Question: I am looking after a Class B Strata Plan that has 4 houses on the property. All the fences need to be replaced. Can the sinking fund be used to replace the Boundary fences?
Answer: The Sinking fund can be used if fence replacement is itemised in the Sinking Fund Forecast report.
To begin, it’s always wise to consult the “Common Boundaries Act” which contains a comprehensive explanation of your rights and responsibilities when it comes to fences in the ACT.
To summarise, for a B Class (Townhouse complex), the following applies:
- Fences between two owners are the shared responsibility of those two owners (50/50)
- Fences that are between an owner and Territory land are 100% owner responsibility.
- Fences on the boundary between an owner and the common property are shared responsibility(50/50)
- All fences that are on the common property and not on the boundary with any individual units are 100% the responsibility of the individual owner.
In relation to your question about whether the Sinking Fund may be used to cover the cost of your fence replacement the answer is ‘Yes. The Sinking fund can be used if fence replacement is itemised in the Sinking Fund Forecast report.
If not, you would need to have a special resolution at a general meeting to agree to use the Sinking Fund for the fence replacement that fell under “Owners Corporation responsibility”
This post appears in Strata News #531.
Gareth Halverson Civium Communities E: gareth.halverson@civium.com.au