OPINION – Strata scheme responsibilities

SARAH owns a unit in a strata development.

She is concerned about the repair and maintenance of some of the units and is unsure whether the individual owners or the body corporate (owners corporation) is responsible.

The body corporate is only responsible for the upkeep of ‘common property’.

Generally, common property includes the perimeter walls, the ceilings and floor of each lot, the roof and gutters, the windows and doors within perimeter walls, the plumbing in perimeter walls and under the floor, as well as the balconies of each lot.

If repairs to common property are required, Sarah should contact the strata manager or the strata committee.

Generally, internal walls between rooms within a lot are not common property. Service lines that are part of the lot and only serve that lot are also generally not common property. Floor coverings, internal painting, internal fixtures and fittings and appliances are generally not common property.

Sarah is responsible for the upkeep of property within her lot, which is not common property.

Sarah is advised to review the strata scheme’s specific by-laws because they can affect the application of the general principles.

The body corporate should establish a ‘capital works fund’ (previously called a ‘sinking fund’) to pay for the maintenance and repair of common property.

Sarah pays strata levies into this fund to meet these costs. A 10-year capital works plan should be prepared, to identify and budget for major repairs and maintenance that will be required in the future.

It should also be noted that strata schemes that consist of just two lots can be managed under different arrangements, which allow the owners of separate detached dwellings to dispense with the usual requirements to maintain a capital works fund and building insurance, if recorded as a unanimous resolution in the meeting minutes.
If this is the case, by-laws can make owners responsible for the upkeep of their lot.

Email Manny Wood, Principal Solicitor and Accredited Specialist in Wills and Estates at TB Law at manny@tblaw.net.au or call him on (02) 66 487 487. This column is only accurate at today’s date and is not legal advice.

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