The QLD
STRATA MAGAZINE AUGUST 2026
Compliance inspection versus a full condition assessment Page 10 | Beyond Condition
What are the risks when one committee member instructs contractors alone? Page 16 | Redchip Strata Law
Understanding your plan of subdivision and exclusive use Page 26 | Owners Corporation Network
About Us Welcome to the latest issue of The LookUpStrata Magazine! For over a decade, LookUpStrata has been Australia’s premier resource for everything related to strata living. Our mission is to keep strata communities informed and connected, providing thousands of lot owners, strata managers, and professionals with reliable, unbiased, easy-to-understand information to help you solve your strata problems and make informed decisions. The QLD Strata Magazines, published monthly, are just one of the many ways we’re dedicated to supporting you. They’re packed with articles from industry experts and include our comprehensive printable strata directory.
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Advertising and Admin Enquiries: 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. Strata legislation is updated regularly. The information in this magazine is based on the legislation at the time of publishing.
2 www.lookupstrata.com.au 2 www.lookupstrata.com.au
Contents 4 Do we need a formal vote outside a committee meeting to approve our insurance renewal? William Marquand, Tower Body Corporate
6 Special levy or strata loan? Choose the right funding solution with confidence in Queensland. Richard Claus and Jason Triplett, Lannock Strata Finance
8 Is a dishwasher covered by body corporate or contents insurance? Tyrone Shandiman, Strata Insurance Solutions
10 Compliance inspection versus a full condition assessment Craig McDonald, Beyond Condition
12 Don’t fall asleep at the financial management wheel Frank Higginson, Redchip Strata Law
14 Can owners bypass a general meeting on spending limits?
20 Can a body corporate enforce disability parking bays? Alanna Law, Mathews Hunt Legal
21 Annual condition report: Why is this fire safety document so important? Stefan Bauer, Fire Matters
22 Can a body corporate force the removal of a balcony cabana? Katya Prideaux, Mahoneys
24 What can a body corporate do about an alleged negligent body corporate manager? Matthew Faulkner, Matthew Faulkner Accountancy PTY LTD
26 Understanding your plan of subdivision and exclusive use Chris Irons, Owners Corporation Network
28 The QLD LookUpStrata Directory
Chris Irons, Strata Solve
16 What are the risks when one committee member instructs contractors alone? Frank Higginson, Redchip Strata Law
18 Does a common property bollard create liability risk? Todd Garsden, Mahoneys
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Do we need a formal vote outside a committee meeting to approve our insurance renewal? Our committee has already unanimously agreed on an insurer, but our body corporate manager insists on charging for a VOC. Are we obliged to hold one? Our committee chose an insurer by emailing options from our broker to all owners and committee members, and conveyed our unanimous decision to our body corporate manager. Our manager is insisting on charging for a formal vote outside a committee meeting (VOC). Are we obliged to hold a VOC, or should our decision be actioned by the manager?
A formal VOC is not strictly required for a renewal if the committee has already unanimously agreed, but the practical approach will depend on your scheme. For better or worse, the legislation sets out that committees can make decisions only via committee meetings or VOCs, which then have to be ratified at committee meetings. However, this doesn’t mean that the body corporate (BC) has to make every decision in advance via this means, otherwise, it would be nearly impossible to run buildings. So most committees make decisions about the running of the scheme via emails, phone calls, texts and various informal conversations, then ratify those decisions. There is no fixed format for what that ratification might look like, other than that it should be a valid motion. It could be a blanket motion to ratify all costs over a fixed period, individual motions for each significant cost, or something in between. Some schemes will never hold a committee meeting or a VOC and might rely on the general motion at the AGM to confirm the books and records as a true record. If you speak to people across the industry, you will get different responses about what is required, when and why. This may be because when people talk about issues like this, they consider what best practice is rather than what is legally required. 4 www.lookupstrata.com.au
Best practice can vary a lot from scheme to scheme. The same legislation covers a six-lot scheme where owners chat on a text group and a six-hundred-lot scheme where even routine decisions can run into the hundreds of thousands of dollars. There is no one-sizefits-all management style that suits the diverse range of buildings, so committees and managers need to tailor their approach. Your manager’s view that a VOC is required to approve an insurance renewal is not uncommon. Many companies hold a VOC as standard procedure for insurance approvals. This may be to increase revenues, but many people see this as a best-practice standard. There is no strict requirement to do so. Although insurance is typically the most expensive annual item a BC incurs, it is still legislated as an expense that the committee can approve, unless the BC has specifically mandated otherwise. If the committee can approve a lightbulb change for $25 via internal emails, there is no reason it can’t approve a new insurance policy the same way. The procedure is the same; only the magnitude of the cost has changed. If your manager is insisting on a VOC, it’s reasonable to ask them why the same approach isn’t applied to all committee decisions within the spending limits. Why is there a need to have a VOC now as opposed to ratifying the decision at the next committee meeting or the next time you have a VOC for a required issue? It’s worth reflecting on whether approving the renewal through internal email is right for your scheme, even if it is permissible. It sounds like you engaged owners in the process. If no one is complaining, maybe you’re following a reasonable path. Committees should consider the approach that works. In many cases, holding a VOC for an insurance renewal is not only a good way to ratify the decision but also to inform owners about one of site’s the key decisions. If your scheme does this and owners are happy, there is no reason to stop. Equally, other methods are available. If your scheme is making these decisions internally, maybe you could inform owners. Perhaps send all owners a copy of the certificate of currency when it is available. Whatever you decide, it’s worth remembering that the manager works for the BC. If the committee gives a lawful instruction, the manager should follow it rather than apply arbitrary standards. William Marquand | Tower Body Corporate
willmarquand@towerbodycorporate.com.au READ MORE HERE
Special Levy or Strata Loan? Choose the right funding solution with confidence in Queensland.
Many body corporates are confronted with big decisions on funding as time, wear and tear take their toll on buildings. Rich and Jason from Lannock explain how to find the right path for each building through Queensland’s unique regulatory maze. Essentially, the choice boils down to a special levy or a strata loan – or a combination of both. Committees have a legal responsibility to make decisions to repair and maintain common areas in the interests of the body corporate. But considering the needs of individual owners is also critical. There are countless variables to consider. One of the most important is the Queensland regulatory regime. It demands a much higher level of owner support for adding a strata loan to the funding mix than it does for raising the whole amount directly from owners via a special levy.
By contrast, a special levy can generally be approved in all modules by ordinary resolution, meaning the motion passes if there are more votes in favour of a special levy than against. This regime dates back almost 30 years and is overdue for reform. Funding options should be evaluated on their merits, not on which option has the best chance of securing approval. Today, compared to a special levy, a strata loan offers more certainty in financing major projects. It gives more stability in levies over time, better tax benefits for investors and less financial strain for all owners. A way to compare these funding options is to use LevyPlanner, a tool that shows the true cost and cashflow impact of any funding mix. We’re not here to say borrowing is always the best path, a special levy may be perfectly appropriate in some situations, and in others a combination of both could be the right fit. When the time comes to vote, every owner needs to be fully informed and comfortable that the recommended funding solution is right for them. Asking the right questions and presenting the right information in the right way at the right time can make all the difference.
For a standard module, this means no-one voting against it. For accommodation and commercial modules, a loan requires a special resolution, meaning no more than 25 per cent of votes can be cast against the motion.
Richard Claus
Jason Triplett
P 0417 030 871 E rich@lannock.com.au
P 0467 777 272 E jason@lannock.com.au
Business Development Manager Queensland
Business Development Manager Queensland
Special Levy Standard Module
Strata Loan 0%+1 of votes at AGM or EGM
<$250 x number of lots can be approved by an ordinary resolution at a general meeting >$250 x number of lots requires a resolution without dissent
Accommodation Module
Ordinary resolution at a general meeting
>$250 x number of lots requires a special resolution
Commercial Module
Ordinary resolution at a general meeting
<$250 x number of lots can be approved by an ordinary resolution at a general meeting >$250 x number of lots requires a resolution without dissent
A body corporate can borrow via ordinary resolution, without needing a special resolution, up to a limit of $250 plus $250 per lot. For example, $2,750 for a 10-lot scheme or $25,250 for a 100-lot scheme.
How much do we need? A good starting point is estimating how much each owner might need to contribute, after tapping into existing administrative or sinking funds. A ballpark figure is fine, this helps size the problem. The real question to consider is whether the body corporate could raise this amount through a special levy without placing undue strain on the scheme as a whole. If the answer is ‘yes’, then a special levy is likely the best solution. If not, then it’s time to start building the case for a strata loan.
How soon do works need to start?
An important point to stress with a strata loan is that the debt sits with the Body Corporate, not the individual owners, and like any other contracted expense the cost is paid from levies and when an owner sells that cost is passed on to the new owner. A strata loan will have no impact on personal finances, as the borrower is the body corporate not the individual. Timing also matters. The best time to consider finance is at the beginning of a project. Deciding how the project will be paid for before locking in the scope of works helps owners understand what they can actually afford, in the same way a homeowner works out their budget before engaging a contractor.
This is where a special levy can stop being the easy solution. Levies must be paid before contracts can be signed and the work can start. If enough owners simply can’t pay in time, quotes may expire and the whole project returns to square one.
Presenting a united front with information that makes sense helps build positive momentum. Better still, invite Rich or Jason from Lannock to the meeting to answer any questions.
Once approved, a strata loan can be drawn immediately so works can start. Interest is only paid on the funds drawn down, so a loan can allow room for contingencies should costs run over budget. This avoids the problem of going back to owners for more cash later.
Lannock’s LevyPlanner tool evaluates the impact of funding decisions based on each scheme’s unique circumstances.
So, if certainty is important and works are time-critical, a strata loan will be the best solution.
How do we get everyone on board? Funding resolutions live or die through information and momentum. The resolution needs to be supported by concise, easyto-digest information to help owners make the right decision. At Lannock, we are experts in this field and can help explain clearly why the proposed choice makes financial sense for the scheme and for the owners.
How LevyPlanner can help
LevyPlanner presents a non-biased financial analysis, based on information provided about the specific scheme, to show how different scenarios or funding mixes would affect levies over time. Identifying the best solution from a range of options will provide evidence of due diligence, with owners’ interests in mind. This will support trust in the recommended path and improve the chances of success when the votes are in. Visit levyplanner.com.au to try it for free today.
Is a dishwasher covered by body corporate or contents insurance?
Is an individual apartment dishwasher covered under the body corporate’s strata building insurance, or do items like this fall under the lot owner’s contents insurance? Does an apartment’s dishwasher form part of the building insured value? And if so, is it insured under the strata building insurance? Does that mean when the dishwasher is retired, the body corporate’s sinking fund must replace it with the same model? Are there replacement model and value bylaws required? Or, do individual apartment dishwashers fall under lot owner’s contents insurance?
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Unless the dishwasher is permanently affixed, it usually falls under the owner’s contents or landlord insurance. In most cases, a dishwasher is regarded as the lot owner’s contents rather than part of the building insured under the strata policy. The exception is where the dishwasher is permanently affixed to the building. In those circumstances, it may be considered part of the building and therefore insured under the body corporate’s strata building insurance. My understanding, however, is that most dishwashers are not permanently affixed, largely because they are appliances with a finite service life and are designed to be replaced over time.
It is also important to distinguish between insurance responsibility and maintenance responsibility, as these are often confused. Even where an item is insured under the body corporate’s building policy, this does not automatically mean the body corporate is responsible for maintaining or replacing it outside of an insured event. For example, many fixtures within a lot are insured under the strata building policy, but the lot owner remains responsible for their maintenance and replacement as part of their obligations under the legislation and the bylaws. The insurance simply responds if the item is damaged by an insured event, subject to the policy terms, conditions and exclusions.
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances and the specific coverage afforded under their policy wording. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687. Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au
Accordingly, even if a dishwasher were considered part of the building for insurance purposes, that would not mean the body corporate is required to replace it at the end of its useful life or fund its replacement from the sinking fund. Routine replacement due to age or wear and tear would generally remain the lot owner’s responsibility.
READ MORE HERE
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Compliance inspection versus a full condition assessment
What’s the difference between a building inspection and a proper condition assessment for an older apartment block? Our body corporate is in a 25-year-old building in Brisbane. We’ve never had any major defect claims and the building “looks fine.” Still, a few of us on the committee are starting to notice small signs of wear, hairline cracking on the façade, some staining near balcony edges, ageing sealant around windows. Nothing dramatic, but enough to make us wonder what we’re not seeing.
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We’re due for our 10-year maintenance plan review, and I want to push for a proper assessment of the building’s condition, not just a routine compliance inspection. What’s the difference between the basic safety/ compliance reports we’re used to and a more thorough building condition assessment? What would a qualified building surveyor be looking for, and is this something we should be doing proactively even without an obvious problem, or is it overkill for a building with no known defects?
Compliance inspections check today’s risks, while condition assessments help you plan for the next 10 years. A compliance inspection checks against a checklist, fire safety, WHS, accessibility, and tells you whether the building passes today. It’s a reactive thing; identifying immediate risk issues and eliminating them. A condition assessment is strategic. It’s a non-intrusive, high-level examination of all components. It asks why something looks the way it does, and what that means over the next 10 years. It provides the committee with the context to make informed decisions about not just what to spend money on, but in what order, based on risk prioritisation,
having confidence to defer items that may otherwise be replaced/repaired earlier. Craig McDonald | Beyond Condition craig@beyondcondition.com READ MORE HERE
Can owners bypass a general meeting on spending limits?
Can all lot owners give unanimous written consent to approve committee spending above the limit without an EGM? I am seeking urgent clarification regarding a Queensland body corporate expenditure approval process. Our scheme has 8 lots and a committee spending limit of $4,000. The committee consists of 4 members and is considering engaging a consultant/project manager for approximately $7,200. The matter is time-sensitive because the expenditure relates to urgent common property rectification works involving ongoing water ingress and mould. We are trying to progress rectification as soon as possible and avoid unnecessary delay if there is a lawful alternative to calling an EGM/general meeting. My question is: if all lot owners provide unanimous written consent to the expenditure, can the body corporate approve and proceed with expenditure above the committee spending limit without calling an EGM or general meeting?
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If so, could you please advise: • the relevant legislative provision or regulation; • whether written consent from all lot owners is sufficient; • whether the urgency/common property damage changes the available approval pathway; • what wording, process or documentation would be required; • and whether the committee should first record a unanimous recommendation before seeking owner consent.
Yes, unanimous written consent from all lot owners can authorise committee spending above the limit without an EGM. Section 172 of the Standard Module (equivalent provisions of other Regulation Modules) provides, in subsection 1(b), that spending over the relevant limit for committee spending can occur if ‘the owners of all lots included in the scheme have given written consent’. There’s no form for this, nor a template for wording. Ideally the committee would, as it would for any decision-making, resolve to seek this consent first. And of course, they ideally should have a plan if it turns out that not all owners are happy to consent in writing.
If a genuine emergency exists, it is possible to seek an emergency order from an adjudicator. Such an order can either authorise the spending, or authorise shortening the time period for calling a general meeting. It does need to be a genuine emergency though and not simply that the body corporate would prefer things to be done more quickly. If an issue has been known for some time, then by definition, that can’t be an ’emergency’. This is general information only and not legal advice. Chris Irons | Strata Solve chris@stratasolve.com.au READ MORE HERE
It’s important to read the section in its entirety, because there are several qualifiers which may be relevant to your situation.
Strata Solve helps you protect the value of your strata asset, without the need for timeconsuming, expensive and stressful legal proceedings. Director and Founder of Strata Solve Chris Irons (pictured with the late Ernest, Strata Solve mascot) has an unrivaled strata perspective. As Queensland’s former Commissioner for Body Corporate and Community Management, Chris has seen it all in strata. Now under the Strata Solve banner, Chris emphasizes communication, mediation , strategic advice and straight -talking, relying on his experience as an accredited mediator to empower owners, committees, managers, caretakers and tenants and help them get the outcome they want. Book a free, initial consultation now to find out how we can work with you to resolve your strata issue. And BRAND NEW from Strata Solve, our ‘Strata-As-You-Go’ (SAYG) service: on-demand telephone advice from an expert to help you, when you need it. Visit https://strataasyougo.com.au/ to learn more.
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What are the risks when one committee member instructs contractors alone?
What are the legal and insurance implications when one committee member consistently becomes involved with contractors and maintenance What are the legal and insurance implications for individual committee members when one member consistently becomes involved with contractors and maintenance, which has the potential for serious consequences?
16 www.lookupstrata.com.au
Unauthorised committee members giving instructions directly to contractors creates real risk for the body corporate. It’s a headache. Third parties can rely on instructions as a defence, in a sense, if the instructions have been received from someone they reasonably believe is authorised on behalf of the body corporate. They don’t need to go any further to check whether that authorisation actually exists.
If a body corporate manager sends a work order to Redchip for $3k worth of legal work, and I carry it out, I’m going to get paid, because I can rely on you being the right person. I’m not obliged to go beyond that and ask to see the committee resolution approving the engagement. Good practice would be to send it through anyway, but there’s no obligation to do so.
and change things along the way, because that leads to variations to contracts, works not being done in accordance with specifications, and other issues.
So when someone on the committee goes directly to the person on the ground and says, “no, actually, do this, do that,” that’s a recipe for disaster at some stage.
READ MORE HERE
It is a risk, I think, a risk in terms of performance more than anything else. Frank Higginson | Redchip Strata Law FrankH@redchip.com.au
To me, appropriate practice matters here, and this is one of the difficulties that comes with volunteerism. You’ve probably got a strong personality doing these things. We need to make sure we’re all consistent. There needs to be one point of communication, and if there are changes to what’s been agreed, you need to come back to the committee and have a conversation first. Don’t go off half-cocked
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Does a common property bollard create liability risk?
What are the liability implications of installing a bollard on common property to protect against contractor damage? We’ve had issues with contractors damaging common property roof gutters when driving or reversing delivery trucks through our scheme. It appears they are cutting corners and/or not paying proper attention to their surroundings.
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If we were to install a bollard on the corner of one roadway to provide a greater visual impact to trucks so they would at least hit the bollard rather than the roof/gutters, where would this leave the body corporate in terms of liability? It would be as close as possible to the kerbing. We would also consider painting something on the road in high-vis yellow to highlight the bollard.
Limit the liability exposure by getting approvals and visibility standards right before installing.
Todd Garsden, Mahoneys tgarsden@mahoneys.com.au READ MORE HERE
Such an installation is sensible but, in an effort to mitigate any liability concerns, you ought to take into account: 1. any development approval requirements (which sometimes prescribe turnaround areas and limitations on driveway obstructions); 2. any standards that ought to be met in terms of the visibility of the bollard (so that it cannot be said the common property is not in good condition by the existence of the bollard’s placement); and 3. the improvement approval processes.
Experts in Body Corporate Law and Disputes Mahoneys has a dedicated team of lawyers with experience in assisting bodies corporate with: management rights assignments and variations debt and levy recovery general disputes and advice
lot entitlement issues
new community management statements
building defect disputes
by law enforcement and by law reviews
building management statement issues
selling schemes to developers
LAAN access notices
caretaker performance issues
defamation
common property subdivision and sales
neighbouring development issues
www.mahoneys.com.au
Brisbane office L 18, 167 Eagle Street Brisbane Qld 4000
Gold Coast office L 2, 235 Varsity Parade Varsity Lakes Qld 4227
p 07 3007 3777
p 07 5562 2959
Can a body corporate enforce disability parking bays?
Disability parking bays are not included in our by-laws and are being occupied by other residents. What are the options? Our scheme has had a few designated disability parking bays marked with a wheelchair symbol for many years. However, they are not included in our current bylaws. Some residents with disability parking permission have to park outside the scheme, as other residents occupy their parking bays. Which options are available to resolve this issue?
If the by-laws don’t already address disability parking, the body corporate should amend and register a by-law to enable enforcement against unauthorised parking. It is difficult to provide a comprehensive response to this query based on the information provided.
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Regulation of parking in designated disability parking spaces would usually be by way of the by-laws. If the by-laws do not reflect the existence of designated disability parking spaces and/or do not stipulate that owners and occupiers are not permitted to park in these spaces without approval of the body corporate, we recommend that the body corporate engage solicitors to prepare a general meeting motion to amend the by-laws accordingly. Assuming the updated by-laws are approved and subsequently registered in a Community Management Statement, the body corporate can then take enforcement action in accordance with the legislation against any owners and occupiers unlawfully parking in the designated disability parking spaces. Alanna Law | Mathews Hunt Legal alanna.law@mathewshuntlegal.com.au READ MORE HERE
Annual Condition Report
Why does this matter? A properly completed Annual Condition Report provides confidence that defects are identified, no adverse alterations have occurred and your system remains suitable for your building’s current use. It offers vital assurance to building owners, body corporates, insurers and the Queensland Fire Department.
Why is this fire safety document so important? In Queensland, the Annual Condition Report is a critical fire safety document for communal buildings.
A missing or incorrectly certified report can leave an occupier unable to demonstrate compliance with Building Fire Safety Regulation 2008.
Unlike routine maintenance records, which simply log inspections, the Annual Condition Report is a prescribed document that certifies your fire protection system has undergone the required annual survey and continues to meet its original design and performance requirements.
Don’t confuse a maintenance worksheet with a certification document. Ensure your Annual Condition Report is complete, accurate and signed by a licensed certifier to protect your building, your occupants, and your legal standing.
Crucially, an Annual Condition Report must be signed by a professional with an appropriate QBCC ‘Certify’ licence. A technician with only an ‘Inspect and Test’ licence cannot legally certify your system’s compliance.
Stefan Bauer Fire Matters
Click HERE to find out what an Annual Condition Report should include.
DON’T RISK IT! If a retrospective investigation finds any aspect of your fire safety non-compliant, you risk voided insurance, hefty fines and even jail. That’s why it’s crucial to get an independent third-party consultant to audit your building.
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We prepare the Occupier’s Statement on your behalf, so you can sign with confidence knowing all the compliance boxes have been ticked.
Can a body corporate force the removal of a balcony cabana?
One of our owners has put a cabana in their exclusive-use balcony and won’t take it down. Can the committee force its removal? One of our ground-floor lot owners has a large balcony that’s part of the common property under exclusive-use rights. They’ve erected a portable beach cabana on it despite being directed to remove it. Several of our owners have written to the committee raising concerns that it’s affecting the building’s aesthetics, obstructing views, potentially affecting property values, and creating occupational health and safety concerns.
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It depends entirely on how the exclusive-use by-laws are worded. If the cabana is portable and not fixed, it will depend on how the by-laws regulate the use of the lot and balcony, and whether the exclusive use by-laws permit the installation of the cabana.
For example, often a community management statement will include by-laws that regulate: 1. the external appearance of a lot and which prevent owners from placing items on their balcony without first obtaining body corporate approval; 2. nuisances, which generally prevent owners from using their lot or common property in a way that interferes unreasonably with the use or enjoyment of another lot or the common property (to mirror the requirements in the Body Corporate and Community Management Act 1997); or
an exclusive use by-law. This would only be relevant in circumstances where the cabana extends beyond the boundaries of the exclusive use allocation attached to the lot. Ultimately, it will depend on what the by-laws provide for. Katya Prideaux | Mahoneys kprideaux@mahoneys.com.au
3. any obstructions to common property, which often prevent owners from placing items on, or exclusively using, the common property without first obtaining body corporate approval or pursuant to
Helping the strata community navigate their building concerns BUILDING CONSULTANCY
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What can a body corporate do about an alleged negligent body corporate manager?
What options does a body corporate have when seeking accountability for alleged financial mismanagement by a former strata manager? Over the past 18 months, our committee has been investigating significant financial discrepancies that appear to have arisen during the tenure of our former body corporate management company. We have sought legal advice and have since engaged a new body corporate management company to assist in reviewing the historical records and accounts. While we have a good understanding of the issues involved and that the financial impact is likely to be significant, we have not yet been able to determine a definitive value of the loss. We are seeking what options are available to the committee before committing owners to potentially substantial further costs. Would be grateful for any general guidance regarding avenues that a body corporate may pursue when seeking accountability for alleged negligence or financial mismanagement by a former body corporate management company. What practical options are available before committing to further legal costs?
24 www.lookupstrata.com.au
The audit you need depends on whether the case is headed to a tribunal or the courts. Changing strata managers was a good move. Legal advice is also good. Will the case be going to the commissioner or to the courts? If it’s the courts, you would probably need an auditor to complete a ‘forensic audit’ which is specifically prepared for legal hearings. This will cost approximately $5,000+GST. Otherwise, a standard annual audit could be sufficient for the commissioner if the auditor knows what to target from the beginning. For this, the cost would be around $1,000+GST, without knowing the full scope. Matthew Faulkner | Matthew Faulkner Accountancy PTY LTD matt@mattfaulkner.accountants READ MORE HERE
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Understanding your plan of subdivision and exclusive use
Plan of subdivision: essential differences and exclusive use We all know that a plan is essential if we’re going to progress anything. In strata in Queensland, the plan is just as important. Your plan of subdivision defines maintenance responsibilities and sets a framework for the basics of the scheme. Things get even more tricky when it comes to exclusive use areas. Let’s try to unpack this. Firstly, in Queensland, you can have either a standard or building format plan. Immediately there’s some confusion. The “standard” here is not the same as the Standard Module. A standard plan of subdivision defines land horizontally, using marks on the ground or a structural element of a building (e.g. survey pegs in the ground or the corner of a building). Townhouses and villas are prime examples of standard format plans. A building format plan is usually found in high-rises. In this type of plan, where 1 lot is separated from another lot or common property by a floor, wall or ceiling, the boundary of the lot is the centre of the floor, wall or ceiling. Your community management statement (CMS) provides for the plan relevant to your scheme. If you are not familiar with that, it is the document which contains your CTS number, establishes how your scheme runs, 26 www.lookupstrata.com.au
and includes details of your by-laws, among other things. You should have a copy in your paperwork. If not, you can get one from your body corporate manager or from the Titles Office. A fee will apply for the transaction with the Titles Office, although you can at least be sure that whichever document the Titles Office provides is the correct, most up-to-date one. To get your basic grounding in the mysterious world of plans, we recommend looking at these resources from the Commissioner’s Office: the building format portion, and the standard format one. Maintenance responsibilities and other key responsibilities vary depending on which plan applies, and this topic is covered in more depth here. We know that many people in strata want certainty and black and white rulings. Unfortunately, you just aren’t going to get it with this topic. While there is guidance and great resources (see above), sometimes a situation will arise that isn’t binary in nature and which might need further investigation, or possibly qualified advice (be it legal, surveying, or other). When it comes to exclusive use, legislation does give us some guidance. In section 192(3) of the Body Corporate and Community Management (Standard Module) Regulation 2020 (the Standard Module) (equivalent provisions of other Modules), we can see as follows:
(3) However, if the lot was created under a building format plan of subdivision, in the absence of other specific provision in the bylaw, the owner of the lot is not responsible for— 1. maintaining in good condition roofing membranes that— a. are on the part of the common property to which the by-law applies; and b. provide protection for lots or common property; or 2. maintaining in a structurally sound condition any of the following elements of scheme land that are part of a structure that is on the part of the common property to which the by-law applies and is not constructed by or for the owner— a. foundation structures; b. roofing structures providing protection; c. essential supporting framework, including load-bearing walls. Meanwhile, section 180 of the Standard Module provides for specifics of maintenance responsibilities in building format plan schemes. It’s essential to read this section carefully (which means, multiple times) because its construction is a little complicated and there is also the use of “or” and “and” throughout: if you watched our legislation webinar, you’d know how essential both terms are to the proper understanding of a piece of legislation.
1. G et informed and be accurate: check your CMS to be clear on the plan applying to your scheme and make sure you use the right terms. Avail yourself of the many resources available to enhance your understanding and make it practical. 2. R efer to the legislation for the specifics: as we note above, some parts of legislation are already reasonably clear on plan responsibilities. 3. L ook at previous adjudications. 4. Consider reasonableness: bodies corporate have a legislated responsibility to act reasonably. While reasonableness varies from case to case, a good way to think of reasonableness is methodical, objective decision-making based on datadriven material. In other words, don’t rely on whim, vibe or what a stranger on social media thinks. 5. G ather information and decide: whether you are an owner or the committee, the process is the same. Get information about the situation, carefully consider and then decide reasonably. If you’re the committee, your decision is about whether to accept or not accept the responsibility. Same if you are the owner, although the path to your decision is driven by what the committee (or a general meeting of all owners) decide. Your decision might then be to dispute the status quo.
Despite all the above, the reality is that legislation is sometimes unclear about standard vs building format plan issues, and relevant responsibilities. Clarity comes from adjudicators’ orders. While adjudications are not precedent, because each case is considered on its merits, they do provide useful guidance about how different issues are likely to be treated. We know that’s going to be frustrating for some people. After all, who doesn’t want things to be definitive? Nonetheless, that’s the system we have.
Finally, there is no substitute for qualified advice. If you need to know about building issues, get a builder or engineer. If you want to know about legalities, speak to a strata lawyer. If you need assistance on dispute resolution, you might like to speak to someone specialising in strata dispute resolution. Guessing, assuming or sensing in strata are rarely successful paths to follow.
Taking that system into account, here are our practical tips for navigating the intricacies of the format plans and things like exclusive use areas:
Chris Irons | Owners Corporation Network chris.Irons@ocn.org.au
This is general information only and not legal advice.
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Category Education and resources for the strata community Category Category
Lookupstrata
Australia’s #1 Strata Title Information Site. https://www.lookupstrata.com.au/ administration@lookupstrata.com.au
Strata Community Association https://www.strata.community/ admin@strata.community 02 9492 8200
Owners Corporation Network
The Independent Voice of Strata Owners https://ocn.org.au/ enquiries@ocn.org.au
Your Strata Property
Demystifying the legal complexities of apartments https://www.yourstrataproperty.com.au/ amanda@yourstrataproperty.com.au
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STRATA MANAGEMENT
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Tower Body Corporate Your Best Decision
https://towerbodycorporate.com.au/ info@towerbodycorporate.com.au 07 5609 4924
Bright & Duggan
Shaping Communities for a Brighter Tomorrow https://bright-duggan.com.au/ customercare@bright-duggan.com.au 02 9902 7100
Vision Strata Services
Your local Strata Firm based on the Gold Coast QLD http://visionstrata.com.au/ info@visionstrata.com.au
Archers the Strata Professionals Strata Made Simple
https://abcm.com.au/ info@abcm.com.au
Northern Body Corporate Management
Specialist Body Corporate Management for North Queensland
https://www.nbcmqld.com/ nbcm@bigpond.net.au 07 4723 8217
Quantum United Management
Creating vibrant and connected communities https://www.quantumunited.com.au/ info@quantumunited.com.au 61 38360 8800
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Strata Solve
Untangling strata problems https://stratasolve.com.au/ chris@stratasolve.com.au 0419 805 898
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Tender Solutions: Consult. Procure. Support. https://www.tenderadvisory.com.au/ info@tenderadvisory.com.au 0435 893 670
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Redchip Strata Law Previously Hynes Legal
https://strata.redchip.com.au/ strata@redchip.com.au 07 3193 0500
Mahoneys
Body Corporate Law & Dispute Resolution Experts www.mahoneys.com.au/industries/bodies-corporate-strata/
info@mahoneys.com.au 07 3007 3777
Bugden Allen
Australia’s leading strata law experts https://www.bagl.com.au/ info@bagl.com.au 02 9199 1055
Mathews Hunt Legal
BODY CORPORATE LAWYERS... EXCLUSIVELY https://mathewshuntlegal.com.au/ admin@mathewshuntlegal.com.au 07 5555 8000
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STRATA COMPLIANCE REPORT SPECIALISTS
Body Corporate Report Specialists https://www.seymourconsultants.com.au/ info@seymourconsultants.com.au
National Remedial Services Pty Ltd Real Solutions For Australia’s Building Defects https://nationalremedial.com.au/ jlawton@nationalremedial.com.au 0430 370 773
Palmer Acoustics
Specialist Acoustic & Audio Visual Engineering https://palmeracoustics.com/ ross@palmeracoustics.com
Leary & Partners
Quantity Surveying Services Since 1977 https://www.leary.com.au enquiries@leary.com.au 1800 808 991
BIV Reports
Specialist in Strata Compliance Reports https://www.biv.com.au/ biv@biv.com.au 1300 107 280
Pircsa Pty Ltd
Professional Insurance Restoration and Consultancy https://pircsa.com.au/ steve@pircsa.com.au 0460 555 077
Solutions in Engineering
Quality Reports On Time, Every Time! https://www.solutionsinengineering.com/ enquiry@solutionsinengineering.com 1300 136 036
Mabi Services
Asbestos, Safety & Building Consultants https://www.mabi.com.au/ cinfo@mabi.com.au 1300 762 295
Leo & Associates Consulting Engineers Enhancing Structures, Empowering Futures https://laconsulting.com.au/ Leo@laconsulting.com.au 0452 205 727
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Strata Insurance Solutions Advice You Can Trust
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Sure Insurance
Sure. Insurance, but Fair https://sure-insurance.com.au/strata-hq/ strata-quotes@sure-insurance.com.au 1300 392 535
CHU Underwriting Agencies Pty Ltd
Specialist Strata Insurance Underwriting Agency https://www.chu.com.au/ info_nsw@chu.com.au
Flex Insurance
Strata insurance made by you. http://www.flexinsurance.com.au/ info@flexinsurance.com.au 1300 201 021
Strata Community Insurance
Protection for your strata property. And you. https://www.stratacommunityinsure.com.au/ myenquiry@scinsure.com.au 1300 724 678
Driscoll Strata Consulting
Knowledge | Experience | Service https://driscollstrataconsulting.com.au/ enquiries@driscollstrataconsulting.com.au 0402 342 034
Body Corporate Brokers
United, Protecting Communities https://bcb.com.au/ sarah.johnson@bcb.com.au
Whitbread Insurance Brokers Empower Your Vision
https://www.whitbread.com.au/ info@whitbread.com.au 1300 424 627
CRM Brokers
The smart insurance choice http://www.crmbrokers.com.au/LUS crmstrata@crmbrokers.com.au P: 1300 880 494
BAC Insurance Brokers
Specialists in Strata. Partners You Can Trust. https://www.bacbrokers.com.au/ broking@bacbrokers.com.au 02 9360 2244
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Risk intelligence for strata properties. https://www.cohabit.com.au/ thom@cohabit.com.au 0419 330 033
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Tinworth & Co
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Matthew Faulkner Accountancy Strata Auditing specialists
https://www.mattfaulkner.accountants/ matt@mattfaulkner.accountants 0438 116 374
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Building Rectification Services https://www.buildingrectification.com.au/ admin@buildingrectification.com.au 07 5539 3588
Altec Building
Remedial Building & Waterproofing https://www.altecbuilding.com.au/ info@altecbuilding.com.au 02 9744 2039
Building Experts Australia Pty Ltd Building Solutions
https://bexa.net.au/ bruceh@bexa.net.au 0475 454 350
Lennox Facades
Inspired by Design, Driven by Results https://www.lennoxfacades.com.au/ terry@lennoxfacades.com 0404 624 990
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Painting and facade upgrades
Higgins Coatings Pty Ltd
Specialist painters in the strata industry https://www.higgins.com.au/ info@higgins.com.au
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WINDOWS & DOORS
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Windowline [QLD] Pty Ltd
Australia’s strata replacement window & door specialists
http://windowlineqld.com.au/ admin@windowlineqld.com.au 07 5520 3894
Total Entrance Solutions
The total solution for all entry requirements https://www.totalentrancesolutions.com/ jason@totalentrancesolutions.com 1300 781 851
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ENERGY
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Embedded Network Arena
Independent Embedded Network Consulting Services https://embeddednetworkarena.com.au/ info@embeddednetworkarena.com.au 1300 987 147
Arena Energy Consulting Pty Ltd
Independent Embedded Network Consulting Services https://www.arenaenergyconsulting.com.au/ info@arenaenergyconsulting.com.au 1300 987 147
Strata Energy Services Simplifying energy for Strata
https://www.strataenergyservices.com.au/ daniellegibson@zembl.com.au 0408 228 675
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Energy On Pty Ltd
Providing utility network solutions https://www.energyon.com.au/ EnergyServices@EnergyOn.com.au 1300 323 263
ENM Solutions
Providing Solutions for Embedded Networks https://www.enmsolutions.com.au/ info@ENMSolutions.com.au 1300 000 366
Integrated Trade Services
Electrical and Air Conditioning Specialists https://www.integratedtradeservices.com.au/ info@integratedtradeservices.com.au 0400 775 002
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Water, waste and sustainability solutions
Altogether Group Power.Water.Data
https://altogethergroup.com.au/ partnershipenquiries@altogethergroup.com.au 1300 803 803
Humenergy
People, Innovation and Value Sharing https://www.humenergy.com.au/ Info@humenergy.com.au 1300 322 622
Fair Water Meters Fair water - fair bills
https://fairwatermeters.com.au/ info@fairwatermeters.com.au 1300324701
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SAFETY & SECURITY
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Pacific Security Group
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LUNA
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BME Group
Re-Defining the Standards of Building & Facilities https://bmegroupbuildingmanagement.com.au/ lachlan.hunt@bmegroup.com.au 02 8283 7531
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LIFTS & ELEVATORS
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ABN Lift Consultants
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Innovative Lift Consulting Pty Ltd
Australia’s Vertical Transportation Consultants https://www.ilcpl.com.au/ bfulcher@ilcpl.com.au 0417 784 245
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PARKING
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VSPACE
Where Teams Work. End Users Win. https://www.vspaceparkers.com.au/ kirlos@vspaceparkers.com.au 0424 953 890
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ANTENNAS
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Install My Antenna
Professional TV Antenna Service For You Today https://www.installmyantenna.com.au/ info@installmyantenna.com.au 1300 800 123
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SOFTWARE
Categrory Digital tools for managing strata schemes Categrory Categrory
MiMOR
Connecting People – Creating Communities https://www.mimor.com.au/ info@mimor.com.au
Stratabox
Building Confidence https://stratabox.com.au/ contact@stratabox.com.au 1300 651 506
Town Square
Productivity and Communications Platform for SMs. https://townsquare.au/ hello@townsquare.au
ResVu
Customer Service Software for Strata https://resvu.com.au/ enquiries@resvu.com.au 08 74778991
StrataMax
Streamlining strata https://www.stratamax.com/ info@stratamax.com 1800 656 368
MYBOS
Building Management for Residential & FM Schemes https://mybos.com/ sales@mybos.com 02 8378 1096
Urbanise
Automate your workload to increase efficiency. https://www.urbanise.com/ marketing@urbanise.com 1300 832 852
onsite.fm
Building Management Software https://onsite.fm/ hello@onsite.fm 02 7227 8550
Serif.AI
AI managed with your judgement https://www.serif.ai/ kelly@heyserif.com
Categrory Categrory
DELIVERY & COLLECTION SERVICES Categrory Parcel, mail & locker solutions Categrory Categrory
Groundfloor™
Australian parcel, mail, and refrigerated lockers https://groundfloordelivery.com/ ask@groundfloordelivery.com 03 9982 4462
Categrory Categrory
RECRUITMENT SERVICES
Categrory Recruitment Categrory for the strata sector Categrory
Property Recruitment Partners People solutions for the Strata Sector
https://propertyrecruitmentpartners.com.au/ aaron@propertyrecruitmentpartners.com.au (02) 8313 5591 or 0431445676
sharonbennie – Property Recruitment Matching top talent with incredible businesses https://www.sharonbennie.com.au/ sb@sharonbennie.com.au 0413 381 381
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FIRE SERVICE
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Fire Matters
Fire Safety Compliance https://firematters.com.au/ sbauer@firematters.com.au 07 3071 9088
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Categrory WATER DAMAGE RESTORATION Categrory Categrory Categrory
Water, fire and mould restoration
Reztor Restoration
24/7 Strata Water, Fire & Mould Restoration www.reztor.com.au admin@reztor.com.au 1800 739 867
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STRATA LOAN PROFESSIONALS Categrory
Finance solutions for strata schemes Categrory Categrory
Lannock Strata Finance Simplifying strata funding
https://lannock.com.au/ strata@lannock.com.au 1300 851 585
Firstrata Finance
Real Choices. Real Support. https://firstratafinance.com.au/ enquiries@firstratafinance.com.au 1800 59 59 00
StrataLoans
The Experts in Strata Finance https://www.strata-loans.com/ info@strata-loans.com 1300 785 045
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VALUERS
Categrory Property valuations for strata schemes Categrory Categrory
Asset Strata Valuers
Leaders in Strata Property Valuations https://assetstratavaluers.com.au/ workorders@assetstratavaluers.com.au 1800 679 787
Delphi Consultants & Valuers
Building Insurance Valuation Services https://www.delphiproperty.com.au/insurance-valuation
info@delphiproperty.com.au 07 3852 6012
Category Category
ROOFING
Category
Roofing repair and maintenance Category Category
Insight Roof Inspections
Independent. Evidence-Based. Roof Diagnostics. https://www.insightri.com.au/ admin@insightri.com.au
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