The NSW
STRATA MAGAZINE DECEMBER 2021
Should lot owners be concerned about insurance
for hail damage to solar panels? Page 14 | Strata Insurance Solutions
Are older buildings exempt from fire safety upgrades? Page 18 | 2020 Fire Protection
Can we decommission a rarely used elevator? Page 30 | Carlo Fini, Lewis & Charles Lawyers
About Us LookUpStrata is Australia’s Top Property Blog Dedicated to Strata Living. The site has been providing reliable strata information to lot owners, strata managers and other strata professionals since 2013. As well as publishing legislative articles to keep their audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month. Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at The LookUpStrata Directory, flip to end of this magazine.
Meet the team
Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013. With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians. Nikki shares her time between three companies, including Tower Body Corporate in SEQ, and is currently in her third term on the SCA (WA) Education and Professional Development Committee. More recently Nikki has become known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.
Nikki Jovicic Owner / Director
Liza came on board in early 2020 to bring some structure to LookUpStrata. She has a passion for processes, growth and education. This quickly resulted in the creation of The Strata Magazine released monthly in New South Wales and Queensland, and bi-monthly in Western Australia and Victoria. As of 2021, LookUpStrata now produce 33 state based online magazines a year. Among other daily tasks, Liza is involved in scheduling and liaising with upcoming webinar presenters, sourcing responses to audience questions and assisting strata service professionals who are interested in growing their business.
Liza Jovicic Sales and Content Manager
Learn more here → https://www.lookupstrata.com.au/about-us/ You can contact us here → administration@lookupstrata.com.au
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Contents 04 Connecting People, Creating Communities
Jake Sharp, MIMOR
06 Who’s responsible for the repair cost of efflorescence tiles on the balcony?
Ian Martyn, Core Project
08 Are our outdated by-laws invalid?
David Bugden, Bugden Allan Graham Lawyers
10 Can lot owners communicate directly with the strata insurer?
Leanne Habib, Premium Strata
Scott Driscoll, Sedgwick
14 Should lot owners be concerned about insurance for hail damage to solar panels?
Tyrone Shandiman, Strata Insurance Solutions
16 Notice required for holding strata committee meetings validly
Robert Fothergill, Strata Life
18
Are older buildings exempt from fire safety upgrades?
Rob Broadhead, 2020 Fire Protection
20 Who does the lot owner contact about issues in the building?
Dino Biordi, LUNA – The Building Management
Company
24 Does every light socket in the building require a globe?
QIA Group
26 Previous lot owner’s unapproved renovations cause damage to common property
12 Encouraging the OC to be proactive about maintenance
22 Are there legislative requirements to routinely maintain the garbage room?
Leanne Habib, Premium Strata
28 Who pays for repairs to a bathroom that were caused by neglect?
David Bannerman, Bannermans Lawyers
30 Can we decommission a rarely used elevator?
Carlo Fini, Lewis & Charles Lawyers
32 What if committee members refuse to sign a code of conduct?
Robert Fothergill, Strata Life
34 Defibrillators on common property in strata buildings
Dakota Panetta, Solutions in Engineering
Rod Smith, The Strata Collective
Thanks to our sponsors
Connecting people, Creating communities When most people were winding down for the weekend, Jake Sharp would frequently be dealing with last-minute requests to drive across town to ensure building and lift access for new tenants. That was four years’ ago, when Sharp’s cleaning business was responsible for 220 commercial and residential strata buildings, juggling ad-hoc moving requests from building managers and real estate agents. But it was his experience in managing a 187-apartment building, manually updating residents’ contact details and moving schedules, that acted as a catalyst for revolutionising property management systems.
“It was such a disjointed system; none of the individual parties – owners, managers, tenants, real estate agents, cleaners – were clear on the building’s processes and systems, even simple things like who is responsible for replacing a lost key. I just knew there had to be a better way to do it, particularly in this digital day and age,” Sharp said. And so MIMOR – the Move In Move Out Register – was born, an online portal for owners corporation managers, building managers and residents of residential and commercial properties, acting as a centralised hub for building information, alerts and moving procedures. Through MIMOR, residents can create an automated booking to ensure all parties – including cleaners - are informed well in advance of moving day, avoiding calendar double ups and costly delays when removalists are forced to wait to access parking bays and lifts. The MIMOR system is particularly useful for new buildings, streamlining and simplifying the often chaotic settlement and handover period,
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ensuring all parties are privy to the same information and able to share access to moving facilities. “It’s crazy to think that before MIMOR such a stressful process had to be arranged through lots of separate emails back and forth. Often new residents were getting contradictory information, with the real estate agent saying one thing, the OC manager or building manager another. MIMOR removes any ambiguity by detailing all the information required for a stress-free move – right down to lift dimensions so you know if that oversized couch can make the move with you,” Sharp said. MIMOR’s functionality also extends to other information integral to building operations, including owners corporation rules, waste management, power and water utilities, storage facilities, evacuation plans and emergency contacts are centrally located on the platform. As interest from owners corporations and schemes grew, Sharp also added features to manage parcel deliveries and booking of common areas and facilities such as the pool, barbecue or conference rooms.
Building managers can also send emails and SMS alerts to occupants to inform them about maintenance issues, and share announcements via the digital noticeboard, removing the need for unsightly notices in the building entry and other shared spaces. “And owners corporation managers and/or building managers love it because they aren’t having to manage lots of individual questions about processes and building suppliers, and they are able to update information online and notify residents in real time without resorting to putting up notices in the foyer or lift, which are pretty unattractive and often defaced or removed anyway.” Sharp said while some owners corporations were initially reluctant to embrace change, they quickly came to recognise the benefits, quickly rolling out the MIMOR system across other buildings under their management. One early adopter was so impressed that the responsible owners corporation is now using MIMOR across 60 per cent of its Melbourne portfolio.
“The beauty of MIMOR is it works at different levels for different audiences. The residents love it because all the information is located in one central point, everyone abides by the same rules and they can rely on SMS or email for important updates,”
Take the stress out of strata living The pandemic had also proven the need for a central communications hub that can quickly share consistent and reliable information directly with all stakeholders. “Covid is a good example of how the MIMOR system can help to protect tenants’ health and safety by making sure all residents are provided with the latest information with regard to government regulations and how that effects their use of shared facilities,” Sharp said.
“In the case of building lockdowns, the building manager can quickly alert all of the occupants and explain restrictions and procedures. That is a huge help to health officials when you need to work at speed and ensure everyone has the same information and a clear understanding of processes and expectations.” Sharp is also working on translating the information into 10 languages, and will soon launch MIMOR as a mobile app. And while hundreds of
info@mimor.com.au
buildings have already signed up to the system, Sharp sees the potential for further expansion, with annual subscriptions scalable from three apartments to more than 500. “The latest data shows almost 10 per cent of the population live in more than 340,000 strata schemes in Australia. I deliberately created MIMOR to be inclusive of as many of those residents and corporations as possible,” Sharp said.
mimor.com.au
5
Who Rectifies Efflorescence of Balcony Tiles?
Lot owners have reported calcification or efflorescence of balcony floor tiles and have asked who is responsible for the cost to rectify the problem. A number of owners have reported calcification or efflorescence occurring on the floor tiles of balconies and have raised the question as to which party is responsible for the cost to rectify the problem. An expert advised that this calcification can potentially result in more serious damage to the waterproof membrane through water ingress if left unresolved. This could turn out to be more costly than treating the less major issue of the surface calcification. Is it the responsibility of the Owners Corporation to rectify and remove the calcification or is it up to the individual apartment owners?
Generally speaking, maintenance is the responsibility of the Lot Owner (or Owners Corporation for common areas). Efflorescence is an unfortunate byproduct as a result of the materials used in many building products and has spawned a whole product sector attempting to deal with it. Tile bedding or screed is particularly susceptible where moisture is able to interact with this material. Firstly, it is important to understand there are different types of efflorescence and the mechanism in which they occur slightly varies. 6 www.lookupstrata.com.au
1. Primary Efflorescence – occurs after the product containing soluble salts is installed (concrete, tiles screeds, cementitious grouts). This is usually minor and easy to clean away and not normally considered a defect or indicative of an underlying problem. 2. Secondary Efflorescence – occurs when water penetrates the materials, interacts with the soluble salts and then is drawn or tracks to the surface to evaporate leaving the salt deposits. This is usually easy to clean away when done shortly after appearance. If left for prolonged periods, it can become almost impossible to effectively remove from the surface it has collected on. Secondary Efflorescence can be an indication of an underlying issue, such as a lack of falls of the membrane (water accumulating in a tiling screed). However, resident actions can contribute to and make this issue worse. Overwatering plants or excessive use of water when cleaning or even excessive cleaning can introduce water that otherwise would not be present to cause the observable after effect. Generally speaking, maintenance is the responsibility of the Lot Owner (or Owners Corporation for common areas). Excessive efflorescence is usually an indication of a design and/or construction issue. Unfortunately, it is not possible to confirm without destructive investigations. There are minimal long-term solutions to address excessive efflorescence without undertaking more significant works. READ MORE ON THIS TOPIC HERE
Ian Martyn | CORE Project Consulting Pty Ltd admin@core.engineering
7
Are Our Outdated By-laws Invalid?
Our older building’s supposedly consolidated by-laws are inconsistent and contain old terminology. Are the outdated by-laws invalid? I have three issues concerning By-Law consolidation. 1. I am concerned that our By-laws have not been consolidated in a logical way to make an accessible document; and 2. that the term ‘Council’ appears everywhere though out the document – through old and new By-Laws – where it means to refer to ‘strata committee.’ And 3. that all our Special By-Laws to cover various apartment renovations are not attached to their associated Annexures. The Annexures have all been lumped together at the back.
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My building is 26 years old. Our current, supposedly consolidated By-Laws have been brought up to date with the 2015 changes – i.e. By-Laws 12-29 inclusive have been repealed by Special By-Law 1 and the new 12-29 substituted. The old ones haven’t been actually taken out – they are there along with the new ones. The old ones have topic headings but the new ones don’t. Consequently, you need to go back and forth from the repealed to the new ones. The term ‘the Council’ represents the legally defined term ‘strata committee’ throughout the entire document. Is this legally correct or are all these By-Laws where the term ‘the Council’ is inserted invalid?
You should not have old, repealed by-laws showing in your consolidated by-laws. What you have described regarding old/ incorrect/inconsistent terminology is not uncommon, especially for older strata
buildings that have changed their by-laws numerous times over the years. What invariably happens is different parties draft by-laws over time, and they end up being inconsistent and sometimes incomplete. We would need to look at your current consolidated by-laws, however it sounds like they were not consolidated properly. You should not have old, repealed by-laws showing in your consolidated by-laws for example. Ideally your by-laws should use the current terminology in the Act. We would recommend you engage a law firm to tidy all this up for you (including by removing any by-laws which have been validly repealed) and register a clean, consolidated set of bylaws that has the correct terminology, clause numbers, headings and any annexures laid out correctly. David Bugden | By-Law Builder Bugden Allen Graham Lawyers david@bagl.com.au
READ MORE ON THIS TOPIC HERE
Can lot owners communicate directly with the strata insurer?
Can strata lot owners communicate directly with the strata insurer to request to review all insurance claims and payments? Can owners of a strata property request directly from the Strata Insurer to review all claims and payments? I believe you can submit a claim but our request to view all activity directly has been refused. As paying owners I would have thought this would be possible?
Generally, the insured is the Owners Corporation not the individual lot owners. Generally, the insured is the Owners Corporation. It’s the Owners Corporation that will have that relationship with the insurer directly. However, everything has to be kept on record, so this particular owner can actually conduct a search of the books and records where everything needs to be made available by the secretary or the Strata Managing Agent (if there’s an agent involved), and that information includes the claims history. 10 www.lookupstrata.com.au
You could write to your Strata Managing Agent or your committee seeking a copy of the claims history. If they refuse to provide it to you then you should ask if a claims history is on record. If there is one on record, then you should book in a search to the books and records, and the claims history should then be made available along with all other records relevant to your scheme. If there isn’t a claims history on record, as an owner, you view it so I would be asking the strata committee to uplift a claims history from the broker or insurer direct, place it on file if they’re refusing to provide it to you and do a search to the books and records. Again, the Owners Corporation should not be refusing access to this information. As a lot owner, you contribute to the annual premiums. You are an interested, insured party being an owner of the Owners Corporation. So I will definitely be seeking that claims history and they should not be refusing it.
READ MORE ON THIS TOPIC HERE
Leanne Habib | Premium Strata info@premiumstrata.com.au
11
The OC Should be Proactive About Maintenance Magnesite and Concrete Spalling
Repair of a major leak uncovered a major magnesite defect. The committee is slow to respond to repairs. How can I get a response? Our Strata Committee recently fixed a major kitchen pipe leak in our 1960’s building by replacing the whole pipe. The leak caused an area of magnesite screed on the concrete slab to become saturated. It dripped in the Lot below. I have asked the Strata Committee to assess potential water damage to the magnesite and claim this on the strata insurance, if applicable. I am concerned we may be exposed to long-term concrete spalling. 12 www.lookupstrata.com.au
My emails are ignored by the strata manager and the Secretary of the Strata Committee. What can I do? The leak was fixed 3 months ago. How do I get a response and make sure an assessment is organised? How are other strata committees in NSW dealing with similar plumbing leaks? Is awareness of magnesite induced spalling increasing? Is it becoming standard practice to assess magnesite whenever there is a major leak?
Encouraging the OC to be proactive rather than reactive with maintenance is an issue to be tackled at an AGM.
The pipe has been replaced, this is good. Leaking and therefore moisture has also stopped. Assuming that we are not discussing a leak that was present for years, this is what the OC were required to do. Providing that the floor and magnesite was dried quickly and thoroughly, and assuming we are not discussing an extreme long term leak, then there will be no resultant spalling. The OC is also responsible for damage to the ceiling in the lot below (but not necessarily the painting). Noting that most strata policies available today will respond to the event (in various degrees), most will cover damage to the magnesite (if any) and damage to the ceiling below (if any).
The degrees around further response is governed by what is damaged. For example: 1. most insurers will cover the drying of the floor to ensure there is no long term resulting magnesite damage 2. Some will cover searching for the pipe and 3. Some will cover some level of the pipe repair These items all vary between insurers. You will also note that in a 1960’s building, the OC may have opted for or accepted a higher Water/pipe excess which could effectively mean self-insurance on all of the above.
It is also possible that if there is / was no damage to the ‘building’ then the mitigation would fall to the lot owner and their contents insurer. While I am unsure if the writer is the lot with the magnesite floor or the potentially damaged ceiling, or just a concerned owner, part of this question is the same response. The Strata manager works for and is engaged by the OC. Each member has the right to view all records. Simply advise them that you wish to view the records and book a date to do so.
Having said that, if the lot owner themselves were responsible for the work / repairs and or mitigation (that is, there was no building damage), then other than the pipe repair there will be no further information. Encouraging the OC to be proactive rather than reactive with maintenance is an issue to be tackled at an AGM. Simply add it to the agenda for the next AGM. This is the correct procedure. Please see previous information about magnesite and concrete spalling if more information is required.
Scott Driscoll Sedgwick Building Consultancy division
READ MORE ON THIS TOPIC HERE
scott.driscoll@au.sedgwick.com
Remedial repairs & cost management Management of remedial works can be challenging at the best of times and may cause considerable financial stress as owners try to navigate the minefield of complexity of Strata repairs. Value vs competitiveness is the driver to desired outcomes. Defining your objective and the extent
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Pay the right price for works required
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0424 750 900 sales@au.sedgwick.com 13
Insurance for Hail Damage to Solar Panels
Should lot owners be concerned?
The owners corporation passed a resolution to NOT cover solar panels installed on some villa’s roofs. I’m concerned about hail damage. Can I take out insurance? I’m buying a strata villa which has solar panels on the roof. There are 8 villas, and 2 have solar panels. Searches by my conveyancer show the owners corporation passed a resolution NOT to include cover for solar panels in its building insurance. I can’t take out building cover because I don’t own the whole structure. I’m concerned about hail damage in the future. I can’t find an insurance company who will let me insure the solar panels under my contents policy. I’m happy to pay for cover. Have others faced this issue?
Solar panels being permanent fixtures are covered by strata insurance. Solar panels being permanent fixtures are covered by strata insurance. Insurers do not impose requirements to pass a resolution in order for cover to be offered. If the solar panels are not permanently attached to the property, they are not covered by strata building insurance. The only consideration is whether the sum insured should be increased to factor in the panels, but most buildings do not increase sum insured after installation of solar panels.
READ MORE ON THIS TOPIC HERE
Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au
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Holding Strata Committee Meetings - Validly Should the Committee be notifying Owners of the meeting? Is the committee required to give lot owners notice of committee meetings? What are the implications if we meet without notifying lot owners? We are a strata of 36 units. The Strata Committee of 5 members currently meets monthly. At other times when necessary, the minutes are circulated to owners. It appears (from the NSW Fair Trading website) we should be giving owners notice of Strata Committee meetings, however, we don’t want to do this for every meeting. It seems many Strata Committees are not giving notice to owners. Does someone have a summary of best practice, for example: 1. do we need to give owners notice of any SC meetings (noting that many other SCs don’t seem to do this)? 2. if so, is it ok to have formal and informal 16 www.lookupstrata.com.au
meetings and we only give notice of the formal meetings? 3. if so, how many formal meetings should we have each year (noting we currently have one, straight after the AGM)? 4. do we only need to circulate the minutes of the formal meetings? 5. are decisions made at informal meetings valid? 6. apart from notice, would there be a difference between an informal and a formal meeting? 7. anything else?
There are specific requirements that notice must be given for Strata Committee meetings to be held validly.
There are specific requirements that notice must be given for Strata Committee meetings to be held validly. If the required processes for the holding of meetings are not followed, there is the potential for all decisions being open to challenge and an Order invalidating these decisions if the provisions in the Strata Schemes Management Act 2015 are not complied with.
For a scheme with 36 lots: • Schedule 2 Section 5 of the Strata Schemes Management Act 2015 applies. This specifies that notice of a meeting must be provided to each member of the Committee and each owner at least 3 days before the meeting. Part 2 of this section allows for the notice to be given by placing the agenda on a noticeboard, if one is maintained by the Owners Corporation.
• The Interpretations Act 1987 Section 76 specifies that the service of a document by post is taken to have taken effect on the seventh working day after the agenda was posted so this needs to be taken into consideration for the correct notice to be given (if required). There is no specific requirement for the Committee to hold a certain number of meetings under the Strata Schemes Management Act 2015.
READ MORE ON THIS TOPIC HERE
Robert Fothergill | Strata Life Robert@thestratalife.com.au
• Clause 7 specifies that the notice of a meeting must include a detailed agenda for the meeting.
Contact Antonio Vazzoler at Dulux to discuss how we can support and add value to your property and paint projects. E: antonio.vazzoler@dulux.com.au T: 0412 245 783
17
Are Older Buildings Exempt from Fire Safety Upgrades? Are Strata Plans registered before 1974 exempt from fire safety upgrades? We have been told due to our Strata Plan lodgement date (prior to July 1974), we do not have to upgrade, and we do not have to have: • a sprinkler system in our garage • scheduled regular window lock checks for child safety • fire-rated individual entry doors in common stairwells • doors to the basement don’t require a key to enter or exit • no extinguishers in stairwells • etc Is this correct?
Owners are under no obligation to proactively upgrade fire safety systems unless required by the Regulatory Authority. It is very hard to answer a question of this complexity without context, but here’s the best attempt:
Window Locks
Window locks – I am not knowledgeable on this subject, but a quick search seems to indicate that ALL strata buildings require them: Window safety device requirements
“Grandfather” Legislation
The only “grandfather” legislation in relation to fire protection is the requirement for working smoke alarms in all rented or sold residential apartments. This is irrespective of building age and required by the Smoke Alarm Legislation 2006 and the Residential Tenancies Act update last year. More general info can be found here: NSW Smoke Alarms – It’s the Law In regards to the other items, the owners are under no obligation to proactively upgrade fire safety systems unless required by the Regulatory Authority (e.g. Council or Fire Brigade). Council are required under the Environmental Planning & Assessment Regulation to “bring all buildings up to a current level of fire safety”. Hence, at some stage the upgrades noted WILL be required by Council and it is our recommendation that the owners start scoping and budgeting for this.
Council Upgrade Orders
Council Upgrade orders tend to be triggered by one of the following: • Development Application (DA) Submission. • Complaints • Fire Brigade attendance for a fire or callout • Random visit by council officers. Being that the question is quite specific and if the word “upgrade” is used loosely, the answer could be different. For example; if the site is required to issue an Annual Fire Safety Statement (AFSS) to council and the items specified are not performing as per the code they were installed to, they must be returned to a condition where they do perform. If an AFSS is required to be issued, things like doors that are locked would have to be rectified if they restrict the paths of travel from the building. Happy to discuss and gather further context with the writer if the above does not answer all questions.
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Who Does the Lot Owner Contact About Issues in the Building? Is the direct contact the committee or the strata manager?
What is the correct channel for raising issues pertaining to our strata complex? Should the lot owner first contact the Strata Manager or the Strata Committee?
Rod Smith | The Strata Collective rsmith@thestratacollective.com.au
20 www.lookupstrata.com.au
READ MORE ON THIS TOPIC HERE
Could you please provide the correct channel of raising matters when it comes to issues pertaining to our strata complex? Should the lot owner first contact the Strata Manager or is the Strata Committee the first port of call? We don’t have a building manager. There is an ‘Owners Corporation’ letter box, but I don’t know if it ever gets cleared. If our Strata Committee has email addresses, we don’t have access to these. Should this be in the AGM Minutes once the Committee has been approved? Is there a basic step by step chain of who to contact and if the matter still hasn’t been addressed, then what is the next step?
It’s highly unusual for strata committees to pass out their personal email address or phone numbers. I’ve recently had this end in disaster where a strata committee member gave their mobile phone number to an owner. The owner was upset and was texting late at night and so forth. My advice to the strata committee member was ‘Block that number’. That normally doesn’t happen, but the first port of call is the strata manager. Just send them an email or give them a call.
The first port of call is the strata manager. Send them an email or give them a call. Depending on what the matter is, the first port of call is to the strata manager for response. Depending on the request, the strata manager will either make a decision on the spot or they’ll pass it back to the strata committee.
If you want an email passed on to the strata committee, normally they’ll do that, depending on the content and how it’s written. If it’s professional and courteous, normally, that would get passed across to the strata committee. If it’s guns blazing and all crazy, it probably won’t but I assume that it will be courteous and professional email they’ll be sent so that should get passed to the committee.
The Strata Collective. Where People Matter. The Strata Collective was formed with a simple goal – to provide a professional strata management service to clients who want a close, personal relationship with their Strata Manager. We are a next generation Strata Management business that you can count on.
Find out more about our award-winning services at thestratacollective.com.au 21
Legislative Requirements to Maintain the Garbage Room
Are there any legislative requirements to steam clean/paint common area garbage rooms? 1. Are there any Legislative requirements to steam clean/paint common area garbage rooms serviced by a garbage chute and recyclable bins? 2. I understand that under the OH&S requirements that a commercial property must repaint a garbage room every 7 years. Does this apply to residential strata as well? Dino Biordi | LUNA dino@luna.management
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READ MORE ON THIS TOPIC HERE
There is no legal requirement to steam clean or paint common area garbage rooms. 1. In short No. There is no legal requirement to steam clean or paint common area garbage rooms. We would suggest as good practice that the periodic cleaning of carpets, walls, garbage rooms and garbage chutes be undertaken by a professional service. The main garbage room should be thoroughly cleaned weekly / bi weekly when the bins are put out for council collection and returned in a clean state. This is basicgood hygiene for the prevention of spreading germs and general grime. 2. This is not a requirement in a strata building although, as a recommendation, we would encourage all strata buildings to ensure the garbage room locations are clean, free of all dirt, grease, excess rubbish and, if feasible, to repaint the garbage rooms in line with regular touch up paint cycles for their buildings as and when they become tired and in need of a refresh.
Smart Zinc® Technology for Concrete Floors Affected by Magnesite Smart Zinc®130 Magnesite compact galvanic anodes are designed to provide lasting corrosion prevention for concrete floors affected by reinforcement corrosion The Problem: In the 1960s and 70s in Sydney, the use of magnesite as a floor covering was common and widespread in residential unit development. Since its installation, it has become evident that after a period of 30 years or more, and due to long term exposure to household moisture and/or water ingress through balcony doors, the magnesite topping has been the source of chloride ingress into the concrete slab. This has led to chloride-initiated corrosion of the steel reinforcement in the concrete floor, resulting in cracking, spalling and ‘lumping’ of the concrete below the floor covering.
The Solution: •
Fully or partially remove the magnesite from all suspected areas of concrete corrosion damage.
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Perform testing to identify all spalled areas and high corrosion risk areas in the floor.
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Carry out concrete breakout to remove damaged concrete.
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Clean the rebar to a bright metal condition and restore any rebar with section loss as instructed by an engineer.
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Carry out concrete repair in all affected locations.
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Install Smart Zinc® 130 Magnesite anodes along the border of the repair areas and in all high corrosion risk areas. The anodes are to be encapsulated with low resistivity repair mortar.
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Seal the floor to prevent further ingress of moisture.
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Apply floor leveling as required to the original level.
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Alkali-activated zinc anode.
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Compact anode size (150 mm x 40 mm x 20 mm).
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Anode suitable for embedment in thin slabs.
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Installation procedure available from Savcor Products Australia.
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www.savcorproducts.com.au
Our Building Is Over Illuminated Our building has been fitted with an abundance of fittings resulting in areas that are over illuminated. Does every socket require a globe? We are a strata of 24 units. The building is to C3 standards. According to Australian Standard Lux levels, the required level of lighting is 40 to 100 lux. The building has been fitted with an abundance of fittings, which if all are fitted with globes the area is over illuminated. Do all fittings require globes for any legal reason?
The level of lighting required essentially depends upon the functions to be performed in the space that is to be illuminated. Lighting is quite a complex issue. Light emission decreases exponentially over distance, so at 1m from a light you will have one level of light and at 2m you may have half that. The level of lighting required essentially depends upon the functions to be performed in the space that is to be illuminated. Safe movement or orientation sits towards the bottom end of the scale and tasks requiring fine manipulation such as jewellery making sits towards the other. 24 www.lookupstrata.com.au
Many spaces have multiple designations so it would be a must to obtain original documentation as to the levels and uses approved before making any changes. In this instance we would assume that the lighting was approved with the current level of lighting and that altering it will have consequences from a safety and a legal standpoint. We would recommend more energy efficient lighting and/or sensors be considered if the goal is to conserve energy and reduce cost. Dimming the current level of light without a thorough understanding of what was approved or what the new lighting level will be, should be avoided. I trust that the above is of assistance, if there are any further queries please let me know.
READ MORE ON THIS TOPIC HERE
QIA Group info@qiagroup.com.au
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Previous Lot Owner's Unapproved Renovations Cause Damage to Common Property A previous lot owner in our small scheme carried out unapproved works which have now been discovered to have caused damage to common property. How do we proceed? We are a small complex of 7 townhouses and villas. One of the previous owners conducted unapproved renovations and now it appears that this has resulted in structural damage to the lot. The subsequent owner (who has been in residence for approximately 2 years), has noticed these structural damages and has asked the OC to share the cost of fixing. It’s not a small amount. I was wondering where the liability and cost falls. The previous owner who conducted the unapproved renovation was a tradesperson so they should have insurance, however, they not responding to our calls/emails/etc for obvious reasons. Is the OC liable for the costs under the circumstances? Or should the lot owner have done their due diligence and had the property properly inspected for damage prior to purchase?
We recommend that you obtain expert strata legal advice or find an amicable resolution and consider costs sharing. This is not legal advice, however, we are aware that there is a NSW Supreme Court case which held that an owners corporation’s obligation 26 www.lookupstrata.com.au
to repair and maintain the common property extended to rectifying the damage to common property that was caused by an individual lot owner’s works but because the damage to the common property was caused by other lot owners, those other lot owners were held liable to indemnify the owners corporation in that regard. In terms of the damage to lot property caused by another lot owner’s works, the Supreme Court also held that the lot owners who carried out the works were liable for damage caused to the other lot’s lot property pursuant to the hazard/interference/nuisance provisions of the strata legislation. Your matter is complicated by the fact that the previous owner has sold and that the Owners Corporation did not pursue the previous lot owner to obtain the proper approvals at the relevant time. This may, in turn, impact on the Owners Corporation’s building insurance coverage.
It seems that the structural damage is latent (ie was not obvious at the time of purchase) and that even if the new owner had obtained a building condition pre-purchase inspection report, it would not have been detected. The current lot owner may be able to pursue a private cause of action in nuisance against the previous lot owner. We recommend that you obtain expert strata legal advice on behalf of the Owners Corporation, or, in the interests of saving legal costs and avoiding potential disharmony at the scheme, find an amicable resolution and consider costs sharing and engage the appropriate experts eg engineers etc.
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Leanne Habib | Premium Strata info@premiumstrata.com.au
27
Repairs to a Bathroom Due to Neglect Who pays?
A lot owner in our 25 yr old building allowed the bathroom to deteriorate to the point that major waterproofing work is required. Is this, and the subsequent cost of the bathroom, at the cost of the owners corporation?
28 www.lookupstrata.com.au
I own a lot in a 25 yr old villa complex. One of the previous owners allowed the original bathroom to deteriorate with water leaking behind the tiles on the floor and internal wall due to grout degradation. The new owner is saying that the waterproofing is compromised with some areas of dampness in the subfloor although no deterioration of same. It has been difficult to get consistent advice from the plumber and builders. Some say the waterproofing is intact and others say that it is not.
Is the Owners Corporation fully responsible for what will be a new bathroom given that the previous owner had never requested preventative maintenance? There are still some original bathrooms over the 10 lots and all are in good repair. The new owner was fully aware of the problems prior to purchase.
Regardless of the state of repair of the bathroom or that the owner was aware of the problems prior to purchase, the owners corporation is responsible to repair and maintain the waterproofing membrane and floor tiles.
The owners corporation has a strict duty to repair and maintain the common property tiles and waterproofing membrane. This is regardless of whether or not the current (or previous) owner performed or advised the owners corporation of any preventative maintenance. A waterproofing membrane in a bathroom which was in place at registration of the strata plan would normally be common property. Under normal circumstances a waterproofing membrane will last for a minimum of 10 years as this is the usual warranty provided by installers. If the villa complex is 25 years old, the waterproofing
membrane could be expected to be reaching the end if its serviceable life. I would suggest that the owners corporation engage a waterproofing expert to undertake testing to ascertain whether or not the waterproofing membrane requires repair or replacement and for the expert to suggest a scope of works for the repair or replacement. Regardless of the state of repair of the bathroom or that the owner was aware of the problems prior to purchase,
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the owners corporation is responsible to repair and maintain the waterproofing membrane and floor tiles. This includes replacement of the waterproofing membrane and floor tiles if required. If the repairs or replacement damage lot property items, such as wall tiles, toilet, shower screen, vanity, the owners corporation is responsible to repair or replace those items on a like for like basis in accordance with section 122(6) of the Strata Schemes Management Act 2015.
David Bannerman | Bannermans Lawyers enquiries@bannermans.com.au
29
Can We Decommission a Rarely Used Elevator? Is it possible for the strata committee to pass a motion to decommission the unnecessary elevator? I am an owner in a 14 Lot Townhouse complex. We have a new lift that travels from the basement common area to the ground floor common area. We don’t use this lift very often because each townhouse can access the basement common area via its own townhouse stairs. I assume this lift is mostly for disabled people, but currently, we don’t have any disabled people living here. Most owners want to decommission this lift due to the rare usage and COVID-19 issues. This will also save us 30 www.lookupstrata.com.au
money on the regular upkeep and maintenance which can be expensive and unnecessary if no one needs to use the lift. Is it possible for the strata committee to pass a motion to decommission the elevator?
While it’s possible under strata law for an owners corporation to decommission its elevator, this may not be permitted under planning or anti discrimination law. The strata committee alone cannot decommission the elevator. While it’s possible under strata law for an owners
corporation to decommission its elevator, this may not be permitted under planning or anti discrimination law. Under the Strata Schemes Management Act 2015 (SSMA), a strata committee is permitted to carry out repairs and maintenance of common property. This arises by a combination of sections in the SSMA including: 1. Section 9 which makes the owners corporation responsible for management of its strata scheme and common property. 2. Section 36 which deems the strata committee to be the owners corporation when the strata committee makes a decision.
3. Section 106 which requires the owners corporation to repair and maintain common property. The permanent decommissioning of an elevator is not maintenance and repair of common property. Rather it is either a change to common property, a decision not to repair and maintain common property or a combination of both. To do any of these requires a special resolution of a general meeting because: 1. Section 108 requires changes to common property to be approved by a special resolution before the change is made. 2. Section 106 permits an owners corporation to decide by special resolution not to repair and maintain common property where it is inappropriate to repair and maintain it and that decision does not the safety of the building, structure or common property or detract from the appearance of any property in the strata scheme.
corporation must comply with that requirement under the Environmental Planning and Assessment Act 1979 (EPAA) unless it can get it changed. The decommissioning of the elevator if it involves changes to the building eg removal of the lift shaft or demolition, is probably not exempt development and the owners corporation would likely need a development approval from your local council under the EPAA. You should speak to a duty planner at your local council to see if development approval would be given. Finally, an owners corporation is subject to the Anti Discrimination Act 1977 (ADA). Under the ADA and following on from the decision in Hulena v Owners Corporation Strata Plan 13672 [2010] NSWADTAP 27, an owners corporation cannot discriminate in the
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provision of services such as access through common areas on account of disability or age. While your building may currently have no residents with a disability, this could easily change in the future and decommissioning of the elevator may amount to prohibited discrimination under the ADA. For example, a current resident may become disabled, current or future residents may have visitors with disabilities, or future residents may have disabilities. If compliance with the ADA would cause the owners corporation unjustifiable hardship, then it may have a defence to a discrimination claim under the ADA. The owners corporation should obtain detailed legal advice about its obligations under the ADA as part of its decision making.
Carlo Fini | Lewis & Charles Lawyers carlofini@lewischarles.com.au
Accordingly, the strata committee alone cannot decommission the elevator. Sections 106 and 108 are a pathway through which an owners corporation via a general meeting special resolution could permanently decommission an elevator. However, if it was a requirement of the original development approval for the building that it have an elevator, then the owners 31
Committee Members Refuse to Sign a Code of Conduct
If some members nominated for the committee knowing they were to sign a Code of Conduct and once elected, refuse to sign, can their nomination be considered invalid?
At our recent AGM it was resolved that Strata Committee members sign a standard code of conduct form. 7 owners were nominated and were accepted on the committee of 7. As there were 7 nominations, there was no need for an election. However, 3 of the 7 nominees were on the previous committee and have refused to sign the Code of Conduct and are still refusing to do so following two committee meetings. They say the reason for not signing is a “matter of conscience”. If they nominated knowing they were to sign the Code of Conduct as resolved by owners on a majority vote of 28 to 8 and now refuse to sign, can their nomination be considered invalid and they be removed from the strata committee?
32 www.lookupstrata.com.au
If the Committee were duly appointed there would not be grounds to remove them. If the Committee were duly appointed at a properly convened General Meeting there would not be grounds to remove them unless the process followed in the Strata Schemes Management Act 2015 were not followed. Section 35 (3) of the Strata Schemes Management Act 2015 specifies that the office of a member is vacated must be by Special Resolution (which can only be considered at a General Meeting): Robert Fothergill | Strata Life Robert@thestratalife.com.au
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35 Vacation of office of elected member of strata committee …
(3) A special resolution that determines that the office of a member is vacated may relate to more than one member of a strata committee or to all members of a strata committee. At the time of election at the next Annual General Meeting, I would suggest that when the owners are considering the nominations that are received, the nominees are asked to sign the Code of Conduct. If any nominees do not wish to sign it the owners can then use that information to determine the number of Committee members and consider a ballot, as that information could form part of their determination on who they wish to appoint to the available positions. 33
What Do We Need to Know Before Getting
a Defibrillator? We would like to have a defibrillator in a common area in our strata building. What legal or other issues do we need to be aware of? There are very few concerns with having an AED installed on common property. With over 30,000 sudden cardiac arrests each year, it is not a surprise that the question of installing these life saving devices has arrived at the Strata doorstep. Automatic External Defibrillators (AED) are designed to deliver a shock to the heart to return it to a normal rhythm. A defibrillator does not restart a heart once it has completely stopped but rather detect and treat (with electric pulse) an irregular heart rhythm commonly associated with sudden cardiac arrest. With nearly 60 Australians dying each day from abnormal heart rhythms (arrhythmias), the AED truly is a lifesaving device. Outside of a hospital, survival rates from sudden cardiac arrest are 10%. The presence and correct use of an AED can increase a person’s chance of survival to 70%. A person has the best chance of survival if a defibrillation shock is delivered within 3-5 minutes of them collapsing. That is certainly not enough time for an ambulance to arrive, but plenty of time for you to run to common property and grab the AED. 34 www.lookupstrata.com.au
These devices SAVE LIVES As with anything new brought into the realm of community/strata living, we must always consider legal ramifications and practicality. Thankfully, in terms of risk management, there are very few concerns with having an AED installed on common property. The (certified) devices are all designed to only provide an electric shock on a heart that is experiencing irregular rhythm. An AED will NOT deliver a shock to a healthy heart or to a completely flatlined heart. So, the risk of accidental electrocution is near non-existent. Manufacturers and installers of these devices record very few tampers or vandalism issues even with devices left out in national parks and beaches. Having these devices fitted inside an alarmed cabinet also deters any tamper from residents, visitors and particularly children.
There are currently no regulations that a committee must follow when installing one of these devices, simply a minor maintenance routine. We would strongly suggest that members of the committee (and any residents willing) complete a short training course on how to use an AED. An AED is simply another piece of first aid equipment that most first aiders can utilise to save a life. Maintenance requirements are very minimal, the device simply needs to be tested (turned on) at a minimum of 12 month intervals and a light is displayed throughout the year showing it is operational. The batteries vary in their life expectancy with most having a 3- 5 year lithium battery fitted. Simply install the device in easy view of a path of travel (ideally the building entrance or pool area), advise all residents of its purpose and location and check it each year. I think we will soon see the AED a common place item in our strata buildings with South
Australia currently in the process of passing a bill that will see AEDs MANDATORY in all commercial schemes and in all residential schemes of 10+ lots. No doubt, the rest of Australia will follow suit in time. Thankfully, in most states, the installation of these devices could be funded through the Sinking Fund/ Capital Works Fund meaning you likely won’t need to levy owners any additional monies to provide this life saving device. Such a simple decision to install an AED on your common property WILL mean the difference between life and death when a resident or visitor suffers a sudden cardiac arrest. It may be a mum that has tripped down the stairs and hit her head whilst taking the kids to school. It may be the tradesperson that falls off the ladder. It may be the lovely old dear who lives in unit 3. At some point, this device will save a life, it may even be yours! READ MORE ON THIS TOPIC HERE
Dakota Panetta | Solutions in Engineering dakotap@solutionsinengineering.com
35
Strata Skills 101 Making strata living understandable for all supported by
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STRATA MANAGEMENT Premium Strata
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Remedial Waterproofing & Building Specialists P: 1800 326 723 W: https://www.danraegroup.com.au/ E: enquiries@danrae.com.au
The Superseal Group
Trusted Experts in all aspects of Waterproofing P: 07 5519 4916 W: https://supersealgroup.com/ E: admin@supersealgroup.com
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Saving our clients time and money P: 1300 080 816 W: https://www.liftsconsultant.com/ E: enquiry@equityelevator.com.au Australia’s Vertical Transportation Consultants P: 0417 784 245 W: https://www.ilcpl.com.au/ E: bfulcher@ilcpl.com.au
FRANCHISERS Network Pacific Strata Franchise
Join our successful team P: 03 9999 5488 W: www.networkpacificstratafranchise.com.au/ E: networkpacific@franchisedevelopments.com.au
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DELIVERY & COLLECTION SERVICES Groundfloor™
Australian parcel, mail, and refrigerated lockers P: 0399824462 W: https://groundfloordelivery.com/ E: ask@groundfloordelivery.com
PROJECT MANAGEMENT Valen Project Services
Client-Side Project Management Specialists P: 02 8542 4293 W: https://valenprojects.com.au/ E: enquiries@valenprojects.com.au
CONSULTING Strata Solve
Untangling strata problems P: 0419 805 898 W: https://stratasolve.com.au/ E: chris@stratasolve.com.au
INVESTMENT SERVICES Strata Guardian
Fight low returns and rising levies with us. P: 1300 482 736 W: https://www.strataguardian.com/ E: contact@strataguardian.com
RECRUITMENT SERVICES sharonbennie – Property Recruitment
Matching top talent with incredible businesses P: 0413 381 381 W: https://www.sharonbennie.com.au/ E: sb@sharonbennie.com.au
MARKETING Marketing for Strata
Building Brand Authority & Thought Leadership P: 61 425 232 394 W: https://www.marketingforbusiness.com.au/ E: janette@marketingforbusiness.com.au
Would you like your Strata Story featured in the next edition of The NSW Strata Magazine? We want to share your strata stories with the LookUpStrata community. Some examples of what you may wish to share: • A project you have implemented in your complex that has made a positive impact (e.g a process, community building activities, parking procedure, ect) • Do you have a funny story to share about strata living? • Have you received a response back from one of the LookUpStrata professionals that has positively impacted you or your complex? • Have you made a change to improve sustainability?
If you would like to share your strata scheme story with the LookUpStrata community, Please send your story and photos to: administration@lookupstrata.com.au Disclaimer: If you send your strata story to
administration@lookupstrata.com.au,
you are agreeing to have your story published on the LookUpStrata platform or via social media. We must have written permission from each individual shown in the photo. Submissions may be refused for any reason.
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