Question: Our Owners Corporation is claiming against the builder for defects that the builder refuses to repair. Can the OC refuse to fund these repairs?
Our Owners Corporation is claiming against the builder for defects that the builder refuses to repair, including the following:
- drummy balcony tiles
- water damage that has come from apartment above
- other defects
Can the OC refuse to fund these repairs? My apartment is 2.5 years old and in a multi level complex. What are my next steps?
Answer: If the Owners Corporation is making a claim from the builder for building defects, it does have the power to defer compliance with its obligations.
If the Owners Corporation is making a claim from the builder for building defects, the Owners Corporation does have the power to defer compliance with its obligations pursuant to section 106 of the Strata Schemes Management Act 2015.
106 Duty of owners corporation to maintain and repair property
This is contained in section 106(4) which relevantly provides:
If an owners corporation has taken action against an owner or other person in respect of damage to the common property it may defer compliance with subsection 1 or 2 in relation to the damage to the property until the completion of the action if the failure to comply will not affect the safety of any building, structure or common property in the strata scheme.
The effect of the above will mean that the Owners Corporation may defer compliance with its obligation to properly maintain and keep in a state of good and serviceable repair the common property vested in the Owners Corporation if it deems that the work identified in your email will not affect the safety of the building, structure or common property in the strata scheme.
This post appears in Strata News #557.
Pierrette Khoury Khoury Lawyers E: pierrette@khourylawyers.com.au P: 0415 459 486