Could you be sued?

A couple of weeks ago I wrote about how half the strata plans in NSW are self-managed – that is, they have no strata manager although these tend to be older and/or smaller blocks.

Now a regular reader has written to the Flat Chat website saying that may be fine but we don’t know how well they are managed or, indeed, if are they managed according to strata law.

She points out that, among other shortcomings, owners in older buildings have historically resisted raising enough in levies to properly maintain common property – which is ironic, since buildings cost more to maintain as they get older.

And she reckons self managed strata schemes are at greater risk of getting it wrong because nobody wants to start a fight with their immediate neighbours.

“It takes a brave soul to take on the other owner or owners in a smaller scheme and exert your rights,” says this Flat Chatter.  But she warns that trundling along not wanting to make waves can be expensive  if a new owner who knows their rights moves in, citing the 2006 Supreme Court ruling (Seiwa Pty Ltd v Owners Strata Plan 35042) where an Owners Corporation were sued for failing to maintain common property (a unit’s balcony).

The issue was that a rusted balcony balustrade and water penetration into the living area of one unit were not properly repaired or maintained. The ruling not only confirmed the owners corporation’s legal responsibility to maintain common property but included “loss of use” damages of $150,000 with additional damages of $250,000 if repairs weren’t completed within three months.

The message to all Owners Corporations is clear – you can’t duck your responsibilities regardless of how big or small you are. And if you are in a small, self-managed block, maybe it’s time to politely ask a few pertinent questions about building maintenance and your sinking fund before it’s too late.

Leave a Reply

scroll to top