Flat Chat Strata Forum Common Property Current Page

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  • #10009

    Hi 

    Can anyone recommend a property valuer who may be able to assist as an independent expert with a compensation dispute. 

    Our OC passed a special By-law allowing 2 lot owners to build 2 lifts on common property. In the by-law it states that:

    In order for any other lot owner(s) in the building to enjoy the special privilege to use the lift, they must provide the owners corporation with:

    (a) written consent from the owners of lot 19 and 21 of which the owners of lots 19 and 21 cannot unreasonably refuse to give their consent;

    (b) a motion pursuant to section 52 of the Act to amend this by-law to incorporate their lot and the associated written consent to the passing of this motion and consent to be responsible for maintenance, repair and replacement of the lift. Such motion and consent to be prepared substantially in terms of the forms attached at Annexure A and to be considered at a a general meeting of the Owners Corporation; and

    (c) evidence of an agreement in which the lot owner(s) compensate the owners of lots 19 and 21 fir their cost of installation of the lift. In any such compensation to be paid the amount to be paid shall be reduced on an annual basis considering depreciation of the lift. 

    If agreement cannot be reached on the compensation payable the parties shall appoint an independent expert to determine the amount of compensation payable. 

    The owners of lots 19 & 21 are requesting the first person who buys into the lifts to pay 1/3 of the construction cost, being $180k (no matter which level they are on in the building or what their unit entitlement are). They originally stated each owner (on the level we are on) could pay $50k to buy in and equal share of the maintenance, however they state this is only if all other owners buy in at the same time. The conditions they are placing on buying in is not how it was presented to the OC when the special by-law was voted on, nor when they presented a way for owners to buy in at our 2014 AGM. We believe the amount they are requesting along with the conditions is unreasonable and in breach of the by-law. 

     

    They also think they can charge owners more as the years pass, claiming property values increase and so will the value of the lift, however the by-law clearly states that ‘the amount to be paid shall be reduced on an annual basis considering depreciation of the lift’. They have been built for 18 months now, so we are sure how much they would have depreciated in that time, given the cost to construct the lifts was $500,000. 

    We have been unable to come to an agreement with the current lift owners and need to use an independent expert, however we are in the process of selling and don’t wish to spend thousands of dollars on solicitors and experts if there is a reasonable chance that it won’t go in our favour. 

    Any suggestions on this matter would be most welcomed. 

Viewing 3 replies - 1 through 3 (of 3 total)
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  • #23473
    Whale
    Flatchatter

      pend1lis – you were given good advice on the last occasion that you sought that with regard to this problem, and irrespective of whether you and other Owners want to spend money on legal advice or not, that in my opinion is the only way for your Owners Corporation (O/C) to undo the mess that it’s allowed to be created.

      I made that observation in the first place (in response to your other post) because even if the so called “reasonable” compensation issue could be resolved through mediation, which I assume has been attempted (?), and even if your O/C could resolve to amend that Special By-Law to remove the ambiguities and those subjective, open-ended provisions, there is a bucket load of related matters in addition to those that you’ve raised here and in your other posts that a strata-savvy lawyer would detect and which your O/C needs assistance to resolve in a structured way.

      Not the answer you want to hear I’m sure, but I’m telling it as I see it!

      #23477
      Jimmy-T
      Keymaster

        I have to agree with Whale,  Just at first glance there are so many elements in place in the various by-laws and agreements that all that’s required is an independent arbitrator with a sophisticated understanding of strata law to untangle all the claims and counter claims and come up with a mutually acceptable solution.  The best person to do that would be a strata lawyer.

        I also sense that you are rapidly moving to a position where you wan to “win” rather than get a workable outcome.  That’s a natural response when you feel frustrated, but it’s not a sound basis for happy community living.

        Agree with the lift owners to pay for an independent lawyer to mediate rather than litigate and then sort it all 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.
        #23482

        Thanks for taking the time to respond. 

        We have been in consultation with a strata lawyer from the beginning and we were the ones who requested the independent expert after attempt to come to a mutually agreeable outcome failed. We are now in the process of finding a valuer who specialises in this area. Keen Property have been recommended to us.

        We know this is a matter that affect all the unit owners, however we have been told by our strata manager that it is a dispute between us and the lift owners and doesn’t involve the Owners Corporation. Which I find very odd.

        Hopefully we will reach a resolution very soon.  

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