Demystify Strata Series #1

ByLeanne Habib

In this series, we will cover key topics such as managing insurance claim funds, the responsibilities of a strata manager regarding trust accounts, who is responsible for investigating cracks in your townhouse, and how to address noise issues caused by your neighbour’s floorboards.

As the CEO of Premium Strata, I often receive questions during General Meetings, in publications, and through direct messages that seem straightforward but are made more complex by evolving regulations and the multi-faceted responsibilities in strata schemes. To provide clarity, I’m launching a blog series to demystify strata management and tackle these practical questions head-on. Stay informed and empowered with our Demystify Strata Series.

Please note, the following posts address specific scenarios and may not apply to your scheme. Feel free to reach out to us if you have any further questions.

You’ve made an insurance claim on the strata insurance, which is approved, and the funds are deposited in the strata account. The owners corporation proposes crediting this amount against future levies, but you need the money now. Legally, the strata cannot withhold your reimbursement. You have the right to demand immediate reimbursement, even if it means the strata raising a special levy for their shortfall.

Navigating the legal intricacies of Strata Management can be particularly challenging, especially when residing in a building undergoing significant projects or amidst transitioning for a new strata title management agency. Understanding these legal boundaries is crucial to ensure compliance and smooth operations. 

Imagine your committee is contemplating changing Strata Managers amidst a major project, such as a lift renovation. The first special levy is due next week, but you realise the committee hasn’t signed the contract with the current Strata Manager. What are the legal implications?

Legally, a Strata Manager should not be operating your Trust Account without a signed strata management agency agreement. The Strata Schemes Management Act, 2015 (NSW) and the Property and Stock Agents Regulation, 2022 (NSW) necessitate a written instrument to outline the agent’s authority and any limitations. Without this, the boundaries of their duties are not legally defined, potentially leading to complications, especially in the midst of critical projects.

In the world of Strata Management, understanding the division of responsibilities is crucial, especially when it comes to property maintenance and repairs. 

In your strata plan of free-standing townhouses, you’ve noticed significant cracks along the bathroom’s internal walls and bathtub in your lot. These cracks are not visible on the exterior. You’ve requested an examination of the dormer roof beneath the bathroom to determine if these cracks are structural. Should the owners corporation bear the cost of this investigation?

Understanding the distinction between lot and common property is crucial in this case. Generally, internal walls are within the lot owner’s responsibility. However, if the damage is caused by defects in the common property, it becomes the responsibility of the owners corporation. It’s advisable to involve the owners corporation’s experts to determine the root cause of these cracks. This helps in clarifying who is responsible and liable – whether it’s due to a common property defect, unauthorised alterations by the lot owner, or external factors like nearby construction.

The expert analysis can also help decide if it’s necessary to access or open the dormer roof, or whether alternative investigation methods are preferable. Accurately identifying the source of the issue is key to determining who should bear the cost.

In the world of Strata Management, addressing noise complaints effectively is key to ensuring a peaceful community.

You’re dealing with a situation where your upstairs neighbours have noisy floorboards without acoustic underlay, installed by the unit’s previous owners. The current owners, a family, have unintentionally intensified the noise problem. When approached, the owners corporation states they can’t intervene as the current owners aren’t responsible for the installation. So, who should address this noise issue?

This scenario calls for the owners corporation to actively seek regularisation of unauthorised works. Proper approvals must be obtained either by the current or previous owners. Case law highlights the responsibility of the owners corporation to remove unauthorised alterations to common property. Furthermore, the standard flooring by-law requires floor coverings to minimise unreasonable noise, and the Strata Schemes Management Act, 2015 (NSW) also provides regulations for such disturbances.

Ensuring a serene living environment involves more than just rule enforcement; it’s about proactive community management.

 

 

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