Stratalive Autumn/Winter 2014

Autumn / Winter 2014

Changing Strata Managers the Right Way and for the Right Reasons Are You or the Owners Corporation Responsible?

Exclusively Strata, it’s our policy.

Strata Insurance Specialist Call us today 1300 361 263 or visit www.chu.com.au

WELCOME

Welcome to your Bumper Edition of Stratalive

E

very day I speak to people who have bought into strata for the first time. They might be single people, young couples, families or older people downsizing.

With this new ownership comes the need to understand what you are responsible for with your own lot and what is common property and the responsibility of the owners corporation. In this edition, NSW Fair Trading and Strata Community Australia (NSW) have helped compile a guide that explains this for you.

This guide would have come in handy for me when I bought my first apartment. It was a large garden apartment in a new building and I was the first owner to move in. I rocked up with two large dogs, immediately started landscaping, making structural changes and putting in a fireplace that required a large hole in the external wall for a horizontal flue. I put a fountain in the garden and a spa, all surrounded by new paving. I turned one of my three car spaces into storage and then proceeded to erect new fencing up around the perimeter of the garden.

I was absolutely clueless. I had no idea about strata, bylaws or legislation. There was no one telling me what I could and couldn’t do so I just went ahead and did. Now I know so much more about strata, I cringe every time I think about all the things I ignorantly did to common property.

In this edition we take you through the basics and we help you better understand the process of appointing a new manager. Sydney’s leading strata lawyers will also take you through how to access your strata roll and we put faces to the names of some of Sydney’s leading strata managers.

I hope you enjoy this edition of Stratalive.

Best Wishes

Cindy Publisher Byline Media Pty Ltd Managing Editor Cindy Martin Production Magazines byDesign Contributors David Bannerman, Peter Dawkins, Colin Grace, Barry Hyland, Mitch Koper, Georgia Madden & Catherine Newman Byline Media Pty Ltd 332 Commercial Road, Vineyard NSW 2765 (02) 9627 1627 E: info@byline.com.au Magazines byDesign Level 4, 33 Lexington Drive, Bella Vista NSW 2153 (02) 8883 5890 E: linda@bydesigngraphics.com.au

StrataLive Autumn/Winter 2014 3

CONTENTS

Contents 11-13

Strata Managers – Changing for the right reasons

15-25

Meet your strata manager

27-29

Getting access to your strata roll

32-33

Meriton campaign for home ownership

34

Swimming pool compliance

36-37

Defects – Can you add to existing claims

38-41

Why have your strata plan audited

51-57

News from Strata Community Australia

59-70

Back to Basics with NSW Fair Trading

71-90

Who is responsible?

91-93

Strata Manager or Property Manager?

94-95

Makeover for buildings

96-97

Security of payment legislation

100-105

Insurance commissions

106-107

News from RPData

108-116

Strata Made Easy – Westpac

117

New water metering rules

120-121

A Dog’s life living in strata

122-123

Heading north for a break

124-125

Urban over suburban

126-127

Small space solutions

128-129

Parramatta’s new gateway

132-133

Bondi’s new beauty

138-139

Create a cosy home

140-148

Trade directory

4 StrataLive Autumn/Winter 2014

ADVERTORIAL

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A to Z of Strata Services it’s about your peace of mind A good strata company should look after all your strata needs.

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Secretarial & Administration Compliance Insurance Maintenance Development Consultancy Legal & By-laws

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Are you getting the most out of your strata management company?

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What is Community Hub? Community Hub is a secure online portal which offers registered users the convenience to view full details of their building administration and finances, pay levies and update their details any time, from any where.

BCS, making things easier for its clients.

Enhancing Community Living

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Simple strata solutions... for simple pleasures of life.

At BCS Strata Management, we guide you with our experience, support you with our technology and work with you to deliver the right solutions every time.

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Let BCS look after your strata management needs.

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STRATA MANAGERS - CHANGE FOR THE RIGHT REASONS

There is only one way to change Strata Managers The right way…and for the right reasons

By Cindy Martin

O

bviously it goes without saying that you want your greatest asset in the hands of a competent strata manager. Of course you want that asset to increase in value and that will not happen unless your building is managed and maintained to the highest standards with all your books and records in order.

There is a very small group of lot owners who represent the whole owners corporation – the executive committee.

They are the owners willing to commit their time to ensure the smooth running of your building. In some cases, this small group of volunteers might know next to nothing about strata. So that group has a

high dependency on their strata manager.

This is where the lines get blurred.

Expectations of the executive committee can often be unrealistic. They want a lawyer, accountant, building and maintenance expert all in that one strata manager. When they don’t get that in their manager they look to change. Be assured, regardless of StrataLive Autumn/Winter 2014

11

STRATA MANAGERS - CHANGE FOR THE RIGHT REASONS

a great sales pitch, you are not going to find that in any manager. That is not their role to give you legal, accounting, building or maintenance advice. They can help you seek that advice, but they cannot give it themselves.

Most owners pay their strata managers less than fifty cents a day to manage their greatest asset. So think about what you expect from your strata manager for a little loose change. Of course your levies are more than that as they cover your outgoings to maintain the building and other expenses associated with the common property. Changing strata managers in the hope of finding someone who will give a better service for less is going from the frying pan into the fire. And like all fires, the result can be disastrous.

If you are having issues, don’t just jump ship, talk to your current strata manager about how you can resolve any issues first.

It is important that a whole team approach goes into managing your building.

Like anything, there are different strokes for different folks and some strata managers suit some buildings better than others. So if your manager is not a good fit for your building then ask your current company if they can allocate you a new manager. If you find it embarrassing to 12 StrataLive Autumn/Winter 2014

have that discussion with your current manager, go up the chain and speak to someone else. On the following pages we have put faces to the names of the people you need to contact from some of the more reputable strata companies in NSW. These are the people to contact should you need to discuss any issue you have with your building or your strata manager.

At Stratalive we talk to lot owners every day about this very issue because they have left their manager to go to one of those “cheaper and better” strata companies only to return after the promises never came to fruition. This is a valid reason to change a strata manager – to return to the more reputable companies in the industry.

That brings us to the strata brokerage companies. They are out there in the marketplace creating disharmony and dissatisfaction. They are approaching buildings that have no issues with their manager and creating unnecessary churn. By all accounts their sales pitch is quite enticing, but the reality falls short.

There is very little transparency and owners in buildings are lead to believe a new manager will be chosen from the majority of strata managers. This is not the case. There are very few reputable

strata managers prepared to have any association with a strata brokerage company.

What you probably don’t know is that the strata manager who wins your business has to pay the strata brokerage company two and a half times your annual management fee for your business. In most cases, that contract will be for three years. Those figures just don’t add up.

That investment in your building has to be covered somewhere.

Not that it exists but let’s use a scenario that might be more familiar to you. Would you use a real estate brokerage company to find a real estate agent to sell your apartment. It’s unlikely.

You would choose your own agent on their reputation, professionalism, merits and experience. Choosing a strata manager shouldn’t be any different. The way a real estate agent manages the sale of your property will reflect on the sale price. The way a strata manager looks after your building will also reflect on the sale price. So is it really conceivable that a brokerage company that represents only a tiny segment of the market would really have the most suitable manager for your building?

So do your own homework and source

STRATA MANAGERS - CHANGE FOR THE RIGHT REASONS

your own quotes. A brokerage company doesn’t really care who manages your building, they only care about how much they are being paid for your business.

You can always contact us at StrataLive. We can point you in the right direction and we take no payment from building or manager. The profiles that follow are to help you put faces to names and companies. These are your go-to people from each of these reputable companies – none of whom are associated with strata brokerage companies.

The industry body, Strata Community Australia recently released this policy position on strata brokerage companies.

• The SCA National Board, on the advice of the Policy and Legislation Advisory Group and at the request of SCA(Vic), has formally adopted a position expressing concern at the emergence in the marketplace of companies acting as strata contract brokerages as a business model.

These are businesses that purport to negotiate strata management contracts on behalf of, and free of

charge to, owners corporations - in short, acting as ‘contract brokers’.

Such ‘contract brokers’ are not to be confused with traditional ‘business brokers’ that act as agents in the sale of portfolios from one strata management company to another and are remunerated by the vendor.

“Contract brokers’ derive their income from the purchasing strata management company.

From information reviewed by SCA the actual amount of income is not fully disclosed to clients.

Management companies wishing to have their tender presented to the owners corporation for consideration by the brokerage clients must agree to pay up to two and a half times the annual management fee if successful and become bound by the restrictive clauses within the agreement.

The owners corporation, does not receive any financial gain for the placement of their contract but may well become exposed to increased cost as managers strive to recover the significant purchase expense

to underpin the ongoing viability of their businesses.

While possibly appearing enticing at first glance to owners corporations looking to change managers, the devil is in the detail as the tender process is limited to only those firms willing to ‘buy’ business which does nothing to ensure that the ‘most suitable’ manager for the job is actually presented for consideration.

SCA therefore has fundamental concerns regarding the transparency, disclosure and ethics of the process and is of the view that in the best interests of owners corporations, consumers and the industry may not be inherently supported or protected by strata brokerage-type arrangements.

If you need any assistance contact us here at Stratalive at mymanger@byline. com.au or call us on (02) 9627 1627. All contact details for those representing the more reputable strata companies follow this article.

Any enquiries to Stratalive will be treated with complete confidentiality.

StrataLive Autumn/Winter 2014

13

MEET MY MANAGER

Meet some of Sydney’s leading strata experts...

These are your go-to people and they’re happy for you to contact them at any time!

Meet my manager

MEET JOHN GEORGAS

Meet John Georgas Your contact at BCS (Body Corporate Services)

A

s General Manager Business Development and Marketing, John leads the team of people who look after you. His business, within the business, is all about relationships and communication. He makes sure you are not just another strata plan followed by a bunch of numbers as every strata plan is a community and has different requirements.

BCS Strata Management has been operating in the strata industry for over 40 years. The business started not long after the first strata legislation came in to effect. The changes since then have been phenomenal and the strata industry is now one of the fastest growing of the 21st Century with BCS leading the charge.

“It is imperative to have a balance between the business and the relationship,” John said.

“While the job has to get done, you are still dealing with an owner’s most valuable asset and emotions are going to be involved.

“When you match the right manager with a building, that balance can be perfect. With the wrong manager, it is a constant battle.

“We pride ourselves on being able to achieve that balance. And if the scales ever tip, I want to be the first to know

about it. There is no issue that can’t be resolved with communication.

Coming from the financial services industry, John knows that you need to maintain and facilitate the four “B’s” building, books, budget and by-laws so you can have the optimal community living experience.

“We go to great lengths to have a good relationship with our owners,” John said.

“Obviously we deal with executive committees on a day-to-day basis, but we also understand the needs of individual lot owners so we keep them informed through community newsletters.

“If you buy off the plan or into a new building, feel secure in knowing that we have been working with the developer since the inception so all questions in relation to your move, the facilities and security can be answered, John believes that no matter where you sit on the corporate ladder, you have to be prepared to roll up your sleeves.

“At BCS we do not have a ‘delegation’ attitude,” John said.

“No one sits and points the finger.

From our CEO, Greg Haywood, and down to all staff, everyone is prepared to chip in to get the job done.

“That doesn’t make a good company that makes a great company. Having

such strong internal relationships ensures our clients experience is first class.”

“We, also, hold ourselves accountable to our owners by identifying what their expectations of us are as a service provider. We then review our service offerings, through follow ups, surveys and health checks, to ensure that we are meeting their expectations.

That said, John is the first to admit that things can still go wrong.

“It would be naïve and unrealistic to think nothing is ever going to go wrong,” John said.

“It can be a very small issue and for whatever reason we might be the last to hear about it. By the time it reaches us, it has blown right out of proportion. We need to know so we can fix it.

“It is like anything, the earlier you get to it, the better the outcome.

“So I encourage the communication.

Contact me direct and let me know any issue so we can get it resolved.

“We can’t possibly say nothing will ever go wrong. What we can say is that if it does, you are in the right hands to get it fixed.”

For more information you can visit www.bcssm.com.au or contact John direct at john.georgas@bcssm. com.au or call (02) 8216 0397.

StrataLive Autumn/Winter 2014

15

MEET MELISSA TRUSCOTT

Meet

Melissa Truscott

Your contact at GK

A

s Managing Director of GK Strata Management (GK Strata), Melissa Truscott is passionate about customer service.

While many claim they excel in customer service, Melissa believes the changes introduced at GK Strata over the past five years, ensures excellence in customer service.

“We are continually improving our business model so we can be proactive in exceeding our clients’ expectations and our contractual requirements,” Melissa says.

“We have a strong commitment to integrity and reliability and we are highly ethical and our clients trust and recommend us on that basis.

“We see this as the most important way we can differentiate ourselves in the market and we are continually considering ways to do things better to improve client experiences with our business,” she said.

GK Strata has been in business over 30 years and manage almost 450 strata schemes. They manage all types of schemes from heritage listed buildings, residential garden estates, industrial estates, shopping centres, community associations and building management committees.

Considering the stressful nature of strata management Melissa believes that retaining business and staff can be an issue for many strata companies.

16 StrataLive Autumn/Winter 2014

Strata

“I am very proud of the corporate culture that we have in our business,” Melissa said.

“Strata is still a great place to work and the retention rates for both clients and employees is higher in our business than some of our competitors.

“What clients like least is change.

They want consistency and stability with their manager.

“To build a trusting, solid relationship takes time. We invest that time in our managers and they in turn invest that time in our clients.

“Change is something that happens behind the scenes to better the business.

When you have to introduce a new strata manager it changes the whole dynamic and it is basically going back to square one.

“We do everything to avoid that happening.”

“Our business is continuing to grow. We do not have a business development manager, nor do we rely on our relationship with developers yet we continue to attract new clients.

The growth of our portfolio is based on reputation alone,” she said.

Melissa sees the key role of the strata manager as a relationship manager for their clients.

“We have recruited many people from outside the strata industry,” Melissa said.

“They have come from various backgrounds and whilst the training of these employees is intense, we have

had the most success with them as strata managers.

“They can draw on a range of skills that they have achieved through their previous employment outside the industry that is transferrable.”

GK Strata encourage their strata managers to attend to their portfolio with site visits and by also encouraging clients to invest in consultancy services to diagnose any problems with the common property.

“We are currently in the process of developing a scheduled building inspection program to ensure that we review our stock on a regular basis,” Melissa said.

“We have also surveyed our executive committees to obtain feedback on their individual strata managers, our back office services and any particular issues they may be experiencing.

“We welcome feedback from our clients and are not scared to implement change to seek improvements.

“We anticipate that owing to the strategies that we have recently implemented, that we will have the largest year of growth in the history of the business,” she said.

For more information you can visit www.gkstrata.com.au or contact Melissa direct at Melissa@gkstrata.com.au or call (02) 8218 9999.

MEET CHRIS DUGGAN

Meet

Chris Duggan Your contact at Bright

F

or Chris, strata has been the lifeblood of his family for decades The world of strata management is constantly changing to keep up with today’s world. We’re building bigger, more sophisticated properties to live in. Our lives are busier and our needs greater. Add changing legislation to the mix and it becomes clear that having an experienced hand to guide you is what you and your property need.

Experience is earned through time. It can’t be bought. And having experienced strata management will mean that any changes or developments in the industry will be tackled with skill, knowledge and thought.

Chris is the Business Alliance Director for leading strata company Bright & Duggan. With over 12 years’ experience in property development and strata management, he is also a current Director of Strata Community Australia, and immediate past senior vice president. Being passionate about the business, he started off on the right foot with a degree in Property Economics and continues to keep himself busy as an active member of the City of Sydney Green Apartments programme, as well as sitting on legislative review panels across a range of current industry issues.

Chris’ passion for innovation in the strata industry is evident in the way Bright & Duggan operates.

“Our strata managers are dedicated to their field of expertise and are supported

& Duggan by a unique corporate structure that enables them to excel. They each manage a lower number of buildings and have a higher number of support staff than is standard in our industry.

This way they can remain focused on their customers and better manage the services they provide,” he explains.

“Experience, expertise and empathy are the foundations of our business,” says Chris. “We’re one of the oldest and most respected strata management companies in Australia. We’ve been in the business for over 36 years — watching, learning and changing. We are large enough to have the expertise to run any building and small enough to still provide genuine customer service.”

Bright & Duggan is also the only strata management company in Australia to be certified by the Customer Service Institute of Australia (CSIA) — which means customer service is first and foremost in everything they do.

The business is built on the core family values of respect, dignity and courtesy and this has gained them the enviable position of market leader and employer of choice in the industry.

“Our difference is that we are totally committed to our lot owners and customers. Anyone who is involved in strata management, whether they are lot owners, executive committee members or developers, are acutely aware that communication is often an issue. Bright & Duggan is recognised for pioneering

new strata technology and systems. We have secure online 24/7 facilities which means our lot owners have everything they need at their fingertips,” says Chris.

These systems and expertise also extend to financial management and reporting. The company utilises market leading computer accounting software for financial reporting and budget preparation for some of the most complex schemes in Australia.

“I think you could say that Bright & Duggan has real experience,” says Chris.

He also sees great value in owner involvement and education. “At Bright & Duggan all owners are valued customers and owner education and communication is the foundation of honest, transparent and proactive management,” he says.

Chris firmly believes that a well-run strata scheme is based on a successful and collaborative partnership between a strong executive committee and an efficient strata manager. “A partnership based on mutual respect, understanding and communication,” he says. “We believe that a partnership with Bright & Duggan can provide the working relationship required for a successful strata community.”

For more information you can visit www.bright-duggan.com.au or contact Chris at cduggan@bright-duggan.com.au or call (02) 9902 7100.

StrataLive Autumn/Winter 2014

17

MEET WADE MCKENZIE

Meet

Wade McKenzie Your contact at Strata

B

e they residential, commercial, retail or industrial, buildings are just bricks and mortar. They don’t manage themselves and they can’t provide the services, nor maintain the facilities, that people expect and developers boast about in their marketing material.

Nor can they be financially viable over time without accounting, legal, OH&S and managerial expertise.

Strata Republic is the answer.

This ‘one-stop-shop’ provides total strata management solutions by working hand-in-glove with developers initially, then Owners Corporations and Executive Committees to jointly safeguard the interests of owneroccupiers, investors and residents/ tenants.

At the helm of Strata Republic is Wade McKenzie. While just 33 years old, his boyish looks are deceiving. Wade is a 12year veteran of the strata industry, and formed Strata Republic eight years ago.

Renowned for his fresh, innovative and proactive approach, Wade’s counsel

18 StrataLive Autumn/Winter 2014

is sought by many prominent property developers, real estate organisations and Owners Corporations.

“We like to get involved in the embryonic stage of a development,” said Wade. “We act in a consulting role, advising on by-laws specific to each particular property, and setting up correct procedures for the incoming Owners Corporation to follow.

“Sound management structures need to be put in place as early as possible to help streamline the often touchy defects, settlements and handover period, and ensure the longevity and on-going prosperity of a completed building. Most owners appreciate that a professionally managed property stands the best chance of appreciating in value.”

While Strata Republic has the resources and depth of experience to handle the largest of developments, it doesn’t mean it is too big for you.

Strata Republic administers schemes of all sizes, and pride itself on its personalised service, attention to detail and responsive reporting systems.

“Our aim is to generate, add to, and maintain the value of a property by administering and running it professionally,” said Wade.

“You know what happens if you don’t keep your car in tip top shape. It will end up costing you a lot more when it inevitably breaks down.

Republic “A building is much more complex and more valuable than a car, but the principle is the same. Neglect it and you’ll have nothing but problems and financial pain.”

A professionally managed development running at optimum level leads to happy owners and tenants, high occupancy rates and excellent capital gains when it comes time to sell.

Strata Republic’s scope of services is all-embracing. It does everything to keep your asset running smoothly, advising Owners Corporations and Executive Committees on all pertinent matters but ultimately carrying out their directions.

“We’re in the business of providing owners with peace-of-mind,” said Wade.

“They can be assured their property is being looked after because we have a holistic, systematic, hands-on approach to management.”

It’s easy to tell a professionally managed building from one that’s not, both appearance wise and in the real estate values. Savvy owners appreciate that good strata management makes good economic sense.

For more information you can visit www.stratarepublic.com.au or contact Wade at wadem@stratarepublic or call 1300 884 104.

MEET DANIEL LINDERS

Meet

Daniel Linders Your Contact at Strata

F

or Daniel, Strata Choice is all about putting people first.

“Legislation, by-laws and the associated responsibilities of common property can be overwhelming when you first move into strata,” Daniel said.

“You need the right guidance and support and that will only happen with a hands-on approach. We pride ourselves on giving that to our owners and in particular, to executive committees.

“When dealing with every-changing legislation, living spaces and personal investments, it’s important to have a strata management company that you can trust for transparency, credibility and, of course, sensitivity to your personal needs,” he said.

Strata Choice boasts the industryleading expertise and knowledge that you would expect of a large strata management company while still maintaining the personalised service of a small exclusive strata management team.

• Strata Choice has the experience and resources to be able to effectively support the needs of your strata plan • Rather than focus on a growing portfolio, Strata Choice prides itself on being a strata management company that looks to offer personalised and wholly dedicated service to a smaller number of clients as opposed to a large database • Strata Choice’s professional indemnity insurance cover will offer you total back up, security and reassurance for your investment and property assets.

Choice “We place your individual needs as our number one priority,” Daniel said.

“We endeavour to offer all our clients the flexibility to add and retract however many management services they require for their scheme, and to be priced accordingly.

“In this way we maintain the integrity of our services and support to every client,” he said.

Strata Choice now has three offices across Sydney. They have an office in the Sydney CBD at King Street Wharf, one in the Inner West at Five Dock and one in Chandos Street St Leonards.

“Having offices in more than one location better suits our clients,” Daniel said.

“Our St Leonards office was our first location and suited all our buildings on the North Shore but it was not really convenient for the buildings we managed in the city so we opened a second office in the city.

“As our portfolios grew to include a large number of buildings in the Inner West, we opened a third office at Five Dock.

“We will do the same for the east and south in Sydney and anywhere across New South Wales as demand requires,” he said.

Strata Choice offers strata management, Building Management Committee and community title management to schemes across New South Wales.

Most people mistakenly believe strata management is about bricks and

mortar. Daniel Linders, Group Managing Director of Strata Choice said it is not about that at all.

“It’s about people and managing their needs, dreams and financial aspirations,” Daniel said.

“We have built a strong business around providing personalized service to strata owners.”

“Service in in the company’s DNA and that is why the Strata Choice mantra is ‘The people people’.

“When you know the history of the company you understand why respect and family values are the foundation blocks of the business.

Daniel’s mother Maria was astute enough to invest in property, then competent enough to manage all the related strata issues; so competent, in fact, that other ownres began asking her to look after their investments.

That was the ‘light bulb moment’ moment and birth of Linders Strata Management in 1984.

For more information you can visit www.stratachoice.com.au or contact Daniel at dlinders@stratachoice. com.au or call on 1300 322 213.

StrataLive Autumn/Winter 2014

19

MEET BILLY CHAU

Meet

Billy Chau

Your contact at NSW

F

inding the right strata management company to look after your property can be a time consuming task.

For Billy Chau, the answer is simple; NSW Strata is all about you.

As NSW Strata’s Branch Manager, Billy leads a team who deliver best service to their owners. Their business is all about relationships and communication.

They make sure you don’t just become another strata plan riddled with numbers and figures.

NSW Strata has the right infrastructure and processes in place so they deliver a seamless service to meet the needs and requirements of their buildings, no matter their size.

“Our portfolio of properties covers the entire metropolitan area and even further afield,” Billy says.

“Properties currently under management include residential units, townhouses and villas, commercial units including small shopping centres, industrial units, office blocks, professional suites, over 55 complexes and marinas.

“Continuity of managers has been a significant factor in our management style, which has allowed the manager and the owners in each complex to become

20 StrataLive Autumn/Winter 2014

well acquainted, and to establish a sound working relationship with each executive committee,” he said.

Billy is a great example of the high calibre team at NSW Strata. As a licensed strata manager, Billy has worked in strata, property management and development for more than ten years where he has held senior management roles.

He is a leader with proven capabilities and has been involved with Strata Community Australia (NSW) and served on a number of committees. Just the sort of person you want as part of your strata management team.

You don’t just get Billy or any one member of NSW Strata to look out for your vested interests, you get the whole team; NSW Strata operates beyond the black and white.

“It is imperative for our team to have a balance between the business and the relationship,” Billy says.

“We always have it front of mind that we are looking after “our owner’s most valuable asset.”

NSW Strata provides you with a team of professionals dedicated to the task at hand. As for Billy, he ensures the office runs smoothly, that it’s well resourced and that he delivers a service that exceeds his client’s expectations. It’s all hands on deck when it comes to delivering quality customer service at NSW Strata.

The team look out for each other.

They are dedicated professionals, who pride themselves on attention to detail.

They recognise that your strata property

Strata is something you’ve worked hard for, regardless if it’s your home or your investment. You want to ensure it’s in the right hands.

“We pride ourselves on being able to achieve the balance. There are no issues that can’t be resolved through solid communication. We go to great lengths to maintain a strong relationship with our owners,” Billy explains. “”To assist our managers, internal systems and procedures are continually reviewed to ensure an accurate and timely flow of information and reporting is always available.

“Accuracy and attention to detail by all staff is not only encouraged, it is a minimum requirement.

“Our aim is to provide a professional, efficient and reliable service to each of our buildings whilst understanding that each building is unique in some way.

This is what makes a great company.

“NSW Strata is a team with the best people for the job. We provide staff with ongoing education and training in all things strata and service,” he said.

Even Billy gets time out to attend educational programs to ensure he is up to date with everything that is happening in the industry.

That’s why NSW Strata calls themselves “the best in the west”.

For more information you can visit www.nswstrata.com.au or contact Billy at billy.chau@nswstrata.com.au or call (02) 9890 1841.

MEET MAHLI PIGGINS

Meet

Mahli Piggins

Your Contact at Strata

M

ahli is passionate about looking after owners and she is passionate about what the Strata Plus team represents.

She has worked in strata management since 2004, having been with Strata Plus for six years. Mahli has a demonstrated track record in the management of her portfolio of residential schemes, commercial properties, and building management committees, many of which are landmark Sydney properties.

“Few people realise the scale of the strata industry, the pace it is growing and the importance it is assuming in daily life, Mahli said.

“At the moment we have over 1.2 million people living in a strata scheme. By 2032, those living in strata will outnumber those who don’t,” she said.

Mahli is highly organised, likes multitasking and people enjoy her warm, cheerful disposition. Recognised for her technical expertise, Mahli displays the upmost professionalism when dealing with people: her clients; her team; and a myriad of service providers.

“You have to be able to explain situations and options in practical, real and honest terms,” Mahli says.

“Too often strata managers expect lot owners to have their extensive

Plus knowledge and they find it frustrating when they have to relate in lay terms with more thorough explanations.

“The Strata Plus difference is that we always relate to our lot owners from their side of the table. Some lot owners have more knowledge than others but we will always talk to our owners in terms they understand,” she said.

Established in 2001, Strata Plus has become a leader in strata management managing a portfolio of 14,000 lots consisting of residential and commercial developments of all sizes including mixed-use developments, office towers, retail complexes, industrial estates, seniors living communities, strata hotels, and golf estates.

“At Strata Plus, we believe that every owners corporation is unique,” Mahli said.

“We recognise importantly what the asset value of your building means to you as: owners, investors and residents.”

“We will take the time to listen to your needs and work collaboratively to implement your instructions. We treat the legislation that relates to your owners corporation seriously and have a genuine interest in producing the best outcome for your owners. “

“We’ll make sure your building is efficient, and will maintain and manage it in the most cost effective way,” she said.

Strata Plus believe in helping to create liveable, enjoyable communities.

Their brand is built on the foundation of providing a personable and professional client service, responsive and timely communication, and an uncompromised ethical standard.

Commitment and proactive involvement with clients Attention to detail Rapid response to clients, and Expert and experienced team.

With our experienced strata managers are licensed and have specialist training in strata management.

They provide a personal, transparent, honest and professional service to Executive Committee members in the best interests of all owners. They are backed by a well-trained and qualified support team including strata assistants, compliance officers and trust accountants.

For more information you can visit www.strataplus.com.au or contact Mahli at mahli@strataplus.com.au or call on (02) 9319 1899.

StrataLive Autumn/Winter 2014

21

MEET BRAD LOUIS

Meet

Brad Louis Your contact at Mason

M

ason and Brophy might not be a law firm or even a magic act, but with such a coordinated professional approach to strata management and an uncapped base of loyal and satisfied customers, you would not be wrong to assume otherwise.

Brad Louis, licensed manager and branch manager says the client’s peace of mind is Mason & Brophy’s priority.

“When Mason and Brophy first sought to move into strata management, they realised that what was lacking within the industry was service with a smile – a personal touch,” Brad says.

“With that in mind, Mason and Brophy set about to change the perception of strata management operators from those with purely a financial interest, to those with an interest in people,” he said.

Mason and Brophy is one of the leading strata management companies operating on Sydney’s Northern Beaches since 1975.

That personal touch has never left them – a point that Brad is proud to make. ”We offer leading strata management solutions without losing sight of the

22 StrataLive Autumn/Winter 2014

client. At the end of the day, we understand that this property is your home, your investment – it’s more than just bricks and mortar,” Brad said.

“Mason and Brophy has a ‘can do’ attitude and has a team that is always approachable and reliable.

“We will continue to forge relationships by providing the best possible service.

We continue to grow, but without losing sight of the needs of the client.

“We have built recognition over the years because people have grown to trust us,” he said.

Brad has worked as a licensed strata manager for over 10 years. His experience is complemented by a Bachelor of Business. He is responsible for the day to day operations of the branch with 30 friendly staff on board.

A true professional, Brad constantly works on motivating his team to deliver a high quality and personalised experience for his clients.

The team at Mason and Brophy provide a wide range of expertise in managing all types of properties from large scale commercial properties through to smaller residential plans,” Brad said.

“The ongoing goal for Mason and Brophy is to enhance community living for our clients. All staff members

& Brophy

receive ongoing professional training and are members of Strata Community Australia (NSW) so you know they also operate with integrity.

“We are also heavily involved in our community. We have supported the Cancer Council, Life Line, Master Builders, Seaforth Bowling Club, Police Citizen Youth Club, SES Volunteers, Manly Lions Club and many other local community associations.

“When you get to know your community you better understand the needs and expectations which means you can deliver a better service,” he said.

Whether you are an existing client, or unhappy with your current level of strata management or if you have recently purchased a property on Sdyney’s Northern Beaches, Mason & Brophy can tailor a solution to meet your needs.

“At Mason & Brophy our combined experience means that we can bring magic to any property,” Brad said.

For more information you can visit www.masonbrophy.com.au or contact Brad at brad@masonbrophy.com.au or call (02) 8978 3000.

MEET HUGH MCCORMACK

Meet Hugh

McCormack

Your Contact at

McCormacks Strata

H

ugh McCormack is a director of the proudly owned family business, McCormacks Strata Management.

Hugh’s father, Michael, founded the company over 20 years ago and it quickly gained an enviable reputation.

Having worked as a solicitor, Michael initiated principles and ethics that are still evident in McCormacks approach today.

Hugh is general manager, responsible for operations at McCormacks, focusing on continued growth and development while ensuring the unique excellence driven dynamic at McCormacks is maintained.

“Our focus is on delivering the service and professional outcomes that our clients have come to expect from a leader in the industry,” Hugh said.

“We achieve this by ensuring we have a team of very dedicated staff who are not only experienced, but also passionate about the industry and delivering the best service to our clients.

“As well as experienced strata managers our team includes long term support staff and qualified accountants ensuring our advice is grounded

in experience and qualifications,” he said.

Hugh holds a Bachelor of Business from Bond University majoring in Sustainable Development and uses the skills gained through education and experience to ensure McCormacks clients are empowered with information to make decisions that will grow their assets and ensure long term planning goals are realistic, practical and in the best interest of all owners.

“We specialise in large schemes which affords us a unique position in the market to understand and deliver a product that prestigious building owners can trust,” Hugh said.

“This results in personalised and professional service, tailored to the individual needs of each unique Owners Corporation. For us, its about building a relationship with the committee and owners by being visible and approachable” he said.

McCormacks is a highly respected company that is privileged to run some of Sydney’s most iconic buildings.

McCormacks proudly manage landmark developments that include Horizon, Quay Grand, Observatory Tower, Quay West, and Woolloomooloo Wharf.

“Although we have a unique insight

into large schemes, we have all manner of schemes under management and take pride in ensuring that our tailored, personalised service translates to schemes as small as four lots as successfully as it does for the larger buildings” Hugh said.

“We have approached our business with our clients needs at the forefront of our practices. We don’t just do what is required, we go further.

“We understand the trust our clients place in us to manage their homes, investments and businesses and we work together with our owners in protecting and growing their assets.

We take care of all the small things so the committee and owners can focus on the matters that count.

“We deliver exceptional, personalised and specialist service, always.

“We are able to do this because we have a low building per manager ratio, fantastic qualified and dedicated staff and a philosophy that includes ensuring our owners are empowered through education and information.

For more information you can visit www.mccormacks.com.au or contact Hugh at hugh@mccormacks.com.au or call (02) 9299 6722.

StrataLive Autumn/Winter 2014

23

MEET ROBERT FOTHERGILL

Meet

Robert Fothergill Your contact at

Robinson Strata

R

obinson Strata Management, Harbord, has been servicing properties on Sydney’s Northern Beaches for well over 30 years, incidentally becoming one of those successful family business stories.

In fact between the team, there’s more than a combined 100 years’ experience working in the strata industry in NSW. As Licensee in Charge of Robinson Strata Management, Robert Fothergill says that clients want strata managers who have experience, good support and, more importantly, local knowledge.

“That’s why Robinson has been so successful for so long,” Robert explains.

“Our staff have the experience to deal with any strata situation,” he said.

And Brad definitely has the experience. He leads with:• Extensive experience in mediation service and conflict resolution • Personally involved with all day to day portfolio services • Point of contact of all escalated strata disputes • Experienced in management of all stratums including residential, commercial, large strata schemes and Community Associations

24 StrataLive Autumn/Winter 2014

• Experienced Company Title home units manager • Licensed Chapter member of “Strata Community Australia (NSW)”.

“We can provide clients with all these elements and more from people who have the experience and knowhow to deliver the service that people on the Northern Beaches have come to expect.”

To ensure their skills and knowledge are up-to-date, the staff undertake regular education and training. As Robert points out, they also have a state-of-the-art backend system to support them, which offers streamlined invoice payment systems, communication updates and after hours emergency services.

Robert continues to stay personally involved with all day-to-day portfolio services, as he oversees the systems to ensure that staff can deliver to their clients.

In fact, one of Robert’s specialties is customer innovation and he has allocated time to working on ways to deliver excellent service to Robinson clients as he believes that great service provides peace of mind for our customers. An example is the after-hours emergency service mentioned earlier.

“This service is manned by real people who you can call when an issues arises outside of normal business hours 24/7,” Robert said.

As members of Strata Community Australia (NSW) Robinson has access to the latest agency agreements and undertakes continuing professional development through the industry association. They also adhere to the SCA (NSW) Code of Ethics so you know you’re getting strata managers of the highest standard.

This is only a taste of what earns the trust and long term commitment from Robinson’s clients. What about the manager himself?

Robert is a professional who upholds his ethics so you know you’re getting a strata manager of the highest standard.

All of these winning qualities are a reflection of the team at Robinson Strata.

For more information visit www.robinsonstrata.com.au or contact Robert at robert@robinsonstrata.com.au or call on (02) 9907 5000.

MEET MARC GIBSON

Meet

Marc Gibson Your contact at Strata

T

he strata industry is a true service industry. Strata managers who deliver a substandard level of service will normally see their clients scout out new talent, and this is where Strata Sense has entered the arena.

Meet Marc Gibson, Managing Director and Licensee in Charge of Strata Sense – a boutique strata management firm specialising in high quality residential and commercial developments.

What makes Strata Sense so different is that its core ideals are service and adding value for every owner. Some strata managing firms will preach they deliver similar outcomes, however many fall short of providing even elementary service standards.

Marc is no stranger to the importance of service in the strata management industry. Marc ventured into the strata management world after being on the receiving end of poor service. He recalls his dealings with his first strata manager after purchasing an apartment over a decade ago.

“My strata manager had no time for me.,” Marc said.

“I had many questions I wanted to ask about my property in relation to the Strata Schemes Management Act, however most of the time I felt blown off and my manager was almost impossible to get hold of.

“It was really frustrating.”

The experience of owning his first apartment did create in Marc both a

Sense love and passion for property and a recognition of an opportunity to do strata management better.

Marc is conscious of Strata Sense always being positioned to ensure clients receive only the highest levels of service. Business growth is organic and controlled with a focus on the amount of resources that are available to Strata Sense. It ensures that no Strata Sense strata manager is overloaded or ‘too busy’ to work alongside its clients.

In a prior life, Marc worked within a chartered accounting firm (he holds a degree in accounting) before spending a number of years working as a strata manager prior to making the move to Strata Sense.

Strata Sense is one of very few strata management firms that offer fixed price disbursements. Similar to a mobile phone plan, Strata Sense set a capped price and fix it for the term of the contract. It offers their clients two key benefits – peace of mind with no hidden surprises and more time delivering service.

Strata Sense are mindfully selective on what clients they do take on board.

“It is important that our clients share our values so that they reap the rewards”, says Marc.

“In the past we have been approached by prospective clients that request us to put forward a proposal, and there have been times where we have declined due to this disconnect.”

In 2013, Strata Sense was

nominated a finalist with the industry innovation category by the Real Estate Institute of NSW. Most recently, Strata Sense brought on board a new partner, Natalie Fitzgerald. Natalie is a true leader and veteran of the industry, being awarded the “Young Strata Manager of the Year” Award by the Strata and Community Association (SCA) in 2011.

Both Marc and Natalie go above and beyond their call of duty. They regularly participate in industry events, often being invited to speak at conferences and forums. They also respond to industry papers that form the basis of legislation changes that affect the industry.

In addition to industry leadership, Strata Sense are involved in the City of Sydney “Strata 101” talks which are free information sessions held quarterly to benefit the general public to develop their understanding about strata living.

For more information you can visit www.stratasense.com.au or contact Marc at marc.gibson@stratasense.com.au or call Marc on 1300 859 044.

StrataLive Autumn/Winter 2014

25

SO WHY CAN’T I PAINT MY DOOR BRIGHT RED?

So why can’t I paint my door bright red?

By Cindy Martin

P

utting this magazine together, you totally understand the enormity of information that needs to get to lot owners across New South Wales.

It is not just about the executive committee members, each and every lot owner needs the knowledge presented to them in a way that is easy to understand. We talk to lot owners every day at Stratalive and there is a constant stream of concerns from owners who have unknowingly done the wrong thing.

You hear it in the Stratalive forum all the time. We feel for the young man who, as a romantic gesture, decided to paint the front door of his unit his wife’s favourite colour as a Valentine’s Day present. When his wife left to work a night shift at the local hospital, he stayed up all night painting the door bright red and finishing it with a big brass knocker.

She was not the only one who got a surprise the next morning. The neighbours had quite a lot to say about it as well.

Unaware that the front door of an apartment is common property the young couple were surprised when the owners corporation requested they return it to its original condition and colour.

These poor kids who had bought their first apartment had no idea they couldn’t paint the front door to their own apartment.

And that is just one example of the many unintentional breaches we deal with on a day-to-day basis.

Stratalive is now working a lot more closely with Strata Community Australia (NSW) and NSW Fair Trading to ensure we get the information to you.

Strata managers and strata lawyers are also jumping on board to help you through the process. You can go onto the Stratalive forum and ask any question you need answered and someone will be there to help you through it.

One person rang recently to say they preferred not to go on the forum because they didn’t want to appear to be asking an ignorant question. There really is no such thing. What you don’t know, you need to know, so ask the question.

We are currently updating the website but the forum is still open and experts are waiting to help you.

So just head to www.stratalive.com.au/ forum and ask any question. Why not use the search bar at the top of the forum first to see if your question has already been asked and answered.

You can also contact us at any time at info@byline.com.au or give us a call at (02) 9627 1627

26 StrataLive Autumn/Winter 2014

STRATA ROLL ACCESS

Can I get access to our strata roll?

Sydney’s leading strata lawyers and NSW Fair Trading tell you why and how

I

t seems to be a constant battle.

Owners want access to the strata roll for their buildings and some managers refuse to supply the information.

“Some strata managers who know an owners corporation is unhappy with their performance, refuse to give out the strata roll information, so owners can’t call their own general meeting,” James Moir from JS Mueller Lawyers said.

“They use “privacy concerns” or something similar as an excuse, but in fact there are no privacy laws over-riding their obligation.

“Ask the strata manager to name them.

“Under section 108, any owner may ask to see the strata roll and can also take a copy.

“The strata manager has to remember that the owners corporation owns this information and the strata manager is only acting as their agent,” he said.

According to Daniel Russell from Chambers Russell Lawyers the expectation on how the strata roll is supplied is also a problem.

“In my experience the problems arise when lot owners think they have a right of access outside of section 108,” Daniel said.

“So owners think that their manager should just email them a copy.

“If, however, a manager fails to give the strata roll during a 108 search or on reasonable request from executive committee members then there is a power for an adjudicator to order them to produce it.

“Both the inspection rights and the adjudicator’s power both get around the privacy act considerations. There are

other questions surrounding whether the privacy act applies but since the only right to access the strata roll is under those provisions, the privacy act does not apply to them, and there is a no-costs dispute resolution mechanism, it is a legislative non-issue in my view,” he said.

According to Colin Grace of Grace Lawyers, the clash with getting information from a strata scheme lies in three areas.

1. Section 108 of the Strata Schemes Management Act which allows an owner (or their representatives) to search the records of the owners corporation (and this means predominantly all records including the strata roll) 2. The privacy legislation which prevent

a person from accessing private information or another without their consent and 3. Documents held by an owners corporation that are part of a disputed matter between parties (subject to legal professional privlege.

“Without going into all of the legal issues the basic rules are that an owners corporation is required under section 108 to allow all of the relevant records to be searched by an owner,” Colin says.

“In relation to the strata roll it is the details of the owner, their address for service of notices and any agent involved.

“Where in my view the privacy legislation crosses over is where some strata schemes (and managing agents) obtain more personal details like phone StrataLive Autumn/Winter 2014

27

STRATA ROLL ACCESS

numbers and private email addresses.

The issue then becomes what is the purpose of that information’s use?

“If the private information is given to a strata scheme or managing agent as a business record then this information may not be part of the strata schemes records. At this stage there is no real case to assist schemes in what to do.

“I believe that the basic information is accessible but the private information may not be if it was given for the purpose of contact by the secretary or managing agent only and not for inclusion on the strata roll.

“Finally the Courts have decided that where there is a dispute between parties (like an owner and the owners corporation) those documents may not need to be provided to the other party and are subject to legal professional privilege.

“However the extent of how far this “exemption’ goes to providing information is still to be decided. In these instances I recommend that the person

28 StrataLive Autumn/Winter 2014

requiring access to the documents obtain some advice on what may or may not be accessible.”

And David Bannerman from Bannermans Lawyers has a very comprehensive take on the subject.

“There seems to be a common misconception that an owners corporation requires permission from its strata managing agent to access the strata roll and other records maintained for it by its agent,” David said.

According to David access is often denied, frequently citing privacy law concerns. This is a misconception, because these are the owners corporation’s own records and it is entitled to them under various legal principles.

In particular: • The general principle under agency law is that documents created or held by agents in that capacity are the property of the principal, in this case the owners corporation. Although this would be subject to any contrary

provision in the agency agreement, such a provision would be unusual and is not contained in the most commonly used templates.

• Failure by an agent to provide access may constitute a breach of the agency agreement, the agent’s associated fiduciary duties or give rise to a cause of action in tort, e.g. conversion or detinue. In other words, the owners corporation may be able to sue the agent and hold the agent liable for any loss suffered by the owners corporation.

• Owners corporations also have powers under section 105 of the Strata Schemes Management Act 1996 (“SSMA”), which provides in effect that an executive committee can give notice to a person in possession or control of property (including records) of the owners corporation requiring the person to deliver the property to a specified executive committee member, non-

STRATA ROLL ACCESS

compliance being an offence with a maximum penalty of $2,200.

• Further, failure to provide access may constitute a “failure to account”, justifying appointment of a manager or receiver under Part 9 of the Property Stock and Business Agents Act 2002 or action of a type justifying disciplinary action under Part 12 of that act.

• These rights, including under section 105 of the SSMA, are subject to any claim or lien which the agent may have in relation to the records.

However, whether an agent has a lien at all, which records it applies to and whether it negates rights under section 105 are all complex questions requiring further legal advice if a lien is asserted.

“An inspection under Section 108 of the SSMA is not required,” David said.

“That is a procedure available to third parties, e.g. lot owners and is not required by an owners corporation, which is after all seeking access to its own documents, for which it requires no authority.

“The privacy laws do not prevent an agent from disclosing, to its principal, information collected or held on behalf of its principal.

“In fact, the privacy legislation permits personal information to be collected, held, used or disclosed if required or authorised by law. The collection/access in issue is required by various provisions of the (“SSMA”). In other words, there is no sound basis for an agent to claim privacy concerns as a basis for withholding access.

“Another common claim by agents, which is also incorrect, is that the relevant records are the agent’s own business records. “Records prepared solely for the agent’s own use may be excluded, but the strata roll and other documents normally sought by an owners corporation do not fall into that category.

“Accordingly, owners corporations should not feel frustrated by such situations, as there is a great deal which they can do if denied access to their records.”

And from NSW Fair Trading, Commissioner Stowe has this to add.

“Section 98 of the current Strata Management Act sets out what must be in a strata roll (e.g. names and addresses of owners),” Commissioner Stowe said.

“Under section 108, any owner may ask to inspect the strata roll and also take

a copy. The strata manager can charge a fee for this. The Regulations specify a maximum fee ($30 for the first hour) that can be charged.

“It is the decision of the strata manager whether they charge the maximum fee and on what basis they make the roll available – i.e. hard copy inspection only or send electronically.

In some instances only a hard copy will be available, because, for example, they haven’t scanned the information.

“If a strata manager fails to provide access, the owners corporation can take action in the NCAT .

Also, the Property Stock and Business Agents Regulation provides that managing agents must respond to requests from the Executive Committee to inspect records within 14 days.

“Complaints and alleged breaches can be reported to Fair Trading and result in penalties of up to 20 units for individuals ($2,200) or 40 penalty units ($4,400) for corporations,” he said.

So if your strata manager still wants to argue, show him the opinions shared above from the leading strata legal experts and NSW Fair Trading.

StrataLive Autumn/Winter 2014

29

The people people.

MERITON CAMPAIGN FOR HOME OWNERSHIP

Meriton campaign for home ownership

By Cindy Martin

A

ccording to Harry Triguboff, buyers are well educated when it comes to buying a property but those same buyers will avoid participating in the strata management of their buildings because of the exhaustive legislation and responsibilities.

“People are reticent to raise their hands to be appointed to the executive committee because of lack of knowledge and understanding of the legislation,” Mr Triguboff said.

“One of the reasons we started our own strata division, is so we could help owners with that process. We already offer buyers vendor finance, we guarantee tenants for investors and we manage their apartments. Managing the strata was a natural progression.

“In a perfect world, I would like to see everyone own their own home,” Mr Triguboff said.

“Sadly that will never be the case but if the Government helps first homebuyers more and interest rates are further reduced, we will see more people owning their own homes.

“This would be a very good thing and I fight tirelessly for it every day,” he said.

But whether you own your apartment or you are an investor, Meriton wants to be involved in every aspect of the building’s maintenance and management so your investment continues to increase in value.

Now the preferred lifestyle of the 21st Century, Meriton continues to grow 32 StrataLive Autumn/Winter 2014

“In a perfect world, I would like to see everyone own their own home.”

- Harry Triguboff.

Meriton boss Harry Triguboff

to meet the demands of the market with 12,000 apartments currently under construction or in the pipeline.

“Managing the strata in our buildings is something we probably should have started years ago,” Mr Triguboff said.

“Who knows the buildings better than we do? Every brick, every pipe, every cable has fallen into the hands of a Meriton expert.

“We can fix any issue better and faster with tradespeople who know the building inside out.

“It is an additional service to our owners should they choose to use it.”

And it seems quite a number of Meriton buildings have chosen to appoint Meriton as their strata manager.

“It is not about competing with other strata companies. I think many of the strata companies would agree that Meriton has given them a great

deal of business over the years,” Mr Triguboff said.

“It is about constantly improving and implementing new services that are for the betterment of our lot owners.

“It is all about looking after the people who buy our apartments,” he said.

And by all accounts that contribution is well recognised by Meriton owners, who in several posts on the stratalive forum, refer to themselves as Meritonites.

Many are in buildings where the strata is managed by Meriton and there is concern by those owners that new legislation will prevent Meriton continuing to manage their building.

“We love Meriton doing the strata for our building and Ryan Walmsley is an excellent strata manager,” one Stratalive member said.

“He is really easy to contact and we

MERITON CAMPAIGN FOR HOME OWNERSHIP

even have his mobile number which is unheard of in a strata manager.

“I don’t know how anyone can see it as a conflict of interest when it benefits us so much.

Well the good news is that there is nothing in place in the foreseeable future that restricts Meriton from continuing to manage their buildings.

Strata management in the scheme of Harry Triguboff’s extensive business portfolio, would be a tiny country on his world revenue map.

“It is not about the money,” Mr Triguboff said.

“It makes me very angry when people say that I will not fix problems.

“In many circumstances, if there is a problem, we don’t know about it because the strata manager has not told us.

“By having our own strata management company, we hear about

“It is all about looking after the people who buy our apartments.”

- Harry Triguboff.

the problem, we fix it and we move on.

“It is not very complicated and everyone is happy. You have to know about the problem before you can fix it?”

And recently when Harry celebrated his 81st birthday, many Stratalive members came onto the Stratalive website to congratulate him and thank him for his support.

Even though the owners don’t know Harry personally, they all feel they do.

“The business is important, but the people are more important and we must look after them,” Mr Triguboff said.

“When buyers commit to our product, we commit to them. Loyalty to our product is the greatest compliment and we work very hard to earn it.”

And earn it they have from all their “Meritonites” and in particular, one little five year old. At her first day at school everyone was asked where they lived.

Most said houses, a flat or a unit.

The little girl very proudly stated that she lived in a “Meriton”.

“You mean you live in an apartment,” the teacher replied.

The little girl started to cry and yell insisting she did not live in a ‘department’.

“I don’t live in a store,” she cried, “I live in a Meriton.”

Loyalty indeed. From the mouth of babes.

StrataLive Autumn/Winter 2014

33

UPDATE - STRATA CHOICE

Swimming pool certificate of compliance deadline extended Update by Daniel Linders – Strata Choice

T

he NSW Government has extended the deadline for new rules that require a property with a swimming pool to have a Certificate of Compliance.

From 29 April 2015, properties with a swimming or spa pool cannot be sold, and new residential tenancy agreements cannot be entered into, unless they have a valid Certificate of Compliance or relevant Occupation Certificate. A Certificate of Compliance is valid for three years. These requirements also apply to common property pools and spas in strata schemes. It is the responsibility of the owners corporation, manager or operator of the common property to ensure that the pool complies with pool safety laws.

Pool owners are required to register their pools with the NSW Government Register. Registration of each pool is only required to be done once.

Pool and Spa Certiification – Fact Sheet The NSW State Government has implemented a ‘Be Pool Safe’ campaign to improve child safety by promoting the regular maintenance of pool barriers while ensuring those barriers comply 34 StrataLive Autumn/Winter 2014

with the applicable barrier safety standards.

All pool owners are required to register their swimming pool in a register managed by the State Government. All pools are required to be registered by 29 October 2013 and certified by 29 April 2015. (Updated: The NSW Office of Local Government has granted a one year extension to the previoius deadline of 29 April 2014).

Spas are also applicable to the new requirements. Pools and spas are defined by the State Government in accordance with the following: Capable of being filled with water to a depth of greater than 300 mm.

Soley used or principally used, or that is designed, manufactured or adapted to be solely or principally used for the purpose of swimming, wading, paddling or any other human aquatic activity. A spa has the same meaning.

Once the pool and/or spa is registered, the Owners Corporation is required to obtain and hold a compliance certificate by 29 April 2015. Additionally any owner that wishes to sell or lease their apartment will be required to provide a compliance certificate to the purchaser or lessee. The compliance

certificate is valid for three years.

Certification may be provided by either engaging a private certifier or through local council.

Penalties apply for not registering a pool/or spa by the specified due date.

What was required prior to 29 October 2013 • An onsite self assessment checklist must be completed and lodged with the State Government to obtain registration; • The pool and/or spa must be registered on the State Government Register.

What is required prior to 29 April 2015 • Have a private certifier or local council inspect the pool and/or spa; • Carry out any repairs required for compliance; • Obtain a pool/spa compliance certificate; • An apartment owner will require a compliance certificate when they wish to sell their property; • A Landlord or Property Manager will require a compliance certificate when they wish to lease their property.

For further information you can visit www.stratachoice.com.au

NEW DEFECTS - GRACE LAWYERS

New Defects – Can you add them to existing claims?

Prepared by Colin Grace – Grace Lawyers

W

hen you make a building defects claim, you are required to provide details of all the defects that you want to include in the actual claim. What happens when you find more defects?

In the past many legal authors have argued that unless you were still within the actual warranty period (depending on the claim), you would have difficulty if you wanted to add any more defects to a current claim. These defects could be: 1. New defects that have manifested after you lodged the claim.

2. Where an expert identifies new defects during later inspections.

3. You find that a defect included in the original claim exists throughout the building. This is referred to as a “systemic defect”. For example, you include a water-leak to a window in the original claim and later find that all windows have the same defect.

In all of the above, you can amend the claim to include these new defects provided that the time limitation period has not expired and the amendment is made within a reasonable time.

However, a recent case has held that you may still be able to amend the claim to include new defects even though the time limitation period has expired.

In The Owners - Strata Plan No 68372

36 StrataLive Autumn/Winter 2014

v Allianz Australia Insurance Limited [2013] NSWSC 2009, a party found that a defect included in the original claim was a “systemic defect”. The Owners Corporation made an application to amend the claim. The Court granted the amendment even though the time limitation period had expired.

Accordingly, if you make a claim and find new defects after the time limitation period has expired, you may still be able to amend the claim to include these defects in some circumstances.

This is a great result for an owners corporation and one that the owners corporations’ should consider when they are conducting their defect claims whether through the Courts and Tribunals or under Home Owners Warranty claims.

What should an owners corporation do?

If the owners corporation is notified of any new defects after a claim has been lodged (even if the time periods may have elapsed), we suggest that the owners corporation: • Obtain advice from its expert on the new defect; • Notify the other party (insurer, builder developer etc); and • Seek advice to determine whether the claim can be amended to include the new defects.

When is a crack a defect?

Cracking of walls, columns and supporting structures can be caused by a serious defect. However, sometimes building experts say that cracking is not considered to be a building defect and this is a cause of constant frustration with owners and owners corporations. ...so when is a crack actually a defect?

External render External render must be designed to handle movement in the building in accordance with Australian Standard AS3700. This standard provides that there must be movement joints in the render, i.e. a joint which handles normal movement and expansion in the building.

Therefore, if there are not sufficient movement joints in the render and this has caused cracking, this is considered to be a defect.

Plasterboard and cornices (internal) Based on the Guide to Standards and Tolerances, an internal crack is considered to be a defect if the crack is more than 1mm. However, the Guide to Standards and Tolerances states that this is “only a guide”.

Concrete Australian Standards AS2870 and AS3600 provide a guide regarding when

NEW DEFECTS - GRACE LAWYERS

“The court granted the amendment even though the time limitation period had expired.”

- Colin Grace.

cracking to concrete will be considered to be a defect.

Statutory warranties Under Section 18B of the Home Building Act 1989, the following warranties are implied into building contracts: 1. A warranty that the building work will be performed in a proper and workmanlike manner and in accordance with the specifications in the building contract.

2. A warranty that all materials will be good and suitable for the purpose for which they are used.

Therefore, if the crack is caused by the workmanship or unsuitable materials, this is considered to be a breach of the warranties. For example, the builder has not attached the plasterboard properly or has used unsuitable materials for external conditions.

Cracking caused by another serious defect Cracking may also be caused by other serious defects. For example, a structural defect or a defect in the foundations of the building. For this reason, you should engage an expert to provide advice regarding the cause of the cracking.

The cracking will be considered to

be what is referred to as “consequential damage” caused by the other defect.

You can claim “consequential damage” as part of the cost of the rectification of the other defect.

Finally – a warning to experts on delayed reports A recent case gave a warning to experts about the consequences of delays in preparing expert reports. Experts are required to provide their reports in compliance with certain rules (Schedule 7 of the Uniform Civil Procedure Rules 2005). These rules also require the expert to comply with Court orders relating to the completion of their reports.

In the recent Supreme Court case of Macquarie International Health Clinic Pty Ltd v Sydney Local Health District, the Court gave the following warning to experts: 1. If experts do not prepare expert reports within the time ordered by the Court, the experts may need to explain the reasons for the delay to the Court.

2. The Court may potentially make costs orders against experts directly for the delay.

3. The fact that an expert is busy is not a good enough reason for delay. The Court said that the expert should consider these matters before accepting engagement as an expert.

What should you do if you are an expert or have one engaged to assist your claim?

• Check that the expert is available and can comply with timeframes before approving engagement.

• Experts should be accurate in advising how long they need to prepare their reports.

• Any problems in timeliness should be highlighted early.

• If there are delays, experts should advise their lawyers as soon as possible of the delay and the reason for the delay. This will allow the lawyer to attempt to seek an extension of time from the Court.

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HAVING YOUR STRATA PLAN AUDITED - KELLY + PARTNERS

Why have your strata plan audited?

By Peter Dawkins – Senior Audit Partner, Kelly + Partners

W

ith the changing landscape or NSW urbanisation and draft strata laws soon to become legislation, we’ve spoken to Peter Dawkins and Rex Hoeben from Kelly + Partners on the importance of auditing your strata plan.

The way in which we live in a community has changed significantly over the past 50 years since the introduction of the first NSW strata laws. With the social and demographic indicators trending towards more urbanised and compact living, the impact of strata law and good governance within strata has increased significantly.

In recognition of the evolving nature towards strata based communities with well over 70,000 strata titles within NSW and an estimated $350 billion in total assets the NSW Government has carried out its first comprehensive review of strata laws in more than a decade and now move towards release of the revised legislation.

Early indications are that this will result in further compliance related responsibilities and more onus upon owners to ensure the good financial governance of their strata plans.

According to the NSW State Government Strata & Community Title Law Reform Discussion Paper: “At present, only schemes with over 100 lots must have their financial accounts audited each year. This means that strata schemes with less

38 StrataLive Autumn/Winter 2014

than 101 lots have no mandatory auditing obligations, even though their budgets may run into many hundreds of thousands of dollars. In Victoria schemes over 100 lots, as well as those that collect more than $200,000 in annual levies, must have their accounts audited. NSW could adopt similar measures.”

Following this, it is an interesting statistic that the current NSW legislation results in only 575 strata plans out of 71,099 (less than 10%) of schemes being subject to mandatory audit.

“By introducing an additional levy based threshold for mandatory audits, financial governance will be significantly improved across the NSW strata industry,” Peter Dawkins, Senior Audit Partner at Kelly Partners says.

The University of New South Wales recently conducted a research project,

which specifically explored the role, capacity and effectiveness of owners corporations as agencies of property governance and management in contemporary urban Australia.

The research project’s report titled Governing the Compact City: The Challenges of Apartment Living in Sydney, stated that members of a strata plan’s executive are charged with the governance of the property, and should be cognizant of the considerable responsibility for managing that property.

Good governance can only be achieved where the quality of financial information upon which decisions are based is reliable. The move towards more simplified financial reporting, though welcomed by many owners corporations, does not diminish their responsibility as agents of good governance.

HAVING YOUR STRATA PLAN AUDITED - KELLY + PARTNERS

“The move towards simplified financial reporting no matter what form that takes, does not remove the requirement for the accuracy and integrity of the underlying financial information.” Peter said.

“This is where the audit process is a vital step in providing the platform for reliable, simplified, financial reporting.”

“The independent audit of a strata plan can play a key role in ensuring that owners corporations are executing their role as agents of good governance.

An independent audit ensures the material integrity of the strata plan’s financial statements and provides the necessary platform for confidence in decisions about the allocation of sometimes very significant resources.”

Here are four primary reasons to have an independent auditor review the financial statements of strata plans.

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HAVING YOUR STRATA PLAN AUDITED - KELLY + PARTNERS

1. Peace of Mind: Independence and accuracy “The strata audit provides an independent review of a strata plan’s financial affairs. This brings peace of mind to the busy strata manager with the assurance that the financial reports presented to the owners are materially correct,” says Peter.

“For the owner, this provides reassurance that the financial information upon which they make their decisions has been independently reviewed by experienced accounting professionals.”

The owners of strata management businesses can risk manage across their entire portfolio by having plans under their management audited, which is attractive to potential risk averse owners and a valuable tool for strata managers in retaining clients.

2. Partnering with the strata manager: the role of any good strata auditor Rex Hoeben, Senior Auditor at Kelly + Partners says, “Although auditors report ultimately to owners, the good ones work in a co-operative manner with the strata manager to ensure the financial reporting is complete and accurate.”

Working in conjunction with an experienced strata auditor, the strata manager can be more effective in unravelling complex accounting

matters that may arise, thereby allowing the strata manager to focus on their primary role of servicing their client. The expertise and accounting knowledge of an expert Strata Auditor thus becomes a powerful re-

source for strata managers and for owners’ corporations.

3. Minimising Risk Exposure: engaging experts in property and finance matters makes good sense An

Strata audit Specialists

40 StrataLive Autumn/Winter 2014

HAVING YOUR STRATA PLAN AUDITED - KELLY + PARTNERS

owners corporation, among other duties, has a legal responsibility to: • Maintain all common property including the structure of any buildings on the land; • Insure the whole property for the full

replacement value; • Administer the finances and common funds of the group of owners; • Administer the secretarial functions including the conduct of meetings of members, documentation of minutes and dealing with all correspondence; • Maintain proper records, including financial records, orders served and minutes of meetings.

Owners Corporations and/or strata managers, who have been engaged to carry out these responsibilities, have a risk exposure in the area of financial management. If this is an area where they have limited professional experience they can reduce their risk by engaging an independent auditor experienced in the strata industry.

4. The Changing Landscape of Strata Legislation: the protection of investments.

Under the recently drafted legislation, indications are there will be a tightening of the regulations regarding the fiscal management of strata plans and the imposition of greater responsibilities on Executive Committees and strata managers.

“We’re witnessing a growing trend within the strata industry with the emergence of Self Managed Superannuation Fund Investments. As the superannuation of thousands of Australian’s are now invested within strata schemes, an independent strata audit will provide additional protection for these investments,” says Peter.

We provide value-added, on time services, nationally to Strata Managers.

We understand the pressures on Strata Managers.

Kelly+Partners is one of Australia’s leading accounting and business advisory practices.

We share the passion and commitment required Clients include strata managers, commercial and to successfully perform in this dynamic industry.

Our dedicated strata audit team is backed by a vast residential property managers, real estate agencies, knowledge of taxation – income, capital gains, GST. investors, developers, construction companies, Email our specialists or phone on 02 9923 0800. commercial and residential builders.

Peter DaWkinS peterd@kellypartners.com.au rex Hoeben rex @kellypartners.com.au

RenoDesign 306

kellypartners.com.au

StrataLive Autumn/Winter 2014

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Our Strata ServiceS cOme with a Big PluS

Peace of Mind

When your strata management is looked after by professionals from Raine & Horne Strata, you can be sure that all your strata needs will be handled in the most professional and efficient manner. With various types of properties in our portfolio, Raine & Horne has the experience and expertise to offer practical services to your strata issues and ensure smooth processes at all times.

Strata Sydney www.bcms.com.au Level 2, 51 Rawson Street, Epping NSW 2121 Phone: 1300 185 458 Email: sales@bcms.com.au

P (02) 9929 0226 | E enquiries@bannermans.com.au

www.bannermans.com.au

BANNERMANS - HOME BUILDING ACT

Home Building Act statutory warranties What is the two year warranty for Non Structural Defects worth?

Prepared by David Bannerman and Mark Pollinger – Bannermans Lawyers

A

mendments to the Home Building Act 1989 (“HBA”) which took effect on 1 February 2012 significantly reduced the scope of the statutory warranties available in relation to residential building work. The warranty period for breaches resulting in structural defects was reduced from seven years to six years and the warranty period for breaches resulting in non-structural defects was reduced to two years. The worth of the second category is doubtful.

The key points to note are: • There are a broad range of works in relation to which no statutory warranties are available.

• There are a broad range of defects to 44 StrataLive Autumn/Winter 2014

which a warranty period of only two years applies.

• To rely on the statutory warranties, a lot needs to be done within the warranty period and it may prove difficult or impossible to do those things if left too late. These include convening meetings, engaging lawyers and expert consultants and notifying the homeowner warranty insurer.

• If statutory warranties are not available, an owner may still have a claim based on breach of contract or negligence and should obtain legal advice about that.

The statutory warranties under section 18B of the HBA are broad in

scope, dealing with matters such as workmanship, materials, fitness for purpose and compliance with laws. They are applicable to all “residential building work”, including remedial work, not just new construction work.

Residential building work is defined broadly to mean any work involved in carrying out, coordinating or supervising the construction of a dwelling or in relation to a dwelling, alterations, additions, repairs, renovations, decoration or protective treatment. However, there are significant exclusions under the HBA and the Home Building Regulation 2004 (“HBR”), in relation to which no statutory warranties apply, including work having

BANNERMANS - HOME BUILDING ACT

a cost not exceeding $1,000, demolition work, work involved in the installation of flooring materials not involving structural changes to the floor and work that involves the installation or maintenance of any fixed apparatus such as a lift, escalator or garage door.

The warranty period is limited to 2 years, rather than the 6 year period which would otherwise apply, for breaches causing a defect which is not structural. Regulation 71 under the HBR identifies a structural defect in terms of the following concepts: A. It must involve a defect in a “Structural Element of a Building”, defined as any internal or external load-bearing component of the building that is essential to the stability of the building, such as foundations, floors, walls, roofs, columns

and beams and any component (including weatherproofing) that forms part of the external walls or roof of the building.

B. It must be attributable to defective design, workmanship or materials.

C. It must result in or be likely to result in specified consequences, which include destruction, physical damage or threat of collapse of the building or part of it or other circumstances which prevent use of the building or part of it.

As a result, “non structural defect” encompasses a broad range of defects, which most would consider serious, such as defects in fire measures, waterproofing in bathrooms, non load bearing walls, plumbing, air conditioning and fixed apparatus.

The warranty period operates from the

date of completion of the work (if it was completed), from the date of termination of the contract (if the work was not completed), from the date on which work ceased (if the contract was not terminated) or the date of the contract (if work was not commenced). However, if the defect becomes apparent during the final six months of the warranty period, the owner is in effect given an additional six months to commence proceedings.

The Act includes a complex definition of “completion of the work”, much of which is unclear and likely to require court proceedings to clarify.

For a claim based on breach of the statutory warranties, involving a breach causing a defect which is not structural, an owner must commence proceedings within the period specified in the previous paragraph. Within that period, the owner needs to become aware of the defect, assess the defect, deal with the builder and/or developer in relation to remedial works, deal with approvals and other processes required in order to commence proceedings and deal with lawyers and expert consultants to obtain the advice and to prepare the documentation required in order to commence proceedings. That is a lot to do, especially if the owner is an owners corporation and needs to arrange meetings and approvals.

Depending on how long it takes to become aware of that defect, this time limit can be difficult or even impossible to achieve.

Further, a builder can become insolvent, die or disappear, necessitating a claim on homeowner warranty insurance.

For that purpose, the owner must: • notify the home owner warranty insurer, Regulations 103BA to 103BC of the HBR in general terms requiring that this occur during the warranty period; and • enforce the statutory warranties, Regulation 58A of the HBR permitting an insurer to exclude liability resulting from failure to enforce the statutory warranties and the only available method for an owner to enforce the statutory warranties being commencement of proceedings.

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STRATA PLUS EXPANSION

Announcement – Strata Plus expansion T

he Directors of Strata Plus, David and Olivera Ferguson, are pleased to announce that the Strata Plus group now has a local presence in Port Stephens, Newcastle and Tweed Heads.

This has been been achieved through the acquisition of Port Stephens Strata Management Services and Synergy Strata.

With the alignment of core business values, and the continued support of David Morris and the team he developed, David and Olivera eagerly look forward to meeting the professional management 48 StrataLive Autumn/Winter 2014

needs of these local communities.

Our now combined qualified and well trained team of 50 strive to provide honest and personal service.

Established in 2001, Strata Plus has a proven track record with a stable and secure portfolio of residential and commercial strata schemes, building management committees, and community schemes. This can only happen with our simple aims of transparency, best practice and providing value for money to our owners.

David Ferguson, Managing Director has been in strata since 1995. He

served as President of Strata Community Australia (SCA) NSW from 2008 to 2013, Director since 2006, and Director of SCA National Board since 2011.

David Morris bought Port Stephens Strata in 2001 and also became a Director of SCA NSW in the same year.

He served a total of nine years on the Board and was President from 2004 to 2008.

You could say that synergy between the two Davids was formed at this time.

For more information contact David Ferguson on (02) 9319 1899.

Strata Plus

for personal service and a proven track record

Call David or Olivera Ferguson on 9319 1899 www.strataplus.com.au

STRATA COMMUNITY AUSTRALIA (NSW) - NEWS

Strata Community Australia (NSW)

(NSW)

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GLENDA GREEN - NEW GENERAL MANAGER SCA (NSW)

Meet Glenda Green New General Manager at Strata Community Australia (NSW)

F

or some of us, our parents’ jobs or hobbies can set the tone for our own lives. We can follow in their footsteps and sometimes, like in the case of football players or politicians - a dynasty is created.

Glenda Green’s dynasty is not in sport or the hallways of Houses of Parliament but instead in property. As a child she moved house 14 times in 16 years and it was due to her father’s passion for real estate – a passion Glenda also shares.

“I am incredibly good at packing and labelling a cardboard box efficiently and effectively thanks to my mum’s training,” Glenda said.

Being of a practical mind, after finishing school, Glenda became an accountant working for Deloitte. She has since worked for various companies such as JP Morgan and also gained her real estate agent’s licence.

“Gaining my real estate agent’s licence was inevitable as was becoming treasurer of my executive committee when I bought an apartment in the city,” Glenda says.

“While I have gained quite a lot of experience in property, being a woman in property is still a novelty in some quarters.”

Glenda is undeterred by workplace or industry politics and has a clear vision of where she wants to go and what she wants to achieve. In her new role as general manager at Strata Community Australia (NSW), she has a clear view of what needs to be done.

“The new strata legislation has provided SCA (NSW) with a unique opportunity to look at itself, its structures and the future of the strata industry,” Glenda says.

“The strata industry excels in having structure and order and so do I. “I like to understand it all and get all

52 StrataLive Autumn/Winter 2014

the information. What I don’t know I will find out,” she said.

Going through the structures and processes of SCA (NSW), Glenda has been able to quickly identify some areas where changes are needed to meet the ongoing needs of members.

Part of what drives Glenda is the persistence and resilience she learnt growing up.

“Communication was also a major factor. My father was a great communicator and he also had a great ability to meet the changing needs of business. He loved what he did.

“Having a family myself now, I have enormous appreciation for what my mother did while dad was driving clients around seven days a week.

In those days, you put the client in the car with you and drove them around to see the potential properties. There were no ‘open for inspections’ back then.

“Those characteristics along with my curiosity in finding out how things work has pretty much lead me to this point. I know how strata operates from the executive committee and owner point of view, now I am learning a lot from the strata manager and service’s provider aspect.”

Indeed, Glenda highly values the experience she had in the role as treasurer of an executive committee as it gave her a unique insight into what happens at the grass roots level of strata.

“My property was in the city and we had all sorts of issues that had to be addressed.

“Some were the usual – setting fees, ongoing maintenance – but being in the city there were the issues of weekend drunk crowds and maintaining the security in our building.

“Being in the city certainly presented

some unique challenges.”

Glenda’s next challenge is working on a new structure for SCA (NSW) and providing members with a better service. She is currently looking at the member value proposition and working with her team on different channels for service delivery to members.

“Directing the next phase of where SCA (NSW) is headed is exciting, daunting and at times can be difficult.

“Ultimately my goals are to take the work already done and build an organisation that meets the expectations of its members.

“This is more important now as we move into a new phase in strata legislation and regulation in NSW. “In my view we need to get back to the basic question.

“Why be a member of SCA (NSW) - or any organisation for that matter? The fantastic thing about this organisation is its uniqueness. While its needs are diverse, we must listen to the majority, but also segment our offering and delivery.”

Glenda is experiencing new challenges in her career. For example, she never considered being involved with the Strata Bill as it enters NSW Parliament.

“I’ve had to learn pretty quickly the processes for the introduction of the Bill. Luckily I have a great President and directors on the NSW Board, all of whom have been working on this for some time and continue to do so,” she said.

Look out for some new initiatives from SCA (NSW).

Strata property owners are very welcome to become members.

Check out www.nsw.stratacommunity.org.au

GLENDA GREEN - NEW GENERAL MANAGER SCA (NSW)

Photo: Joanna Davidson StrataLive Autumn/Winter 2014

53

UPDATE - STRATA COMMUNITY AUSTRALIA

Strata Law review recap and update S

trata Community Australia (NSW) has spent the last two and a half years working with its members and the NSW Government on the various stages, which has led to the final draft of the new strata legislation. At the time of writing the new strata laws are expected to be introduced to NSW Parliament at the end of May 2014 but no date has yet been set for their implementation. SCA (NSW) believes this may be from early 2015 but no later than mid-2015.

How did this all come about? The answer is simple, the existing strata laws – the Strata Management Act 1996 - were long overdue for a review which would bring them into the 21st Century.

In a speech to SCA (NSW) in 2011 when launching the first stage of the review, the then Minister for Fair Trading, Anthony Roberts, MP, indicated that it was time for change.

“Many things have changed in our society since then and regrettably, some areas of the law have failed to keep pace with emerging issues and the growth and changes in strata and community development,” the Minister said.

“There are now ten separate pieces of legislation directly regulating strata and community title in New South Wales,

54 StrataLive Autumn/Winter 2014

totalling more than 1000 provisions.

“From my discussions with stakeholders, including Strata Community Australia (NSW), there is general consensus that the laws have become outdated and do not effectively meet the sector’s current or future needs.

“In some respects, the law is also overly formal and complex, creating unnecessary disputes and potentially hindering the future growth.”

A process then began with the community invited to participate in an online forum to express their views regarding the current legislation, as well as the workings of the sector itself. This concluded in early 2012 and, according to a Ministerial press release, resulted in 19,138 visits from 13,558 individual visitors; 1,230 individual comments were received and close to 600 suggestions for procedural change or law reform were submitted.

“Submissions expressed concern about the facilities for disabled people and the challenges of short-term rentals right through to the use of pianos and leaf-blowers,” Minister Roberts said at the time.

From this the NSW Government drafted a discussion paper

UPDATE - STRATA COMMUNITY AUSTRALIA

which was released in late 2012 and SCA (NSW) along with a number of stakeholders made comprehensive submissions on a number of topics.

As the process continued on it was clear that there were a number of areas across the board that required close examination with a view to improving the law or even introducing new laws.

One issue that is attracting a great deal of attention is that regarding the termination of strata schemes in favour of urban renewal.

SCA (NSW) released a policy in early 2012 that recommended the current 100 percent agreement amongst owners required to terminate a scheme be reduced to 75 to 80 percent. This of course would be subject to a number of regulatory checks and balances to ensure all owners interests were considered – even those who opposed the termination of the scheme.

It follows the process in Singapore which has a good history of redevelopment that adequately houses its growing population while looking after the interests of the individual owners.

The basis for this is that there is the potential (and some anecdotal evidence to support this) that at times one person can ‘hold out’ and destroy the hopes and dreams of the majority.

In the Sydney metropolitan area there are large numbers of buildings that are fast approaching or even past their use by dates. These are the poorly built apartment blocks – a lot of them from the 1970s and 1980s – which are costing thousands of dollars to repair and maintain.

Owners in these sorts of buildings would benefit from a rebuild but to do this the scheme must be terminated and this requires all owners to agree on this course of action.

Under the new Bill this will now become more of a reality and allow owners and property developers to rid us of some of these buildings and create better, more energy efficient newer homes.

SCA (NSW) for one is looking forward to seeing the Bill introduced and anticipating some great new changes for the strata sector in NSW. Once the new strata laws are passed by both Houses of NSW Parliament, SCA (NSW) understands the government will work on the new regulations as well as a separate set of laws for community title.

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COMMUNITY AWARDS - STRATA COMMUNITY AUSTRALIA (NSW)

Recognising strata excellence L

iving and working in strata often attracts negative news and stories but we at Strata Community Australia (NSW) don’t think this should be the case.

A few years ago SCA (NSW) launched the strata community awards to find and then celebrate those people doing extraordinary things in strata.

Over the past few years, we have tried a few different formulas such as holding a stand-alone event and also an event as part of our annual convention. Last year we even ‘rested’ the awards while we refreshed the format.

This year – while we have injected some new ideas – some of the old ideas, the good ones, remain. Such as the idea that we have a dinner to announce and celebrate the winners, and the idea that we get people to self-nominate.

For 2014 SCA (NSW) is also excited to announce a naming rights sponsor for the awards – welcome to Whitbread Insurance Brokers.

56 StrataLive Autumn/Winter 2014

Whitbread is equally as excited stating that as one of SCA (NSW) long standing partners, it is committed to celebrating the achievements of those in the strata industry.

“Since my appointment, I have been forthright in stating Whitbread’s commitment to be the best broker in the segments in which we specialise. Our sponsorship of the Whitbread Strata Community Awards is just one way we can demonstrate our ongoing commitment to the strata sector and our intentions to invest in the sector’s future,” says Whitbread CEO, Stephen Jones.

Whitbread has been providing broking services and expertise to the strata community for 35 years. By supporting SCA (NSW), Whitbread intends to cement its long and proud history in the strata sector and continue its pursuit of excellence in business.

The 2014 Whitbread Strata Community Awards program has been designed with nine great categories, including: • Innovation of the Year Award

COMMUNITY AWARDS - STRATA COMMUNITY AUSTRALIA (NSW)

• • • • • • • •

Strata Owners Community Engagement Award Professional Commitment to Ethics and Service Award Strata Management Business of the Year Award – Small Strata Management Business of the Year Award – Large Student of the Year Award Young Strata Manager of the Year Award Strata Manager of the Year Award Strata Industry Leader of the Year Award

The Awards are open to SCA (NSW) members only. Joining SCA (NSW) is easy and membership is open to anyone living or working in strata or community title.

The Strata Owners Community Engagement Award is being offered for the second time only. The first winner was Signature apartments located in Redfern in Sydney’s inner city.

The award recognises a range of initiatives that the committee has implemented to improve community living for the residents.

In the case of Signature apartments the owners had established a vegetable garden, recycling program, together reduced their energy consumption and set up a Facebook page. They were able to demonstrate how they had fostered a great community atmosphere and enhanced strata living.

The awards also recognise individual achievements and the feeling of being recognised for your achievements is a great

one, just ask Bill Coles, Managing Director or Commercial Cleaning and Caretaking.

“After winning life time achievement style awards through SCA (NSW) such as the President’s and Max Dunn Awards it was very pleasing to also be acknowledged from a business perspective through the Strata Industry Awards and by NSW Fair Trading which sponsored the award I won – Business Person of the Year, “ Bill explained.

“We use the prestige brought about by winning Business Person of the Year in many facets of our marketing and communications and I encourage everyone in the strata industry to enter the various categories for the new look awards this year.

“I have this year been given the task as well as honor to be a member of the judging panel and am looking forward to seeing the process from another perspective.”

The 2014 Whitbread Strata Community Awards entries opened on Wednesday, 16th April and submissions close late May. The Gala Dinner and Presentation Event will be held on Friday, 18th July 2014.

www.nsw.stratacommunity.org.au StrataLive Autumn/Winter 2014

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Living in strata?

Fair Trading is here to help you with • free info • expert advice

• mediating disputes • and more …

Go to www.fairtrading.nsw.gov.au or call 13 32 20 for more info.

Supporting local communities

BACK TO BASICS

Back to Basics Matt and Kristie turn to NSW Fair Trading for help

StrataLive Autumn/Winter 2014

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BACK TO BASICS

Matt and Kristy have just bought in a strata scheme for the first time. NSW Fair Trading takes them through the process. All this information is available in a very comprehensive guide from NSW Fair Trading called ‘Strata Living’. It can be found at www.fairtrading.nsw.gov.au Before buying into a strata scheme, Matt and Kristy were told what to look out for.

1. Find out as much information as possible about the management of the scheme itself, for example: • Is there are strata manager?

• Is the building properly insured?

• Are there enough funds to cover long term repairs and maintenance?

• Is there outstanding building work, or is any planned which could mean additional special levies?

registered strata plan defines the boundaries between common property and lots in a strata scheme. Common property boundaries are usually shown on strata plans by thick black lines. Pay close attention to items such as balcony walls, railings, sliding doors and garage doors, as strata plans may differ on whether these items are part of the common property or not. For enquiries about interpretations of a strata plan contact Land and Property Information NSW on 1300 052 637.

2. Organise to get a Section 109 Certificate which provides a good deal of information and organise a detailed strata search through a specialist company or your solicitor/conveyancer.

4. Don’t forget ongoing costs such as levy contribuions to the administration and sinking funds. How much are they? Can you afford them? Remember that levy amounts can change, and that you may be asked to pay extra levies in some circumstances.

3. Find out which parts of the unit will be included in the ‘lot’ and where the common property boundaries are. The

5. Find out if any alterations have been done to the unit. Were these approved by the owners corporation?

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6. Think carefully about the impact of strata living on your lifestyle. Have you seen the by-laws (rules)? Can you keep a pet? Can you hang washing outside or will you have to buy a clothes dryer? Will it be difficult for you if there are restrictions on visitor parking or where your children can play? Also, be aware that by-laws can be changed by the owners corporation.

7. Besides looking at the unit, also have a look at the whole building. Some buildings have high quality and expensive finishes such as polished granite or marble foyers. These must be maintained along with the swimming pools, lifts and gardens and the costs will impact on your levies.

Alternatively, the building may be run down and in need of repair. Find out if there is building work planned and if it will be an extra cost to owners.

8. Check if there are any restrictions on the use of the common property which could affect you, for example, if you want to change the flooring, install air conditioning, or prune trees which shade your balcony. You will probably need the permission of the owners corporation.

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How did Matt and Kristy get the Information they needed?

Before you buy into a strata scheme you should get a Section 109 Certificate from the owners corporation.

What is a Section 109 Certificate?

A Section 109 Certificate gives information about the strata scheme including: • The names and addresses of the executive committee members, the managing agent and caretaker (if there is one) • The levies to be paid by the owners • Any outstanding levies • The address where the records and financial statements can be viewed.

Any special by-laws made by the owners corporation in the past two years.

If a levy is outstanding before the Certificate is given and it is not shown on the Certificate, the purchaser is not responsible for the payment. However, if any money becomes outstanding after the Certificate is given, the new owner and the old owner are both liable for payment.

If this information is not supplied within 14 days after you ask for it, the owners corporation can be fined up to $220.

How Do You Get a Section 109 Certificate?

If you are an owner, or you have an owner’s or mortgagee’s covenant chargee’s permission, you may write to the owners 62 StrataLive Autumn/Winter 2014

corporation and ask for a Section 109 Certificate.

The Treasurer must give the Certificate under owners corporation seal. The Certificate must be in the set form (Regulations – Schedule 8 Form 1) There is a fee.

How to Inspect the Records of the Owners Corporation It is important that you inspect the books and records of the owners corporation before buying. Sometimes your solicitor will arrange to have this done for you, but not always. There are companies which specialise in inspecting books and can organise a ‘strata search’ service.

If you are an owner, or you have an owner’s or a mortgagee’s or covenant chargee’s permission, you may ask the Secretary of the owners corporation or the managing agent to let you inspect the books and records of the owners corporation. The request must be in writing and accompanied by the required fee.

The owners corporation must let you look at all the records and should make arrangements with you to do this.

When you are looking at the records you may make copies (for example, a copy of the strata roll). Unless you have the owners corporation’s written permission you must not take any of the records away. There is a set fee to look at the records.

An inspection will show the history of maintenance of the building and provide a valuable insight into any complaints lodged by other owners. It may also show plans for future spending.

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Kristy wants to know exactly what a Strata Scheme is?

A Strata Scheme is a building, or collection of buildings, where individuals each own a small portion known as a ‘lot’ (for example, an apartment or townhouse) but where there is also common property (eg. external walls, windows, roof, driveways, foyer, fences, lawns and gardens). Every owner shares the ownership of the common property.

The original concept of Strata Title was to allow people to own their units in multi-level buildings. While it was originally expected that strata schemes would all be vertical blocks of flats, some strata schemes are all on the one level (eg. townhouse and villa developments). Strata schemes vary in size - some comprise only two lots, others have more than 700 lots. In addition, strata schemes do not just apply to residential developments. There are also commercial, industrial mixed use, hotel and retirement village strata developments Before strata title, the most common way of buying into a high-rise was to buy shares in the company which owned the building, which gave the right to occupy one or more of the units.

This way of organising property ownership is called ‘Company Title’. There are still some company title buildings in existence.

What do Matt and Kristy own in a Strata Scheme?

The major difference between owning a house and owning a unit or apartment (known as a ‘lot’) in a strata scheme, is that the external walls, the floor and roof do not usually belong to the lot owner. These areas are usually common property and the maintenance and repair of these parts of the building is usually the responsibility of the Owners Corporation. As it is common property, the lot owner is not able to alter or renovate these areas without the permission of the Owners Corporation.

In effect, in most strata schemes, the lot owner owns the inside of the unit but not the main structure of the building. Usually the four main walls, the ceiling and roof and the floor are common property.

The dividing walls within the lot (for example, the wall between the kitchen and lounge room), floor coverings such as carpet, and fixtures such as baths, toilet bowls and bench tops are all the property of the lot owner. The key concept to remember is that the lot owner effectively owns the airspace (and anything included in the airspace) inside the boundary walls, floors and ceiling of the lot.

Airspace can also extend to balconies and courtyards.

You should get proper advice about ownership of a tree in the courtyard or responsibility to maintain a pergola covering a balcony or courtyard. They could be in your airspace and therefore, would need to be maintained at your cost.

For questions about boundaries of the lot and clarifying common property, Matt and Kristy should contact the Department of Lands at www.lands.nsw.gov or call 9288 6666.

Matt asks about the NSW Legislation covering strata schemes?

Currently under review the legislation is : The Strata Schemes Management Act 1996 (the Act) The Strata Schemes Management Act 1996 is administered by the Office of Fair Trading. It provides:

1. A system of financial management and decision making by defining the rights and responsibilities of the Owners Corporation and each owner and occupier in a strata scheme. This includes:• the holding of meetings of the Owners Corporation and the executive committee • the management of funds and books of accounts • the responsibilities of the Owners Corporation to maintain common property and take out insurance • the responsibilities of owners and occupiers.

2. A system for setting disputes in a strata scheme including those relating to day-to-day management.

The Strata Schemes (Freehold Development) Act 1973 The Strata Schemes (Freehold Development) Act 1973 is administered by the Department of Lands and provides a system of title which gives exclusive ownership of part of a building known as ‘a lot’, and supporting rights over other parts of the building known as ‘common property’. This Act covers the registration process and other related matters concerning the creation and development of a strata scheme.

Are Kristy and Matt part of the Owners Corporation?

Yes, they are.

What is the Owners Corporation?

The Owners Corporation is made up of all the owners in the strata scheme. Each lot owner is automatically part of the Owners Corporation and has a right to participate in the decision making. The Owners Corporation comes into existence immediately after a strata plan is registered. At first it may only be made up of the developer, but as each person buys into the scheme, the Owners Corporation gains more members.

The Owners Corporation has responsibility for the overall management of the scheme which include: • the financial management • keeping all necessary insurance covers up to date • record keeping • the repair and maintenance of common property • by-laws • employment of a strata managing agent and/or building manager The Owners Corporation use to be known as the Body Corporate.

The Owners Corporation can only make decisions at property convened meetings. There are two types of general meetings for all owners - the Annual General Meeting (AGM, held once a year) and Extraordinary General Meetings (held at any other time).

The Owners Corporation may employ a strata managing agent or caretaker to work for it. These agents are delegated some responsibilities and powers but the Owners Corporation has the final responsibility and can overrule them. A strata managing agent must be licensed under the Property, Stock and Business Agents Act 2002.

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As a plumber Matt would like to know who is responsible for repairs?

Responsibility for repairs is straightforward - the Owners Corporation must repair common property, owners must repair anything within their lot. However -and this can be the difficult part - it is not always clear what is common property or what is the individual lot.

The basic rule is that everything inside the airspace of the unit, including all internal walls, fixtures, carpet and paint on the walls is usually the ‘lot’ and therefore the responsibility of the lot owner.

Everything outside the airspace including walls, windows, doors, and tiles fixed to the floor and boundary walls is usually common property and therefore the responsibility of the Owners Corporation.

For clarification check your strata plan or contact the Department of Lands.

As a general guide, the following applies.

• Ceiling Owners Corporation must repair anything in the ceiling.

• Walls Owners Corporation must repair anything in the boundary walls. The owner must repair walls within the lot.

• Carpets The owner must repair and maintain carpets in the lot. The Owners Corporation repairs and maintains common property carpets, such as carpets and hallways.

• Tiles Original tiles on boundary walls and floor are Owners Corporation responsibility. Tiles on internal walls are the owners.

• Light fittings If it is recessed in the ceiling, it is the Owners Corporation responsibility. If it hangs into the lot, it is the

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owner’s responsibility.

• Garage roller door Repairs to the boundary roller doors are Owners Corporation responsibility.

• Balcony Balconies are generally the responsibility of the Owners Corporation.

This is covered more comprehensively on pages 71-90.

How do you get repairs done?

Contact the managing agent or secretary of the Owners Corporation and let them know the details of the problem.

They may organise for minor repairs to be fixed without the need for a meeting. For larger, more expensive problems they should convene a meeting so that the Owners Corporation can decide on what action to take.

If no action is being taken you can put a motion requesting repairs to the next meeting. You may also lodge an application for mediation with Fair Trading to move things along.

The following are some frequently asked questions. All the answers are general starting points based on the typical common property questions. Don’t assume they automatically apply to your scheme.

Where does the money for repairs and maintenance of common property come from?

Levies must be raised to do repairs. A motion is put to a general meeting to raise levies to cover the cost of work.

The amount will be paid by the owners based on their unit entitlement.

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What if the damage was accidental rather than caused by negligence? Is there a difference in who has responsibility to fix it?

The Owners Corporation must repair common property and an owner must repair their lot - it does not make a difference how the damage occurred (whether accidental or negligence). If someone else damages your property, then like any damages claim, you may take legal action to recover the cost of repairs from that person.

I have filled out a maintenance form to get a repair done which is taking time. What should I do?

Speak to the Secretary or the strata managing agent to find out how the matter is progressing. If the repairs are being delayed you can lodge an application for mediation with Fair Trading to try to settle the matter.

Some of my possessions were in the garage and they have been damaged. Who is responsible?

The owner or occupier is responsible for things inside their lot.

They may be able to claim on your contents insurance policy.

Common repairs There is a burst pipe in a bathroom - If it is the boundary wall, the Owners Corporation is responsible. If it is in an internal wall it is the lot owners, unless the pipe services more than your lot, in which case it is Owners Corporation responsibility.

The water from the shower is not draining away - Plumbing under the floor is the responsibility of the Owners Corporation.

The shower head is not working properly - It is the lot owners responsibility.

The kitchen sink was broken and has caused water damage in both my unit and my neighbour’s unit Problems with everything in the airspace of a bathroom or kitchen including baths, toilets, sinks and dishwashers are the owners responsibility. However the Owners Corporation’s building insurance may cover some of these fixtures for damage.

There is damp and mould in my unit - The Owners Corporation is responsible for water penetration problems coming in through external walls or the floor. The owner is responsible for the mould on their walls.

Electricity inside my unit has been cut off or not working The supply of electricity is the Owners Corporation responsibility.

However any cabling within the unit’s internal walls that only services the individual lot, is the owners responsibility.

Water leaks onto my balcony from the unit above every time they water their plants - If water is running off common property, the Owners Corporation is responsible. If it is caused by over-watering by another owner or resident, that person is responsible.

Our balcony door is damaged and won’t close properly - This depends on when the scheme was registered. In older schemes (registered before 1 July 1974), the owner is responsible.In newer schemes (registered after that date), the Owners Corporation is responsible.

Kristy asks about By-laws There is no ‘mandatory’ set of by-laws. Some model by-laws are set out in legislation; others are set by the original developer of the scheme.

By-laws can be made or changed to meet the needs of all owners and to assist with the running of the scheme. The bylaws mean that the Owners Corporation can manage the strata scheme the way they want.

Strata schemes existing before the commencement of the Strata Schemes Management Act on 1 July 1997 have By-laws 1-19 set out in the Schedule 1 of the Act, together with amendments made to those by-laws by the Owners Corporation. A strata scheme registered after the commencement of the Act on 1 July 1997 must choose and register its own by-laws. There are six model sets of by-laws in the Regulations and the Owners Corporation may select any of these or prepare their own.

You can check your strata roll to see what by-laws apply to your strata scheme.

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Some common by-laws Keeping animals Each strata scheme will have a by-law on this issue. Generally speaking it will provide one of the following: • no animals can be kept (other than fish in an aquarium) unless the permission of the Owners Corporation is first obtained.

• no animals may be kept under any circumstances.

• a cat, small dog, small caged bird or fish in an aquarium may be kept.

Not matter what the by-law is, keeping a guide or hearing dog is allowed. It is important to find out about the keeping of animals by-law before you buy a unit to avoid disappointment or stress later. Make sure you find out exactly what the by-law actually says.

Parking Owners and residents cannot park on the common property without the permission of the Owners Corporation. Visitors can park in designated visitor’s parking spaces. So, if an owner invites a group of friends over for a barbeque, for example, they can’t park wherever they choose - such as on the lawn at the front of the building. If there are not enough visitors’ car spaces available, they have to park on the street. It is important to remember that an owner cannot give permission for people to use common property for parking, as this is a matter for the Owners Corporation.

Noise Most strata schemes have by-laws about noise and the behaviour of visitors. You need to take into account the peace and enjoyment of your neighbours and other people living in the strata scheme. You should also make sure your visitors do not disturb other people, especially when, for example, you have a party or entertain friends.

Activities of children The by-laws of your strata scheme are likely to contain some restrictions on unsupervised children playing on common property within and outside the building. The purpose of these by-laws is to minimise harm to children, particularly in parts of the common property that may be dangerous such as driveways and car parking areas. Check to see what by-laws apply in your scheme if you have children living in your unit. Other than for retirement village strata schemes, by-laws are not allowed to restrict or prevent children living in a strata scheme.

Drying of washing Most strata schemes have restrictions on washing being dried on balconies where it would be visible from the street or adjoining buildings. Your scheme may have communal drying areas and by-laws may place limits on the use of them. Check your scheme’s by-laws to find out where and how you can dry your washing.

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Changing the appearance of your ‘lot’ Most schemes will have a by-law about the appearance of individual lots. Owners are generally not able to change the appearance of their lot if the change would not be in keeping with the rest of the building. For instance, if you wanted to put up brightly coloured curtains or blinds (that would be visible from outside), the other owners can insist the colour match the rest of the building.

Floor coverings Most strata schemes have by-laws requiring floors to be either treated or covered to prevent noise being heard in other lots.

Breach of by-laws If an owner or resident breaches a by-law, firstly, talk about the problem with them. If it continues, the Owners Corporation or managing agent (if their agency agreement gives them the authority) can serve a Notice to Comply with a By-law on the person who is breaching it.

If the person continues to breach the by-law the Owners Corporation may apply to the Consumer Trader and Tenancy Tribunal for a penalty of up to $550 to be imposed on them. The fine is payable to the Office of Fair Trading.

These following frequently asked questions will help you when you are trying to make decisions about living within your community.

Kristy wants to get a dog. Do I need the Owners Corporation permission?

Check your by-laws first. Some schemes allow pets with the permission of the Owners Corporation - the executive committee can give this approval. Other schemes do not allow pets at all. If your by-law allows for pets then make a written request to the Owners Corporation and include any information to support your request, for example, information on the type of dog, how you will look after it and so on.

My neighbour’s boyfriend is parking his car in the visitors’ parking space every night, taking up the space.

Is he really a visitor?

That is a matter for the Owners Corporation to decide at a meeting.

Someone is making a lot of noise and it’s disturbing my sleep. How do I get them to stop?

The best approach is to try to resolve the problem yourself, so talk to the person first. If that doesn’t work or, if you feel intimidated, you have two choices. You can ask the Owners Corporation to issue them with a Notice to Comply with a ByLaw then seek a fine if they keep breaching. Or you can apply for mediation through Fair Trading to have a mediator assist you to discuss the issues with them.

The people above me pulled up their carpet without permission of the Owner Corporation and put down a

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floating floor which is very noisy, what can I do?

Owners do not require permission to remove their carpet - it is in their lot airspace. However, if a noise problem results, you can talk to them about it or ask the Owners Corporation to serve them with a Notice to Comply with a By-Law. If a unit is tenanted, you can usually take action against the owner seeking to have the floor carpeted or covered to reduce noise.

My by-laws don’t deal with things I think are important.

What can I do?

You can draft your own by-law and put it on the agenda for the next general meeting. It requires a special resolution - 75% or more to vote in favour. Once it is passed, the by-law must be registered at the Department of Lands, and then it is an enforceable by-law that must be obeyed. You may want to get assistance from the managing agent or a solicitor.

Is it law to have a noticeboard?

Only if it is required in your by-laws. If the Owners Corporation does not have a noticeboard it must send all meetings and other notices to each owner directly.

Other responsibilities of owners and residents Besides by-laws, owners and residents have a number of other responsibilities under section 116 and 117 of the Act: • An owner or occupier must not interfere with any support or shelter provided by their lot for another lot or the common property.

• An owner must give the Owners Corporation at least 14 days notice before altering the structure of their lot. The notice must describe the alterations.

• The Owners Corporation can stop alterations to a lot if it interferes with the common property or any support to the rest of the building.

• An owner or occupier must not use or enjoy their lot in such a way which might cause a nuisance or hazard to another resident.

• An owner or occupier must not use or enjoy the common property in a way that may interfere unreasonably with another resident’s use and enjoyment or common property of their lot.

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Tenants Tenants are as much a part of their strata community as owners are. They have the same rights and responsibilities. The Owners Corporation cannot prevent an owner from renting their premises.

Kristy and Matt have a few questions about Common property.

1. Who is responsible for pruning trees on the property?

2. Who is responsible for looking after the wheelie bins?

3. We want to use the garden area outside our unit just for ourselves. Can we do this?

4. We want to park in a section of the driveway that’s common property. Can we get permission to do this?

5. Can we do our own repairs to common property?

6. Can we do anything we like to our backyard?

Before we answer those questions, let’s take a look at what common property is.

Common property is all the area of the land and building not included in any lot. It is jointly owned by all owners and the Owners Corporation is responsible for its management.

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The common property boundaries of each lot are generally formed by: • the upper surface of the floor (but not including carpet) • the under surface of the ceiling • the external or boundary walls (including doors and windows).

Generally common property includes: • floors including a ramp or stairway • boundary wall including any door, window or other structure within the wall and their working parts • ceramic tiles originally attached to a common property surface (eg. the floor or boundary wall) • pipes in common property or servicing more than one lot • parquetry and floorboards originally installed • vermiculite ceilings, plaster ceilings and cornices • magnesite finishes on the floor • balcony walls and doors are usually common property if the strata plan was registered after 1 July 1974, unless the registered strata plan says it is not

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In addition, structural cubic space is usually common property unless the registered strata plan shows that it forms part of the lot.

Structural cubic space includes: • any pipes, wires, cables or ducts that are not for the enjoyment of a single lot • any cubic space enclosed by a structure enclosing any of these pipes, wires, cables or ducts.

Boundaries If you are unclear about which parts of your unit are your individual ‘lot’ and which parts are common property, check on the strata plan. The common property boundaries are usually shown on strata plans by thick black lines. Sometimes it may be necessary to refer to the registered strata plan if the boundaries between common property and lots in a Strata Scheme are unclear. If you wish to obtain a copy or seek interpretation of the registered strata plan of your scheme, contact the Department of Lands at www.lands.nsw.gov.au or call 9288 6666.

Care of common property The Owners Corporation is responsible for the ongoing maintenance of common property (unless it decides by special resolution that it is inappropriate for a particular item and its decision will not affect the safety or appearance of the strata scheme). This includes repair work and replacing and renewing common property when needed.

Repairs and renovations involving common property Any repairs or renovations to an individual lot that involve common property (for example, installing cable television or adding a new window) will need the permission of the Owners Corporation.

The Owners Corporation can decide by special resolution at a general meeting to all or a particular lot owner to make additions to, or alter, common property. They can pass on an exclusive use by-law which gives the owner the use (not ownership) of that area of common property and makes them responsible for the repair and maintenance of the area, otherwise the Owners Corporation is responsible. An exclusive use by-law must be registered with Department of Lands within two years.

Now to answer Matt and Kristy’s questions:1. Who is responsible for pruning trees on the property?

If the trees are common property, it is the Owners Corporation responsibility. If the trees are part of your lot - you are responsible as the owner.

2. Who is responsible for looking after the wheelie bins?

The owners (or residents) are responsible for putting their own bins out, bringing them in, and keeping them clean. The Owners Corporation usually owns the bins.

3. We want to use the garden area outside my unit just for ourselves. Can we do this? If it is part of your lot, yes. If it is common property, you will need to get the permission of the Owners Corporation. This usually requires an exclusive use bylaw to be passed by special resolution (75% of members of the Owners Corporation have to vote for it) at a general meeting.

4. We want to park in a section of the driveway that’s common property. Can we get permission to do this?

Send a written request to the secretary or strata managing Agent. Permission should then be voted on at a general or executive committee meeting.

5. Can we do our own repairs to common property?

Only if you have the permission of the Owners Corporation.

If common property needs repair or maintenance, the Owners Corporation would undertake that work, not an individual owner.

6. Can we do anything we like to our backyard? If your backyard is part of your lot, you can do anything as long as it doesn’t breach by-laws, for example, you must not damage common property or create disturbing noises.

Kristy thinks she might like to be on the Executive Committee Firstly, what is the Executive Committee?

The Owners Corporation must elect an Executive Committee which can make many of the day-to-day decisions about running the scheme on its behalf.

However, the Owners Corporation can overrule Executive Committee decisions or limit what they can make decisions about.

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Election of the Executive Committee The executive committee is elected at each Annual General Meeting (AGM). It can have up to nine members and, once elected, decides who is to hold the office-bearer positions of chair, secretary and treasurer.

Who can stand for election?

• an owner • a company nominee of a corporation that is an owner • a person who is not an owner but who is nominated by an owner who is not standing for election.

Co-owners can only be nominated by: • an owner who is not a co-owner of that lot or • a co-owner of that lot who is not a candidate for the election If a vacancy occurs during the term of the executive committee, the owners corporation must appoint a person to fill the vacancy until the next AGM.

Office Bearers Chairperson The chairperson’s main duty is to preside over all Owners Corporation and executive committee meetings and make sure they run smoothly.

Secretary The powers and duties of the secretary include: • preparing minutes of meetings and putting a motion to 70 StrataLive Autumn/Winter 2014

confirm the previous minutes • issuing notices for the Owners Corporation and its executive committee that are required under the Act • keeping the strata roll • giving information on behalf of the Owners Corporation under section 108 • answering correspondence addressed to the Owners Corporation • convening meetings of the Owners Corporation and its executive committee (apart from its first AGM) • all the administrative and secretarial duties for the Owners Corporation and the executive committee.

Treasurer The duties of the treasurer include: • providing owners with notice of any levies • issuing receipts, banking and accounting for any money paid to the Owners Corporation • preparing any Certificates under Section 109 • keeping all accounting records and preparing financial statements.

Matt and Kristy found out the way to get the best out of strata living was to: • co-operate with their fellow residents and be considerate of their neighbours - this will help minimise disputes and conflicts • follow their strata scheme’s by-laws (rules) which cover many aspects of strata life • make sure that they do not damage common property • pay their levies.

WHO IS RESPONSIBLE?

Who is responsible?

Is it me or the owners corporation?

A guide from Strata Community Australia (NSW) and NSW Fair Trading.

WHO IS RESPONSIBLE?

Bathroom Who is responsible?

Bathroom Cabinet and/or Mirror

Owner

Blocked Floor Drain

Owners Corporation

Burst Pipe General

Owner/ Owners Corporation

Normally burst pipes are the responsibility of the Owners Corporation. However, if the pipe is for the exclusive use of the lot, then if it bursts: • Within the lot – owner’s responsibility (e.g. pipe in the internal wall feeding the shower) • Outside the lot – owners corporation’s responsibility (e.g. the lot’s hot water pipes but they are in the concrete floor).

If it is inside the lot it is the owners’ responsibility. It if it mounted within “structural cubic space” e.g. communal ducting or a false ceiling which is designed to carry communal pipes etc. or outside the lot, then it is the responsibility of the owners corporation.

Hot Water Service – Exclusive to a Lot

Owner/ Owners Corporation

If a hot water service is inside a lot, and for the exclusive use of that lot, it is the responsibility of the owner. However, if situated outside the lot it is the responsibility of the owners corporation unless subject to a special by-law.

Leaking Pipes Under Sink

Owner

Cracked Bath/Hand Basin

Owner

Main Stop Cock to Unit

Owners Corporation

Dripping “S” Bend Under Sink

Owner

Plug and Waste in Bath

Owner

Ducting Covering Stack

Owners Corporation

Exhaust Fans

Owner/ Owners Corporation

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The plug and waste are within the airspace of the lot and therefore the responsibility of the owner to repair and maintain.

WHO IS RESPONSIBLE?

The seal/grouting around the top of the bath is the owner’s responsibility to maintain unless the leaking seal/grouting abutts an external wall. The plug and waste under the bath is still within the lot’s airspace and therefore is the owner’s responsibility to maintain if water is leaking under the bath into the lot below.

Shower Screen Repairs

Owner

Toilet Bowl

Owner

Toilet Cistern

Owner

Water Leaking from Bath

Owner

Water Leaking from Shower

Owner/ Owners Corporation

The tiles on the floor, or a common wall that separate two lots - or the lot from common property - are the responsibility of the owners corporation. This includes the shower base. However, if the water is leaking through an internal wall, it is the responsibility of the owner. An exception is where water is leaking through the second floor of a townhouse that was built prior to 1st July 1974. The tiles on the floor in this case are the owners.

Water Leaking from Shower Taps

Owner

Water Leaking through Tiles

Owner/ Owners Corporation

Please refer above to “Water Leaking from Shower.”

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WHO IS RESPONSIBLE?

Kitchen Who is responsible?

Burst Pipe

Owners Corporation

Normally burst pipes are the responsibility of the owners corporation. However, if a pipe is for the exclusive use of the lot, then if it bursts: • Within the lot – owner’s responsibility (e.g. pipe in an internal wall feeding the shower) • Outside the lot – owners corporation’s responsibility (e.g. the lots hot water pipes but they are in the concrete floor).

Dishwasher

Owner

Dripping “S” Bend Under Sink

Owner

Ducting Covering Stack

Owners Corporation

Exhaust Fans

Owner/ Owners Corporation

If it is inside the lot, it is the owner’s responsibility. It if it mounted within “structural cubic space” e.g. communal ducting or a false ceiling which is designed to carry communal pipes etc., or outside the lot, then it is the responsibility of the owners corporation.

Floor and Wall Tiles

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Owner/ Owners Corporation

Tiles on a boundary wall or floor are the responsibility of the owners corporation. All other tiles are the owner’s responsibility.

The two exceptions are: 1. The tiles on the second floor of a townhouse that was built prior to 1st July 1974. The tiles on the floor in this case are the owner’s responsibility.

2. The tiles were laid by the owner and are subject to a by-law.

Hot Water Service – Exclusive to a Lot

Owner/ Owners Corporation

If the hot water service is inside a lot and for the exclusive use of that lot it is the responsibility of the owner. However, if situated outside the lot, it is the responsibility of the owners corporation unless subject to a special by-law.

Insinkerator

Owner

Kitchen Cupboards

Owner

Leaking Pipes Under Sink

Owner

Lino/Vinyl/Cork Tiles

Owner

Linoleum

Owner

Main Stop Cock to Unit

Owners Corporation

Stove

Owner

WHO IS RESPONSIBLE?

Ceilings/ Roof Who is responsible?

Ceiling Cornices

Owner/ Owners Corporation

Cornices are generally the responsibility of the owners corporation unless they abut a false ceiling or are attached to an internal wall.

Exhaust Fans

Owner/ Owners Corporation

If it is inside the lot it is the owner’s responsibility. It if it mounted within “structural cubic space” e.g. communal ducting or a false ceiling which is designed to carry communal pipes etc. or outside the lot, then it is the responsibility of the owners corporation.

False Ceilings

Owner/ Owners Corporation

If the false ceiling is installed on the registration of the strata plan, and is there to hide communal piping, ducting or wiring etc., then the owners corporation is responsible. Otherwise it is the owner’s responsibility.

Membranes

Owner/ Owners Corporation

Membranes on flat roofs are generally the responsibility of the owners corporation unless the building was registered prior to the 1st July 1974 and the roof area is part of the same lot which is underneath the roof. Furthermore, it should be noted that if the owners corporation is responsible to maintain the membranes,

then it is also responsible to make good any structure that has to be removed when repairing the membrane.

Paintwork

Owner

If damage is caused to a lot owner’s property while the owners corporation is effecting a repair, the owners corporation is responsible to fix the damaged property. However, if the cause of the damage to the owner’s property was not made when the owners corporation were fixing the problem; instead it was caused by the problem itself, then the owners corporation are not responsible to make good the owner’s property unless the owners corporation can be deemed negligent: E.g.: 1. A burst pipe occurs in a wall and the owners corporation have to knock a hole in the wall to fix it. The owners corporation are responsible to fix the hole and repaint the wall afterwards.

2. A burst pipe occurs in a concrete slab. The owner’s corporation fix the leak, but water stained the ceiling paintwork of the unit below. Here the owners corporation are not responsible to repaint the ceiling because it was not the fixing of the repair that caused the damage Plastered Ceilings

Owners Corporation

As for Paintwork above.

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WHO IS RESPONSIBLE?

Floor Who is responsible?

Blocked Floor Drain

Owners Corporation

Floor and Wall Tiles

Owner/ Owners Corporation

Tiles on the boundary wall or floor are the responsibility of the owners corporation. All other tiles are the owner’s responsibility.

The two exceptions are: 1. The tiles on the second floor of a townhouse that was built prior to 1974. The tiles on the floor in this case are the owner’s responsibility.

2. The tiles were laid by the owner and are subject to a by-law.

Mezzanines within Lots

Owner/ Owners Corporation

Stairs and mezzanines within a lot are generally the responsibility of the owners corporation unless the strata plan was registered prior to 1st July 1974. The Strata Schemes Freehold Development Act 1973 defines the floor to also include a stairway or ramp.

Floorboards/Parquetry flooring

Owner/ Owners Corporation

Except for floor coverings laid after the registration of the strata plan, these type of floor coverings are the responsibility of the owners corporation.

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Internal Carpet

Owner/ Owners Corporation

If damage is caused to a lot owner’s property while the owners corporation is effecting a repair, the owners corporation is responsible to fix the damaged property. However, if the cause of the damage to the owner’s property was not made when the owners corporation were fixing the problem; instead it was caused by the problem itself, then the owners corporation is not responsible to make good the owner’s property unless the owners corporation can be deemed negligent: E.g.: 1. A burst hot water service soaked the magnasite in a unit and the owners corporation had to take up the carpet to dry the magnasite. Once the magnasite had dried, the carpet could not be re-laid because it shrank. The owners corporation would be responsible for the carpet because the carpet was damaged because they had to take it up.

2. With example one, if the magnasite was not damaged, the owners corporation would not be responsible to dry out the carpet or replace it.

WHO IS RESPONSIBLE?

Skirting boards and architraves

Owner/ Owners Corporation

Skirting boards and architraves are the owner’s responsibility unless situated on a common wall.

Lino/vinyl/cork tiles

Owner

Linoleum

Owner

Magnasite Floor Base

Owners Corporation

Pavers

Owner/ Owners Corporation

Most balconies, courtyards or garden areas attached to a lot have their vertical boundaries denfined on the strata plan.

E.g. The stratum of the courtyards is limited to a depth of three metres below and except where covered to a height of 10 metres above the concrete ground floor or its respective adjoining lot. Therefore anything within that area that is not shown on the strata plan as a thick black line and is for the exclusive use of the lot, they are the owner’s responsibility to maintain. This includes timber decking, awnings and pavers.

Furthermore a tree growing in a courtyard is deemed to belong to the owner and they are responsible for all pruning, removal or damage caused from the tree irrespective of whether some of the branches extend beyond that lot.

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WHO IS RESPONSIBLE?

Balcony Who is responsible?

Door flysceens/Security door

Owner/ Owners Corporation

If the strata plan was registered before 1 July 1974, the balcony wall including the windows and door and their working parts are generally part of the lot and the lot owner’s responsibility for maintenance and repairs (unless there is a notation on the strata plan or the balconies are not shown on the strata plan).

If the plan was registered after 1 July 1974 the balcony wall including the windows and doors and their working parts are generally common property and the owners corporation’s responsibility (Unless the strata plan says otherwise). With the exception to flyscreens and/or security doors where they were installed by the owner after registration of the strata plan.

Door, Window and Wall

Owner/ Owners Corporation

Water leaking through wall

Owner/ Owners Corporation

As per above – the same applies 78 StrataLive Autumn/Winter 2014

Painting of Balcony Ceiling

Owner/ Owners Corporation

Unless there is a notation on the strata plan limiting the height of the balconies stratum to a height less than the under surface of the balcony above, it is nearly always the responsibility of the owner. However, the owners corporation will normally include the painting of this area when the whole building is repainted.

Columns

Owners Corporation

A strata plan will typically not show columns. They may exist within a courtyard or balcony or a lot supporting the balcony above or within the lot supporting the slab. Either way the columns are structural cubic space as they are supporting the structure of the balcony, or slab, which is common property.

Note: a wall whether structural or not cannot be structural cubic space. For a wall to form common property it must be shown or referred to on the plan as common property. See definition of structural cubic space. (cubic space occupied by a vertical structural member, not being a wall of a building).

WHO IS RESPONSIBLE?

Railings

Owners Corporation

Awnings

Owner/ Owners Corporation

Most balconies, courtyards or garden areas attached to a lot have their vertical boundaries denfined on the strata plan.

E.g. The stratum of the courtyards is limited to a depth of three metres below and except where covered to a height of 10 metres above the concrete ground floor of its respective adjoining lot.

Therefore anything within that area that is not shown on the strata plan as a thick black line and is for the exclusive use of the lot, they are the owner’s responsibility to maintain. This includes timber decking, awnings and pavers.

Furthermore a tree growing in a courtyard is deemed to belong to the owner and they are responsible for all pruning, removal or damage caused from the tree irrespective of whether some of the branches extend beyond that lot.

Generally, if the tiles were there on the registration of the strata plan, then they are the responsibility of the owners corporation.

Tiles

Owner/ Owners Corporation

If they were installed after by the owner’s then they are the owner’s responsibility. However, always refer to the strata plan for a clear indication of the balconies boundaries. Be careful when reading notations on the strata plan, in accordance with the court case “Seiwa Pty Ltd v Owners Strata Plan 35042”.

The following example only defines the upper boundary and not the lower boundary. “Balconies limited in height to 2.5 above the upper surface of the concrete floor thereof except where covered”. Any tiles attached to the concrete floor with this notation on the strata plan would still be the responsibility of the owners corporation if they were affixed prior to registration of the strata plan.

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WHO IS RESPONSIBLE?

Courtyard Who is responsible?

Fencing

Owner/ Owners Corporation

If they are shown as a thick line on the strata plan then they are deemed a common wall and the responsibility of the owners corporation. However, if they are shown as a thin, dotted or no line on the strata plan then they are treated in accordance with the Dividing Fences Act and are treated as follows: 1. Divides two lots. Each owner is responsible 50/50 2. Divides one lot from common property. The owner is responsible 50 percent and the owners corporation is responsible 50 percent 3. Divides one lot from the adjoining property. The owners corporation is responsible for 100 percent of its share.

Guttering on Townhouse

Owners Corporation

Even though they may be within the boundaries of a strata lot, the downpipes and attached drainage pipes are structural cubic space as they service the roof and gutters which are common property. Again this only applies provided the pipes were in place at the time of registration of the plan. To add further pipes at a later date requires the creation of an easement. Note: The rights of the Owners Corporation to gain access to structural cubic space within a lot are provided under Section 65 of the Strata Schemes Management Act 1996.

Pavers

Owner/ Owners Corporation

Most balconies, courtyards or garden areas attached to a lot have their vertical boundaries denfined on the strata plan.

E.g. The stratum of the courtyards are limited to a depth of three metres below and except where covered to a height of 10 metres above the concrete ground floor of its respective adjoining lot. Therefore anything within that area that is not shown on the strata plan as a thick black line and is for the exclusive use of the lot, they are the owner’s responsibility to maintain. This includes timber decking, awnings and pavers.

Furthermore a tree growing in a courtyard is deemed to belong to the owner and they are responsible for all pruning, removal or damage caused from the tree irrespective of whether some of the branches extend beyond that lot.

Tree trimming/removal

Owner

Deck, Pergola or Steps

Owner/ Owners Corporation

As per “Pavers� above, the same applies.

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WHO IS RESPONSIBLE?

Entrance Who is responsible?

Door Locks

Owners Corporation

Only the original lock or its subsequent replacement is the responsibility of the owners corporation. If any additional locks are installed, they are the responsibility of the owner. If the owner replaces the original lock with a lock that prevents the door complying with the certification, and the owner refuses to replace it with a complying lock, the owners corporation can replace the lock and charge the owner as a debt (Section 63(4) SSMA).

Entrance Door Automatic Closer

Owners Corporation

Entrance Door to Lot

Owners Corporation

Key. Security Card etc.

Owner

Security Door Repair

Owner/ Owners Corporation

If they were there on the registration of the strata plan, then they are the responsibility of the owners corporation (NSW Fair Trading take the view that the garage controller is classified as the lock and door closer for the garage door albeit it being electric.

Therefore as with the main lock and door closer to a unit’s entrance door being the owners corporation’s responsibility, so is the controller). However, if they were installed after by the owner, then they are the owner’s responsibility.

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WHO IS RESPONSIBLE?

Parking

Who is responsible?

Carports

Owners Corporation

Normally always owners corporations responsibility to maintain, this includes the spring and hinge mechanisms unless they were installed by the owner under an exclusive use by-law.

Garage Doors

Owners Corporation

As per ‘Carports’ above, the same applies.

Garage Door Lock

Owners Corporation

Door Controller Button

Owner

Door Hinge Mechanism

Owners Corporation

Electric Garage Door Opener

Owner/ Owners Corporation

If they were there on the registration of the strata plan, then they are the responsibility of the owners corporation (NSW Fair Trading takes the view that garage controller is classified as the lock and door closer for the garage door albeit it being electric.

Therefore as with the main lock and door closer to a unit’s entrance door being the owners corporation’s responsibility, so is the controller). However, if installed after by the owner, then they are the owner’s responsibility.

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Garage Door auto opening mechanism

Owner/ Owners Corporation

As per Electric Garage Door Opener” above, the same applies.

Garage Door Auto Remote

Owner

Light Fittings

Owner/ Owners Corporation

Normally light fittings are always the responsibility of the owner, except in occasions on the balcony where the strata plan details the upper height of the balcony as being less than where the light fitting is. E.g. The strata plan reads “The upper height of the balcony extends 2.3 metres above the concrete slab” and the light fitting is 2.5 metres above the concrete slab. Then the light fitting is in common airspace and is the responsibility of the owners corporation. In the situation where the light fitting is in a carport or garage of a lot but is connected to communal power, the responsibility to maintain it still falls with the owner of the lot except where the light fitting is installed to also illuminate other areas within the scheme.

WHO IS RESPONSIBLE?

Line Marking

Owners Corporation

Mesh between Garages

Owner/ Owners Corporation

f they are shown as a thick line on the strata plan then they are deemed a common wall and the responsibility of the owners corporation. However, if they are shown as a thin, dotted or no line on the strata plan then they are treated in accordance with the Dividing Fences Act and are treated as follows: 1. Divides two lots. Each owner is responsible 50/50 2. Divides one lot from common property. The owner is responsible 50 percent and the owners corporation is responsible 50 percent 3. Divides one lot from the adjoining property.

The owners corporation are responsible for 100 percent of its share.

Water ingress into garage

Owner/ Owners Corporation

A garage by definition is not a livable area. It is therefore exempt from compliance with the waterproofing standards for habitable use set by the Building Code of Australia, that it be impervious to water penetration. Unless there is some damage to common property that is causing the water penetration, the owners corporation is not responsible to ensure a garage area remains dry. However, the owners corporation is responsible to stop water dripping on to a car and damaging the paintwork.

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WHO IS RESPONSIBLE?

Electrical

Who is responsible?

Air Conditioning Systems

Owner/ Owners Corporation

That part of an air-conditioning system that is inside a lot and for the exclusive use of that lot is the responsibility of the owner. Parts outside the lot are the responsibility of the owners corporation unless they are subject to a special by-law.

Electric Garage Door Opener

Owner/ Owners Corporation

If they were there on the registration of the strata plan, then they are the responsibility of the owners corporation (NSW Fair Trading takes the view that garage controller is classified as the lock and door closer for the garage door albeit it being electric.

Therefore as with the main lock and door closer to a unit’s entrance door being the Owners Corporation’s responsibility, so is the controller). However, if installed after by the owner, then they are the owner’s responsibility.

Exhaust Fans

Owner/ Owners Corporation

If it is inside the lot it is the owner’s responsibility. If it is mounted within “structural cubic space” e.g. communal ducting or a false 84 StrataLive Autumn/Winter 2014

ceiling which is designed to carry communal pipes etc., or outside the lot, then it is the responsibility of the owners corporation.

Fuses

Owner/ Owners Corporation

If the fuse board is within the lot, then it is the owner’s responsibility. If the fuse board is in the meter room then it is the owners corporation’s responsibility.

NOTE: Because the meter room is common property, the owners corporation cannot prevent owners or occupiers gaining access to it. However, the owners corporation is not required to give out a key. If requested for a key, the owners corporation should inform the owner that if they are given a key and they electrocute themselves, the owners corporation could be held responsible. However, owners can get a key from Sydney Electricity or the electricity supplier in their area.

Hot water service – exclusive to a lot

Owner/ Owners Corporation

If the hot water service is inside a lot and for the exclusive use of that lot it is the responsibility of the owner. However, if situated outside the lot it is the responsibility of the owners corporation unless subject to a special by-law.

WHO IS RESPONSIBLE?

Hot water services – communal

Owners Corporation

Insinkerators

Owner

Intercom Handset

Owners Corporation

As intercom handsets are part of an integrated system, a faulty handset can affect the overall workings of the intercom system so handsets are deemed to be the owners corporation’s responsibility regardless of whether they are mounted entirely within the airspace of a lot.

Intercom Wiring

Owner/ Owners Corporation

Any pipe, cable, ducting, plug or the like is for the exclusive use of the lot and it breaks: • Within the lot – it is the owner’s responsibility • Outside the lot or in a wall, floor or ceiling that abutts to either common property or another lot – it is the owner’s corporation’s responsibility.

Light and power wiring

Owner/ Owners Corporation

As per “Intercom Wiring”, the same applies.

Light Fittings

Owner/ Owners Corporation

Normally light fittings are always the responsibility of the owner, except on occasions on the balcony where the strata plan details the upper height of the balcony as being less that where the light fitting is. E.g. The strata plan reads “The upper height of the balcony extends 2.3 metres above the concrete slab” and the light fitting is 2.5 metres above the concrete slab. Then the light fitting is in common airspace and is the responsibility of the owners corporation. In the situation where the light fitting is in a carport or garage of a lot but is connected to communal power, the responsibility to maintain it still falls with the owner of the lot except where the light fitting is installed to also illuminate other areas within the scheme.

Power Point Socket

Owner/ Owners Corporation

As per for “Intercom Wiring”, the same applies.

Light Switches

Owner

Smoke Detectors

Owner/ Owners Corporation

If the smoke detectors are stand-alone and are not connected to

a fire board in the building, then they are the owner’s responsibility, otherwise they are owners corporation’s responsibility.

Stove

Owner

Telephone (additional wiring required)

Owner

If not installed on the registration of the strata plan then the owners corporation are not required to install them.

Telephone Sockets

Owner

Telephone Wiring Broken

Owner/ Owners Corporation

As per “Intercom Wiring”, the same applies.

TV (Foxtel wiring required)

Owner

If not installed on the registration of the strata plan then the owners corporation is not required to install them.

TV Aerial

Owners Corporation

TV Cabling

Owner/ Owners Corporation

TV Socket

Owner/ Owners Corporation

As per “Intercom Wiring”, the same applies StrataLive Autumn/Winter 2014

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WHO IS RESPONSIBLE?

Plumbing

Who is responsible?

Blocked Floor Drain

Owners Corporation

Blocked Sewer

Owners Corporation

Burst Pipe General

Owners Corporation

Normally burst pipes are the responsibility of the owners corporation. However, if the pipe is for the exclusive use of the lot, then if it bursts: • Within the lot – It is the owner’s responsibility (e.g. pip in the internal wall feed the shower) • Outside the lot – It is the owners corporation’s responsibility (e.g. the lot’s hot water pipes but they are in the concrete floor).

Damage to Unit After Water Leak

Owner/ Owners Corporation

If damage is caused to a lot owner’s property while the owners corporation is effecting a repair, the owners corporation is responsible to fix the damaged property. However, if the cause of the damage to the owner’s property was not made when the owners corporation were fixing the problem; instead it was caused by the problem itself, then the owners corporation are not responsible to make good the owner’s property unless the owners corporation can be deemed negligent: E.g.: 86 StrataLive Autumn/Winter 2014

1. A bust pipe occurs in a wall and the owners corporation have to knock a hole in the wall to fix it. The owners corporation is responsible to fix the hole and repaint the wall afterwards.

2. A bust pipe occurs in a concrete slab. The owners corporation fix the leek, but water stained the ceiling paintwork of the unit below. Here the owners corporation is not responsible to repaint the ceiling because it shrank. The owners corporation would be responsible to repaint the ceiling because it was not the fixing of the repair that caused the damage.

3. A burst hot water service soaked the magnasite in a unit and the owners corporation had to take up the carpet to dry the magnasite. Once the magnasite had dried, the carpet could not be re-laid because it shrank. The owners corporation would be responsible for the carpet because the carpet was damaged because they had to take it up.

4. With example one, if the magnasite was not damaged, the owners corporation would not be responsible to dry out the carpet or replace it.

Dampness in a Unit

Owner/ Owners Corporation

WHO IS RESPONSIBLE?

If dampness (e.g. mould) is occurring in a unit, it must be first determined where the water is coming from. If the dampness is coming from condensation from the inside, then it is the owner’s responsibility. Common causes of this are: • kitchen cooking • use of clothes dryer • sleeping in bedroom without opening window (The average person expels 400ml water each night while sleeping.)

In this case mould is normally more virulent in the colder months and would normally occur on a southern wall or on flat concrete roof. Also the mould would occur on the surface of the paint with no paint lifting. If it were coming from outside, then the paint would lift with white powder under the paint.

Dripping “S” Bend Under Sink

Owner

Leaking Pipes Under Sink

Owner

Guttering on Townhouse

Owners Corporation

Even though they may be within the boundaries of a strata lot the down pipes and attached drainage pipes are structural cubic space as they service the roof and gutters which are common property. Again this only applies provided the pipes were in place at the time of registration of the plan. To add further pipes at a later date requires the creation of an easement. Note: The rights of the owners corporation to gain access to structural cubic space within a lot are provided under Section 65 of the Strata Schemes Management 1996.

Main Stop Cock to Unit

Owner

Plug and Waste in Bath

Owners Corporation

Water Leaking from Bath

Owner

The seal/grouting around the top of the bath is in the owner’s responsibility to maintain unless the leaking seal/ grouting abutts an external wall. The plug and waste under the bath is still within the lots airspace and therefore is the owner’s responsibility to maintain if water is leaking under the bath into the lot below.

Owner/ Owners Corporation

Water Leaking from Shower

The tiles on the floor or on a common wall that separates two lots or the lot from common property is the responsibility of the owners corporation. This includes the shower base. However, if the water is leaking through an internal wall, it is the responsibility of the owner. An exception is where water is leaking through the second floor of a townhouse that was built prior to 1st July 1974. The tiles on the floor in this case are the owners.

Water Leaking from Shower Taps

Owner

Water Leaking through Tiles

Owner/ Owners Corporation

As per “Water Leaking from Bath”, the same applies.

The plug and waste is within the airspace of the lot and therefore the responsibility of the owner to repair and maintain.

Toilet Bowl

Owner

Toilet Cistern

Owner

Water ingress into Garage

Owner/ Owners Corporation

A garage by definition is not a livable area. It is therefore exempt from compliance with the waterproofing standards for habitable use set by the Building Code of Australia, that it be impervious to water penetration. Unless there is some damage to common property that is causing the water penetration, the owners corporation is not responsible to ensure a garage area remains dry. However, the owners corporation is responsible to stop water dripping on to a car and damaging the paintwork.

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WHO IS RESPONSIBLE?

General

Who is responsible?

Built in wardrobes/cupboards

Owner

Cracks in Walls

Owner/ Owners Corporation

Walls and doors that are on the boundary of the lot are the responsibility of the owners corporation to maintain. Internal walls and doors are the owner’s responsibility. If cracks appear in an owners corporations wall and/ or cornice and are less than 2mm thick, they are not deemed as damage and the owners corporation is not compelled to repair them.

Damage to Common Property

by Tenant

Owners Corporation

NSW Fair Trading has deemed any damage to common property made by either owners or tenants as being the responsibility of the owners corporation to repair. Unless the damage was deliberate, they deem this as normal wear and tear. An example of this is the marking of the walls in the stairwell after a tenant moves in.

Skirting Boards and Architraves

88 StrataLive Autumn/Winter 2014

Owner/ Owners Corporation

Skirting boards and architraves are the owner’s responsibility unless situated on a common wall.

Internal Paintwork

Owner

If damage is caused to a lot owner’s property while the owners corporation are effecting a repair, the owners corporation are responsible to fix the damaged property. However, if the cause of the damage to the owner’s property was not made when the owners corporation were fixing the problem; instead it was

WHO IS RESPONSIBLE?

caused by the problem itself, then the owners corporation are not responsible to make good the owner’s property unless the owners corporation can be deemed negligent: E.g.: 1. A bust pipe occurs in a wall and the owners corporation have to knock a hole in the wall to fix it. The owners corporation is responsible to fix the hole and repaint the wall afterwards.

2. A bust pipe occurs in a concrete slab. The owners corporation fix the leek, but water stained the ceiling paintwork of the unit below. Here the owners corporation is not responsible to repaint the ceiling because it shrank. The owners corporation would be responsible to repaint the ceiling because it was not the fixing of the repair that caused the damage.

3. A burst hot water service soaked the magnasite in a unit and the owners corporation had to take up the carpet to dry the magnasite. Once the magnasite had dried, the carpet could not be re-laid because it shrank. The owners corporation would be responsible for the carpet because the carpet was damaged because they had to take it up.

4. With example one, if the magnasite was not damaged, the owners corporation would not be responsible to dry out the carpet or replace it.

Floorboards/Parquetry Flooring

Owner/ Owners Corporation

Except for floor coverings laid after the registration of the strata plan, these type of floor coverings are the responsibility of the owners corporation.

Stairs in Lot

Owner/ Owners Corporation

Stairs and mezzanines within a lot are generally the responsibility of the owner corporation unless the Strata Plan was registered prior to 1st July 1974. The Strata Schemes Freehold Development Act 1973 defines a floor to also include a stairway or ramp.

Ducting Covering Stack

Owners Corporation

Internal Doors

Owner

Carpets

Owner

Keys, Security Cards etc

Owner

Letter Boxes

Owners Corporation

As per “Internal Paintwork”, the same applies.

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WHO IS RESPONSIBLE?

Windows

Who is responsible?

Cleaning Outside

Owner/ Owners Corporation

Normally the cleaning of windows is the responsibility of the owner or occupier of the lot. However always check the bylaws; if the model by-laws have been used, by-law 11 has an additional clause included.

11(2) The owners corporation is responsible for cleaning regularly all exterior surfaces of glass in windows and doors that cannot be accessed by the owner or occupier of the lot safely or at all.

Flyscreens

Owner/ Owners Corporation

If they were there on the registration of the strata plan, then they are the responsibility of the owners corporation (The OFT takes the view that garage controller is classified as the lock and door closer for the garage door albeit it being electric. Therefore as with the main lock and door closer to a unit’s entrance door being OC responsibility, so is the controller). However, if they were installed after by the owner, then they are the owner’s responsibility.

Locks

As for Flyscreens above 90 StrataLive Autumn/Winter 2014

Owner/ Owners Corporation

Repairs

Owner/ Owners Corporation

The owners corporation are responsible for repair and maintenance with this exception: If the strata plan was registered before 1 July 1974 the balcony wall including the windows and door and their working parts are generally part of the lot and the lot owner’s responsibility for maintenance and repairs (unless there is a notation on the strata plan or the balconies are not shown on the strata plan).

If the plan was registered after 1 July 1974 the balcony wall including the windows and doors and their working parts are generally common property and the owners corporation’s responsibility (unless the strata plan says otherwise). With the exception to flyscreens and/or security doors if where installed by the owner after registration of the strata plan.

Sash Cord Replacement

Owner/ Owners Corporation

Seal to Window

Owner/ Owners Corporation

As per “Repairs” above, the same applies.

WHO YOU GOING TO CALL?

Strata Manager?

Property Manager?

Building Manager?

Who you going to call?

By Barry Hyland

Many lot owners are confused about the roles performed by a Strata Manager, a Property Manager and a Building Manager.

Who does what? Which one do you call to resolve an issue or fix your particular problem?

To sort out the confusion Stratalive gathered two of the best in the business, Olivera Ferguson, a director of Strata Plus, and Kym West, the senior property manager at Laing & Simmons, Milson Point to explain...

Olivera Ferguson, Director - Strata Plus.

Kym West - Senior Property Manager, Laing & Simmons Milsons Point.

Over-arching roles Strata Manager: Responsible to the Owners Corporation. Entrusted to ensure compliance with the strata scheme. Acts as a facilitator – a problem solver – for owners as a whole.

Property Manager: Responsible only to individual owners who have appointed them to manage their investment property.

Building Manager: Employed by the Owners Corporation to manage, maintain and repair common property and facilities.

Specific responsibilities Strata Manager: • Provide advice, direction and leadership to the executive committee and Owners Corporation • Maintain the strata roll and other books and records of the Owners Corporation.

• Deal with routine inward and outward correspondence • Maintain the trust funds including the preparation of budgets, collection of levies and management of unpaid levies

• Provision of financial statements and the preparation of the trust accounts for a financial audit and tax and BAS returns • Meeting management including the preparation of agendas and minutes, and attendance of owners corporation meetings – ECMs & AGMs • Compliance management to the scheme’s by-laws and also a variety of legislation including Fire & Lift Safety, Swimming Pools, WH&S, building insurance valuations etc.

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WHO YOU GOING TO CALL?

Property Manager: • Tenant selection.

• Collect rents and pay bills (including levies) on behalf of the owner.

• Organise and oversee repairs within the strata apartment/suite.

• Project manage renovations of individual lots • Conduct regular inspections of the rental property, and ensure it is well maintained • Facilitate access for statutory inspections, such as fire compliance.

• Represent the best interests of the owner.

Building Manager: Many of the larger strata schemes employ caretakers/building managers on site to: • Control the use of common property by tradespersons and other nonresidents.

• Maintain and repair common property as per contract or on instruction from the Owners Corporation.

• Oversee the property’s security, fire protection and safety systems, air-conditioning, lighting, lifts and landscaping.

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Blurring the roles Because a strata manager works for all owners as a group, and a property manager works for individual owners, each role should be handled by different people/companies. If not, a conflict of interest could arise.

A building manager does not have the same delegated functions as a licensed strata manager nor can they enforce by-laws. They take their instructions from the executive committee and the owners corporation.

The building manager’s basic purpose is to reduce the amount of on-site time of executive committee members and the strata manager.

“A professional strata manager has a duty of care to provide guidance on what constitutes proper and appropriate instructions from an owners corporation,” said Olivera Ferguson.

“Social chaos and unclear time expectations result when advice from the strata manager is not sought.”

Repairs. Who do I call?

Responsibility for repairs is straightforward – the Owners Corporation must repair common property; owners must repair anything within their lot. However

– and this can be the tricky part – it is not always clear what is common property or what is the individual lot.

The basic rule is that everything inside the airspace of the apartment/ suite, (including all internal walls, fixtures, carpet and paint on the walls) is the responsibility of the lot owner.

So, call your property manager, if you have one.

Everything outside that airspace is common property and therefore the responsibility of the owners corporation.

So, call your strata manager.

If there is an emergency related to common property – such as a problem with a lift, security, services, facilities – and time is of the essence, call your building manager first (if you have one) then your strata manager.

Why employ a Strata Manager?

If you’re in a small strata complex then it is possible to self-manage, but do you have the time, knowledge and desire to take on the responsibilities?

Strata law is complicated, and you and your fellow owners could end up being sued for doing something contrary to the legislation.

A strata manager must continually

WHO YOU GOING TO CALL?

update their knowledge just to remain registered. They need to stay abreast of changes in what is a rapidly expanding industry, which underlines how difficult the self-managed role is for the average apartment owner.

A self-manager can be held personally liable for a wrong decision, such as not having the correct insurance coverage for the property, or enforcing a preventative maintenance program. If a building is not properly maintained and someone is injured as a result, all owners can be held legally liable.

Why employ a property manager?

A good property manager views a client’s rental property in much the same way that a financial adviser views an investment – with a constant eye on the ‘bottom line’. The aim is to maximise the return and the long-term capital growth.

It’s human nature to want to save money, which is why some investors try to manage their own property. This is not always a wise decision.

People who should not consider managing their own investment property include: • Investors who do not want the worry of being a hands-on manager • Investors who live out of town and cannot easily choose tenants, collect the rent and manage repairs • People who own multiple investment properties and don’t want to become a full-time landlord • Busy people • Non handymen • People who don’t have a good grasp of landlord and tenant rights • People who might have difficulty enforcing the conditions of a lease, for example collecting rent from a tardy tenant.

“Most people who have their property professionally managed find that the service offers good value for money and is generally the key to a worry-free investment,” said Ms West.

“First of all, property managers are skilled at finding qualified tenants.

Then we keep each property in prime

condition, which is vital to achieving maximum returns and the top dollar when it comes times to sell. We have reliable tradespeople who provide quality service at a fair price.

“We collect rents and pay bills on

behalf of our owners, and we know about the complexities of strata, so we represent the rights of our clients in matters relating to the Owners Corporation.”

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MAKEOVER FOR BUILDINGS - TONY IRVINE

‘Makeover’ for Buildings Project management in strata complexes

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uildings, like all of us, age and show signs of wear and tear.

When we need a ‘makeover’ we go to the hairdresser, the beautician or the plastic surgeon. When a strata complex needs ‘work’, professional help should also be sought.

Such projects may include: • Remedying building defects, either under a Home Owner Warranty claim or through the original builder • Major renovations such as common

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area refurbishments • Upgrading or introducing electronic access control systems and CCTV • Facade repairs, including remedial work, painting and window replacements.

In a strata complex many stakeholders must be considered because major works will impact all of them in varying degrees. They include: • Owners and tenants • Property managers

• Service providers who regularly attend the complex • Council and other statutory authorities, and • Strata managers.

Tony Irvine from Irvine Strata specialises in managing major projects, and says experience counts in such critical work. In the last four years he has managed: • Four Home Owners Warranty claims and defect projects totalling $6m

MAKEOVER FOR BUILDINGS - TONY IRVINE Photo: Joanna Davidson

• Three façade repair and repaint projects • Nine access control system implementations • Five CCTV implementations • Four garden refurbishments, and • Four interior foyer refurbishments.

“There is a strong advantage having a strata manager with project management experience to manage all aspects of the work,” said Tony, “and the earlier an Owners Corporation brings them ‘on board’ the better.”

A strata manager with project experience will understand: • The dynamics of the various stakeholders • The legal framework of the Act and how approvals from owners must be gained • The statutory approval process where Council is involved • The budgeting and financial management of the project • The contractual obligations and commercial negotiation • The impact on residents’ day-today lives • The common property nuances of the building • The communication framework needed to keep stakeholders informed on the project milestones and access requirements.

Tony says at a practical level, the types of questions a strata project manager will seek answers for are: • Do I have Owners Corporation approval to carry out the work?

• How will I fund the work?

• How will it impact the common property (eg loss of visitors’ car spaces)?

• How will it impact residents?

• Will I need access, and for how long?

• How is it best to communicate what will be happening to all the people impacted?

• Is there other work that logically make sense to do on the building before or after this project?.

“A Project Plan is a crucial document that we prepare to control all aspects of the tasks to be

Tony Irvine

undertaken,” said Tony, who at any one time can have one-quarter of his buildings undergoing major works.

“We capture all information, approvals, communication, financial, contracts and stakeholder details. It is highly detailed, and extends to things as simple as the colour of the paint to be used on the doors, walls, ceilings and architraves.”

Tony says the Five Key Points to successfully managing building works are: 1. Use a detailed Project Plan 2. Use experienced contractors who understand the dynamics of strata

3. Regular communication with all stakeholders 4. Visit the project site regularly – at least once a week, and 5. Accept that all the elements in play won’t go according to plan – be flexible and pragmatic.

“Astute owners know the importance of maintaining their strata building, and ensuring it is done correctly by using strata managers with proven project management experience.”

For more information visit www.irvinestrata.com.au or contact StrataLive Autumn/Winter 2014

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SECURITY OF PAYMENT LEGISLATION AMENDMENTS

Security of Payment Legislation Amendments Prepared by Catherine Newman - Chambers Russell Lawyers

Catherine Newman - Chambers Russell Lawyers.

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he Building and Construction Industry Security of Payment Amendment Act 2013 was introduced pursuant to the recommendations of the Collins Inquiry into Insolvency in the NSW Construction Industry with the intention of reforming payment timing issues under construction contracts, providing greater protection for subcontractors and promoting transparency in the contracting chain.

The key changes to the Building and Construction Industry Security of Payment Act 1999 (“the Act”) came into effect on 21 April 2014 and apply to contracts entered into after this date.

Those key changes are: • That contractors are no longer required to include a statement in a payment claim that the claim is a claim made under the Act. 96 StrataLive Autumn/Winter 2014

• That a payment claim (made by a head contractor on the principal) is now required to be accompanied by a supporting statement from the head contractor verifying that all of their subcontractors have been paid all amounts, if any, due. There is a mandatory form for such statements.

• The introduction of mandatory maximum deadlines for the making of progress payments (15 business days after a payment claim is submitted to a principal by a head contractor and 30 business days after a payment claim is submitted to a head contractor by a subcontractor).

These deadlines apply to progress payments under the contract as well as under the Act (except in relation to certain exempt contracts).

• It is now an offence which carries heavy fines and/or a term of

imprisonment for a head contractor to serve a payment claim on a principal without an accompanying supporting statement or if that statement is false or misleading (many contracts will also make such action a breach of the contract, and it could also be a breach of other law).

Prior to the amendments, contractors were required to include a statement on payment claims stating that the claim was a claim made under the Act before being able to benefit from any rights or remedies provided for in the Act. That requirement has been removed.

For principals, the need for a claim to be accompanied by a form of “supporting statement” will still, however, provide a means of determining whether a claim is made under the Act or merely the contract. As sub-contractors need not provide a supporting statement in claims

SECURITY OF PAYMENT LEGISLATION AMENDMENTS

against head contractors, it will now be particularly difficult for head contractors to identify when a claim has been made against them under the Act. However, in conjunction with the introduction of mandatory maximum periods for progress payments, the amendments blur the lines between claims under the Act and claims under the contract, with the potential for confusion as to whether compliance with the Act is required, or whether alternatively the contract terms should be followed. Such confusion may increase the risk of inadvertent noncompliance by principals and may result in an increase in judgments against them under the Act. These risks for the principal are particularly acute where the principal is the owners corporation of a strata scheme, who do not generally have

access to expertise in these matters, and whose internal management and decision making processes are at times labored due to the requirements of their governing legislation.

Principals will need to be diligent in reviewing and considering claims for payment promptly and carefully. Thought should be given to whether contractual provisions regarding payment should be changed to bring them in line with the procedures under the Act, thereby reducing confusion and simplifying the compliance burden.

Principals and head contractors alike should ensure they are careful to abide by the new mandatory payment deadlines.

Additionally head contractors will now need to ensure they have appropriate procedures in place to permit them to provide the necessary supporting statement that must accompany a

payment claim under the Act, as well as closely scrutinizing all claims for payment from their sub-contractors.

A further prospective change which has not yet been introduced may require retention money to be held in a trust account, which could result in an increase in parties (chiefly principals) requesting more accessible security, such as bank guarantees.

Parties to prospective construction contracts should turn their minds to what terms and conditions might be required to address the impact of the current and potential future changes to the Act. In particular parties should be aware that these matters are generally not dealt with by any of the standard form contracts in common use. Any existing standard special conditions used by parties may now need to be updated.

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Responsive, adaptable and cost-effective access to top-quality legal expertise in Strata & Community Title Chambers Russell Lawyers is proud to be able to offer its clients the highest quality legal expertise in all facets of Strata & Community Title Law, from building defects, construction, and insurance law to dispute resolution, service contracts, by-laws and more.

Chambers Russell Lawyers is staffed by widely recognised experts in the field with experience acting for all stakeholders in the Strata & Community Title space, from individual lot owners and owners corporations through to ASX 200 companies and the New South Wales Government.

Call us to speak directly with Partners Scott Chambers and Daniel Russell today. p +61 2 9233 1201 f +61 2 9233 1365 e info@chambersrussell.com.au Office Suite 404, 350 George Street SYDNEY NSW 2000 All correspondence to GPO Box 7100 SYDNEY NSW 2001

INSURANCE COMMISSIONS

Insurance commissions: The myths and facts It’s pretty much all Black and White

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big topic at the moment around the corridors of the strata industry is insurance commissions and how they affect you – the lot owner. We have asked the biggest underwriting insurance agency CHU Underwriting to explain it to you.

Introduction The NSW Government is considering imposing a prohibition on Strata Managers (and only Strata Managers) from receiving commission for insurancerelated activities for strata schemes.

Such a move will remove choice, and

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cost Owners more. In this article, we would like to debunk a few myths that are circulating the industry and have been put forward in support of such a ban.

Background Why do insurance companies pay insurance intermediaries such as insurance brokers or agents (e.g. strata managers) a commission?

Insurance companies traditionally employed large teams of sales and distribution staff to go out and sell their insurance offering. Over time, Insurers recognised that Insurance Brokers

and Agents were in a better position to distribute their product. Brokers and Agents had better relationships with their clients, understood the risks well, and having them sell the insurer’s offerings and paying them a commission was far cheaper than employing teams of staff. Most administrative functions could be taken care of as well. So this form of distribution still dominates most product lines apart from basic household insurances where the internet (direct sales) is increasing in popularity for domestic purchases.

INSURANCE COMMISSIONS

What does a commission payment cover?

All advocacy and administrative time in quoting, transacting and servicing an insurance contract for a scheme. For most schemes, the commission also covers time spent on claims which - if otherwise set as a Schedule B feebased arrangement - can be very costly due to the many hours of work performed in managing unexpected claims. The Agent or Broker only gets paid if the contract completes, so there can be a lot of time given to quoting and preparing an insurance contract for a scheme for no reward. For most small to medium sized schemes, receiving the insurance services of an Agent or Broker is extremely attractive, because there is no separate cost imposed, with the insurer only paying the commission to the successful Agent or Broker. There is no additional cost to budget for.

What else should I know about what this commission payment can cover?

• Training - Under financial services laws, in order to provide financial

services (providing advice and arranging or otherwise dealing in insurances) Strata Managers need to be trained and then appointed as a representative (distributor or authorised representative) by an Australian Financial Services (AFS) Licensee. The Owners Corporation is the beneficiary of the knowledge gained through this process.

• Supervision - Once appointed, and depending on the level of authorisation, Strata Managers are then subject to ongoing training, monitoring and supervision (including audits). This provides a direct benefit to Owners Corporations because the AFS Licensee cannot abrogate responsibility through this mechanism.

• Insurance - AFS Licensees must provide professional indemnity (PI) insurance protection for the activities of Strata Managers they have appointed as representatives where they are acting within the authority provided by the Licensee. This provides a direct consumer protection benefit to Owners Corporations

through having the AFS Licensee business and assets standing behind the Strata Manager in the event of any acts, errors or omissions.

• Advocacy – Strata Managers have a fiduciary responsibility to owners, so they need to give general advice to effectively meet owners’ expectations. They can only do this if they are trained and properly appointed in accordance with legal requirements. Importantly, in times of adversity, they need to collaborate with many insurance representatives.

• Data & Transactions – Strata Managers need to collect, hold and present the data of a building to insurance markets, whether via a Broker, or direct to Insurers or specialist Underwriting Agencies.

These activities include: – Maintaining risk data and claims histories to negotiate best options; – Maintaining a schedule of business activities for commercial premises; – Organising/updating insurance valuations;

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INSURANCE COMMISSIONS

– Completion and lodgement of documentation; – Collection and payment of premiums; – Receipt of certificates; – Assistance with obtaining certificates of currency; – Coordination of repairs and administrative activities in the event of a claim.

• Repairs - Strata Managers will perform work when damaged common property needs repair.

The cause of damage is not always obvious, and any issues around causation – i.e. accidental damage (covered by insurance) or maintenance-related (a scheme cost) are generally sorted out after all the work has been completed. The Strata Manager is in the best position to quickly act on such matters, which is efficient and cost effective for owners.

Myth or fact; the core contentions: Myth #1 – Government intervention is required on Commissions Fact: There is a complete lack of evidence of any systemic problems.

Insurance intermediaries are regulated federally by Australian Securities and Investments Comission (ASIC). We could not establish any reported ‘commission’ disputes with the Financial Ombudsman Services (FOS), nor could we establish any such disputes or concerns raised with ASIC. In January 2013 the Australian Consumer and Competition commission (ACCC) wrote to SCA Victoria advising that a complaint had been received alleging that the insurance commission provisions, together with those relating to fixed annual fee increases, in their standard management contract may breach Consumer Law provisions on anti-competitive conduct. SCA Victoria provided a detailed response and on 10 May 2013 the ACCC advised it would take no further action. (a) Regulatory intervention ought to be saved for cases of market failure or clear systemic failures that impact consumers, competition, or market efficiency. New regulations should 102 StrataLive Autumn/Winter 2014

only be introduced where there is a clear and demonstrated net consumer benefit. There is no case made out here, just examples of poor service experiences which ought to result in the services of those professionals being reviewed. (b) Insurance (financial services) is regulated by the Act. The issue of commissions within the strata industry was reviewed in the last 18 months, and within the general insurance industry broadly over the last four years (as part of the Federal Government FOFA review). No changes were made1. (c) If there did exist a case to prevent a professional and regulated Insurance Agent such as a Strata Manager from being remunerated for insurance-related services (that is, financial services), then the proper jurisdiction rests with the ASIC in their administration of the Act. (d) The proposed regulation is akin to restraint of trade for one profession, to the benefit of others, and will most likely reduce competition in the strata insurance market.

Myth #2 – This prohibition will NOT come at additional cost to Owners.

Fact: Incorrect. The prohibition will increase costs to Owners on average by 16.7%2. Premiums will fundamentally remain the same as Insurers continue to pay Brokers and other insurance intermediaries’ commissions.

As Strata Managers replace commission income with fees, Owners will inevitably pay more, or reduce professional management services – either way, such unintended outcomes are far from ideal. (a) There is an underlying assumption that Strata Insurance premiums will reduce as commission income to Strata Managers (paid by insurers) is replaced by fee income (paid by owners). Whilst Brokers and other insurance intermediaries continue to be remunerated by Insurers for their insurance related work, premiums are unlikely to reduce. (b) Competition ensures that Owners Corporations are the beneficiary of

all forms of remuneration, including commissions, through lower base management fees. Benchmarking studies3 support the fact that in the absence of these commissions, management fees would need to increase commensurately. (c) Higher costs will present affordability issues, and cut back in services. The flow on effects will result in Strata Management companies cutting back staff numbers, or risk moving into trading difficulties. (d) If an individual Owners Corporation wants to remove commission based revenue from their arrangements with their Strata Manager, they can do so in accordance with their management contract. Fee and/ or commission arrangements are a choice available today.

Myth #3 – Commissions are ‘Conflicted Remuneration’ Fact: Yes, conflicted revenue now has a statutory definition, which extends to include some types of commission arrangements. However, commissions on general insurance products – including strata insurance – are explicitly excluded by the same statutory provisions. That is, commissions paid to Strata Managers are by definition NOT conflicted remuneration. (a) The activities of Strata Managers (as Insurance Agents) and Brokers are governed federally by financial services laws that are now embedded within the Corporations Act 2001 (Cth) (the Act). (b) The issue of conflicted remuneration and commissions was most recently dealt with by the Federal Government as a part of the FOFA4 reforms following losses sustained by investors as a part of the GFC. (c) Effective from 1st July 2013, Section 963A of the Act defines “Conflicted Remuneration”, and Section 963B makes it clear that commissions paid in connection with general insurance products fall outside that definition. (d) If there is a case for further regulatory intervention, then it

INSURANCE COMMISSIONS

should be addressed within the federal financial services framework under the jurisdiction of the Australian Securities & Investments Commission (ASIC).

Myth #4 – Strata Managers receiving insurance commissions is a conflict of interest.

Fact: Yes, they are in a position of conflict of interest, but so are other insurance intermediaries (including Brokers). There is no evidence to suggest that insurance intermediaries are not managing such conflicts appropriately. Rules governing management of conflicts of interest are set out in the Act5 and associated Regulatory Guides issued by ASIC as the financial services regulator. (a) There is nothing illegal or improper with being in a position of conflict of interest. It is common for professionals and those holding office (such as Owners sitting on Executive Committees). It is how that conflict is actually managed (disclosed or otherwise dealt with) that is important. (b) Other insurance intermediaries within the strata sector are fiduciaries to the Owners Corporation (such as Insurance Brokers) and are also remunerated via commission. These intermediaries are inherently in the same position of conflict all the time. (c) It is the professional action the Strata Manager and Brokers take to discharge their fiduciary duties towards the Owners Corporation that is important in assessing compliance.

Myth #5 – Commissions are a disincentive for Strata Managers to obtain lower premiums.

Fact: There is no evidence to support this contention. An insurance policy is a contract, and as such is subject to offer and acceptance every 12 months.

Strata Insurance is readily and frequently transferred for small differences in cost.

Any difference in commission income is usually not material to the strata manager whose main source of income are fees from the Owners Corporation.

In purely commercial terms, any loss of commission income by reducing the costs of premiums to a client will usually be more than offset by the improved prospect of retaining that client at contract renewal. (a) Across Australia, the cost of insurance is primarily driven by claims costs and insurance-related taxes, which collectively can make up over 60-65% of the total cost.

Commissions are paid on base premiums, and represent <10% of the total insurance cost. (b) Importantly, if commissions are only prohibited for Strata Managers, and other insurance intermediaries continue to be remunerated by commissions, the “disincentive” concern is not resolved. It is merely transferred from one group of professionals to another. (c) The value of a Strata Manager’s business is inherently linked to the number of schemes it manages, so there is a disincentive (in being flippant) to gain a few more dollars in insurance commissions at the risk of losing thousands of dollars’ worth of Management rights.

Myth #6 – Commissions are not transparent Fact: Not true: the financial services sector in Australia has a world class disclosure regime6, and the Property, Stock and Business Agents Act 2002 (NSW) (PSBAA) adds strength to this for the NSW strata sector. (a) The standard SCA Strata Management agency agreement in NSW provides consumers disclosure and choice. It has on the front page the option for any Owners Corporation to prohibit their Strata Manager from the receipt of commissions. A simple tick of a box is all that is required to opt in or to opt out, and if so, what fees will then be struck. (b) This myth ignores the fact that many schemes choose the Fee/ Commission arrangement with Strata Managers because it is a fixed cost, and very efficient for

small to medium sized schemes.

Why remove choice? (c) A full fee-for-service model generally works better for larger schemes, and most large schemes have already chosen such arrangements without regulatory intervention. (d) This myth also ignores the fact that Executive Committee members who agree and bind the Owners Corporation to a fee and commission arrangement with their Strata Manager, are often not the same Executive Committee members who question the arrangement at a later stage. If the problem is about difficulty in readily accessing this type of information, it can be addressed in a number of different ways.

Comment: Where transparency can be improved is during the quote and renewal phase of the insurance process, where remuneration is not always split out between premiums, taxes, commissions, and broker fees.

Some insurance intermediaries do not break down insurance price until the invoicing phase. Of greater concern, this insurance information is ‘dumbed down’ to indemnity limits and price only, with no consideration for or communication of scope of cover, reputation, insurer credit risk, insurer claims payment track record, and so on. As an industry, we can do better here.

Myth #7 – Strata Managers as Insurance Agents deny Owners advice Fact: Not true, as most Strata Managers are trained to give general advice as a minimum, and/or use Brokers (as required) to give advice as a part of their service offering. If there is a lack of advice for Owners, a prohibition on commission payments to Managers will not address this concern. (a) Brokers are generally trained to give personal advice. Strata Managers can be trained and appointed

by AFS Licensees (for strata, they are generally Underwriting Agencies or Brokers) as Authorised Representatives with Personal or StrataLive Autumn/Winter 2014

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General Advice authority, or no advice. Under-skilled or uninformed professionals (Strata Managers or Brokers) contribute to owners’ poor experience with lack of advice or poor quality advice. (b) Unless a scheme specifically asks their Broker to give ‘full personal advice’ on their needs, they will simply be provided quotes with an advice limitation clause included (“general advice warning”).

Myth #8 – Strata Managers as Insurance Agents deny Owners choice and/or competition.

Fact: Not true. This contention is unfounded, and made on the premise that historically there have been only two AFS Licensees who would distribute their products and services via Strata Managers. Most Managers, if not all, will also have relationships with Insurance Brokers to obtain quotes from other insurance markets as needed, or upon instructions from their scheme.

Accessing multiple insurance markets is not restricted. (a) By law, it is the scheme that decides where the insurances are to be placed, not the Strata Manager or Broker. (b) Some Insurers will pay Brokers a higher level of commission (up to 23.5% plus other benefits) than the two AFS Licensees referred to above (who cap at 20%). (c) Competition is made up by the number of Insurers times the number of distribution points (Brokers and Agents). There are many Insurers with strata insurance products and services, with new Underwriting Agencies entering the market in recent years. It is a very competitive market. (d) If the 300+ Strata Managers in NSW are, through the proposed ban on commissions, forced into a position whereby they can no longer provide insurance-related services, this will reduce competition significantly, and deny owners choice. (e) Insurer (non) profitability has been the single biggest reason for 104 StrataLive Autumn/Winter 2014

Insurers to either pull out of this sector, or for them not to enter it.

Strata insurance has not been a very profitable class of insurance over the last few years, as seen by consumers through premium and excess increases from insurers in recent times.

Myth #9 – Strata Managers as Insurance Agents denies advantages of large buying power and claims management that Brokers can bring.

Fact: Not true, and a somewhat uninformed contention. The premise of this myth assumes all Brokers have large buying power and can use this to leverage claims outcomes. (a) Many Strata Managers have insurance portfolios equal to or larger than some Insurance Broker’s portfolios. But size does not always equate to leverage. (b) Any Agent or Broker who has a strong and trusted relationship with their Insurers can leverage outcomes with claims advocacy. If they also have scale in their trading relationship, this can help further. (c) Given nearly two-thirds of claims are single repairs/invoices, and most repairs are completed by the Strata Manager before a claim is made, arguably Strata Managers can be more influential in claims than Brokers.

Myth #10 – Commissions can inflate Strata Management income for no extra work.

Fact: This is only true if insurance premiums rise faster than the indexation rates built into a management agreement. However, it ignores the fact that Strata Managers (and Brokers) take the risk that when premiums reduce, they cannot recover lost revenue. (a) It is Insurers who set commission rates, and these can be adjusted to take into account rising premiums.

Strata Managers generally are worse off when premiums reduce (like they did for a large part of the 2000’s). (b) Competition ensures that additional income (from any source) is reflected

in lower base management fees. (c) U nless any Strata Manager or Broker demonstrates value, whether remunerated by commission or fees, their relationship with an Owners Corporation is unlikely to be enduring.

Myth #11 – Commissions within premiums can increase the amount of tax payable.

Fact: Fire and emergency services tax rates are reset periodically to match the estimated and actual costs of funding these services. If all premiums were lowered in one year, the rates of taxation would increase to cover the same costs. (a) A better outcome is for this archaic way of funding fire and emergency services to be abolished, and replaced with a general tax across all property owners. At present, only the prudent who choose to insure pay the tax, with uninsured owners receiving the benefit of the same fire and emergency services. (b) All other States (save for Tasmania) have abolished this costly system for insurance buyers, the most recent being Victoria. The NSW Government has just delayed a transition away from this method of taxation for another two years. (c) Strata laws make it compulsory for Owners Corporations to insure, there is no choice. They are providing an inordinate share (relative to those not living in strata) of funding for fire and emergency services.

Myth #12 – Consumers understand the benefits of having their Strata Manager appointed as an Authorised Representative of a Financial Services Licensee (Agent or Broker).

Fact: There is a very low level of awareness of the financial services regime which governs insurance companies, insurance intermediaries, and their representatives. The regime is embedded into the Act, and contains a number of significant benefits for consumers. A Strata Manager as an Insurance Agent can be trained and appointed as an Authorised

INSURANCE COMMISSIONS

Representative, and their authorising AFS Licensee must then supervise, audit and provide PI protection for that Manager in the event of any act, error or omission resulting in loss or damage.

This provides the Owners Corporation a significant level of financial security. (a) Not all AFS Licensees’ will appoint the Strata Manager as an Authorised Representative, because it is a significant risk to take on, and expensive to manage. This is to the detriment of Strata Managers and Owners. (b) Lack of Owner awareness means that they do not take this into account when deciding on their insurance advisors or their insurance provider it is rarely discussed.

(c) T here has been little discussion on this topic between Government and other stakeholders during the recent review of strata and community scheme laws, and this needs to be addressed.

Myth #13 – A prohibition on commissions for Strata Managers will address consumer concerns.

Fact: The main consumer concerns appear to be related to transparency, conflicts of interest, and/or poor service levels. A prohibition on commissions to Strata Managers does not solve any of these. Further, such a ban will not resolve the contract certainty issues that some Strata Management companies are looking for. There are other measures that can implemented

Appendix A1 What were some of the arguments to have risk products (general insurance) excluded from FOFA reforms?

The federal FOFA review included general insurance products, or risk products, such as Strata Insurance products. Many papers were presented by industry stakeholders arguing for the federal government to exclude risk products for several reasons.

Here is a sample of some of those arguments: • General Insurance (GI) products are short term in nature and renewed annually.

• The risks for consumers was generally less for GI products than Investment products.

• Remuneration structures in GI were less complex than for Advisers in financial planning.

• ASIC inquiries have proven there have been no problems, or in other words they believe their conflict of interest policies are working.

• The Financial Ombudsman Service (FOS) has dealt with very few cases of commission-related disputes.

• Globally, no other regulator has gone as far as banning commissions on GI products. In the UK, the Financial Services Authority regime is that commission disclosure on GI products is optional.

• There are many detriments to banning

to address such concerns. (a) Education for Owners and other stakeholders is a great challenge for the whole industry.

Banning commissions will not improve understanding - other remuneration structures will replace commissions and not improve misperceptions. (b) Transparency can be improved, but prohibiting commissions on its own will not improve transparency. (c) Poor service from any professional should be met with a review, and if the experience is so bad, then Owners can consider termination. Poor service will not be resolved through banning commissions.

1. There were several reasons behind this decision, some of these are articulated in Appendix A.

commissions on GI products, and they collectively outweigh the benefits on introducing a ban. Some of these include: – Reduced availability of personal advice – I ncreased cost to consumers – Reduced competition on insurance terms – I ncreased - under-insurance/ non-insurance • Insurance is a grudge purchase, investments are designed to increase wealth.

• There is a different thought process on whether to pay on a fee/time cost basis or not.

Additional arguments included that a commission model within GI products has some consumer benefits, including: – Intermediaries only get paid if the deal gets done.

– The commissions cover services such as claims assistance, which could be a significant additional cost for consumers if charged on a time cost basis.

– There is an overall public benefit to encourage adequate levels of cover.

– It is an extremely efficient form of distribution, and.

– Commissions align remuneration with transactional volumes.

2. Survey of 6 managers on changes to fee arrangements for 14 schemes between 8 & 25 lots (ave 15 lots). Cost increases ranged between 6% & 25% (ave 16.7%), primarily driven by the fact that insurance premiums will not automatically reduce.

3. Macquarie Bank and Strata Community Australia.

4.The Future of Financial Advice initiative (which introduced the concept of bans on ‘conflicted remuneration’, including commissions) was the government seeking to strengthen retail investor protection and improve consumer confidence in the financial planning industry. It was their response to an enquiry by the Parliamentary Joint Committee on Corporations and Financial Services in the wake of corporate collapses including Storm Financial and Opes Prime. It had nothing to do with general insurance. The government has acknowledged that insurance has significantly different features from investment products and has specifically excluded it from consideration in discussions around banning of ‘conflicted remuneration’.

5. Section 912A(1)(aa) requires only that a Licensee must have in place “adequate arrangements for managing” conflicts. What is “ad-equate” is necessarily subject to case-by-case assessment based on a number of factors including size/ nature/complexity of the business and nature of its activities. ASIC regulatory guidance (RG 181 – Licensing: Managing Conflicts of Interest) also does not require that steps be taken to “avoid” conflicts – “avoidance” is only one of several suggested methods for managing conflicts. Specifically, ASIC discusses three mechanisms for managing conflicts: “controlling”, “avoiding” and “disclosing”. A combination of any or all of these may be appropriate depending on the circumstances.

6. The requirements of the federal financial services regime mandates disclosure in relation to pricing and remuneration arrangements through compulsory disclosure documentation including Product Disclosure Statements and Financial Services Guides.

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RP DATA

Detached housing still beating apartments... but the tables are turning Unit approvals in Sydney account for nearly 70% of dwelling approvals

By Mitch Koper â&#x20AC;&#x201C; RP Data

T

he momentum of 2013 across Australiaâ&#x20AC;&#x2122;s housing market is carrying through to this year, with RP Data recording a strong first quarter of 2014. Over the first three months of the year combined capital city home values have increased by 3.5% and they are 10.6% higher over the year. Over the 12 months to January 2014, we recorded approximately 470,000 house 106 StrataLive Autumn/Winter 2014

and unit sales across Australia which is the highest number of transactions since August 2010. The last three months showed transaction numbers to be 13.1% higher than a year ago nationally and 12.1% higher across the capital cities.

Clearly buyer numbers are back, but demand is nowhere near where it peaked back in 2009 (531,900 sales

over the 2009 calendar year), lower than 2007 (577,000) or for that matter back in 2003 (623,000 sales).

Over the past year apartment sales have comprised of just 27% of all dwelling sales, down from about 31% of all dwelling sales in 2009. This ratio may adjust higher as more unsettled off the plan apartment sales flow through, however, at least from a national

RP DATA

perspective; detached home sales are continuing to far outweigh multi-unit sales.

The proportion of apartment sales is of course higher across the capital cities (31% of all recoded sales last year were for multi-unit dwellings) but there is some significant variation from city to city. The proportion of apartment sales over the past year was highest in Canberra and Sydney at 42% and 41% respectively, followed by Darwin at 34%. Brisbane and Melbourne showed virtually the same split with 30% and 29% of all sales being for apartments. Appetite for medium to high density living appears to be the lowest in Perth where just 18% of all sales were for apartments over the past year.

Recent transaction figures are quite different from the latest dwelling approval figures which show more than half the dwellings approved by councils across the capital cities were for multiunit dwellings.

The order of proportion is roughly the same when comparing apartments as a proportion of all dwelling approvals and sales last year, however the magnitude of proportion is quite different between the two sets of data. Based on the December dwelling approvals data from the ABS, 52% of all capital city dwelling approvals were for multi-unit dwellings. Unit approvals in Sydney and Canberra accounted for close to 70% of all dwelling approvals in these cities compared with demonstrated demand closer to 40% based on sales.

The difference in the two sets of figures suggests that Australianâ&#x20AC;&#x2122;s still prefer detached dwellings over medium to high density options (as demonstrated by the higher proportion of house sales over unit sales), but developers are increasingly looking towards the multiunit sector for new building works (as demonstrated by the higher proportion of multi-unit dwelling approvals).

The push for higher density development is easy to understand.

Medium to high density product generally provides a more affordable entry point to the housing market at a time when housing affordability is

becoming an increasingly important issue. Developers are probably leaning towards higher densities because the development yield tends to be higher and the approval process is often more streamlined than that for detached housing, particularly those on Greenfield sites which may not yet be zoned for residential development.

The question though is whether the new focus on medium to high density

development will be met by market demand. It is my guess that it will be; there is a growing trend of market preference towards apartments due to their more affordable price points and what are often more strategic locations of apartment developments which are often located along key transport spines and closer to the major working nodes and social precincts of each capital city.

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Strata made easy Supported by Westpac

A Adjudicator – A third party from a consumer/tenancy tribunal who decides on strata disputes. The involvement of a tribunal is often a second or third step in the disputes process, with a preference to see disputes settled locally where possible.

Administrative Fund – A fund, for the benefit of the Owners Corporation, used to cover recurring expenses of a strata scheme. This will include anything from electricity and gardening, right through to the maintenance of common property. A portion of levies charged to owners is based on the estimates of these expenses. Separate consideration is given to amounts that are required for the Sinking Fund.

Agenda – In a strata context, the agenda is a list of motions or issues to be voted upon or discussed at a meeting.

Having a complete list of agenda items is essential prior to the meeting, as matters not on the agenda should not be voted on. It is important that all attendees are provided with this prior notice, as particular agenda items may influence the decision to attend.

Aggregate Unit Entitlement – The net sum of all individual entitlements in a strata scheme.

Alterations – Alterations are any improvements or renovations that are proposed or made to common property. Generally, the Owners Corporation must provide approval to complete such work, which can range from minor repairs through to major structural renovations.

Most by-laws, or special rules of a strata scheme will include a statement that effectively prevents owners from making changes to their property that materially changes the overall appearance of the building. This might range from the addition of balconies through to external colour schemes that change the fundamental appearance of the property.

Annual General Meeting (AGM) – An AGM is a meeting of owners and other interested parties (which are typically defined within the strata roll) that meet once a year. After the first AGM, an AGM must be held each year.

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The agenda for an AGM can take a variety of shapes and forms but will generally include a: • Statement of the financial position and performance of the Owners Corporation • Motion that accepts the financial statements as provided to the Owners Corporation • Confirmation of the insurance policies that are currently held by the owners’ corporation and whether they are appropriate in terms of cost and risk coverage. An incomplete insurance policy can expose the Owners Corporation to substantial risk should an incident occur.

B Boundaries – Another source of confusion within strata managed properties is a clear understanding of where the lines between individual lots and common property are drawn.

These rules govern the space within which an individual generally has the right to manage their property as they see fit (although reference should be made to the by-laws/special rules and the definition for alterations to identify possible exclusions). A well designed and documented strata plan should highlight common property boundaries via thick black lines, and be distributed so that all property owners are aware of these arrangements. All strata plans are registered, so if still unclear, reference should be made to the registered copy of the strata plan.

Breaching of by-laws/special rules – On occasion, an Owners Corporation and/or managing agent will be asked to manage situations where a by-law has been breached. As with many instances when it comes to strata management, common sense and discussion is encouraged, however further remedies exist to issue a notice to comply on the person(s) who are breaching it. If this continues, various remedies exist across different states to pursue action as required (e.g. in NSW the Owners Corporation can apply to the Consumer Trader and Tenancy Tribunal for a financial penalty to be imposed on the individual).

Budget - An estimate that outlines the future expense and income streams that a strata scheme is expecting to see over

the coming year. A separate budget will be prepared for both the Administrative and Sinking Funds by taking into account the surplus or deficit carried over into the new financial year.

Building Manager/Caretaker – A role that is more commonly associated with larger schemes, a caretaker will typically manage the co-ordination of the maintenance for the property.

The roles of the caretaker are delegated to them via the Owners Corporation. Key responsibilities for a caretaker may include the management of: • Common property • Access to and use of common property by tradespersons • Maintenance and repair of common property It is important that the caretaker is officially appointed via a contract, as this will detail their responsibilities and avoid any potential conflicts in regards to general accountabilities. As this is fundamentally important to the running of a strata managed property, the first AGM often includes an item to decide whether there needs to be a caretaker appointed (as discussed, this will usually depend on the size and structure of the premises).

By-Laws/Special Rules – The all important (and often disputed) set of rules that all residents (both owners and tenants), in the strata scheme are expected to abide by. They can vary greatly between premises, but will generally cover topics such as safety, security, the keeping of pets, sound rules and the use of common property. The relevance of certain rules will change over time, and as such, owners are commonly invited to draft and propose rules that are voted upon in general meetings.

C Chairperson – A chairperson is a key position held within an executive committee, with the designated person working

closely with the treasurer and secretary. The primary role of a chairperson is to preside over all meetings that are hosted, and ensure that they run to agenda. Further, to ensure that decisions are made in line with the by-laws that are set out by the committee.

Children – Most schemes will contain a number of by- laws/ special rules that relate to children, and primarily to ensure that they remain safe when on common property. This is particularly important in the context of insurance and public liability. A well-constructed set of by-laws/ special rules will identify and manage the risks associated with unsupervised children playing in common property, as well as highlighting areas on the premises that may be considered high risk. Outside of retirement village strata schemes, they are not allowed to prevent or restrict children from living on strata premises.

Common Property – In essence, the area of land and parts of a building in the strata plans that do not form part of a lot.

Common property is jointly owned, and the Owners Corporation is responsible for the management of all areas that are defined as per the spaces set out in the strata plan. Defining what is common property is a complicated (and at times, passionately debated) topic, but essentially includes the following: • All external or boundary walls (including doors and windows) • Floors including a ramp or stairway • Boundary walls including any door, window or other structure within the wall and their working parts • Ceramic tiles originally attached to a common property surface (e.g. the floor or boundary wall).

• Pipes in the common property or servicing more than one lot • Electrical wiring in the common property or servicing more than one lot • Floor boards originally installed

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Certificate of Title – A document that details who has ownership rights to a property. The Owners Corporation should also hold a title deed that confirms their rights to the common property via entitlement. The certificate of title should be registered at the respective office in each state.

Common Seal – The official stamp that an Owners Corporation can use to indicate its official agreement. Strictly speaking, the stamp must show the Owners Corporation’s distinctive number, which includes the registration number of the strata plan. The stamp can be applied whenever the Owners Corporation executes a document.

Company Nominee – A person nominated by a company (in writing) to vote on its behalf at meetings.

Company Title - A slightly different style of land ownership where a person receives the entitlement to live in a residential building by acquiring shares in an incorporated company that owns the building. As with a standard purchase of property, the purchase of shares in the company gives the shareholder the contractual right to occupy and use a specific space within the building (as well as being subject to the house rules that govern things such as common property).

Covenant Chargee – A person or legal entity who holds an agreement over the property which can impose an obligation to engage in or refrain from a specified action (e.g. an agreement to build a fence).

D Delegation of Power – As it relates to body corporates, voting rights are generally allocated according to the number of units (as opposed to the number of individuals). If an 110 StrataLive Autumn/Winter 2014

individual owns 50% of the units in a strata complex, they will be entitled to 50% of the votes. This is important in terms of understanding the hierarchy of power, which in essence can see decisions from the body corporate flow through to the executive committee, which in turn may go down to the delegated officer and/or subcommittees that are set up for a specific purpose (e.g. to provide advice on a specialized piece of legislation).

E Election of the executive committee – The executive committee is elected (or re-elected) at each AGM. The committee’s first decision will be to agree on who holds the key positions of chairperson, secretary and treasurer.

Exclusive Use – A special right granted to an owner to use a part of the common property (e.g. the use of a garden bed or car space). The right may be granted for a purpose that ultimately benefits others in the property.

Executive Committee (EC) – The Owners Corporation will elect an executive committee that makes many of the dayto-day decisions about running the scheme on its behalf. The Owners Corporation will usually reserve the right to over rule executive committee decisions.

Furthermore, they can limit what they can make decisions about, which may include the imposing of a number of obligations and/or restrictions. These rules are generally discussed and agreed to at the AGM. Executive Committee Meeting (ECM) – A meeting of the executive committee members which excludes non- committee members unless prior authorization has been given.

Extraordinary General Meeting (EGM) – These meetings may occur during the year as required. Examples of when these will be called include to: • Change, cancel or make new by-laws/special rules • Appoint or dismiss a strata managing agent • Agree on the need for capital works and any associated funding requirements to support the activity (be it via a one off levy or through seeking finance via bank) There are a number of ways to convene an Extraordinary General Meeting, depending on the legislation for your jurisdiction.

The most common ways are: • By majority vote of the executive committee • If owners entitled to vote, and who together hold at least one quarter of the total unit entitlements, give a written notice to the secretary asking for the meeting to be held.

Floor Coverings – Increasingly, a number of strata schemes have by-laws that require floors to be treated and/or covered to prevent noise being heard in other lots. The increasing prevalence of highrise apartments is driving this. Rooms that are exempt from this are typically kitchens, laundries, lavatories and the bathrooms of a property, although it is important to review the by-laws/special rules to have a full understanding of what is required.

F

G

Financial – Strata ‘jargon’ that is often used to identify an owner who is up to date with all of their levy payments and other financial contributions.

Garbage – Whilst this would appear to fall squarely in to the category of common sense, it is the responsibility of the owner/ occupier to maintain a clean, dry and adequately covered garbage bin in their lot. Furthermore, that all garbage is securely wrapped. Depending on the cycle, garbage should generally be placed outside no earlier than 12 hours before collection.

First safety inspections – The Owners Corporation is responsible at all times for ensuring that access is given to all parts of the scheme so that necessary first safety inspections can take place as required. It is important that all property owners are also aware of their obligations as it relates to providing access to their property for these inspections.

First Annual General Meeting (FAGM) – The first meeting of owners and other interested parties (as noted on the strata roll). This meeting should generally occur as soon as is practical.

Furniture – It is important to notify the executive committee where plans have been made to move large objects through common areas. This assists the committee in terms of them being able to support the move wherever possible. (e.g. by covering up the lifts to avoid damage). Some schemes will have by-laws/special rules in place which will specify times when residents may move in/out.

Gardens/Backyards – A question raised often in general meetings, is what the owner has the right to do in respect to their backyard. Certain activities may be classified as alterations, which attract their own set of rules should they fundamentally change the appearance of the building. The general rule is that as long as the backyard is part of the lot, the owner can do what they want as long as it doesn’t breach a by-law (e.g. damaging common property or creating excess noise).

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An owner or occupier must not damage any lawn, garden, shrub, plant or flower on the common property and should not use any part of common property as their own garden unless a specific motion is passed to allow this.

Guests/Visitors – In essence, another topic that should be covered by common sense principles. An owner/ occupier should at all times ensure that invited guests are behaving in a way that will not disturb other residents and their guests.

This provision applies irrespective of whether the individual is within private premises or on common property. The behavior of guests is quite often covered within by-laws, particularly when it comes to issues such as the use of a pool and visitor car parking spaces.

H Harmony – Industry jargon that is used to describe the general level of ‘owner contentment’ that exists within a scheme.

Having an active and consultative approach to identifying and managing issues as they arrive is usually the best approach to achieving the right harmony outcomes. This is generally a topic raised during general meetings, with the result at any one time being influenced by things such as disputes between neighbours, local government councils, other owners, the executive committee and many other individuals.

Home Warranty Insurance – This type of insurance was created to protect consumers when a builder and/ or contractor (e.g. plumber, carpenter) passes away, cannot be found or becomes insolvent. In essence, the insurance is there to cover situations where the builder is unable to fulfill their obligation to the consumer. In NSW, this insurance generally covers situations where a builder is unwilling to honour such commitments and their licence is suspended for failing to 112 StrataLive Autumn/Winter 2014

comply with a money (Compensation) order in favour of the homeowner made by a court or the consumer, trader and tenancy tribunal. Exclusions, limits and conditions apply, and it is recommended that you read your policy to understand what situations are and aren’t covered.

I Initial Period – A period of time that commences on the day that the Owners Corporation is constituted (date of registration of the plan) and ends on the day when there are proprietors of lots, other than the original proprietor, the sum of whose unit entitlements are at least 1/3 of the aggregate unit entitlement (or as determined by legislation).

Insurance - The relevance and importance of insurance is something that flows through right from the building of properties to the ongoing management of them once they become lots within a strata scheme. The Owners Corporation is responsible for making sure that all necessary insurance policies are in place and are up to date. All policies should sit with an appropriate insurer to minimize risk should a policy need to be enacted.

Different types of insurance include: • Building insurance – This type of policy covers the building if damaged or destroyed by fire, lightning, an explosion or any other cause that is stated within the policy. The purpose of the policy is to cover the reinstatement or replacement of the building to put it in the same condition as it was when new, remove debris and cover all expenses that area required to bring the place back to its original state (e.g. architects).

• Public liability insurance – This insurance ensures that there is sufficient cover for death and/or injury that results from any activity for which the Owners Corporation could be deemed responsible.

• Workers compensation insurance – This type of insurance ensures that all individuals who are working on a property are covered for workers compensation.

• Voluntary workers insurance – This type of insurance covers the Owners Corporate against damage that it may become liable for when a person completes work as a volunteer and on behalf on the Owners Corporation.

Unpaid Levies – Unpaid levies may incur interest if not paid on time. If the unpaid levy goes beyond a set period of time (usually defined within the by-laws), the Owners Corporation has the ability to take debt recovery action. Conversely, an Owners Corporation may also consider the provision of a discount where levy payments are received before they are due.

L

Lot – A lot is defined as a dwelling within a strata scheme that comprises the living space within the boundary walls of the property space. Car spaces, garages, laundries, marinas etc can also form part of a lot or be a separate lot themselves.

Laundry Items – Specific by-laws may prevent an owner and/ or occupier from hanging washing towels, bed sheets, clothing or anything else on any part of the strata scheme (e.g. on the balcony) where it can be seen from outside the building.

Levies – In terms of a definition, levies are contributions by the owners to the Owners Corporation to cover regular expenditure, as well as to fund future capital works activities. In some states, the amount that is paid by each owner is regulated by the unit entitlement of their respective lot, with contributions being splilt between the administrative fund and the sinking fund.

As defined in this guide, the administrative fund primarily exists to fund day-to-day operation expenses, with the sinking fund in place to fund long-term future expenses. In terms of the longer term expenses, the sinking fund can be utilized to cover anything from re-painting of the common area, landscaping, elevator maintenance through to the addition of solar panels.

From a lot owners perspective, one should be aware from the outset as to what the levy will be, and more importantly, what the state of the property is and what the levy will cover.

Levies in strata schemes that have a number of shared facilities can quite often be expensive, particularly as it relates to swimming pools, saunas, tennis courts, etc.

Levy Register – A historical record of levy contributions made.

M Minutes – A documented record of all discussions, decisions and action items arising from meetings held by the Owners Corporation and executive committee. General meeting minutes should be sent out with the notice for the next general meeting (or if possible, earlier).

Minute Book – A document repository (that is usually hardback/bound, but may be electronic), that holds the notices and minutes of all meetings held by the Owners Corporation and executive committee. The minute book is important and is commonly used as evidence in disputes where there are differences of opinion in regards to what was agreed to in meetings.

Model By-Laws – A standard set of rules that can be utilized as the actual by-laws for a strata scheme or as the template from which specific by-laws are created for the community.

Motion – A proposal that is put forward for consideration at general meetings.

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N Noise – One of the most common ways that this is seen is often in conflicts about noise, and as such, strata schemes have specific by-laws in place that dictate what is and isn’t acceptable.

As with many strata by-laws, common sense should prevail, although it is also worth noting that visitors are generally expected to be made aware and abide by these same rules when visiting. Most by-laws will include remedies to issue breach notices and/or fine individuals that do not comply with the agreed upon noise rules.

Notice of meetings – Notice of both an Extraordinary General Meeting (EGM) and an Annual General Meeting (AGM) must be given to each owner of a lot in advance. Notices for a general meeting generally contain: • A motion to confirm the minutes of the last meeting • Other motions to be considered at the meeting • Motions that need a special or unanimous resolution • A copy of the minutes of the last general meeting • If it is the AGM, a motion for the election of the executive committee and the number of members that will form the group Noticeboard – Whilst perhaps a minor detail, it is important to keep in mind that a noticeboard is only required if it is stated as such in the by-laws. Where a noticeboard does not exist, all meetings and other notices will be sent to each owner directly.

P Parking - Another common source of discussion, and at times, debate amongst Owners Corporations relates to parking rules. Generally owners and residents cannot park on the common property without the explicit permission of the 114 StrataLive Autumn/Winter 2014

Owners Corporation. Visitors are invited to park in designated visitor parking spaces where an allowance has been made for them.

Parking Lot - A lot designed primarily for storage of boats and/or motor vehicles. This type of lot is commonly also known as a utility lot.

Pest Treatments - Most states will include regulations that require residents of multiple occupancy dwellings to be notified when licensed pest controllers apply pesticides to any areas of their parking lot.

Poll - A method of voting at meetings where each owner’s vote has a value based on the lot’s entitlement.

Proxy - A person appointed (usually required in writing), by an owner or mortgagee to attend a meeting and vote on the appointer’s behalf. The proxy form should: • State the duration of the proxy. Typically for a period of time or a specific meeting • State which matters the persons acting as proxy can vote on • Detail how the person acting as the proxy should vote on a motion for the appointment or continuation in office of a strata management agent • Have no effect if the person who gave the proxy attends the meeting and votes in person Pruning Trees - If the trees are common property, it is the Owners Corporation’s responsibility. If the trees are part of the owner’s lot, then the owner needs to ensure that they manage them. Having a thorough understanding of the bylaws is usually the best way to understand what requirements apply.

Q Quorum - The minimum number of eligible attendees at a meeting before a motion can be formally voted upon (keeping in mind that the motion needs to be included in the agenda beforehand).

R Repairs - The rules that govern repairs are relatively simple (in theory). The Owners Corporation must repair anything that relates to common property, and the owners must repair anything within their lot. In practice though, this is not always the case. As a general rule, anything that is inside the airspace of the unit is the owner’s responsibility and anything that is outside is the Owners Corporation.

Again, it is important to have a clear understanding of the bylaws for any specific rules that relate to repairs, and ownership clarifications for any particular item(s) within the premises.

In terms of managing repairs that are Owners Corporation responsibilities, the managing agent or secretary of the Owners Corporation should be notified in the first instance. For large/ expensive problems, a general meeting may be required to agree on the next steps.

Resolution - A decision reached at a meeting based on a motion that is considered at a meeting. There are three types of resolutions.

• Ordinary resolution: a decision of the meeting (made after the taking of a vote) • Special resolution: a special resolution is where no more than 25% are cast against the motion, (based on unit entitlement).

This includes votes in person and also proxy votes.

• Unanimous resolution: a unanimous resolution is one where no one votes against the motion. If a nuanimous resolution is required, all owners should be at the meeting or should

participate in voting via a proxy. This includes owners where their levies are not paid and up to date.

S Safety Audit - An inspection carried out by a qualified professional on the current status of the health and safety standards for the scheme.

Secretary - One of the three main office holders of the executive committee, with the other two being the chairperson and the treasurer.

The key responsibilities of the secretary include: • The preparation of minutes of meetings and putting a motion to confirm the previous minutes • Issuing notice for the Owners Corporation and its executive committee • Managing the strata roll and ensuring that it is kept up to date at all times of the year • The provision of information on behalf of the Owners Corporation • Convening meetings of the Owners Corporation and its executive committee (apart from the first AGM) Sinking Fund - A sinking fund is specifically for the management of major repair and replacement work on a scheme. This can cover a wide variety of activities, including everything from the re-painting of the property through to the placement of solar panels.

The general idea of the sinking fund is that it should ensure that there will be enough money available to pay for expenses when substantial work needs to be undertaken.

SP - Commonly used industry jargon for the term Strata Plan.

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Special Levy - An at times unpopular additional levy contribution that is paid by the owners to cover unplanned, unexpected or underestimated expenditures.

Special Resolution - A resolution that requires at least 75% of votes present to be in favour of the motion. As per the other votes, the concept of unit entitlement comes in to play, and the vote is based off this calculation. Failure to reach 75% of the votes in favour will see the motion being defeated.

Strata Inspections - In some states, prospective purchasers are permitted to inspect the books and records of an Owners Corporation. Alternatively they can purchase a report that provides records of the body corporate and other information that may be of relevance (particularly when a prospective purchaser wants to make an assessment of important details such as the amount of insurance cover).

Strata Managing Agent (SMA) - In most states, a suitably licensed and qualified professional entity (or individual) that is appointed by the Owners Corporation to manage the affairs of the strata scheme in accordance with all responsibilities that have been delegated to them.

Strata Plan - The actual plan registered at the respective land titles office showing the building on the land, the lots that make up the plan and all areas within the premises that are deemed to be common property.

Strata Roll - The register of the owners of every lot in a strata scheme including any utility lots.

Strata Search - A strata search is where an owner or mortgagee of a lot, or a person authorised by them, requests 116 StrataLive Autumn/Winter 2014

the Owners Corporation to allow an inspection to be carried out on the records and accounts of the strata scheme.

U Unanimous Resolution - A resolution that requires 100% of the votes at a meeting to be in favour of the motion (including votes from owners who are not up to date in terms of their levy payments).

Unit Entitlement - Each lot within a property is given an entitlement. The amount of the unit entitlement will vary depending on a number of things, such as the size of the lot and what is contained within. These entitlements govern what percentage of the annual budget levies will be paid by each lot owner. These same entitlements transfer across to voting rights in most states.

Utility Lot - A lot designed for the storage or accommodation of boats, motor vehicles or other goods. It is not to be used as a residence/ for commercial use.

V Vehicles - An owner or occupier must not park or stand a vehicle on common property without the written permission of the Owners Corporation.

Voting - Each executive committee has one vote at a meeting.

A decision on any motion at an executive committee meeting is made by a majority vote.

NEW WATER METERING RULES

Sydney Water announces new water metering rules A news alert from JS Mueller & Co

S

ydney Water announces that new requirements for new multilevel strata buildings will come into effect on 1 September 2014.

Buildings from 1 September 2014 must be designed and built to cater for water metering of individual units.

These requirements will apply to relevant development applications that receive a Sydney Water Notice of

Requirements (NOR), announcing that three key areas must be adhered to when designing new multi-level strata buildings: Allow for plumbing for a single water inlet to each individual unit Individual meters must be located in the common area (not inside units) There may also need to be a space and power supply for data loggers to

enable them to transmit meter reads to Sydney Water.

In the coming months Sydney Water will also announce the list of Accredited Metering Suppliers.

For further information please refer to Sydney Waterâ&#x20AC;&#x2122;s draft Multi-Level Individual Metering Guide or contact meters@sydneywater.com.au.

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STRATA PROBLEMS? CALL THE EXPERTS

PUT YOUR STRATA IN OUR SAFE HANDS

Leaders in Strata Law

P: 9562 1266 W: WWW.MUELLERS.COM.AU

OVERHEAD IT’S A DOG’S LIFE LIVING IN STRATA

It’s a dog’s life living Header in strata Subhead

…

A Wagging Tale to Tell

By Line

By Bojangles Martin

H

i Everyone. My name is Bojangles and I am the Stratalive company hound.

When I was asked to paw my thoughts on strata living, it took me back to my youth. Although we didn’t live in an apartment, we did live in a strata community and rules still applied.

Well, you refer to rules in strata as by-laws. In the canine world they are referred to as TWOTH (pronounced Twoof) and it simply means ‘Their Way or the Highway’. And that needs no explanation – you either stick to the rules or you get kicked out.

It all started when they first ‘snuck’ me into my new home.

I had bought a whole new meaning to surprise package. I was a 50th birthday present for my mum and to say I was not expected is an understatement.

You see, the by-laws in our development only allowed two dogs and my new family had already reached their quota with two perfectly behaved little girls. Keeping me hidden however, was never going to be an option. Luckily for me, the community fell in love with me as a gorgeous ‘little’ ball of love puff and the fact that we were a canine family of three slipped through the cracks – for a time, at least.

Inside my own home and out in the backyard, I did all the usual puppy stuff. Dug holes, chomped down on every stick of

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furniture, created feather storms from cushions and formed all the habits and obsessions that would take me through life – both good and bad. And of course – I grew.

Every time I walked out the door, the once adoring looks turned to stern disapproval. While the cute little puppy was acceptable, I was growing into a monster – both in size and mannerisms. Back then I answered to ‘Mongrel’. Blah, blah, blah, Mongrel. You blah, blah, blah, Mongrel. I didn’t know this Bo chap my mum kept talking to, but thankfully my dad knew my name – and he used it all the time.

So it was off to boarding school for me. Leaving me at home to drag myself through the formative puppy period of my life was not an option. I was sent away to school during the week while the folks worked and I came home on the weekends. Boarding school lasted for 12 weeks and to be honest, I don’t think I was a particularly good student.

When I eventually came home for good, all those mean trainers had been replaced with my new friend, Georgy. Georgy would come and play with me every day. We would play my favourite ball games and go for a run and play in the park at the end of our street. It was one of the best times of my life. I loved my Georgy.

But I learnt my boundaries and in my case it was our front

IT’S A DOG’S LIFE LIVING OVERHEAD IN STRATA

gate. The gushing residents I met when I first arrived became less and less friendly the more I grew. I couldn’t lift my leg, couldn’t poop, couldn’t chase the neighbour’s cat and I couldn’t even walk on the grass. I use to walk down to the park on tippy claws in case I left a mark on the concrete. Pet-friendly my furry butt.

Then one day, life as I knew it changed. It was after my mum and dad received a letter in the mailbox. It was obviously cause for concern as my mum looked very worried. There was to be a meeting about the dogs constantly barking in the development. While we were not the only dogs in our community, I certainly contributed to the welcoming of guests with a roar rather than a whimper.

What was of the greatest concern to mum and dad is they did not know what we were up to when they were not there to keep us entertained. Uncle Georgy only came in the afternoons so that left a whole lot of time for us, or me that is, to cause havoc with the neighbours. What they didn’t know is that we slept like babies all morning to preserve our energy for playtime in the afternoon.

Mum was still sure that we, or me that is, presented the problem.

In preparation for the meeting, there were lengthy discussions between Mum and Dad. There were concerned looks and some tears. Mum would say Blah, blah, blah move. And Dad would say Blah,blah, blah mongrel. Yep…he still remembered my name.

Anyhow, to cut a long story short Mum won and we decided to move. She did not want to face that meeting. She knew they were going to kick me out by referring back to the original by-law that limited each household to two dogs.

So the house was put on the market and the meeting that was to be was postponed ‘due to ill health’. Yeah, right. The meeting was unnecessary now, the problem was moving on.

It was not a good time. There was tension throughout the house and I was a nervous wreck. I didn’t like seeing all my things loaded into the back of a truck and I liked it even less when we three canines were taken off to the kennel. But a week later, I was in heaven. All my things were back and our new house was on five acres of semi-rural bliss. I had my very own park. We moved right next door to my auntie and uncle who had four dogs of their own and life was perfect. Even

Georgy still came every day.

Even after we had moved, my mum still got the meeting agenda for our old strata. After we had been living in our new home for about three months, she received an agenda with an item to discuss the barking dogs. She rang one of our friends from the community and told them they could drop that off the agenda now.

“You didn’t think that was about Bo and your little ones, did you? “ the neighbour said.

“Everybody loved them because they were so well behaved.

You just didn’t know when Bo was going to knock you off your feet with love and affection. Everyone was sorry to see him go.

We all loved him.

Dah…I could have told them that.

Now I am older I have more responsibilities. My sister was brutally beaten before we rescued her from the RSPCA so now I am an ambassador against cruelty. In fact Mum just walked the Million Paws Walk this year.

While cruelty is a real issue, we are becoming big supporters of the RSPCA. Too many dogs and cats are surrendered to them every year because people have either not conformed to the conditions in their by-laws or have ignored them altogether.

While you may try and get away with it, it will catch up with you and you will be told to remove the offending animal.

Before giving someone a pet, make sure they are allowed to have one. If you are allowed animals, check they are suitable for strata living. Rather than buying a puppy there might be an older dog that you can rescue from the RSPCA that might be more suitable to strata living.

Having to surrender your pet is not only hard on the pet, it will be heartbreaking for you so do your homework and make sure you know and understand the by-laws before introducing a pet to your new environment.

You can still sponsor me in the Million Paws Walk, by heading to the www.millionpawswalk.com.au and sponsoring Cindy.

It is still power to the dogs but remember who has more power when it comes to strata living. It is TWOTH all the way.

StrataLive Autumn/Winter 2014

121

HEADING NORTH FOR A BREAK

Heading North for a break?

Why not just close the door and go

M

eriton has unveiled its exclusive new Penthouse Collection at Brisbane CBD’s new tallest tower, the 81-level Meriton Serviced Apartments Brisbane on Herschel Street.

“The penthouse apartments boast the title of Brisbane’s highest apartment – and the highest accommodation in Queensland,” said Meriton Serviced Apartments national manager Matthew Thomas.

“The open-plan design and three bedrooms, each with its own bathroom, will bring to Queensland the Penthouse Collection that has proved so extremely popular in Sydney.”

The architect-designed ‘super penthouses’ on the top floor of 43 Herschel Street feature the finest

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selection of materials, with imported ‘Lumra White’ and ‘Grigio’ marble dazzling throughout bathrooms, kitchens and internal laundries.

Custom-made carpeting and prestige leather sofas and dining chairs form the perfect atmosphere for entertaining family and friends or conducting business at an executive level. Designer kitchens feature dramatic colour-backed glass splashbacks, Caesarstone benchtops in ‘Vanilla Noir’ and stainless-steel appliances including an integrated dishwasher. In the bathroom, Parisi ‘Bohemian’ wallmounted basins are set off by 4-star rated Caroma fixtures and a luxurious Kaldewei ‘Conoduo’ bathtub.

The sprawling three-bedroom

penthouse suites enjoy the most breathtaking views ever offered of the city skyline and the Brisbane River to the mountains beyond, with panoramic vistas from every room.

The landmark serviced apartments are in the heart of the city, adjacent to Brisbane’s popular Roma Street transit hub, with Queen Street Mall, boutique shopping, restaurants and entertainment venues a stone’s throw away. Five-star facilities in the complex include a heated indoor swimming pool and spa, private gymnasium and sauna.

“The penthouses are the perfect special occasion, once-in-a-lifetime experience,” said Matthew Thomas.

“Guests are sure never to forget their stay.”

HEADING NORTH FOR A BREAK

StrataLive Autumn/Winter 2014

123

URBAN OVER SUBURBAN

First home buyers can now afford urban over suburban

By Barry Hyland

W

ho said first home buyers in Sydney had to settle for second best?

A fashionable complex in Glebe – home of trendy cafes, tapas bars and art galleries – contains 10 apartments under the $650,000 First Home Buyers threshold.

Omega is just two kilometres from the GPO, disproving perceptions that first home buyers can only afford outerlying suburbs. Not only are the prices comparatively low but the strata levies at Omega will be half those of high-rise apartment buildings because there are no costly pools, gymnasiums, concierges...

However, Omega does have one extravagant communal facility – a rooftop recreation area with landscaping, seating and views north to the Sydney CBD which will prove an ideal environment for socialising.

The four-storey Omega at 39 Greek Street has been designed by the award-

124 StrataLive Autumn/Winter 2014

winning Environa Studio to pay subtle homage to Glebe’s working class heritage. It is being developed by the inner-city accommodation specialists, LIVstyle Group, to cater for people who like living close to the action.

Inside Omega the mood has a distinct industrial edge, with terrazzostyle cement floor tiles blurring the living spaces from the outside environment.

All apartments have quality galleystyle kitchens in a high-gloss finish, and integrated Fisher & Paykel appliances, including a refrigerator and dishwasher. Benchtops are Corian, and splashbacks feature funky mosaic tiles in a hexagon shape.

Bathrooms continue the hexagon theme, with basalt-style mosaic tiles on a feature wall, as well as eye-catching customised shaving cabinets.

LED lighting in kitchens and bathrooms highlight the spatial

elements and add a touch of ‘theatre’ to the interiors. Where concentrated light is needed, such as work benches and vanities, recessed downlights are positioned.

The living area will have a built-in entertainment system, maximising space and adding to the streamlined overall look.

Almost half of the apartments have basement car parking, which is uncommon for properties in this price range. Omega has: • 16 one-bedroom apartments (5052 sq.m internal plus 10-44sq.m external) from $545,000 (without parking) and $640,000 (with parking) • 2 two-bedroom terraces (88-91 sq.m. int. plus 31 sq.m. ext.) from $905,000 (with parking), and • 2 three-bedroom apartments (102 sq.m. int. plus 9 sq.m. ext.) from $965,000 (with parking).

On new homes priced under $650,000

URBAN OVER SUBURBAN

in NSW, first home buyers are exempt from having to pay stamp duty and are eligible for a grant of up to $15,000.

“The apartments at Omega are priced to attract people with an eye for value, including investors,” said Peter Shield, project director with Ray White Real Estate at Erskineville.

“Because this is a boutique-size building without expensive communal facilities, levies will be low so on-going costs will be extremely moderate.”

Mr Shield knows Omega will sell quickly. Its adjoining mirror-image stage, Alpha, sold before any marketing material could be produced. “Somehow people heard about the development well before we were ready to launch. They didn’t need to see glossy images or read purple prose, and were not put off by the fact we only had basic floorplans, a price list and some architectural sketches.

“Opportunities in Glebe are rare, and this off-market interest emphasised to me the level of pent-up demand,” Mr Shield said.

One of the purchasers in Alpha is Karen Roberts of Kingsgrove who bought

a one-bedroom apartment as a ‘nest egg’ for her two grandsons, Cameron, 6, and Ashton, 3. “It’s a long-term investment that will be held in trust for the boys until they turn 18,” said Mrs Morris.

“The money was left to the boys by my father, Jack Henry, who passed away last December, and I was entrusted to invest it wisely. Property is a safe investment, so I was initially looking around my area and places such as Wolli Creek when I realised that a unit close to the city, the university and important facilities would always be tenanted.

“I am a friend of the developer of Alpha and Omega so I was given a preview.

The location and the price suited me and, who knows, by the time the boys come to own the apartment they may be at university and choose to live in it.”

When Omega is completed in late 2015, Mr Shield forecasts indicative weekly rents to be $600 to $650 for the one-bedroom units and $800 to $850 for the two-bedrooms apartments.

Glebe is one of Sydney’s best loved suburbs, and exudes a Bohemian buzz.

This is partly due to the ‘melting pot’ of

students and teachers who attend or work at Sydney University and the UTS. “Being so close to learning institutions will make the apartments a popular rental target with students, as well as staff from the nearby Royal Prince Alfred Hospital,” said Mr Shield.

“Another important factor behind rental demand is public transport, and Glebe is served by buses and light rail, rendering a private car no longer mandatory.”

Omega is within a one minute walk of Broadway Shopping Centre, which has 120 shops and 12 movie cinemas.

The popular Glebe Markets is held each Saturday in the grounds of the Glebe Public School, while nearby Wentworth Park is not only the headquarters of greyhound racing in this State it has an array of sporting fields and leafy recreational spaces.

Plans for Omega can be inspected at Ray White Erskineville, 77-79 Erskineville Road, Erskineville. For more information contact Peter Shield on 0417 884 882, or www.omegaglebe.com.au StrataLive Autumn/Winter 2014

125

SMALL SPACE SOLUTIONS

Howards Storage World (HSW)

Small space solutions Interior designer Beverley Gibson shares her top 10 tips for creating homes that are small on space but big on style

By Georgia Madden

D

ecorating a small space is not without its challenges. But a compact footprint doesn’t have to curb your sense of style – all you need are a few smart strategies, says Sydneybased interior designer Beverley Gibson of Gibson Design.

1. Do Your Homework “When decorating a compact space, success lies in the planning,” says Gibson. “Measure everything you need to store and be willing to redefine the way you traditionally use rooms.” For example, converting a small laundry into a walk-in pantry and installing a washer-dryer combo in the kitchen might work better for you. Or, rather than having a dedicated guest bedroom you might opt for a bed that folds down from the study wall instead.

126 StrataLive Autumn/Winter 2014

2. Clear the Decks “Less is more in a small space, so scheduling a regular declutter is essential,” says Gibson. In particular, big space-hungry pieces of furniture will need careful review; Do you really need a desk when you could work at the dining table? Is a coffee table essential or would a couple of small side tables suffice?

3. Go Built-In “Joinery is your best friend in a small home,” says Gibson. While freestanding shelves and cupboards tend to provide insufficient storage and can bulk out a compact space, built-ins that run from floor to ceiling and the full width of walls make use of every spare millimeter without swallowing precious floor space.

SMALL SPACE SOLUTIONS

Transforma

Harvey Norman

4. Think Double-Duty “Any new piece of furniture should serve more than one function,” advises Gibson. Think stools that double as side tables, an extendable dining table that acts as a desk, coffee tables with shelves, or an ottoman that converts to a sofa bed.

Size and profile are also important. Look for compact pieces that won’t overwhelm a small space, and low-lying sofas on slender legs that maximise the sense of airiness without obstructing the view.

7. Reflect The Light Incorporate reflective surfaces into your design scheme to maximise the light, such as mirrors on walls, and gloss finishes on floors and cabinetry.

5. Keep Surfaces Clear “Create a dedicated space for everything that comes into your home so that it doesn’t end up cluttering your tables and benchtops. Also, wall- and ceiling-mount whatever lighting and accessories you can – think ceiling pendants, wall-mounted lamps beside the bed, and built-in shelving for display items,” says Gibson.

6. Smart Colours and Patterns “In a compact room with little natural light, resist the temptation to white wash the walls; instead aim to create a cosy atmosphere with rich, dark colours and eye-catching art,” advises Gibson.

The key is not to overload the scheme with too many colours – two or three tonal shades work best. Similarly, keep patterns to a minimum. If you have different flooring materials, say carpet in the living room and tiles in the kitchen, choose matching shades in order to create a seamless flow between them.

8. Smart Lighting “Don’t rely on a central light – it’s harsh and makes a room feel smaller than it actually is. Installing bulkheads with recessed lighting around the perimeter of a room will push the walls out visually. Boost this with table or wall-mounted lamps for a cosy, layered lighting effect,” says Gibson.

9. Simple Window Treatments Heavy, fussy window treats will bulk out a tiny space. “Roller or roman blinds take up less space than curtains and give a cleaner line. If you do need curtains, match them to the colour of the walls to minimize obtrusion.”

10. Use Your Balcony “In an apartment, the balcony can be used as a whole extra room, and mirroring one wall will make it appear twice as long,” says Gibson. Make it a space to enjoy by installing a built-in barbeque with storage, and a comfortable outdoor sofa suite.

For more on Beverley Gibson’s design work, visit www.beverleygibsondesign.com.au StrataLive Autumn/Winter 2014

127

PARRAMATTA’S NEW GATEWAY

Parramatta’s new $550 million gateway

By Barry Hyland

T

he transformation of Parramatta into a city larger than Adelaide is one step closer to reality with the pending launch of a $550-Million residential development on the northern bank of the Parramatta River.

The five-hectare estate, called Promenade, will comprise 774 highend apartments in 11 towers, ranging from two to 12 storeys. Just 1.2km east of the city centre, Promenade will have 1.2-hectares of landscaped foreshore open space, a pedestrian bridge across the river, and an extensive walking and cycling network.

Promenade is being developed by Starryland Australia, a local division of the publicly-listed Fuxing Huiyu Real Estate Company Ltd, which is the 23rd largest in China. Fuxing Huiyu develops more than one million square metres of property per 128 StrataLive Autumn/Winter 2014

year, and this is its first foray into Sydney.

“We selected Parramatta because it is already a cosmopolitan centre with the potential to become even better,” said Mr Hao Liu, the Director of Starryland Australia. “It has all the facilities of a modern city and is well served by public transport and motorways.”

Promenade is the latest in a series of massive developments that the Council believes will transform Parramatta into a beautiful riverside city. Already approved is a new civic centre called Parramatta Square and the redevelopment of two car park sites into major residential and commercial towers.

A further 33 major projects worth some $8-Billion are in the planning stages, which could see Parramatta overtake Adelaide as Australia’s fifth largest CBD.

Promenade will dramatically signal the northern entry into Parramatta. The grand vision is a collaboration between Smart Design Studio, landscape architect, Aspect, and Starryland Australia.

“Promenade is in keeping with the style of residential communities we create in China, and we want it to set a benchmark to establish our credentials in Sydney as a quality developer,” said Mr Liu. “We truly believe Promenade will be the type of place where people will want to buy their first property, raise their children and grow old.”

Parkland and an outdoors lifestyle is the over-arching concept of Promenade.

“The abundance of green open space will create a calming ambience and encourage residents to get out and walk, meet their neighbours, participate in community life and take joy in their surroundings,” said Mr Liu. “It’s essentially a healthy, active outdoor lifestyle coupled with affordability in a quiet, beautiful location that is still connected to the Parramatta CBD.” The architect, William Smart, says there are two types of building designs at Promenade – wharf and courtyard – united by water-filled landscapes and tree-lined streets to create “resortstyle living”.

“The ‘wharf’ buildings have horizontal slab edges in white with a pattern of vertical timber cladding and full height vertical fenestration woven between each floor level whilst ‘courtyard’ buildings appear solid and grounded with panels of dark masonry stepping along the façade,” Mr Smart said.

“At the heart of the estate will be a new square, connecting a bridge which soars over the floodplain and river to link Promenade with Parramatta’s town centre.

PARRAMATTA’S NEW GATEWAY

“A new cycle path will run along the river and provide access to a platform over the water, adjacent to the arching mangroves and potentially serving as a future stop for the Rivercat.”

The first stage of Promenade will embrace two towers comprising 277 apartments. Work is scheduled to start by late June and be completed within two years. A further two stages will be released as demand determines.

Stage one of Promenade has: • one-bedroom apartments (44–62 sqm) from $399,000 • two-bedroom apartments (6299sqm) from $520,000, and • three-bedroom apartments (99112sqm) from $830,000 “The apartment interiors are fresh and urban contemporary with a unique twist,” said Mr Smart. “Quality finishes

Transforma

include porcelain tiles for living area floors which extend onto the balconies, complemented by joinery with timber tones, reconstituted stone bench-tops and crisp metal trims.”

Buyers are offered two internal schemes. The ‘fresh’ scheme consists of white terrazzo-look floor tiles and limed timber-look joinery finishes contrasted with bronze mirror cladding and splashbacks. The ‘warm’ scheme offers a sophisticated dark grey tile, dark stained oak look joinery and a warm, peach toned mirror.

All apartments, except four onebedroom units, have one or two security car spaces, while there also are 70 visitor parking spaces allocated for the development.

“The handy transport, dining, shopping and recreational options will ensure Promenade apartments appeal to professional singles and couples,” said Irene Lau, Project Director for Savills Residential Projects.

“Apartments in the upper floors will have spectacular multi-directional views.”

By paying close attention to what makes residential communities liveable, Fuxing Huiyu had redefined harmonious living in China, and Mr Liu said this experience would be applied to Promenade.

“In big cities people have become disconnected, so it’s important to create an environment where individuals can connect; this means giving residents access to excellent communal amenities and activities which is what we are doing at Promenade,” Mr Liu said. “We have worked closely with the local Council to ensure the estate provides a prime living environment for the region.”

For investors, Parramatta provides a ready-source of tenants, with thousands of people employed in the CBD. The pent-up demand has prompted Savills to forecast weekly rents at Promenade of $450-540 for the one-bedroom units, and $550-700 for the two-bedroom apartments.

Inspections can be arranged by contacting Savills on 1800 788 895 or through: www.promenadeliving.com.au StrataLive Autumn/Winter 2014

129

SIX YEAR VISION

Turning a six year vision into reality

By Barry Hyland

I

t’s taken six years of struggle but property developer Nico Tjen is smiling again. His $40-Million apartment project in the heart of Double Bay is selling well – finally – and is scheduled for completion by year’s end.

As a director of the family company Oceania Property, Nico has had to change plans several times to meet the fluctuating market.

He purchased the 939sqm site at 16-22 Bay Street in 2008 with a

130 StrataLive Autumn/Winter 2014

vision to build premium apartments to capitalise on its prestigious location. Nico was convinced that this is what the market wanted. After all, Bay Street is Double Bay’s most desirable boulevard. And Double Bay is, arguably, Sydney’s most exclusive suburb... so up-market, in fact, that it carried the moniker: Double Pay. Originally Nico launched a Parisianstyle development called Montre, setting prices for the eight large

luxury apartments at $3.25-Million to $6-Million. He spent a great deal of money on advertising, promotion and marketing, and built a lavish display centre on site. The $425,000 suite was replete with a replica kitchen, bathroom, master bedroom, living area, dining room and courtyard.

People came, saw, touched, admired and expressed delight at the quality... but to his dismay no-one committed to purchase.

SIX YEAR VISION

Nico changed agents, but realised the lack of sales was primarily due to the tough market conditions at the time, and the prices he was asking.

Anyone interested had to first sell their home – usually a mansion in the Eastern Suburbs – and these properties were not selling for anything like the prices their owners wanted.

But Nico is nothing if not a survivor, and as they say in the iconic TV show by that name, the tribe had spoken . . .

‘The tribe’ wanted smaller, more ‘hip’, more affordable apartments.

Sure, they still wanted to live in a convenient, vibrant location, but their budgets were limited.

“When we launched Montre the market was tough, and many projects were not getting the pre-sales needed to start construction,” said Nico, 32,

whose parents founded Oceania Property in 1991.

“Large expensive apartments really only appeal to empty nesters, and at that time the plunging value of their superannuation funds and share portfolios had them nervous.”

Nico had joined Oceania at the tender age of 20, and over the preceding 12 years he has seen the vagaries of the Sydney property market.

“Selling property is dependent on timing, and because an apartment development takes a minimum of four years to come to fruition, demand for a particular type of stock can change.

I knew my project needed a complete re-think.”

So Nico, architects Kann Finch and the sales agents changed the style, mix, prices and name of the development to The Bay Residences. Initially they decided on 21 apartments, the majority being compact one-bedders. But before he submitted new plans to Council Nico’s research revealed the mix was still wrong. A balance was needed.

Eventually Nico settled on 13 apartments - three one-bedders, one twobedder, seven three-bedders, and two penthouses. He secured DA approval, and set extremely competitive prices.

“Kann Finch managed to retain much of the original building’s chic street-level appeal and most of the quality finishes, but we completely reconfigured the

floorplans,” said Nico.

The changes have worked, with seven apartments selling. Remaining at The Bay Residences are: • 1 one-bedroom apartment (77sqm total) for $925,000 • 1 three-bedroom apartment (134sqm total) for $2.075-M • 2 three-bedrooms plus study apartments (240sqm total) from $3.75M, and • 2 penthouses with landscaped roof terraces (278sqm total) from $4-M. “We have been through the ups-anddowns of the Sydney property cycle several times now and have survived by being nimble enough to adapt to changing demand,” said Nico, whose company has developed more than $250-Million worth of property, including Bell Aire at Bellevue Hill, Arc at Victoria Park, Alura at Cremorne and Huntley Park at Hunters Hill.

“We are currently searching for sites where we can add value through our corporate philosophy of ‘affordable luxury’.”

The Bay Residences, at 16-22 Bay Street, Double Bay is open by inspection only through CBRE’s Ben Stewart (0412 753 740) and Esti Gruceta (0431 737 911) or through the website: www.thebayresidences.com.au StrataLive Autumn/Winter 2014

131

OVERHEAD BONDI’S NEW BEAUTY

T

he ‘buzz’ of Bondi Junction grows louder by the day, with the bustling hub arguably Sydney’s most indemand residential suburb.

More than 220 apartments have been snapped up off-the-plan since late 2013. Now Leighton Properties, in a joint venture with real estate private equity firm Qualitas, has entered the Bondi Junction market with a landmark building that will transform the skyline.

The 20-level AQUA will become the eye-catching new gateway to Bondi Junction, offering 129 thoughtfully designed apartments certain to appeal to both owner occupiers and investors. The development will be built on the corner of Oxford Street and Hollywood Avenue, adjacent to Westfield Shopping Centre and just 500 metres from Bondi Junction’s train and bus interchange.

The architecture by KANNFINCH in collaboration with DC8 Studio showcases contemporary symmetry and a purity of line. The building is designed to engage the unique corner location, with all apartments having an open northwesterly or northeasterly aspect. The majority of apartments are orientated northwest 132 StrataLive Autumn/Winter 2014

towards Sydney Harbour, the Opera House, Harbour Bridge and Sydney CBD skyline, or northeast towards breathtaking ocean and district views.

Two rooftop gardens and sweeping lobbies on each level provide an exclusive space for residents to relax in comfort, and will prove to be a perfect place to socialise.

While it looks like a singular sculptured building, AQUA is formed by two slender towers, united by a central corridor.

“The building has an organicallyshaped floor plate which houses two elegant towers,” said Mr Mark Sheargold, Senior Associate at KANNFINCH. “The curved north-west façade of the north tower captures the key city views whilst the south tower captures the ocean views and morning sun.”

AQUA has a series of horizontal bandings that wrap around the floor plate. The changing colour and texture of the banding emphasize the individual character of the two towers.

“In perspective, no entire elevation can be viewed at once which is intriguing to viewers and strengthens the gesture that you are looking at a sculpture form in-the-

round,” said Mr Sheargold.

The podium at AQUA will contain a mix of retail and landscaped private outdoor spaces. A ribbon-like awning will wrap around the podium to protect pedestrians and shoppers and give residents and their visitors a sense of ‘arrival’.

“The podium preserves the rhythm and human scale of Waverley Street Mall, merging seamlessly whilst enhancing the streetscape,” said Mr Sheargold.

Having just one neighbouring building to the south allows light to flood into each apartment, aided by floor-to-ceiling glass windows and spacious balconies.

The interiors by award-winning Koichi Takada Architects bring a freeflowing dimension to urban living, with custom-designed joinery extending from kitchens into living areas like a sculptural piece of furniture.

“Our inspiration comes from the location of AQUA, which is an interchange between a connected, convenient and bustling shopping and transportation hub and some of Sydney’s best beaches – an escape to nature, water and waves,” said Mr Koichi Takada, Director at Koichi Takada Architects, who incorporates a

BONDI’S NEW OVERHEAD BEAUTY

Sky high demand

By Barry Hyland

Japanese sensibility into his architecture.

“We’ve created two distinct schemes; one called ‘Breeze’ and the other ‘Drift’, and used new materials to experiment with playful shapes. The finishes are a balance of polished modern materials coupled with the warmth of textured, natural timber.”

Nowhere is this more evident than in the kitchen islands, which will be shaped like a surfboard in the larger apartments and a ‘gentle wave’ in the smaller apartments. The splashbacks will be a mirrored finish to draw the stunning views inside, and the engineered timber floors will be white-wash or grey-wash.

The majority of two and three-bedroom apartments have car spots, and there will be 146 bicycle spaces.

“Residents will enjoy living close to the action, and Bondi Junction has a buzzing vibe to it unmatched by most other centres,” said Peter Chittenden, Managing Director at Colliers International.

“AQUA is on the most prominent site in Bondi Junction, and when these apartments are gone there is nothing else on the drawing board; it will be the last residential high-rise in this

precinct for the foreseeable future.”

AQUA could hardly be more convenient for shopping, dining and entertainment, and is a short walk to Bondi Beach. It’s also handy to parks, playing fields, schools and the eclectic village of Paddington.

“Residents need never use their car to get to work, do the shopping or meet friends for a drink, reducing the stress of urban life and easing pressure on the environment,” Mr Chittenden said.

Mr Gavin Tonnet, National Head of Residential at Leighton Properties, believes AQUA is destined to become Bondi Junction’s most prestigious place to live.

“AQUA will be a landmark building with extraordinary prominence and importance in the new urban heart of Bondi Junction.

We have embraced the exciting opportunity to develop a fascinating building of outstanding architectural merit and thoughtful apartment layouts,” Mr Tonnet said.

“We’ve also designed AQUA to be a place where residents can enjoy the privacy of their own apartment, with the convenience of secure resident-

only spaces within the building such as the landscaped podium or the rooftop garden, which will offer incredible views to Sydney Harbour and the city skyline. The spectacular rooftop garden will provide a prime vantage point to watch the New Year’s Eve fireworks.”

“Our vision for the development draws from the local context and symbolises the energy and character of the location. We have ensured to respect the extraordinary value of public spaces on three of its sides, including Waverley Street Mall. We have established a team of Australia’s leading designers to take up these challenges and develop the concepts that have inspired our vision for the project,” continued Mr Tonnet.

“With a significant undersupply of quality new apartments in the area, we believe there is strong pent-up demand for these premium quality residences.

An AQUA display centre is being built on site, and floorplans will be available for viewing from mid May 2014. To register your interest, contact Colliers International on 1800 900 488 or via the website, www.aquabondijunction.com.au StrataLive Autumn/Winter 2014

133

LICENCED TRADIES

The importance of using licensed tradies Steve Ellis from Result Trade Services warns against DIY plumbing and electrical

By Steve Ellis

W

ith the increased costs of living these days, plus all the renovation “reality” shows like The Block, there is a surge in property owners undertaking their own repair and maintenance work. This can be life-threatening in regards plumbing and electrical work.

For some trades like plastering, tiling and painting, it is reasonable to expect that people will “give it a go” themselves.

People are taking on potentially life risking work like plumbing and electrical work and it is a real concern that home renovators could be putting themselves and their houses at risk.

Plumbers and electricians are highly skilled trades that provide a crucial service for the residential, commercial and industrial sectors. All related work needs to be to the highest standard as plumbing and electrical typically affects public health and safety, specifically the potential for the contamination of drinking water supplies and electrocution.

Plumbing work can encompass a broad range of tasks including water supply, drainage, sewage, heating, cooling and gas fitting. Specific elements that are typically fitted by a plumber include water pipes, taps, sinks, baths, showers, hot water systems and elements of a property’s drainage and sewage system.

Electricians are generally responsible for lights, power and communications in your home.

134 StrataLive Autumn/Winter 2014

Common Plumbing and Electrical Problems: Some of the most common problems around the home are related to plumbing and electrical issues. This includes the following commonly encountered situations, which typically require the services of a licensed plumber or electrician: • Leaking taps • Leaking toilets • Faulty hot water systems • Leaking roof • Blocked drains • Bathroom renovation • Gas appliance installation • Burst water pipes • Light replacement • Appliance installation • Power point relocation • Smoke detectors • Security systems • Ceiling fans • Phone lines • Gas point installations Licensed plumbers and electricians: Only licensed contractors are authorised to carry out plumbing and electrical work and ensure that all the work under their control complies with all the relevant standards and regulations.

If you are unsure if your tradie is licensed ask to see some proof of this or contact your local State Authority.

Licensed plumbers and electricians are required to complete extensive on site experience, attend very intense training

courses at TAFE and other training organisations. All work shall comply with the Australian Standard of AS3500 and AS3000. There can be very costly mistakes made and often it cost more to fix up others problems than it would have cost in the first place to get it done by a reputable licensed tradesperson.

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CREATE A COSY WINTER HOME

Create a cosy winter home 20 easy ways to make your home a cosy winter haven

By Georgia Madden

I

t’s cold outside, so warm up with bold colours, sumptuous soft furnishings and natural materials. You don’t need to refurnish your whole home to make it cosy for winter. Instead, focus on social areas, such as the living and dining rooms, and relaxing ones such as the bedroom and bathroom.

1. Splash out on a new rug. It will add instant softness to a hard timber or tiled floor, and create a cosy zone in a carpeted area. Super-soft woolen rugs feel divine underfoot, especially on a chilly day, but they’re not your only option - consider other tactile materials such as felt, shagpile, a decadent silk mix, or a patterned cut and loop pile.

2. Add cushions and throws in warm colours to banish the winter chill.

Think delicious tones of chocolate, butterscotch, aubergine and burgundy, or jewel-like tones of ruby and emerald to add a little heat to a cool, neutral scheme.

3. Look for textures you want to reach out and touch, especially those with a natural, handcrafted appeal such as knitted and felted soft furnishings.

Better still, make some yourself!

4. Move things around. Re-position sofas and armchairs into cosier, more intimate settings. Shift reading chairs away from chilly spots, such as near the window, and closer to heat sources.

138 StrataLive Autumn/Winter 2014

5. Nothing says cosy quite like a roaring fire. Go for a sealed firebox for efficient, slow-combustion heating, and choose firewood from renewable sources to reduce your impact on the environment.

6. Embrace the natural beauty of timber. Whether it’s accessories such as bowls or handcrafted collectibles, wooden wall panelling or lighting, timber is guaranteed to bring warmth to a scheme.

7. Give your windows a winter makeover. Replace lightweight summer curtains with something heavier and warmer. Velvet is ideal for winter, and it’s firmly back in fashion, often with rich detailing that evokes another era.

8. Treat yourself to some new bedlinen. We all know that we need more layers to stay warm in winter, so what better excuse to go shopping for new a new duvet cover, blanket or throw to create luxurious layering on the bed.

9. Switch on to lamps. Replace harsh and unflattering overhead lighting with the gentle glow from a selection of table, floor and wall lamps.

10. Create a cosy reading corner.

Position a comfortable armchair close to the heat, toss a throw over the arm and install good task lighting. Now all you need is the perfect book!

CREATE A COSY WINTER HOME

11. Take the pain out of cold winter mornings by installing heated towel rails in the bathroom. Put them on a timer so that your towels are warm and toasty by the time you get out of the shower, without wasting energy.

12 .Encourage your guests to kick off their shoes and relax, with a selection of soft, generous floor cushions and knitted pouffes in warm colours.

coloured prints and black and white photos - theyâ&#x20AC;&#x2122;ll lift the soul of all who enter, and create strong focal points on the wall.

15. Create a feature wall in social areas such as the living or dining room - think paints in chocolate, burgundy and lustrous metallics, or richly-patterned wallpaper.

18. Give yourself the perfect excuse to stay in by rearranging your books, and perhaps introducing a few new ones. Display favourites in interesting and unexpected ways, such as by spine colour or with the covers of favourites facing forwards, to encourage guests to pick up a volume that catches their eye.

13. Fill your home with the wintery scents of apple, cinnamon and spice wafting from pretty, scented candles.Â

16. Create some cosy accent features, such as a collection of twinkling, coloured glass or a group of earthy ceramics.

19. Set the table for an intimate winter dinner party. Use twinkling lighting, beautiful, coloured glasses, and plates and napkins in jewel-like or chocolate tones.

14. Change your artwork around, or jazz up tired picture frames with a fresh coat of paint.

Winter is the perfect time for brightly-

17. Bring a little of the outside in.

Introduce winter floral arrangements made up with berries, winter flowers and sculptural branches.

20. Use folding screens or sliding floor-to-ceiling ones to divide up large open-plan rooms into smaller, more intimate spaces.

StrataLive Autumn/Winter 2014

139

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