Cracked walls and failing waterproof membranes are two of the common issues which owners corporations have to deal with.

Difficulties may arise where, if the owners corporation takes no action, there may be further consequences in terms of damage to other common property, damage to particular lots, and damage to the property of lot owners.

For some owners corporations, the backing of an insurer can be a “life saver” in a situation like this – but what should the owners corporation do if their insurer declines coverage or otherwise refuses to pay for all or part of the damage which the owners corporation (or a lot owner) is seeking to have fixed?

So, what happens when the insurer refuses to pay? Owners Corporations Common Property and Repairs

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Following the tragic fire at the Grenfell Tower in London in 2017 and the fire at the Lacrosse Building in Melbourne in 2014, new laws have been made for buildings with combustible cladding.

Under the Regulation, owners of certain buildings with external combustible cladding are required to register their building with the NSW Government through the simple, user friendly NSW Cladding Registration portal.

To avoid missing the deadline register here now. 

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Earlier this week, the NSW Government announced plans to make new laws to improve the building and construction industry.

The Government intends to introduce laws that will make builders liable for defects in a wider variety of circumstances.

One of the key announcements is the Government’s plan to impose on builders a duty of care to enable owners corporations of commercial and mixed use buildings to take action against builders for defects.

The Government also proposes to: require builders and designers to be registered; require designers and engineers to declare that building plans comply with the Building Code of Australia; and force builders to declare that buildings have been built according to their plans.

There is also a proposal to appoint a Building Commissioner to take over part of NSW Fair Trading’s role in the building and construction industry.

The Government’s announcement comes hard on the heels of the public outcry following the recent problems experienced by owners in Sydney’s Opal Tower.

The announcement acknowledges that there are significant problems in the building and construction industry and indicates that the Government proposes to adopt most of the key recommendations made in the Shergold Weir Report.

With a State election just around the corner, it remains to be seen if anything comes from the Government’s announcement. We will certainly watch on with interest.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Strata apartment living is the fastest growing form of property ownership across Australia with more than half of these apartments located in the greater Sydney area.

Alarmingly, recent and extensive research* has found that up to 85% of these buildings built in NSW since the year 2000 have some form of building defects.

Sydney Olympic Park Opal Tower

The recent controversy surrounding the Opal Tower located in the Sydney Olympic Park precinct highlights the seriousness of some of these defects, leaving home owners lives turned upside down. So, what are their rights?

Statutory Warranty Scheme

Under NSW law all residential buildings:

• Less than 6 years old are covered by a ‘statutory warranty scheme’ for major defects
• Major defects claims can be made for up to 6 years
• Any non-major defects can be claimed for up to 2 years
• Buildings older than 6 years may have different warranty periods and it is recommended to seek legal advice

All owners who are still covered by these warranties have the right to pursue the developer and builder for rectification of building defects.

How do building defects affect strata levies?

Strata levies are a critical and essential part of ensuring the value of a property is protected.

The owners corporation has the statutory duty to ensure common property is safe and kept in good repair, therefore apartment owners in structurally unsafe buildings could face increased special levies.

When a building defect is on common property the owners corporation should add the repair of the defect to the agenda of a general meeting for consideration and resolution.

The good news is that Opal Tower home owners are covered under the statutory warranty scheme however the not so good news is that it leaves home owners forced to find alternative accommodation or perhaps live in unsafe conditions with the possibility of facing a hefty special levies bill whilst the situation is being resolved.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

*University of NSW City Futures Research Centre.

To contact us during this period please leave a message and we’ll get back to you on our return.

The Supreme Court has recently delivered a very firm warning to all owners corporations and litigants that the Court will not easily grant a litigant permission to use an expert’s report that is prepared very late in the case.

The Court will not assist an owners corporation if it has failed to take steps quickly and efficiently in preparing its experts’ report for use as evidence in a building defect case brought against a builder or developer under the Home Building Act.

In a recent case involving AV Jennings the Supreme Court refused to grant permission for an owners corporation to rely on an expert’s report that was prepared very late in the day Building Defects Experts Reports Case.

For NSW levy collection or strata legal advice please contact us here or call 02 9562 1266, we’re happy to assist.

The NSW Court of Appeal has handed down the most important decision concerning building defects in many years.

This decision means that builders and developers can be held liable for design defects.

This is a positive decision for owners corporations as it extends the scope of the statutory warranties concerning the quality of residential building work that is given by builders and developers to owners corporations under the home building legislation.

The case concerned defective residential building work that was undertaken to convert a warehouse complex originally built in 1928 into a mixed use strata development in Camperdown, Sydney.

So, what was the case about? Building Defects Case Important Decision

For NSW levy collection or strata legal advice please contact us here or call 02 9562 1266, we’re happy to assist.

Thanks strata for attending our recent forum. In the busy and hectic world of strata, we appreciate you taking the time and effort to join us.

We hope you enjoyed the forum as much as we did presenting and sharing our knowledge.

As promised, please find below copies of all presentations and papers.

If there is anything we can assist you with please do not hesitate to contact us here or one of our lawyers below.

How have the New Laws Shaped Up?

Warwick van Ede 
The Dawn of a New Era  I  Strata Renewals  and Collective Sales  Presentation and  Paper

Daniela Terruso 
How to Avoid the Pitfalls and Correct the Mistakes  I  By-law Reviews  Presentation and Paper

Faiyaaz Shafiq
The New Procedures and Traps for Young Players  I   Levy Recovery  Presentation and Paper

Adrian Mueller
Goodbye, Thoo  I  Novel Compensation Claims Against Owners Corporations Presentation and Paper

Adrian Mueller
How to Make You Look Good  I  The 5 Most Useful By-laws Presentation and Paper

Helen Amanatiadis
The New Regime  I  Building Bonds and Inspection Reports  Presentation and Paper

Adrian Mueller
The Good, Bad and Ugly  I  The New Strata Laws Presentation and Paper

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

At the commencement of 2018 the new strata building bond and inspection scheme started.

The strata building bond and inspection scheme is designed to incentivise developers ensuring that there is a clear process for builders to minimise any building defect issues in new residential high-rise strata blocks.

 Proposed regulations and Amendments

Proposed amendments to the Strata Building Bond and Inspection Scheme have recently been announced.

Currently, under the scheme developers are required to lodge a bond of 2% for residential and mixed-use high-rise strata buildings of 4 or more storeys.

The proposed amendments to the strata building bond and inspection scheme seek to enhance the ability of Fair Trading to verify the building contract price (on which the 2% building bond is based) and to clarify the role of the building inspector in the scheme.

So, what are the specific proposed amendments?

• Developers must lodge a building bond before applying for the occupation certificate (rather than at any time before an occupation certificate is issued, as is currently required)
• The owners corporation and the developer must agree on the amount to be released from the bond to meet the costs of fixing identified building defects. If they cannot agree, the Secretary will determine this amount
• New investigative powers for Fair Trading to enable verification of the amount of the contract price or building bond, including new entry to premises and search warrant powers
• An increase in the maximum penalty for a developer failing to lodge the building bond from 200 penalty units ($22,000) to 10,000 penalty units ($1.1 million)
• An offence for developers to provide false or misleading information to the Secretary in relation to the contract price or the building bond
• A new ‘good faith’ liability protection for building inspectors, and the professional associations that appointed them, which excludes them from liability for anything done (or omitted to be done) in ‘good faith’ in conducting an inspection

 Have your say!

The deadline to have your say on the proposed Bill and/or Regulation amendments is 11 May 2018, visit NSW Fair Trading to have your say.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Recent research conducted by the University of NSW lists the top 15 common building defects in strata blocks.

To deal with problems caused by defective building work in new strata buildings, the NSW Government introduced a building bond scheme which commenced on 1 January 2018.

The bond scheme will apply to many new strata buildings that are built this year.

So, what do strata managers need to know?

To help you navigate the new laws we’ve prepared this paper Building Defects Bond Scheme that covers everything strata managers need to know.

For NSW strata building defect advice please contact us here or call 02 9562 1266, we’re happy to assist.