Neighbours split over disjointed defects

Hi all, apologies for the long post. Will try to get to the crux of the issue. NSW Strata.

SP comprises 4 residential, 3 commercial lots. Hubby and I purchased our resi lot in Aug 21. We were told of a building defects claim being pursued by 3 other resi owners, that our unit was never an issue. (our fault I’m sure for not realising the lies) we purchased off the developer.

we realised immediately we were suffering similar defects – largely damages resulting from failed waterproofing of wet areas (balcony upstairs created a huge hole in the kitchen ceiling beneath it). Lucky we reported our issues to Strata, who unlucky for us reported them just shy of the 6 year statutory warranty period. Our defects were agreed, but denied for being out of time.  I got directly in touch with the assessor, showed proof that we notified in time, and they were subsequently included in the report.

Time goes by, as a block of 4 units we’re offered a payout of $300k to fix an estimated $1.4mil. On advice from a solicitor I received, we were told we should have 4 separate certificates of insurance, thus 4 separate claims and in essence we would each have $340k pot to draw down from for our defects.

At this stage in the piece it’s around November 2022 I’ve been elected to the SC and I started digging and found out the building was built in 2 parts.

Unit 6 & 8 built and complete in 2010 that each had a separate HOW certificate, and then mine (7) and unit 5 across built in 2016 but issued 1 certificate for both units.

Because of amicable communications between the other owners,  they started forwarding me documents to help me investigate. They sent me the 2 HOW certs from their contract for sale, and the 1 certificate covering my unit and unit 5. As well as the DA approval I had which had 2 separate certificates for my unit and unit 5 because a different builder was engaged originally then stepped away. So I sent this information to SIRA who regulate the policy.

The upshot is, my and unit 5 were built in 2016 by ABC builder – who has Phoenixed. The current claim and settlement related to those certificates.

unit 6 & 8  next door built by XYZ builder in 2010 – builder still solvent – they were carved out of the claim.

As you can imagine this caused great distress to the 2 carved out, and has caused significant backlash to me and hubby (bullying, swearing, allegations of illegal building – all of which is unfounded).  then at an AGM in May they cut the committee down from the previous 5 (4 resi 1x commercial) cut unit 5 & me out and are now having conversations with the regulator/insurer behind our back. We understand there is a subsequent offer by the insurer to pay a builder to fix the defects in unit 7 and unit 5.

The SC say they are still “making enquiries” into this, and if I push for an EGM to approve, they will raise a special levvy for a “guestimated” $250k to cover the shortfall.

Absolutely there is a shortfall but it’s roughly $100k or under for unit 6s common property defects.
Repeated requests for the SC to include us in converstations, share communications with us have all come back with the same reply that the SC are chasing a better outcome for all lot owners. Yesterday they emailed to say that I have committed breach of trust and because of my actions I’ve cut them out of the claim.

I don’t really know where to go next. Yes I’ve applied for NSW Fair Trade mediation set down in Sept. I think we need to request an interim order from NCAT to stop them from acting for our units without telling us what they’re doing.

We would like to have NCAT consider taking them off the committee? they are breaching by laws (unapproved major rennovations, keeping of unapproved animals, storing things on common property despite requests from Strata not to, smoking on common property coming into other lots), parking on common property).

We would like a voice on the committee/or at the very least we want a voice in this matter with the insurer and builder because its our lots that will be repaired.

I should say. 80% of the total building defects are contained within my and unit 5. The other 2 units have minor defect repairs, One has a bathroom (not common property) the other has a balcony and a portion of their roof. So we would have to pay for common property repairs via special levvy anyhow and I have no issue with that.

I appreciate there is a lot going on here, if there is any advice at all you can lend to someone trying to have their home defects repaired as quickly as possible. Every time it rains we have to put 3 buckets out and there is so much mould. the other 2 units don’t have these issues at all.

Many thanks for your reading!