The QLD Strata Magazine | December 2023

The QLD

STRATA MAGAZINE DECEMBER 2023

Are we obligated to approve requests for a visiting pet?

Page 14 | Strata Solve + Hynes Legal

Should owners pay for increased strata insurance due to solar panel risk?

Page 16 | Strata Insurance Solutions

Can an owner share photos of their neighbour smoking?

Page 28 | Mahoneys

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 the 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, a body corporate company in SEQ. Nikki is also 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 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 Disclaimer: The information contained in this magazine, including the response to submitted questions, is not legal advice and should not be relied upon as legal advice. You should seek independent advice before acting on the information contained in this magazine.

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Contents 4 Requirements to regularly clean the car park William Marquand, Tower Body Corporate

6 New legislation passed Queensland parliament. What does that mean?

20 How do I raise safety concerns about our pool refurbishment?

William Marquand, Tower Body Corporate

22 How to communicate with your committee Chris Irons, Strata Solve

Chris Irons, Strata Solve

8 Building repairs: realising your investment

24 Should replacement of trees be included in the sinking fund budget?

William Marquand, Tower Body Corporate

Edwina Feilen, Sedgwick

10 Strata Law Firm of the Year Todd Garsden, Mahoneys

12 Enhancing your property’s insurability by improving bushfire risk rating Tyrone Shandiman, Strata Insurance Solutions

14 Are we obligated to approve requests for a visiting pet?

Chris Irons, Strata Solve & Frank Higginson, Hynes Legal

16 Should owners pay for increased strata insurance due to solar panel risk?

Tyrone Shandiman, Strata Insurance Solutions

18 Strata is a complicated and changing business

26 Are fire door stops a legal requirement?

Stefan Bauer, Fire Matters

28 Can an owner share photos of their neighbour smoking?

Todd Garsden, Mahoneys

30 Identifying thermal loss and improving energy efficiency in buildings Edwina Feilen, Sedgwick & Stephen Thornton, Voltin

32 Should the committee be involved if owners are collecting bottles to raise money for gardening?

Chris Irons, Strata Solve

34 The QLD LookUpStrata Directory

Frank Higginson, Hynes Legal

Thanks to our sponsors

SC Seymour Consultants

STRATA COMPLIANCE REPORT SPECIALISTS

Requirements to regularly clean the car park In a residential building, is the body corporate obligated to regularly remove severe brake dust buildup in a large underground, two-level car park?

Most people expect body corporate property to be reasonably clean and tidy.

The body corporate must maintain the common property in a good and structurally sound condition.

This isn’t a structural condition, so you have to consider what is ‘good’. You may get a different range of answers here, but I think most people expect body corporate property to be reasonably clean and tidy. Most body corporates will arrange periodic cleaning of the car parks to achieve this. Perhaps there are some health or safety concerns if the dust is sufficient to affect the physical condition of users of the site or equipment, such as vents in the area.

So, what can you do as an owner? The starting point is to contact the body corporate and ask for the cleaning to take place. If that request doesn’t progress, you may need to formalise matters. If possible, it would be helpful for 4 www.lookupstrata.com.au

you to get a quote for the cleaning. If you are just one owner and the scheme is large, it is not always easy for a job like this. You can then submit an owner’s motion for the committee to vote on at their next meeting or via a VOC. Once you submit a formal owner’s motion, the committee at least have to consider this within six weeks or provide you with a reason why they can’t. If you have a quote, the motion could be to approve it. If not, the motion could be that they get quotes and vote on one.

Alternatively, you could submit a motion to the next general meeting for all owners to vote on.

Bear in mind the meeting could be over a year away, depending on where you are in your AGM cycles and the needs of your scheme.

You can also submit a claim through the Commissioner’s Office. If you do so, it is helpful to have submitted a committee motion first. If your motion has been rejected, you will have a definite point to dispute – a fulcrum for the case rather than just a general complaint.

Follow the disputes procedure and see where you get to: Queensland Government: Disputes in a body corporate.

William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au READ MORE HERE

5

New legislation passed Queensland parliament. What does that mean?

On the 14th of November 2023, it was announced the new strata legislation had passed Queensland Parliament. Chris Irons from Strata Solve explains what that means, when the changes come into effect and what you need to do to get ready.

Be alert, not alarmed. Now is the time to have your by-laws looked over. The other critical thing is communication and engagement. Absolutely nothing in these law changes has altered anything in relation to a body corporate’s need to be reasonable and transparent.

The big issues

A few months ago, Chris Irons, with Frank Higginson from Hynes Legal, recorded a detailed overview of the changes. You can find more information here: New Body Corporate Legislation 2023 passes Queensland Parliament

• Scheme termination • Pets • Smoking • Towing • The definition of a body corporate record • The code of conduct for both body corporate managers and caretakers\ management rights holders

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Chris Irons | Strata Solve chris@stratasolve.com.au READ MORE HERE

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for buildings with no identified defects

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7

Building repairs realising your investment Edwina Feilen, building consultancy division, Sedgwick Australia December 2023

Now more than ever, it is essential to understand the role and obligations of an owners corporation (OC) when a building requires any sort of repairs, maintenance or capital works. ‘By definition an OC manages the common property of a residential, commercial, retail, industrial or mixed-use property development.’ The role of an OC is to make important decisions about building repairs and the budgeting and/or financial investment associated with such projects.

In Australia, there are different regulatory requirements OC’s must abide by across states and territories to ensure the adequate maintenance of built assets. Not only does this involve the upkeep of a building, but also its longevity, performance, financial sustainability and, in most cases, its appreciation in value. It is important that owners recognise that such an approach requires investment from both a time and cost perspective.

Realising your investment should not be understated. The flow on effect will result in the OC spending more time and money to achieve the desired result. When it comes to building works of any nature, there are several core fundamentals that should be considered: • Define the objective and extent of works to be done.

What do you want to achieve?

• Do your research - engage reputable providers with

the correct qualifications, licensing and insurances.

• Ensure the extent of works and costs are balanced

with the benefits.

• Check the warranty/guarantee of the works being provided.

• Cost verification – to ensure costs are fair and reasonable.

Experts such as quantity surveyors can assist.

• Receive expert assistance to manage the works as a

third party; this will save time and money. Construction management is not a strata manager’s area of expertise.

Whilst the above may seem simple, strata building works can be complex with multiple stakeholders and personalities to manage. Coupled with environmental factors such as labour shortages, cost of materials and supply chain issues, realising your investment requires careful planning right from the start.

These challenges may be further compounded if an OC takes a significant period of time to progress building works. The introduction of new regulations may tighten compliance requirements and broaden scopes of works.

Inevitably costs will increase, and therefore, so will the size and cost of the overall project.

It is critical that OCs make timely decisions to progress

• Forensic investigations - identify all underlying issues.

building works. The industry is seeing delayed jobs being

Only addressing symptoms on the surface will be more

re-quoted at higher amounts due to the increased costs

costly in the long run.

of doing business. This is why it's imperative owners

• Scope it correctly - a detailed specification outlines

all works required.

• Obtain quotes based on the same scope of works

(like for like).

caring counts | sedgwick.com

understand that realising their investment may not be immediately seen or felt. However, experience shows that when you don’t invest time or money wisely, it will cost more in the long run.

4 KEY CRITICAL ITEMS You need it to be all inclusive

You need it to conform with the current statuaroty requirements

You need a warranty or guarantee

You need it to ensure the extent and costs are balanced with the benefits

S E D GW I C K B U I L D I N G CO N S U LTA N C Y S E RV I C E S We have provided expert building consultancy services for the past 20 years. As the largest home warranty consultancy specialist team in Australia, Sedgwick has extensive capabilities in forensic building consultancy, technical inspection service (TIS), policy assessments, preparation of scopes of work, tender validation processes and construction management.

Our specialty is the management of remediation work within the residential, multi-storey residential and mixed-use strata complex landscapes.

Contact us if you require assistance with your building repair issues, planning and/or associated costs.

Edwina Feilen | Business solutions manager,

Building consultancy division, Sedgwick Australia

To learn more about our

P. +61 424 750 900

strata solutions, click here

E . sales.au@sedgwick.com

caring counts | sedgwick.com

Strata Law Firm of the Year

Mahoneys was named “Law Firm of the Year” at the most recent Strata Community Association awards night. The “Awards for Excellence” night was an opportunity to celebrate and promote the highest-achieving professionals in the strata industry.

The “Strata Services Business Legal Firms Award” acknowledged law firms who delivered exceptional client services; relationships built on identifying and meeting expectations; and a seamless client experience with an unwavering commitment to providing a high level of services (including cost, quality of legal advice and added value to everyone).

Congratulations to Todd Garsden, Ben Seccombe and our entire body corporate team. The award is a recognition of the firm’s commitment to the strata industry and reinforces Mahoneys’ position as the leading strata law firm in Queensland.

“Mahoneys has set an exemplary standard in the Strata industry.

Their commitment to excellence, innovation, and sustainability is truly commendable. They’ve not only met but exceeded all judging criteria, making them a standout choice for this prestigious award. Mahoneys A leader in Strata legal services, paving the way for a brighter and more efficient future.”

General advice / by laws

Dispute resolution

Assignments

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www.mahoneys.com.au

Liability limited by a scheme approved under Professional Standards Legislation

Off plan (BMS / CMS)

Experts in Body Corporate Law and Disputes

Mahoneys’ vision is to be a leading full service commercial law firm, in the industries we specialise in, by delivering quality work, excellent service, and the best possible commercial and legal outcomes for our clients.

A key to the firm’s success is due to: • the quality of our partners and staff and their unwavering commitment to providing exceptional legal services, and • our commitment to working closely with our clients to help them deliver their strategic, operational, and commercial objectives.

Our team is made up of industry leading lawyers, who have developed a detailed understanding of, and expertise in, the industries the firm has chosen to focus on.

We actively support the industries we specialise in, and are at the forefront of developments in the law

Your Body Corporate Experts

that impact in those industries. Specifically:

By-law review and enforcement

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Common property changes

corporate and associated legislation; and

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expertise in body corporate law.

This means a body corporate can be serviced solely from our law firm. Further, the breadth and depth of our team means that we can bring a balanced

Brisbane L 18, 167 Eagle Street Brisbane Qld 4000 07 3007 3777

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www.mahoneys.com.au

“whole of industry” approach to everything we do.

General advice / by laws

Dispute resolution

Assignments

Amalgamation /termination

www.mahoneys.com.au

Liability limited by a scheme approved under Professional Standards Legislation

Off plan (BMS / CMS)

Enhancing your property’s insurability by improving bushfire risk rating

Our strata plan is in a bushfire prone area. Should we consider the appropriateness of our building materials?

Given that our strata plan is in a bushfire prone area, this prompts considerations about the BAL rating and the necessary repairs for the common property. It also raises questions about appropriate materials and who should oversee these matters.

Should the control rest with the strata manager, the committee, individual lot owners, or perhaps a collaborative effort involving all three parties?

Failure to comply can expose owners corporations to liabilities associated with noncompliance.

Compliance with relevant building and fire codes is a paramount consideration for any strata building, as failure to comply can expose body corporate to liabilities associated with non-compliance.

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From an insurance perspective, insurers rate more favourably on buildings with 100% non-combustible materials. The most favourable ratings are for properties with brick or concrete external walls. Insurers also rate based on the property’s location, including proximity to bushland, and will consider fire safety and risk engineering factors.

In cases where neither the insurer nor local authorities require a change in materials, the decision to upgrade building materials to reduce the property’s risk rating falls to the body corporate. This proactive step can potentially enhance the property’s insurability by improving its risk rating.

Nonetheless, such a decision requires careful consideration and consultation, ideally with a qualified insurance broker.

Before embarking on any material upgrade project, seeking advice from an insurance adviser to understand the benefit to the body corporate is highly advisable.

Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au READ MORE HERE

13

Are we obligated to approve requests for a visiting pet?

A tenant has requested permission to look after a friend’s pet. Are the body corporate committee obligated by legislation to approve requests for a visiting pet?

A tenant has requested permission to look after a friend’s pet. Are the body corporate committee obligated by legislation to approve requests for a visiting pet? What ‘acting reasonably’ guidelines can the committee use when considering visiting pet applications from owners and tenants? Can a lot owner refuse/not approve a tenant’s request for a visiting pet?

An occupier is asking for permission to keep a pet, and the body corporate has to make a decision on that request.

It is subject to the by-laws of your scheme as to what approvals are needed from a body corporate perspective. If your body corporate has no pet by-laws at all, for example, then no approvals are needed. If your by-laws prohibit pets entirely, then no approval can be given, although that bylaw is going to be invalid. We don’t think the permanency of the occupation of the lot by the pet matters. What matters is that an occupier is asking for permission to keep a pet, and the body corporate has to make a decision on that request.

An entirely different set of rules applies from the tenancy side of things. You are best to consult with the Residential Tenancies Authority for further details about that.

Frank Higginson | Hynes Legal frank.higginson@hyneslegal.com.au Chris Irons | Strata Solve chris@stratasolve.com.au READ MORE HERE

14 www.lookupstrata.com.au

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We’re passionate about creating sustainable communities. Leaders in the utility industry, we continuously lobby the government on matters to help improve customer protections.

With imminent legislation changes on the way, we’re also well positioned to help Strata Managers and Body Corporates navigate their way through the new obligations and rights.

That’s why we’re here to help with the Altogether Academy.

Altogether Academy is a program that will educate, empower, and support all strata managers, while covering education topics such as: • Energy fundamentals • Embedded networks • Sustainable technology such as electric vehicle charging capability • Utility data and metering • Government reform and utility regulation The program will give you the opportunity to learn from some of the energy industry’s most experienced voices, learn soft skills and take part in networking opportunities. Take control of your career, embrace Altogether Academy and talk to a Senior Energy Consultant today.

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Should owners pay for increased strata insurance due to solar panel risk?

If lot owners install solar panels, should any associated increases in the body corporate insurance be the owner’s responsibility?

Installing solar on villa and townhouse strata units is common. What are owner’s ongoing legal obligations?

Although it is “their” half of the roof, what about solar panels catching on fire, damaging the roof or, detaching and damaging cars in the visitor lot, etc in a cyclone?

Should the body corporate pay more for additional insurance to cover these rare but possible events, or should this extra cost be the unit owner’s responsibility?

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In most instances, building valuations already include allowances for minor adjustments, making it unnecessary to increase the insured sum after installing solar panels.

Solar panels supplying the service solely to the lot, including the associated pipes and wiring, are the lot owner’s responsibility to maintain even if the system is on common property.

From an insurance perspective, solar panels that are permanently affixed to the building are considered fixtures and fall under the coverage of the strata insurance policy.

In the event of a fire or any damage, the policy treats them similarly to other electrical components of the building.

Likewise, if a solar panel were to detach, the policy handles it like a roof sheet or tiles falling off.

In the case of any incident involving the solar panels, a claim can be directed to the insurer for legal liability consideration. Legal liability claims are assessed on a case-by-case basis by insurers, solicitors, and potentially judges if the claim goes to court. These claims are never straightforward, and liability is determined based on the specific circumstances of each case.

The policy extends to cover claims made against the body corporate and not the lot owner. It is important to note that the body corporate and lot owner can be jointly or individually named as a respondent on a claim.

Consequently, lot owners should consider obtaining landlord or contents insurance with public liability coverage to safeguard their personal liabilities.

Insurance policies are tailored to offer comprehensive coverage for solar panels, leaving little room for extensive considerations.

The primary concern often revolves around whether the insured sum should be revised to account for the panels. However, in most instances, building valuations already include allowances for minor adjustments, making it unnecessary to increase the insured sum after the installation of solar panels.

Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au READ MORE HERE

HYNES LEGAL

Strata is a complicated and changing business US founding father Benjamin Franklin is famous for many things – inventing bifocals, flying kites in thunderstorms – but his greatest contribution is surely his 1789 observation: Nothing is certain except death and taxes. If Ben was around today, he’d absolutely add a third item to that list: Legislative change.

For the past three years I have served as a member of the Community Title Law Working Group, wearing my ARAMA hat. The Working Group has discussed all manner of legislative change for bodies corporate in Queensland.

legislation. And many who have served for years may be doing so under the mistaken belief that they know all there is to know.

What is absolutely certain, however, is that strata is getting harder and things are getting more complex.

What did Alexander Pope have to say about that? ‘A little learning is a dangerous thing.’

Some of it has been discussed and discarded. Some of it went around in circles for a few meetings. Other parts were relatively straightforward in concept, as in ‘something needs to be done’.

All things considered, the Working Group has been a terrific learning experience and has culminated in legislation dealing with a range of evergreen issues – from pets, to towing cars, through to bodies corporate being able to ban smoking.

The new legislation changes the position on quite a few issues, and many people won’t be aware that the rules of the game have altered.

But what does that mean in practical terms?

If additional obligations are created for bodies corporate to follow, how are those then regulated or enforced?

How much additional resourcing is needed at the Commissioner’s Office in terms of adjudication and education? And that leaves aside how to disseminate that information into the industry and whether the people who need it most will actually take it up.

Bodies corporate are volunteer organisations and not everyone who puts their hand up to serve on a committee is going to be across the details of the

By Frank Higginson | Hynes Legal

Parliament has now voted the Bill into law, and the new laws will take effect early in 2024. » Strata law is complicated. » Change only adds to the complication.

The longer I spend as a lawyer the more I tend to get scared if I get dragged off into other areas of law. Even after 30 years in the business, I still learn something new every day in strata. It might be as simple as seeing a mistake made by someone else and wondering how that happened, but it also might be a new slant on an old case that one of our litigators has dug up.

We have 25 years-plus of prior experience that is about to be tossed out the window on issues such as smoking. Many thousands of people will be extremely confident of the position of a body corporate with respect to smoking based on their lived experience, which is now going to be 100% wrong.

And they will run around their communities telling people their views without checking whether the law has changed.

And on we go until the next round of changes that affect the residential homes of nearly 1 million people.

You can’t ever take anything for granted in this arena—that’s as certain as death and taxes.

FREE BY-LAWS ASSESSMENT ACT NOW TO ACCOMMODATE NEW LAWS Strata laws in Queensland have changed. Review your by-laws to ensure they remain relevant & enforceable.

1. Adapt to new laws

Reasons to review your by-laws now

2. Prohibit smoking in common areas 3. Ensure pet applications are enforced 4. Effectively deal with nuisance

Get your obligation-free assessment on whether your by-laws are valid and enforceable.

hyneslegal.com.au/by-laws

How do I raise safety concerns about our pool refurbishment?

Our committee recently refurbished the pool. They are happy with the work, but I feel there are safety concerns. As an owner, how do I raise my safety concerns?

The committee refurbished the pool last year.

There was no contract for the $53,000 job. The quote included a handrail, but an underwater grab rail has been installed, and the pool floor is uneven. In the pool area, the provided bench seating has a broken slat, and it is unsafe.

The committee are happy with the work and don’t feel the broken seat is a liability. As an owner, should I organise a health and safety check on these worrying issues?

You can make a formal submission to your body corporate advising of your concerns and requesting a safety officer be appointed.

If you have concerns about the safety of your pool, you should probably contact your local council for advice. They may send out someone to inspect.

You can also make a formal submission to your body corporate advising of your concerns and requesting a safety officer be appointed.

You could submit a letter or an owner’s motion to the committee. I think submitting a motion is better as it forces the committee to vote on the matter.

Alternatively, you could book an independent inspector yourself. I’m not sure how easy this would be. The body corporate usually arranges pool inspections.

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Contractors may not want to work for an individual, but perhaps someone would provide you with a report. We can’t recommend anyone specific, but I would google local inspectors and see what they say.

Regarding your complaints, a broken slat on a seat sounds like a relatively easy fix for the body corporate. If you raise the issue, a repair should be arranged. Have you asked about the change of the handrail? There may be a good reason for this. The contractor who did the work may have recommended the change, perhaps as a safety issue rather than a matter of preference.

Your pool should be inspected annually, and there should be a notice of the due date somewhere near the pool. You could wait until that inspection. If there is a problem with the construction, you would expect it to be identified and, if necessary, a rectification notice issued.

Beyond this, you raise issues over the quality of the work done and the process behind the approval. There seems to be some disconnect in the idea that you are unhappy with the work done while the committee is happy. Have other owners voiced complaints? It’s hard to tell from the outside. It sounds like there is a bigger issue going on. Tit for tat battling over the minor repair of a bench is a classic sign of this kind of thing. Still, as an owner, you have the right to raise a dispute, so if you have concerns, you should follow the dispute hierarchy of submitting letters and owner motions, and if you cannot get a satisfactory answer, make a filing with the Commissioner’s Office.

William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au READ MORE HERE

How to communicate with your committee

As an owner, what communication approach is most effective for prompting the strata committee to respond to requests, instructions, or questions?

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You need to make sure that your message to the committee is clear and it needs to be something they can make a decision on.

The clearer, the better. You need to make sure that your message to the committee is clear, and it needs to be something they can make a decision on.

If you provide a lot of words, and include nothing that enables the committee to make a decision, you’re just throwing out statements without any questions.

That’s a mistake.

To begin with, you need to compel the committee to take an action they can take, and committees make decisions.

You’ve got to give them a firm concept, we call it a motion, that they can decide upon. That way, they must take action.

Chris Irons | Strata Solve chris@stratasolve.com.au READ MORE HERE

Strata Solve helps people untangle and resolve their strata issues. Sounds simple when you put it like that, doesn’t it?

Director Chris Irons (pictured, with his strata-approved greyhound Ernest) has an unrivalled strata perspective. As Queensland’s former Body Corporate Commissioner, Chris has seen and heard virtually every strata situation and nuance. He knows that while legislation provides a framework, there are many ambiguities to navigate through and in which pragmatism, commonsense and effective communication are vital.

As an independent strata consultant, Chris provides services which are all about empowering owners, committees, managers, caretakers, and others, to protect their strata interests. With a high-profile media and online presence, and as an accredited mediator, Chris is also able to carefully ‘read the room’ and craft the right narratives in even the most complex strata situation.

Strata Solve is not a law firm. Chris instead thinks of steps you can take before you embark on lengthy, costly, and stressful legal proceedings. Regardless of the client, all people in strata have one thing in common: their substantial investment in the strata scheme. Strata Solve prioritises that investment in each tailored solution we provide.

Get in touch to find out more.

email: chris@stratasolve.com.au web: stratasolve.com.au

Should replacement of trees be included in the sinking fund budget?

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Should replacement of trees be included in the sinking fund budget? We have $5000 in the admin budget to cover garden needs. Our sinking fund forecast has budgeted $4000 a year to replace trees for the next ten years. This seems excessive!

‘Replacement of trees’ – is it part of the routine maintenance of the scheme, or is it a specific project of some kind?

There is no definitive list classifying expenditure items into the admin or sinking fund. There is always some room for interpretation when categorising expenses to one fund or the other.

Speak to a hundred body corporate managers about this, and you will probably get a hundred different answers.

Still, according to the BCCM website, money in the sinking fund can be spent on: • big or one-off items, like painting or structural repairs to common property • replacing major items, like common property fences or carpets

• insurance charges • administrative expenses—such as secretarial fees and postage.

So, there may need to be some consideration of what you mean by ‘replacement of trees’ – is it part of the routine maintenance of the scheme, or is it a specific project of some kind? If it is the latter, it would usually be a sinking fund expense.

William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au READ MORE HERE

• other items that should reasonably be met from capital, like pool furniture.

Meanwhile, money from the admin fund can be spent on anything that is not required to be paid from the sinking fund, including: • regular maintenance of the common property

25

Are fire door stops a legal requirement?

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Our annual fire door inspection highlighted the need for door stops to be fitted to the fire doors leading from our garage.

Why hasn’t this been mentioned previously? Is it a legal requirement?

Our annual fire door inspection resulted in a $4500 quote to have fire door stops fitted to four fire doors in the garage. The fire doors lead to our complex’s stairwells. The inspection company have never mentioned fire door stops in previous audits. Are these a legal requirement, and why have they not previously been required?

The quoted $4500 for four fire door stops sounds excessive and should be looked into.

The details provided are a little vague to be able to provide an informed response. Without further detail, the quoted $4500 for four fire door stops sounds excessive and should be looked into.

Many factors may determine whether the door stops are legally required, such as age, size and construction type of the building. Why has this not been brought up before? It could be for a range of reasons, from an oversight during the construction or handover stage, missing baseline records or the incorrect standards or legislation applied during the last fire door inspection.

Stefan Bauer | Fire Matters sbauer@firematters.com.au READ MORE HERE

Can an owner share photos of their neighbour smoking?

A lot owner has been leaning over their balcony to take photos of the owner below smoking.

They’ve shared the photo with the committee as proof that their neighbour is interrupting the peaceful enjoyment of their lot.

Is this legal?

Both smoking and taking photos are lawful activities.

However, there are some restrictions.

Both smoking and taking photos are lawful activities. However, there are some restrictions.

Photographs Relevantly, photos cannot be taken in a private area. This usually extends to bedrooms or bathrooms and may not extend to an outdoor balcony. However, by leaning over the balcony, the lot owner may be conducting themselves in a way that creates a hazard – this is restricted by the BCCMA and usually by a by-law.

Smoking Although smoking is lawful – if it unreasonably interferes with the use and enjoyment of a lot or common property by another person (or creates a hazard) it is unlawful – this is also restricted by the BCCMA and usually by a by-law. Whether the specific circumstances offend these provisions will depend on the frequency and intensity of the smoke drift (and whether it can be evidenced).

Todd Garsden | Mahoneys tgarsden@mahoneys.com.au READ MORE HERE

28 www.lookupstrata.com.au

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Health & Safety Sinking Fund Forecasts Asbestos Auditing Insurance Valuations Caretaking Performance Reviews Caretaking Remuneration Reviews – Time & Motion Study Management Rights – Suitability Interview & Assessment Project Management Tax Depreciations Part Five Reporting

Identifying thermal loss and improving energy efficiency in buildings

What are AI capabilities to identify thermal loss and improve the energy efficiency of buildings?

In the not too distant future, a specialised AI-based platform will provide energy audits for building owners.

30 www.lookupstrata.com.au

Stephen: We’re currently working with a company developing a comprehensive energy auditing system using our external thermal imaging combined with the internal thermal assessment and thermal monitoring to create a comprehensive energy auditing platform.

In the not too distant future, there will be a specialised AI based platform that can provide energy audits for building owners.

It’s designed primarily for the industrial and commercial space, but it will have applicability in high-rise residential, especially where the building has an integral HVAC system. It’s not that far away.

Edwina: We will see much more in this space, with environmental and social governance becoming a big part of the industry. The technology is moving that way.

The government is advocating for change and for buildings to become carbon-neutral.

It’s only natural that the technology will evolve in this direction.

Edwina Feilen | Sedgwick edwina.feilen@au.sedgwick.com

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Should the committee be involved if owners are collecting bottles to raise money for gardening?

A group of owners are collecting bottles to raise gardening money.

It is not a committee organised activity. Should the money in and out be shown in committee records? Should the committee be involved?

A group of owners do most of the gardening in our scheme. They’ve dedicated a bin to collect bottles, cans etc for Containers for Change.

They are raising money for gardening. A simple accounting system has been set up to show money in and out and keep receipts.

Two of these owners are committee members, however, this is not a committee organised activity. Should the money in and out be shown in committee records and be part of the audit process? Are there any legal ramifications we should be aware of?

Adjudicators tend to take a very dim view of the use (or receipt) of body corporate funds that are not correctly authorised and approved.

Your query is a good one: it highlights how, in strata, legislation coincides – sometimes, not very comfortably – with practicality and good intentions.

The general rule of thumb here is that body corporate funds must only be spent on body corporate business and that if income is derived from a body corporate source – such as common property or a body corporate asset 32 www.lookupstrata.com.au

– then that income must also be documented in the body corporate accounts. A body corporate also cannot conduct a ‘business’.

Does your scenario fit within these generalities?

Quite possibly, it does: if a common property bin is being used, from common property, even though it might sound overly officious or technical, that really does need formal documentation and approval. Whether the committee can approve this or not is another matter: there is an argument they should not be. And there is a further argument that the use of common property to derive an income would need general meeting approval.

This is, in short, a grey area not specifically covered under legislation. However, I do know from experience that adjudicators tend to take a very dim view of the use (or receipt) of body corporate funds that are not properly authorised and approved (or utilised). Things can also be approved in retrospect. Really though, if this matter is looking like a concern for the committee, you or other owners should seek qualified legal advice. I realise that sounds drastic and costly – sometimes, though, ‘drastic and costly’ are the outcomes of legislative ambiguity. And strata legislation is notorious for such ambiguity!

Chris Irons | Strata Solve chris@stratasolve.com.au READ MORE HERE

Each eligible bottle and can could earn your body corporate or strata title management scheme a 10-cent refund or you can choose to donate it to a good cause. There are little to no upfront costs involved and we will assist with the setup.

Scan to learn more and register your interest.

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STRATA MANAGEMENT Tower Body Corporate

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Bright & Duggan

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Vision Strata Services

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Northern Body Corporate Management

Specialist Body Corporate Management for North Queensland

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Network Pacific Strata Management

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Bryant Body Corporate Management Not All Agents Are the Same!

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Ouroboros design

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Quantum United Management

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BUILDING ENGINEERS & INSPECTORS Sedgwick

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QIA Group

Compliance Made Easy P: 1300 309 201 W: https://www.qiagroup.com.au/ E: info@qiagroup.com.au

BIV Reports

Specialist in Strata Compliance Reports P: 1300 107 280 W: https://www.biv.com.au/ E: biv@biv.com.au

GQS

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Seymour Consultants

Body Corporate Report Specialists W: https://www.seymourconsultants.com.au/ E: info@seymourconsultants.com.au

BCRC

Construction Materials & Durability Consultants P: 02 9131 8018 W: https://bcrc.com.au/ E: sydney@bcrc.com.au

Budget Vals

Built For Strata P: 1300 148 150 W: https://www.budgetvals.com.au/ E: reports@budgetvals.com.au

Palmer Acoustics

Specialist Acoustic & Audio Visual Engineering P: 61 7 3802 2155 W: https://palmeracoustics.com/ E: ross@palmeracoustics.com

Independent Inspections

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Leary & Partners

Quantity Surveying Services Since 1977 P: 1800 808 991 W: https://www.leary.com.au E: enquiries@leary.com.au

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Quality Building Management

keeping your buildings legally compliant and safe P: 1300 880 466 W: https://qbm.com.au/ E: sales@qbm.com.au

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CORE Consulting Engineers

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ENERGY Arena Energy Consulting Pty Ltd

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INSURANCE Strata Insurance Solutions

STRATA LAWYERS Mahoneys

Protecting owner assets is who we are.

P: 1300 554 165 W: https://www.stratainsurancesolutions.com.au/ E: info@stratainsurancesolutions.com.au

Body Corporate Law & Dispute Resolution Experts P: 07 3007 3777 W: www.mahoneys.com.au/industries/bodies-corporate-strata/ E: info@mahoneys.com.au

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CHU Underwriting Agencies Pty Ltd

Bugden Allen Graham Lawyers

Specialist Strata Insurance Underwriting Agency W: https://www.chu.com.au/ E: info_nsw@chu.com.au

Specialising in property development & strata law P: 02 9199 1055 W: www.bagl.com.au E: info@bagl.com.au

Strata Community Insurance

Douglas Cheveralls Lawyers

Flex Insurance

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Driscoll Strata Consulting

The Go-To Strata Lawyers P: 08 9380 9288 W: https://www.dclawyers.com.au/ E: office@dclawyers.com.au BODY CORPORATE LAWYERS... EXCLUSIVELY P: 07 5555 8000 W: https://mathewshuntlegal.com.au/ E: admin@mathewshuntlegal.com.au

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Grace Lawyers

Sure Insurance

Holman Webb Lawyers

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Royer Mace Lawyers

Your Property is our Priority P: 0434 388 898 W: https://royermace.com.au/ E: solon@royermace.com.au

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SOFTWARE MiMOR

Connecting People – Creating Communities P: 0414 228 644 W: https://www.mimor.com.au/ E: info@mimor.com.au

Stratabox

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Customer Service Software for Strata P: 0874778991 W: https://resvu.com.au/ E: enquiries@resvu.com.au

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MYBOS

Building Management - Residential & FM Schemes P: 1300 912 386 W: https://www.mybos.com.au/ E: sam@mybos.com.au

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Onsite Building Management Software Modern and user friendly BMS P: 0490 091 887 W: https://onsite.fm E: hello@onsite.fm

EDUCATION & TRAINING LookUpStrata

Australia’s Strata Title Information Site W: https://www.lookupstrata.com.au/ E: administration@lookupstrata.com.au

Strata Community Association P: 02 9492 8200 W: https://www.strata.community/ E: admin@strata.community

Owners Corporation Network

The Independent Voice of Strata Owners W: https://ocn.org.au/ E: enquiries@ocn.org.au

Your Strata Property

Demystifying the legal complexities of apartment living

W: https://www.yourstrataproperty.com.au/ E: amanda@yourstrataproperty.com.au

ACCOUNTANTS Tinworth & Co

Chartered Accountant & Strata Auditors P: 0499 025 069 W: https://www.tinworthaccountants.com.au/ E: caren.chen@tinworth.com

Matthew Faulkner Accountancy

Strata Auditing specialists P: 0438 116 374 W: https://www.mattfaulkner.accountants/ E: matt@mattfaulkner.accountant

MARKETING Ki Creative Design

Purposeful Design Solutions P: 0451 541 006 E: kiara.mcilroy@gmail.com

WINDOWS & DOORS Windowline Pty Ltd

Australia’s strata replacement window & door specialists

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P: 02 8304 6400 W: https://windowline.com.au/ E: info@windowline.com.au

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ELECTRICAL

CLOTHES LINES

Altogether Group

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Power.Water.Data P: 1300 803 803 W: https://altogethergroup.com.au/ E: eaustin@altogethergroup.com.au Providing utility network solutions P: 1300 323 263 W: https://www.energyon.com.au/ E: EnergyServices@EnergyOn.com.au

ENM Solutions

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EMERLITE ELECTRICAL SERVICES

We Answer The Phone - No Job Too Big Or Small P: 07 5591 9191 W: https://www.emerlite.com.au/ E: office@emerlite.com.au

FIRE SERVICES Fire Matters

Fire Safety Compliance P: 07 3071 9088 W: https://firematters.com.au/ E: sbauer@firematters.com.au

PEST INSPECTION Control Pest Management – Brisbane Pest Control Professionals P: 1300 357 246 W: https://controlpestmanagement.com.au /locations/brisbane-pest-control/ E: ray@controlpestmanagement.com.au

ANTENNAS Install My Antenna

Professional TV Antenna Service For You Today P: 1300 800 123 W: https://www.installmyantenna.com.au/ E: info@installmyantenna.com.au

Clothesline and washing line supplier & installer P: 1300 798 779 W: https://www.lifestyleclotheslines.com.au/ E: admin@lifestyleclotheslines.com.au

Higgins Coatings Pty Ltd

Specialist painters in the strata industry W: https://www.higgins.com.au/ E: info@higgins.com.au

Rochele

Prompt & Professional

P: 1300 808 164 W: https://rochele.com.au/ E: jeremy@rochele.com.au

STRATA LOAN PROFESSIONALS StrataLoans

The Experts in Strata Finance P: 1300 785 045 W: https://www.strata-loans.com/ E: info@strata-loans.com

Lannock Strata Finance

The Leading Strata Finance Specialist P: 1300 851 585 W: https://lannock.com.au/ E: strata@lannock.com.au

Austrata Finance

Pay Now or Pay Later: It’s Your Choice® P: 1300 936 560 W:https://austratafinance.com.au/ E: info@austratafinance.com.au

DELIVERY & COLLECTION SERVICES Groundfloor™

Australian parcel, mail, and refrigerated lockers P: 03 9982 4462 W: https://groundfloordelivery.com/ E: ask@groundfloordelivery.com

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SUSTAINABILITY

RECRUITMENT SERVICES

The Green Guys Group

sharonbennie – Property Recruitment

Australia’s Leading Energy Saving Partner W: https://greenguys.com.au/ E: sean@greenguys.com.au

Matching top talent with incredible businesses P: 0413 381 381 W: https://www.sharonbennie.com.au/ E: sb@sharonbennie.com.au

Humenergy

Essential Recruitment Solutions

Fair Water Meters

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CONSULTING Strata Solve

Untangling strata problems P: 0419 805 898 W: https://stratasolve.com.au/ E: chris@stratasolve.com.au

FACILITY MANAGEMENT LUNA

Building and Facilities Manager P: 1800 00 LUNA (5862) W: https://www.luna.management/ E: info@luna.management

Elite Building Managers Australia Education for Building Managers P: 0420 520 976 W: https://www.elitebma.com/ E: matt@elitebma.com

RFM Facility Management Pty Ltd

Strata and Specialist Cleaners P: 1300 402 524 W: https://www.rfmfacilitymanagement.com.au/ E: nathan@rfmfacilitymanagement.com.au

Specialising in Strata recruitment P: 0448 319 770 W: https://www.essentialrecruitmentsolutions.com.au/ E: maddison@essentialrecruitmentsolutions.com

Innovative Lift Consulting Pty Ltd

Australia’s Vertical Transportation Consultants P: 0417 784 245 W: https://www.ilcpl.com.au/ E: bfulcher@ilcpl.com.au

The Lift Consultancy

Trusted Specialised Advice P: 07 5509 0100 W: https://theliftc.com/ E: sidb@theliftc.com

ABN Lift Consultants

A team of friendly, open minded professionals P: 0468 659 100 W: https://www.abnlift.com/ E: andrew@abnlift.com

VALUERS Asset Strata Valuers

Leaders in Strata Property Valuations P: 1800 679 787 W: https://assetstratavaluers.com.au/ E: workorders@assetstratavaluers.com.au

Adelaide StrataVal

Strata & Community Insurance Valuations P: 08 71112956 W: https://www.strataval.com.au/ E: valuations@strataval.com.au

ROOFING Leaf Shield

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