Flat Chat Strata Forum Common Property Current Page

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  • #8448

    Like many Sydneysiders who have moved into new strata developments ours is riddled with structural faults. It’s a small complex of 12 (townhouses and villas) for over 55’s and none of the owners have deep pockets. We did the right thing, engaged a team of engineers to detail a report on the structural faults as defined by the Act and other issues.  The builder’s insurer lawyers and the developer are giving us the run around wrt our claim. In the meantime roofs leak and bathrooms can’t be used because it would appear there is inadequate or no water proofing.

    These are of course Owners Corporation responsibilities to fix but as this is a new development there are insufficient funds to cover the estimated cost of the repairs. We already have levied all owners to pay the not inconsiderable legal fees associated with our insurance claim and engineers report but the overall repair cost of $200,000 is too much for residents to pay immediately with no guarantee our insurance claim will recoup the monies.

    Naturally we are also concerned that in making some of the repairs to minimise further damage we may compromise the insurance claim although we do understand there is an obligation to minimise any further damage.

    Part of the issue is that the faults in some dwellings are more significant than others.

    Have you ever heard of individual owners taking out a contract with the Owners Corporation to have approved repairs paid for by themselves and then to be repaid from the sinking fund over say a defined period of time. The point being that if the claim fails the outlay would not be all that great for some owners but it is nevertheless the Owners Corporation to ensure roof don’t leak etc. and compensation is due.

    We are all living in dread with the forecast of storms over this summer.Cool

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  • #16713
    Whale
    Flatchatter

      What a mess!!

      Whilst a can’t see any problems with what you propose, other than the minor one of the invoices (paid) for the works being in the name of the individual Proprietors instead of the Owners Corporation (O/C), I don’t think it’s a wise move.

      I understand your collective frustration, but your O/C would be well advised to engage its own Lawyer; ideally one experienced in strata matters and building/development such as Makinson & d’Apice who are sponsors of this forum.

      #16716
      Jimmy-T
      Keymaster

        It has been fairly well established that the fact that you are attempting to get defects fixed by the builder doesn’t mean that your duties as an Owners Corporation to maintain and repair common property are somehow on hold.

        You need to make sure that the repairs are done by reputable and experienced contractors and you also need to get three quotes to show that you have performed “due diligence” on the contracts.  However, I am led to believe that if you have taken all possible care to a) establish that there is a fault and b) make sure it is fixed for a reasonable fee, then the developers may find it even harder to argue in court that there was no defect.  You may, however, have to at least give them the opportunity to fix the defects themselves. Regarding your insurers – you need to talk to them about any concerns they may have.

        As regards financing the repairs, you can raise a loan through a company like Lannocks (who advertise at the foot of theis websites home page) or the cashed up owners could offer to lend money to the Owners Corp until such times as the defects case is resolved.

        But getting individuals to pay for the work and then try to get the money back from the developer or the Owners Corp would be the worst possible option – next to doing nothing, of course.

        Chris Mo’ane at IBC (who advertise on this page) will give you good advice on a strategy going forward.

        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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