Leaking Balconies

This is going to be an even bigger issue in NSW with the new limit of two years for claiming against non-structural defects.  Non-structural means that it's not involved in actually holding the building up – leaking balconies slip through the net.  Some lawyers are advising new apartment owners to plug their balcony drains, flood them and see if they leak before it's too late to clam.

Re Home Insurance Warranty, in NSW it's not required by builders for structures over three storeys high.

Tricky Leaks said:

Hi Jimmy, Can the format of your site be altered to allow posting of one or two pictures per posting. It would give readers and yourself a clearer understanding of what is being described.

It's a good idea but, unfortunately, it was by allowing pictures that my website was hacked earlier this year.  I suggest you set up a Flickr account or similar, post your pictures there and then post a link here so people can find them easily.

Tricky Leaks said:

Hi Austman, What you have described is nothing new. I take it you are Melbourne?

Hi Tricky Leaks.  Yes – Fitzroy, Victoria.

And here is my post again, minus the photos [Thanks – JT].  The problem is still on-going!

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Summary

All 6 top floor apartments have experienced water leaking into the apartment from the building’s roof and or external terraces.

History

The problem began to be noticed soon after residents first moved into the apartments in 2004.  At that time the original builder attempted to repair the problem in some of the apartments.

The problem in detail

Water leaks appear to be caused by 3 main faults:

    The building’s external walls were not correctly flashed to the terraces’ surface.  Water can leak through where the wall meets the terrace.
    The waterproof membrane beneath the terrace tiles in some cases has been violated.  Water can leak though the terrace and the membrane into the apartment below.
    Rivets and joins in the metal roof have moved causing sealing to crack.  This has allowed water to leak though the roof.

There are some other causes too but the above seem to be the main ones.

Actions taken so far

This matter was reported to our Body Corporate managers in 2005.  In 2006 they responded as follows:

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Building defects are not within the standard scope of duties of body corporate managers and any work managers do is chargeable. However, in an effort to assist members we arranged for a defect report to be prepared and have regularly tried to contact the builder/developers without success.
 

… re the issue of VCAT action regarding defects. Management has considerable experience in such matters and we make the following comments:

    The fee to lodge a claim is $32.50 as stated
 

A statement of claim needs to be prepared by the party making the claim (ie the one suffering the damage). To do this a solicitor needs to be engaged and an expert report with costing of the rectification works prepared. Estimated cost $5,000

    Attendance at a Directions hearing – solicitor cost $1,000

    Mediation hearing – solicitor $2,000

    Hearing if mediation fails to resolve the matter – barrister $7,000 per day for possibly 3 days = $21,000

It is naive to consider that a claim can be lodged and you then appear before VCAT without legal representation, expert reports etc and hope to win a case regardless of how obvious the defect may be.

Yours faithfully

Manager

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After the above letter nothing much happened and those managers eventally resigned as our managers, handing over to another company.

To date, most owners have independently tried to have the problem fixed. Some have had some repairs done by the original builder.  Some have repaired the damage themselves.  Some have claimed the repair costs on the Owners Corporation insurance policy.   Some have hired specialist tradespersons.   Success has been mixed.

Common Property

All the roof areas and all external terraces of our building are declared Common Property on the Plan of Subdivision.  The Owners Corporation has a legal obligation to repair and maintain Common Property.  Thus it is the Owners Corporation that has always been responsible for addressing and solving this problem.  Strictly speaking owners should not even repair Common Property themselves without Owners Corporation permission.

Future Actions

Although this problem is both a common one (affecting half the apartments) and a Common Property issue, there has never been a unified approach to getting it solved.  Ad-hoc repairs might just defer the issue for a few months or years.

That the Owners Corporation is responsible for addressing and solving this problem now seems clear.  How the Owners Corporation goes about it is still undecided.  Owners should be aware that repairs might turn out to be expensive and that costs would be shared by all 12 owners (according to the standard liability formula).

Letter of Demand

On 18th July 2011, one owner officially demanded that the Owners Cooperation repair the water leaks and the damage caused by them.  The intent of the letter was to trigger Owners Corporation processes so that the issue can finally be correctly dealt with.

An extract from the letter:

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18th July, 2011

Dear Managers,

Re:  Water Leaks and Damage

There has been significant damage done to the ceiling of my lot by water leaking through the building’s roof and terrace. This seems to be an problem that is affecting other lots as well.

It has been established that the roof and terrace where the leaks are occurring are Common Property. It also has been established that the damaged ceiling of my lot is Common Property.

Under the Owners Corporation ACT 2006, the Owners Corporation must repair and maintain the Common Property.

I therefore request that the Owners Corporation take immediate steps to repair this Common Property.

It might also be prudent of the Owners Corporation to seek advice on how the above water leaks can be prevented from recurring.

Regards,

Owner