Having to pay for consequences of neglected problem | Common Property | Flat Chat Forum: Your Questions Answered




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Having to pay for consequences of neglected problem
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Orion011
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03/10/2017 - 9:45 pm
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I am looking to get some feedback advice/ our New Strata manager has requested owners pay for $65,000- $80,000 to fix seal a leaking balcony and damage done to unit below.

It seems the owner of unit below emailed previous strata manager around 1.5-2 years ago but matter was never communicated to committee, and now the damage repairs are huge.

This owner is also expecting owners to pay for loss of rent since his tenants moved out having been advised the mould in unit is life threatening. Having not acted to correct issues for so long are the rest of the owners liable?

As an owner asked to pay an additional levy equaling to 2 years of strata fees what are my legal rights?

Should the owner of unit below be held liable for negligence given that he did not follow up with previous strata manager or bring issues to committee in due time?

Can previous strata manager be held liable for not acting on information?

Also what role does insurance play in this,committee  are saying insurance will not cover either of the unit repairs - is this information correct?

Could you please advise who I can contact to get some advice and understand how to appropriately respond in this situation?

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Puddn
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06/10/2017 - 4:34 pm
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I am happy to share our experience with you - but at the end of the day, you probably need legal advice (see sponsors of this forum).

Our insurance does not cover damage caused by leaks due to 'defective' work or poor maintenance.

All of our owners (245 lots in NSW) were legally obligated to contribute to repairs to about 20 apartments caused by a failed waterproofing membrane (Total costs about $2miilion).

Some owners struggling to pay their bit were offered a payment plan, others were taken through the courts.

Lawyers advised us (in the strongest terms) that the OC WILL pay for the repairs.

Trying to get 'other responsible persons' to pay cost us $300,000 +.

Compensation for loss of rent was allowed for in our settlement agreement.

Hope this helps.

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Orion011
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10/10/2017 - 4:48 pm
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Hi,

Thank you for the reply, what does OC stand for please? I don't understand why the rest of the owners have to pay for the "loss of rent"  as it could have been could have been avoided by the owner notifying the committee before it got to the unliveable stage.

I feel a bit relieved that a payment plan was offered...

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JimmyT
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10/10/2017 - 5:01 pm
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Orion011 said
... what does OC stand for please?

Owners Corporation - or Body Corporate, as it used to be known. 

I don't understand why the rest of the owners have to pay for the "loss of rent"  as it could have been could have been avoided by the owner notifying the committee before it got to the unliveable stage.

I'm guessing the problem here may have been quantifying the extent to which the failure to report the problem contributed to the damage.  So then you get into a legal debate that costs time, energy and money.  Sometimes it costs less to surrender than fight a battle and win.

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