Abrogation of responsibilities to strata law

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Forums Common property Abrogation of responsibilities to strata law

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  • #6069
    Anonymous
    Inactive

    I notice of late that real estate companies are advertising small strata properties as self managed, no strata fees,etc.

    It would appear that each lot owner would each become responsible for the repairs and maintenance of the common areas of their lot ( roof, exterior walls, windows, plumbing, garage doors, etc )as well as surrounding common areas.

    Is it unlawful for lot owners to abrogate themselves from having any responsibility to the Strata Schemes Management Act 2015 or those Acts that came before?

    My understanding is that there must be an administration fund at least. There must be responsibilities to the proper repairs and maintenance of the strata scheme.

    Small two lot schemes can do without a capital works fund if agreed. Insurance can be paid separately if the buildings are stand alone. An audit is not necessary.

    If you are living in a small strata scheme what are the responsibilities to the Strata Schemes Management Act 2015 if any?

    If there are responsibilities what action can be taken to make the owners corporation comply with the law?

    I feel this is a trap for future buyers into small strata schemes. Your advice would be welcome.

    #6073
    Amanda Farmer
    Expert

    Hi justenough,

    Small schemes, even two lots only, are still required to comply with all aspects of the Strata Schemes Management Act. You are right that a few provisions expressly do not apply, but the exemption must be express. For example, you’re right that 2-lot schemes don’t need a capital works fund and this is express in section 74(5), but there is no exemption from the need to comply with section 106 – the duty to repair and maintain the common property.

    When it comes to compliance and enforcement, the same avenues apply as for larger schemes: ie: mediation, NCAT application, NCAT orders, etc.

    I agree: there is a serious lack of education – or in some cases blatant misinformation – at the point of sale for purchasers who are new to strata. These podcasts eps highlighting the problem  may be of interest to you:

    https://yourstrataproperty.com.au/tips-for-buying-into-strata/
    https://yourstrataproperty.com.au/manage-small-strata-blocks/

    Amanda.

     

    #6076
    Anonymous
    Inactive

    Thank you

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