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Topic
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Hello,
I’m hoping you could please provide some advice, as I have been given the run around by all concerned and don’t know where to start!
On Sunday night a common area pipe outside our ground floor unit burst. Sewage has seeped into our property, causing damage to the carpets and some of the tenant’s furniture. The tenant called an after hours plumber, who dug up the sewer main, cleared the blockage (a brick lodged in the pipe elbow) and also had to use a sewer machine.
The strata management company have lodged a claim for the plumber’s works, but are saying our ruined carpets are not their responsibility as it is covered by contents insurance. My contents insurer says that the problem was caused by the builder, therefore it is the strata management’s responsibility. Whom should I believe?
Our tenant (due to vacate on 14/06) has had to move out a week early and, understandably, won’t pay the last week’s rent, so we are out of pocket one week’s rent.
I’m unable to find a new tenant, as the property is under offer subject to finance. The purchaser has another two days to provide finance approval, with settlement to take place 28 days after that. The strata management company have told him of the situation, though, and I’m concerned that he will no longer want to go ahead with the sale. I had no intention of covering up the situation, but at least wanted to have repairs underway before I declared all of this.
So we are facing the prospect of:
1. Both insurance companies denying responsibility for the carpet replacement
2. Potential of sale falling through
3. Out of pocket at least one week’s rent (and, should the sale fall through, unable to find a new tenant until the carpets are replaced and place is habitable again)
Additionally, if the contents insurer did accept my claim, there is still a $400 excess. Is there any recourse to be compensated this amount?
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First of all, it’s not the strata management firm’s responsibility, it’s the Owners Corporation (the strata manager is merely acting erroneously and over-zealously on their behalf).
Any excess payable on the insurance, and any other related loss, should come from the Owners Corp and they should get that back from the builder.
If the sale does fall through because of this incident, you need to get a notarised signed statement from the potential purchaser or their solicitor/conveyancer, stating this.
They don’t have to do this but they might do it as a favour (probably better if your solicitor talks to their solicitor). You then have something definite to use as ammunition in any action to recoup some of your loss.
That apart, any action you take would be a civil action through a local court. This is not a strata issue beyond establishing who should have done what and who is responsible. The answer to that question is that the builder should not have stuck a brick in the sewer pipe (which sounds suspiciously like a deliberate act of sabotage) and the Owners Corp are responsible for the consequences.
This problem is not likely to resolve itself. Talk to a lawyer, preferably one with strata experience, sooner rather than later.
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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