Owners Corp & Repairs

Jimmy is correct in that the OC under section 62 of the SSMA has a responsibility to upkeep the common property, however there are a few issues that will need to be addressed to bring about a resolution to all parties concerned, I see the following as the questions that need to be answered and resolved. However in placing these forward I want to firstly say that your issue can and should be resolved amicably between yourself and the rest of the owners which collectively are the Owners Coporation (OC) which out ranks your Strata Manager, so here we go.

1) As the unit Owner you would need to apply to the OC for permission to do any renovation that works proceeded to the Common Property. (As a general rule unit renovations without the OC consent are restricted to painting and replacement of floor covering, in regards to floor coverings this is restricted to same for same), if you have carried out modification or repairs to the common property without consent then the work may be required to be inspected and certified as being done in accordance with the BCA and in a workmanlike manner. ( it sounds like a big issue but don’t be concerned, on most occasions the work is OK or only needs minor extra works)

2). Of greater concern is that it would seem that the only repairs was to the cracks in the masonry walls, if this was the case then more than likely the cracks will reappear. If in fact the cause of the cracking is from the foundations moving then it is more then likely that the cause has not been repaired. So without full knowledge of the site I would say that the settlement issue may need to be considered. This is important to all Owners not just your lot.

3). If in fact the works you had done to the common property were required then the only real issue is whether the cost you are seeking to recover is reasonable in the eyes of both the OC and if the matter goes before the CTTT the Member. Again this can be easily resolved by having a Building Consult to advise if the cost is in line with Industry costing for the type of work undertaken.

4). Finally if the renovation was valued over $12,000.00 then your builder was required to take out Home Owners Warrenty Insurance, a copy of the insurance must be provided to the OC. If the policy was not taken out then this will be another issue to be resolved.

Closing:

The problem with contributing to the Flat Chat Forum is that I come up with issues that I know my company can resolve, but in advising same it can discredit the information so what I will simply say is that you should first seek a meeting with the executive committee and put the cards on the table. I am a great supporter of the many good Strata Law firms in the market these days, however I am not sure whether you or the OC seeking advice from a Solicitor is the best way to start moving this forward. Look around for Building Consultancy firms that have Mediation services (including my company Integrated Consulting) and seek a fee agreement to act as an facilitator in accessing the works undertaken as well the foundation issue and to be the go between the Unit Owner and the OC. The biggest problem in resolving these types of issues from experience is having someone who is independent and impartial that both parties can have trust in their impartiality and expertise. It would be best to meet with the executive committee first so as you can both have input into the selection of the expert and facilitator.

If unfortunately you can’t gain the OC participation then give us a call and we can send you a list of Strata Lawyers. But remember that once you go down the legal path the other issues I have mentioned will no doubt be raised and answers required.

Hope this is of some assistance.

Chris Mo’ane AIAMA, MASBC- CPC
GMD Integrated Consultancy Group

Kiwipaul said:

Strata Manager shouldn’t be making these decisions. He works for the owners and they have the final say. SM can advise owners of the law regarding issues (assuming he knows which it appears he doesn’t).

Once again, it depends on what powers have been delegated to the Strata Manager. You can’t assume that the strata Manager hasn’t been given full permission to make these decisions on behalf of the Owners Corp. You don’t know this unless you have seen the contract between the SM and the Owners Corp and any related decisions that have been made at AGMs.

However, you are right in so far as the Strata Manager shouldn’t have made the decision to do nothing.  There is no question that the Owners Corp not only has responsibility for Common Property repairs but they have a legally enforceable duty to carry them out, regardless of any other considerations (such as defect claims and the like).

If Danny54 wants to press the case he can take it to the CTTT who will more than likely order the work to be done..