NSW: Q&A Duty to Maintain and Repair Common Property
Question: Our sinking fund has run out of money and we need a lot of repairs and maintenance done to common property.
- the window paint has all peeled off and in some cases starting to rot,
- lintels are rusting,
- there is a very large common area window that needs to be replaced (totally rusted)
- structural pointing to brick work is required and this will require a lot of scaffolding.
I had a remedial report commissioned that was agreed to at an AGM detailing about $360k of works.
We did not have a capital works plan in 2020 so I’ve had one commissioned. The report identified that we needed to raise 60k per lot (taking into account contingencies) and that we also need to double the amount of our levies. These need to be increased from 5k to 10k to cover future expenses.
Owners have agreed to levy increase but WILL not agree to a Special Levy of 360k. If we leave these issues they will get worse and if we use up the increased levies for the current maintenance that is required, we will not have money left for future expenses like replacing the roof and repainting in 10 years time.
We live in a block of 6 lots. What can we do?
Answer: The owners corporation needs to be made aware of its strict liability to repair and maintain the common property and that failure to do so exposes it to applications to NCAT to force them to comply.
The owners corporation needs to be made aware of its strict liability to repair and maintain the common property and that failure to do so exposes it to applications to NCAT to force them to comply with their statutory duties and to claims for compensation for breach of such statutory duties.
You may apply to NCAT for Orders that a compulsory managing agent be appointed and make all decisions of the owners corporation and strata committee. The downside is that no one will have a vote for the duration of the appointment, but, the managing agent will arrange to carry out the works (or NCAT will stipulate that the agent must carry out the specified works) and pursue owners for outstanding levies.
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