, I would be pursuing a Section 138 ruling from NCAT to force the Owners Corp to appoint a surveyor.

        He then has the pleasure of paying for one-fifth of the additional cost of overturning his attempts to avoid defect rectification.

        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.
        #24705
        Jimmy-T
        Keymaster

          I have just been pointed in the direction of this Fair Trading web page which recommends a defects inspection within 12-18 months of completion.

          Based on that, tell your recalcitrant developer an approach to NCAT to order an inspection is likely to work so they may as well drop their objection now.

          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.
          #24738
          Jimmy-T
          Keymaster

            Just to add to the argument of why you need to get your defects checks done ASAP, have a look at this story where the developer was a mate of the notorious Auburn deputy mayor and the strata manager was a mate of the developer.

            When the roof blew off in a storm, the insurer refused to pay out because the building was riddled with defects.

            I’m not referring to this story specifically, but, as I’ve said elsewhere, it’s time the government started cracking down on all the cowboys, crooks and dodgy dealers in the strata industry.  

            And by cracking down, I mean, let’s strip them of their assets under “proceeds of crime” legislation and jail the worst of them.  Until then, these grubs will never get the message that it’s not OK to rip off people who just want a roof over their heads.  

            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.
            #24811

            The executive committee was excited to see our story in print and it made a big difference to the vote.  In fact the solicitor we are using sent us a link to the article pointing out the similarities to our case. The developer and the strata manager also read it. 

            The EGM was last night and the developer stated that we didn’t need an inspection because the building is fine – he wouldn’t be still holding two as an investment if it wasn’t apparently.  (Although we suspect the truth is that he wants too much for them and just can’t sell them) 

            So faced with certain defeat, he abstained from voting and the inspection will go ahead. He remains unapologetic about the money he has caused us to spend on the EGM and legal fees.  

            So thank you Jimmy from us personally but also for your superhero work on this forum.  

            #24813
            Jimmy-T
            Keymaster

              Thank you very much – you have made my weekend!

              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.
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