We have been asked about strata liability when lot owners make improvements to exclusive use areas.
Table of Contents:
- QUESTION: How are common property carports in WA Strata schemes assigned to lot owners? What are the residents rights with regards to these areas?
- QUESTION: If an exclusive use lot holder performs improvements to exclusive use areas that do not meet required safety standards or building codes etc, is strata liable?
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Question: How are common property carports in WA Strata schemes assigned to lot owners? What are the residents rights with regards to these areas?
How are common property carports in WA Strata schemes assigned to lot owners and do they have to be registered with Landgate’s Registrar of Titles?
Is the common property “Car Port” allocated as an exclusive use area by a registered by-law?
Is a tenant in WA who does not use a lot’s common property carport legally allowed to assign it to another resident for exclusive use or can that only be done by the owner-landlord or by the Strata?
Answer: The allocation of common property areas is usually done by the registration of a new by-law for exclusive use at Landgate.
This question has insufficient information to enable an accurate answer to be provided.
The allocation of common property areas is usually done by the registration of a new by-law for exclusive use at Landgate. A temporary allocation of common property can also be done by license.
The tenant has all the rights the owner of the Lot would and the benefit of the exclusive use area. The tenant could allow another owner to use their exclusive use area on a temporary basis.
The strata company’s involvement is limited unless a registered by-law precludes subletting of carport areas.
Care must also be given to the rental lease agreement between the Landlord and Tenant as the tenant is entitled to have the use of a carport if there was one allocated.
Shane White
Strata Title Consult
E: [email protected]
This post appears in Strata News #431.
Question: If an exclusive use lot holder performs improvements to exclusive use areas that do not meet required safety standards or building codes etc, is strata liable?
If an exclusive use lot holder is responsible for maintenance of the exclusive use area and they perform maintenance or improvements to exclusive use areas that do not meet the required local, state or national safety standards or building codes etc, is the strata liable for any incident as the owner of the common property, or is the exclusive use lot holder liable?
Is the Strata as proprietor required to ensure standards are met when lot owners carry out improvements to exclusive use areas?
If the Strata is the contract holder for the liability insurance contract partly reimbursed by the exclusive use holder, will the Strata still be indemnified by the insurer against a common or civil suit in either legal outcome?
Will the exclusive use lot holder be covered by the Strata’s contract if found liable?
Should the exclusive use holder have their own liability insurance as well as reimbursing the Strata for theirs? Can the Strata compel the lot holder to obtain their own liability insurance in addition to that covering the Strata?
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Answer: Alterations to a lot, whether Exclusive Use or not, need to be approved.
The first part of this question is really a strata management question, more than an insurance question, as you would need to refer back to the bylaw for Exclusive Use.
However, alterations to a lot, whether Exclusive Use or not, need to be approved. If alterations have not been approved, they may be illegal installations, generally illegal installations will not be covered by Insurance, as insurance conditions generally require that the building structure is a legally approved alteration or upgrade and is compliant to meet building standards. Who is liable in a claim will depend on the circumstances of the incident and the by-law.
Is the Strata as proprietor required to ensure standards are met when lot owners carry out improvements to exclusive use areas? In respect to insurance, the answer is yes, building standards must be met. It needs to be compliant based on the year it was built or the when it was altered.
If the Strata is the contract holder for the liability insurance contract partly reimbursed by the exclusive use holder, will the Strata still be indemnified by the insurer against a common or civil suit in either legal outcome? Depending on the circumstances, and the policy obtained, a strata insurance policy generally may defend the strata company for actions arising against the strata company for matters they may become legally liable for. Legal liability is a claim for negligence. The Strata Company purchases the insurance policy, but the premium is levied between all the Lot Owners to pay the premium. You should refer this specific part of this question to your insurer, as per their coverage.
Will the exclusive use lot holder be covered by the Strata’s contract if found liable? This question is broad. However depending on the wording of the Exclusive Use Bylaw, will depend on the strata insurers involvement, as to whether they will extend liability coverage to that specific incident that arose out of the use area of the Exclusive Use. You should seek to qualify this question with your current insurer. We would suggest any By-Laws for Exclusive that impose a requirement for insurance be referred to your insurer for their approval.
Should the exclusive use holder have their own liability insurance as well as reimbursing the Strata for theirs? An Owner should, arising out of the Use of his / her lot including the Exclusive Use area, have liability insurance, which is contained in a Landlords insurance or Contents insurance. As far as reimbursing the strata for the strata insurance premiums, typically yes and forming part of the ordinary levying that applies, however, this question should be referred to your strata manager.
Can the Strata compel the lot holder to obtain their own liability insurance in addition to that covering the Strata? My understanding is, the strata may not compel a lot owner, however, this is a strata management question. Where a registered By-law for the Exclusive Use exists, insurance obligations maybe described and further that the Owner is able to comply i.e. able to obtain the necessary insurance. I reiterate these type of matters should be referred to the strata insurer specifically and the Owners contents insurer.
Leonie Milonas
PSC Property Lync Insurance Brokers
T: 1300 127 503
E: [email protected]
This post appears in Strata News #196.
Have a question about strata liability when lot owners make improvements to exclusive use areas or something to add to the article? Leave a comment below.
General Advice Warning
The answers to these questions are prepared as general informational purposes only, and is not legal advice and should not be relied on as legal or insurance advice. You should consult with a qualified insurance or legal advisor. The above is a general response only to questions asked, not taking into account personal circumstances and is not legal advice. See General Advice Warning.
Please note this advice was provided prior to the proclamation of the new strata title amendments and will be updated in due course.
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What is an investor cannot be contacted by the srata co. and does not pay his insurance or maintain his lot and his renting agent does not acknowledge the strata’s request for advice