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  • #8976

    In early 2012 our strata manager recommended we get a building inspection due to the increase in complaints he noticed regarding water leakage and water penetration in various units of the strata.

    Shortly after that the strata management company assigned us a new strata manager.  Working with him was very unsatisfactory and in spite of repeated requests to complete the work he did not get the building inspection approved and organised until January 2013. 

    Now we have an estimate/quote of $500,000 to have our roof and all balconies repaired due to deteriorated membranes.  And checking the original roofing contractor’s documents for the building we can see that the 10 year warranty for roofing membrane expired in late 2012. 

    Our Executive Committee feel our strata management company is complicit, if not completely responsible, for the delays and high cost of repairs.  I’d like to know if we have any grounds to stand on in requesting our strata management company to cover or contribute to our repair costs.  And I’d also like to know the experiences of those who’ve been in similar conflict with their strata management companies.

Viewing 6 replies - 1 through 6 (of 6 total)
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  • #19181
    Sir Humphrey
    Strataguru

      Given the money involved and the possible role of the strata manager, I suggest promptly making an enquiry with a strata specialist lawyer. 

      #19193

      Thanks, PeterC.

      I think it may come to the point of getting a strata specialist lawyer.

       

      Have you or anyone else out there ever gone through the awkward, but necessary step of raising a work order request for legal advice? 

      I’m concerned and curious to see how our Strata Management company reacts if we go down that path.  

      #19200
      scotlandx
      Strataguru

        Yes we have, when we had to get a lawyer to advise on sacking our strata manager for incompetence.

        We convened an EC meeting and resolved to seek legal advice, based on a cost estimate.  You can then subsequently resolve at a GM.  You don’t need a work order.

        #19201
        Sir Humphrey
        Strataguru

          Our OC has taken legal advice as an EC decision. We decided what to do largely independent of our strata manager. Our problem did not involve the manager. We kept her informed and would have considered her advice if she had thought we were not acting appropriately but essentially, we got on with running the process since we needed to be sure we got it right. Regardless of what functions may have been delegated to the strata manager, the EC can continue to exercise any of its functions. Indeed it has a responsibility to do so. In this case I would not tell the strata manager anything about what you are doing till you have your legal advice. The lawyer will send a bill in due course and you will have to direct the manager to pay it then. In the meantime the manager does not need to know. Remember the manager works for you, not the other way around, and is obliged to act on the instructions of the EC. If you are not doing so already I would make sure all decisions from here on are formally minuted as resolutions of the EC and keep good records generally.

          In the ACT legislation (so perhaps also in other states) there is a section about taking legal action. It places limits on how much the EC can spend before getting authority from a general meeting. It is worded based on the reasonable estimate from a legal adviser about the likely costs. IE If you have an estimate from the lawyer (in writing) which is within permitted limits but the cost actually goes a bit over, you can’t be crucified for that. Our Act also makes a distinction for urgent matters. IE. the EC can start to act on an urgent matter and sort out the rest later.

          I would phone a suitable strata lawyer and describe your situation. They will generally tell you how they could help and estimate a cost. The EC could then formally resolve to accept the quote and act on the advice.

          We put our requests for legal advice as a series of questions to which the lawyer gave a series of written answers. It worked well to clarify matters for the owners generally when it was presented to them. We have dealt with Teys Lawyers and were happy with them. I notice that another strata lawyer is a sponsor of this site but I have not had any dealings with them.

          #19197
          Jimmy-T
          Keymaster

            @LotsaStairs said:

            I think it may come to the point of getting a strata specialist lawyer.

            Call Suzie Broome of our sponsors Makinson d’Apice  on 02 9233 9018 or email sbroome@makdap.com.au.

            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.
            #19202

            The use of a reputable firm such as Makinson d’Apice is highly recommended. However, make sure you;

            1. ensure they disclose any conflict of interest (as it will not be uncommon for strata law firms to be representing your agent on other matters, and
            2. step out the process to you regarding what methods of approval are required under the Act in your state (you do not want a case to fall over in the future due to not having the correct approvals to commence action – this will include resolutions to obtain advice as well, not just commencing action)

            Also you will need to ensure your building report outlines the cause off the membrane failure. The 10 year warranty will likely be on the failure of the product used (manufacturers warranty) however if the issue was with the poor/incorrect application of the membrane by the contractors this may have a shorter warranty (builders/contractors warranty).

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