This article discusses Queensland strata master keys should be managed safely in large schemes to reduce security risks, insurance exposure, and costly lock replacements.
Question: What steps should we take to ensure our master key processes are adequate in our large Qld strata scheme?
Answer: It is common for a person/corporation engaged to provide caretaking and/or letting services to a scheme to be provided with the master keys and tasked with the job of keeping the keys safe.
The safe custody of master keys is incredibly important as loss or theft of a master key may threaten the safety of the Scheme and lead to the body corporate incurring significant costs to have all locks replaced. In larger schemes, the costs of having all locks replaced may be tens of thousands of dollars. Furthermore, the body corporate’s insurance policy may not provide adequate coverage in the event of loss or theft of master keys.
Given the above-mentioned consequences, it is crucial that bodies corporate:
- check the insurance policy in respect of coverage resulting from loss or theft of a master key;
- ensure appropriate safeguards are in place to reduce the risk of master keys being stolen or lost; and
- undertake regular audits of the master keys. This is particularly important when caretaking/letting rights are being assigned to a new person or corporation as otherwise, it may be impossible to determine who lost the master keys and who should pay for the resulting costs.
This post appears in the December 2022 edition of The QLD Strata Magazine.
Alanna Hill
Mathews Hunt Legal
E: alanna.hill@mathewshuntlegal.com.au
P: 07 5555 8000
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