The VIC
STRATA MAGAZINE DECEMBER 2021
Can we get a Certificate of Currency (Insurance) for the Bank? Page: 10 | Strata Insurance Solutions
The Future of Energy in Strata Page: 16 | ENM Solutions
Strata Living with COVID-19 in a Post-90% Vaccinated Victoria Page: 36 | SCA (VIC)
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 thier audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month. Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at The LookUpStrata Directory, flip to end of this magazine.
Meet the team
Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013. With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians. Nikki shares her time between three companies, including Tower Body Corporate in SEQ, and is currently in her third term on the SCA (WA) Education and Proffessional Development Committee. More recently Nikki has become known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.
Nikki Jovicic Owner / Director
Liza came on board in early 2020 to bring some structure to LookUpStrata. She has a passion for processes, growth and education. This quickly resulted in the creation of The Strata Magazine released monthly in New South Wales and Queensland, and bi-monthly in Western Australia and Victoria. As of 2021, LookUpStrata now produce 33 state based online magazines a year. Among other daily tasks, Liza is involved in scheduling and liaising with upcoming webinar presenters, sourcing responses to audience questions and assisting strata service professionals who are interested in growing their business.
Liza Jovicic Sales and Content Manager
Learn more here → https://www.lookupstrata.com.au/about-us/ You can contact us here → administration@lookupstrata.com.au
2 www.lookupstrata.com.au 2 www.lookupstrata.com.au
Contents 04 Connecting People, Creating Communities
Jake Sharp, MIMOR
06 Who pays for cladding replacement?
Scott Driscoll, Sedgwick
08 Is the Strata Management Industry Under-pricing Itself on Smaller Buildings?
David Lin, Strata Management Consultants
10 C an we get a Certificate of Currency (Insurance) for the Bank?
Tyrone Shandiman, Strata Insurance Solutions
12 The World First Digital Building Facade Survey and Assessment System VOLTIN
14 Can the OC stop me from parking my mobility scooter in my car space?
Rochelle Castro, RC & Co Lawyers
16 The Future of Energy in Strata
ENM Solutions
18 I’ve Been Reported for Stealing Common Property Power!
Deryck Walker, SMTI
20 As a Lot Owner, Can I Put Forward an Agenda Item?
Rob Harris, WestVic Strata
22 OC Responsibility to Investigate and Repair Defects - Wall Cracks
Paul Cummaudo, Roscon Group
24 Appointed as Chair Without my Knowledge
The Knight
26 If the OC Owns the External Face of the Building, Who Pays for Painting?
Phillip Leaman, Tisher Liner FC Law
28 Can I Access Details of the Other Lot Owners
Michael Darby, Quantum United Management Pty Ltd
30 Who pays for repairs to Intercom Systems?
Guy Garreffa, StrataPoint
32 What Do We Need to Know Before Getting a Defibrillator?
Dakota Panetta, Solutions in Engineering
34 New Changes to Numbers on the OCC
Tim Graham, Bugden Allen Graham Lawyers
36 Living with COVID-19 in a Post90% Vaccinated Victoria: What it Means for Strata
SCA (VIC)
Thanks to our sponsors
Connecting people, Creating communities When most people were winding down for the weekend, Jake Sharp would frequently be dealing with last-minute requests to drive across town to ensure building and lift access for new tenants. That was four years’ ago, when Sharp’s cleaning business was responsible for 220 commercial and residential strata buildings, juggling ad-hoc moving requests from building managers and real estate agents. But it was his experience in managing a 187-apartment building, manually updating residents’ contact details and moving schedules, that acted as a catalyst for revolutionising property management systems.
“It was such a disjointed system; none of the individual parties – owners, managers, tenants, real estate agents, cleaners – were clear on the building’s processes and systems, even simple things like who is responsible for replacing a lost key. I just knew there had to be a better way to do it, particularly in this digital day and age,” Sharp said. And so MIMOR – the Move In Move Out Register – was born, an online portal for owners corporation managers, building managers and residents of residential and commercial properties, acting as a centralised hub for building information, alerts and moving procedures. Through MIMOR, residents can create an automated booking to ensure all parties – including cleaners - are informed well in advance of moving day, avoiding calendar double ups and costly delays when removalists are forced to wait to access parking bays and lifts. The MIMOR system is particularly useful for new buildings, streamlining and simplifying the often chaotic settlement and handover period,
4 www.lookupstrata.com.au
ensuring all parties are privy to the same information and able to share access to moving facilities. “It’s crazy to think that before MIMOR such a stressful process had to be arranged through lots of separate emails back and forth. Often new residents were getting contradictory information, with the real estate agent saying one thing, the OC manager or building manager another. MIMOR removes any ambiguity by detailing all the information required for a stress-free move – right down to lift dimensions so you know if that oversized couch can make the move with you,” Sharp said. MIMOR’s functionality also extends to other information integral to building operations, including owners corporation rules, waste management, power and water utilities, storage facilities, evacuation plans and emergency contacts are centrally located on the platform. As interest from owners corporations and schemes grew, Sharp also added features to manage parcel deliveries and booking of common areas and facilities such as the pool, barbecue or conference rooms.
Building managers can also send emails and SMS alerts to occupants to inform them about maintenance issues, and share announcements via the digital noticeboard, removing the need for unsightly notices in the building entry and other shared spaces. “And owners corporation managers and/or building managers love it because they aren’t having to manage lots of individual questions about processes and building suppliers, and they are able to update information online and notify residents in real time without resorting to putting up notices in the foyer or lift, which are pretty unattractive and often defaced or removed anyway.” Sharp said while some owners corporations were initially reluctant to embrace change, they quickly came to recognise the benefits, quickly rolling out the MIMOR system across other buildings under their management. One early adopter was so impressed that the responsible owners corporation is now using MIMOR across 60 per cent of its Melbourne portfolio.
“The beauty of MIMOR is it works at different levels for different audiences. The residents love it because all the information is located in one central point, everyone abides by the same rules and they can rely on SMS or email for important updates,”
Take the stress out of strata living The pandemic had also proven the need for a central communications hub that can quickly share consistent and reliable information directly with all stakeholders. “Covid is a good example of how the MIMOR system can help to protect tenants’ health and safety by making sure all residents are provided with the latest information with regard to government regulations and how that effects their use of shared facilities,” Sharp said.
“In the case of building lockdowns, the building manager can quickly alert all of the occupants and explain restrictions and procedures. That is a huge help to health officials when you need to work at speed and ensure everyone has the same information and a clear understanding of processes and expectations.” Sharp is also working on translating the information into 10 languages, and will soon launch MIMOR as a mobile app. And while hundreds of
info@mimor.com.au
buildings have already signed up to the system, Sharp sees the potential for further expansion, with annual subscriptions scalable from three apartments to more than 500. “The latest data shows almost 10 per cent of the population live in more than 340,000 strata schemes in Australia. I deliberately created MIMOR to be inclusive of as many of those residents and corporations as possible,” Sharp said.
mimor.com.au
5
Who pays for cladding replacement? My apartment block requires cladding work and rendering replacement to the entire building. Who is responsible for paying for this work?
Q
My apartment block built in 2012 requires cladding work and rendering replacement to the entire building at a cost of $400,000. The owners corporation has contacted all apartment owners to organise division of the cost to pay for the work to be done. Who is responsible for paying for this work?
A
Assuming cladding and rendering is not covered by any warranty, VBA scheme or other plan then the Owners Corporation is responsible and they will be required to either take the funds from previously saved funds, raise a special levy or borrow to fund the work.
Remedial repairs of this nature can be confronting and as identified within the question expensive to implement, however there are certain responsibilities that fall with an Owners Corporation when it comes the management of remedial repairs and these are laid out within the Owners Corporations Act 2006 (the Act) in Division 1, Section 4 as outlined below:
Functions of owners corporation An owners corporation has the following functions— a. t o manage and administer the common property; b. to repair and maintain— i. the common property; ii. the chattels, fixtures, fittings and services related to the common property or its enjoyment; 6 www.lookupstrata.com.au
Common property means land shown as common property on a plan of subdivision or a plan of strata or cluster subdivision. If the external walls of each lot are not part of the plan of strata then the likelihood is that the walls will be chattels – (property other than land), however if the building is a multi storey one then the external wall will be on the plan of strata. Additionally – Division 5 Asset Management, section 46 of the Act:
46 Owners corporation to repair and maintain common property An owners corporation must repair and maintain— a. the common property; and b. the chattels, fixtures, fittings and services related to the common property or its enjoyment. There are also multiple sections that go into detail about the repair and maintenance, the funding, the raising of levies etc.
The bottom line is that assuming that cladding and rendering is not covered by any warranty, VBA scheme or other plan then the Owners Corporation is responsible and they will be required to either take the funds from previously saved funds, raise a special levy or borrow to fund the work. There is no reference within the question to combustible cladding, however in such instances the owners corporation should refer to the CSV website for guidance. When facing remedial repairs, is it highly recommended to gain advice from experts to assist in providing a detailed scope of works, management of the tender process and project management to ensure that works are all inclusive, are of the highest standard are completed in line with Australian Standards and to assist with cost management throughout the life of the project. READ MORE ON THIS TOPIC HERE
Scott Driscoll | Sedgwick
scott.driscoll@au.sedgwick.com
Remedial repairs & cost management Management of remedial works can be challenging at the best of times and may cause considerable financial stress as owners try to navigate the minefield of complexity of Strata repairs. Value vs competitiveness is the driver to desired outcomes. Defining your objective and the extent
First time complete and defined scope of works •
Only 1 quote required
•
Minimise scope creep and variations
•
Empowering owners with information to obtain like for like quotes
of works is critical. Be clear in what you expect: •
You require repairs to be all inclusive
•
You need it to conform to statutory requirements
•
Pay the right price for works required
•
You need a warranty of guarantee
•
•
Extent & cost are balanced with the benefits.
Professionals to negotiate cost on your behalf
Value for money
Engaging experts is highly recommended. A building cost validation process allows you to take control and achieve desired outcomes you’re looking for.
Peace of mind •
Application of standards to repair methodology
•
Additional support in obtaining alternative quotes & other specialty service
$500 excl. GST brings you peace of mind
0424 750 900 sales@au.sedgwick.com 7
Is the Strata Management Industry in Australia Under-pricing Itself on Smaller Buildings? It’s almost every week that we see a new person or entity registering to be an owners corporation manager
1. Fill out a form and lodge with Consumer Affairs Victoria / Business Licensing Authority;
in Victoria. 2. Take out a professional indemnity insurance policy; The list of registered OC managers as maintained by the Business Licensing Authority has certainly ballooned out
3. Have a website built and off you go – noting that
since we started monitoring the list (some 6-7 years ago).
managing owners corporation will often involve
From our analysis 30% (if not more) of OC managers in
the authority and oversight of large sums of other
Victoria are less than 3-4 years old. Just the other week
people’s funds.
we got a phone call from a new ‘management company’ that looks after one building… which really raises a number of questions: •
Is there direct hands-on experience that can only be gained from years of managing owners corporations?
•
Are there actually proper systems and processes in place behind the scenes?
•
How can the OC be comfortable that the owners corporation manager is running a viable operation?
The Competitive Landscape A lot of the larger and more established companies we speak to find it difficult to stay price competitive when it comes to smaller buildings because of all the new (and
Price is What You Pay, Value is What You Get The competitive pressures when you see that there are these one-man operators pricing themselves in the marketplace at $180 to $260 per lot management fee to manage blocks of 4, 6, and 8 becomes clear. However Committees and Owners should be aware: the modus operandi of these new entrants seem to be to charge low fees and do the minimum. Or in some cases send out quotes with low management fees but charge a bunch of additional fees later on.
industry.
Comparing the Cost of the OC Manager vs Property Managers
And there are certainly A LOT of them.
As of 30 March 2020, the average rental price in
predominantly) one-man operators coming into the
Melbourne was $545 per week.
New Owners Corporations Managers in Victoria – Be Up & Running in 5 Committees and Owners are often shocked to learn how easy it actually is when it comes to registering to be an owners corporation manager in Victoria:
The average property management fee in Victoria (according to Macquarie real estate 2016 benchmarking) was 6.2%.
Therefore, on average, real estate agencies are being
Lastly, Committees and Owners need to undertake their
paid $1,747 per year to perform the service of providing
own due diligence and ensure the following stay front of
on-going property management.
mind:
In contrast, as it stands the average strata management
•
fee in Victoria sits at $300 per lot.
Heavily scrutinise these one-man operators if they’ve been in business for all of 5 minutes then beware – read this article that we wrote (Why You
Of course, what a property manager and what a strata
Shouldn’t Trust a One-Man Band to Manage Your
manager does day-in and day-out does differ on some
Money and/or Owners Corporation);
levels but that might some add perspective to the discussion.
•
agement fees – often those sort of companies sting
So, Strata Management Industry, What Can Be Done About It? The solution (whatever it may be) has to be a multi-
Don’t fret over and fall for the cheap and low manyou with a lot more hidden and undisclosed fees and charges;
•
Recognise the overheads that owners corporation managers (be it a newer operator or an established
pronged approach:
company) have within their businesses – proper offthe-shelf strata management software alone costs of
1. Accreditation of strata managers as professionals
upwards of tens of thousands of dollars; and
has long been talked about but is now well and truly overdue. •
Recognise that strata management is burgeoning
2. The strata management industry bodies (namely the
professional services industry that is growing and
REIV and SCA) has traditionally set minimum fee
fully appreciate that in the long run it’s cheaper to
charges as guideline for their members – however a
hire a professional than an amateur. Take it from us
lot of these reference points are out of touch. There
– we’ve seen too many buildings and owners corpo-
needs to be a more proactive approach to regularly
rations fall into peril because of bad advice.
review and update these guidelines .
Need help changing and appointing a new owners corpo-
3. Large and more established strata management
ration management company?
companies need to draw a line in the sand and stick to their guns on their minimum fee charges – and put their focus on service delivery and customer experience.
Speak to us – office@strataconsultants.com.au
Can we get a Certificate of Currency (Insurance) for the Bank?
10 www.lookupstrata.com.au
Q
My bank wants a certificate of currency from our insurer for our new apartment. Does the insurer include the bank as the “interested party”?
As part of our loan conditions, my bank wants a certificate of currency from our insurer for our new apartment. How does the owners corporation, which pays for the insurance on the building, acknowledge our title? Can they include the bank as the “interested party”?
A
You can request the insurer issues a certificate of currency with the bank noted as an interested party if this is a requirement.
A certificate of currency is a common document provided by insurers that confirms there is an insurance policy in place for the property. You should be able to request this from the current insurer of your property. In the absolute majority of cases, banks do not require that they are noted as an interested party on a certificate of currency because strata legalisation in various states protects interest of financiers with regard to the lot including their interest in the strata insurance. We generally find it is only those lenders who are not major lenders who request this information, as they do not fully understand the legislation. You can request the insurer issues a certificate of currency with the bank noted as an interested party if this is a requirement.
READ MORE ON THIS TOPIC HERE
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Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au
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$500
Special Offer: Mention this offer when requesting a quote from us and we will provide a discount off our standard fee for service of $250 (GST Incl) for buildings with 10-25 lots or $500 (GST incl) for buildings with more than 25 lots for the first year you insure with Strata Insurance Solutions. To redeem this offer send a copy of your current policy schedule to Tyrone Shandiman tshandiman@iaa.net.au within 1 month of the publication of this magazine. The policy can expire any time in the next 12 months, however we can only provide quotes 30 days prior to the expiry of your policy - if your policy is not due now, we will schedule to quote at the appropriate time. To ensure we apply this offer to our quotes, please specifically mention you would like to redeem the “LookUp Strata special offer”.
TAKE THE TEST TODAY – SEE HOW MUCH YOU CAN SAVE. CALL TO SAVE: 1300 554 165 Strata Insurance Solutions is A Corporate Authorised Representative of Insurance Advisernet Australia Pty Limited ABN 81 072 343 643 Australian Financial Services Licence No 240549 CAR Number 404246.
11
What is Voltin? The Voltin System is a world‑first digital building façade survey and assessment system.
WHAT CAN IT DO? Voltin combines imaging and position technology in an autonomous device to deliver a service that is more affordable, safer and accurate than existing systems in the market. The Voltin AutoBAT is an innovative building inspection system. The apartment building illustrated was inspected using this system. Significant defects were identified, then detailed in a report and digitally located on a series of 2D models. The digital report revealed all the flaws and a number of significant problems.
12 www.lookupstrata.com.au
Voltin assisted the Body Corporate to identify and diagnose the building façade problems.
How uncovering defects saves money
voltin.com.au
1800 VOLTIN
Visual data captured by the AutoBAT2.0 was fed into an artificially intelligent thirdparty defect detection software and photogrammetry modelling process to accurately identify the location of defects. The image capture process included both visual and thermal spectrums to provide a very effective comparative tool in the analysis. Often what is invisible to the naked eye is shown in stark relief as a thermal signature. For example, what looked like delaminating paint turned out to be a much more concerning problem. THE VALUE OF A DIGITAL REPORT Consider the benefits of having: •
A comprehensive summary of all building defects by type and severity
•
All defects identified, with close-up images magnified by a factor of 10
•
A downloadable report from a digital platform in PDF or CSV
•
An integrated defect list, segmented into a maintenance and repair schedule.
Find out how Voltin can help you save time and money. Visit voltin.com.au
THE INSPECTION OUTCOME A detailed digital report of all building defects by type and severity with the ability to zero in, compare and magnify the images by a factor of 10. A downloadable report from the digital platform into a PDF / CSV format with a defect list creating a maintenance and repair schedule. 13
Photography: Shayan-Hefzi and Aleksandra-Sapozhnikova on Unsplash
A breath of fresh air
A great experience begins with a healthy and pleasant atmosphere! A.I. Odour Control Systems exist to ensure the best air quality for your building and facilities. We provide end-to-end solutions that eliminate and prevent the proliferation of virus and bacteria, creating healthy environments for your staff, customers and guests. In addition we customise a wide range of scents that will leave a lasting impression of delightful wellbeing. Better air, better health, better business. Get in touch! 1300 728 760 or info@aiodourcontrolsystems.com.au
aiodourcontrolsystems.com.au 14 www.lookupstrata.com.au
Can the OC stop me from parking my mobility scooter in my car space?
I’d like to park my mobility scooter in my car bay. Are there any strata rules in VIC that state the Owners Corporation can stop me from using my car bay for this purpose? I use a small mobility scooter and I’m looking to purchase an apartment in Melbourne. My mobility scooter is my only means of transport. I would like to leave the scooter in my car bay with the battery removed. The Owners Corporation at one apartment block said this is not allowed under Strata Rules. Could you please clarify if there are any Strata rules in Victoria that preclude this or if the Owners Corporation can stop me from using my car bay?
Rochelle Castro | RC & Co Lawyers law@rccolawyers.com
READ MORE ON THIS TOPIC HERE
Ask for a copy of the registered rules of your owners corporation to determine if there are rules in place that hinder you from parking your scooter in the parking bay. It is prudent that you ask for a copy of the registered rules of your owners corporation to determine if there are rules in place that hinder you from parking your scooter in the parking bay. If you determine that there are no registered rules in this regard and if your parking bay is private property, in our view based on the information that you provided, you could park in your parking bay. On the other hand, if the parking bay is common property, unfortunately, you will be bound by the decision that the committee makes on how the parking bay could be used, unless you have a written licence granted to you by your owners corporation to use the parking bay for that purpose.
15
ENERGY MANAGEMENT
The future of energy in strata The energy landscape within strata title communities is often overlooked, difficult to navigate, and expensive. The conversation to define your Energy Strategy is more important now, than ever before. What is Energy Strategy in Strata? Energy Strategy for strata title communities (Strata) is the collaborative process of planning, executing, adapting, and managing energy infrastructure, investment, and compliance requirements for the future. Collaboration It is no secret that Strata can be slow and reactive when it comes to making decisions. With the multitude and variability of stakeholders, this is understandable; however, not reason enough to fail in meeting your Energy Strategy obligations.
The process of collaboration captures the broader economic, social, technological, environmental and compliance related issues and opportunities early and ensures all relevant stakeholders are involved and informed. The engagement of all relevant stakeholders ensures that with regular communication and review, planning can be adapted swiftly and effectively. Consider forming a subcommittee that can work through your Energy Strategy. Planning The first step in the planning process is to evaluate and define the current ’state of play’. This establishes the starting point from which to build your Energy Strategy, and asks questions surrounding how your Strata will report and evaluate performance and consideration on whether a private electricity network (Embedded Network / Microgrid) is required. Microgrid
Solar Panel
Inverter
Embedded Networks An Embedded Network is a cornerstone of energy management in Strata. It is a privately owned and operated electricity network at a site that has multiple customers and are frequently found in strata title communities. Many readers may have had negative experiences with these networks; however, when the Strata is in control there are a plethora of benefits. These include, greater visibility of consumption, utilising common areas for the benefit of all occupiers (by installing Solar Generation, Battery Storage and EV Charging), and a clear transition to a Microgrid. For more information on Embedded Networks, visit www.ENMSolutions.com.au.
Defining what you want to achieve by evaluating ‘non-essential’ upgrades, such as solar generation, battery storage, lighting and electric vehicle (EV) charging; and, ‘essential’ upgrades, including switchboard and wiring (for safety and amperage requirements), roofing membrane (for installing solar generation), and Heating, Ventilation, and Air-Conditioning (HVAC). The next step is when the challenge really takes shape, addressing the ‘how’ rather than just the ‘what’. Working backwards from what you want to achieve, by defining goals and setting stage gates, will help set your budget and allocate responsibilities. Failing to plan can lead to unexpected costs, safety and compliance issues, lost value, and profit that could have been invested. Executing and Adapting Having taken the time to ask the necessary questions you can comfortably and confidently begin to execute your Energy Strategy. Working with specialist partners ensures your vision is executed within a defined scope, keeping sight of the goals set by the Strata.
As technology progresses, regulations change and opportunities continue to be realised; adapting, and refining the Energy Strategy, to remain current and optimised, is crucial. Although a plan has been agreed, it must be made clear from the start that the plan could change, and you may need to adapt your strategy. Managing Owners, committee members, and other stakeholders can be transient and lose interest over time. Who will be managing the progress over the following weeks, months, and years? Are they an independent and qualified party, without a conflict of interest?
Case study – Energy Strategy in action In 2018, ENM Solutions was approached to conduct a business case and feasibility study to determine the suitability of an Embedded Network with solar generation for an apartment building in Queensland.
Built in the 1960’s, the building required significant upgrades to the wiring and electrical switchboards to improve power quality/amperage, and to comply with safety and compliance requirements. This triggered the replacement of electricity meters which provided the added benefit of clear visibility of consumption for both the consumers and owners corporation. ENM Solutions was engaged to procure electricity metering and project manage the brownfield retrofit of an Embedded Network which required approval from the Australian Energy Regulator (AER) through an Individual Exemption. Achieving the exemption required a thorough and rigorous process to obtain “Informed Consent” from all Occupiers at the site. We received consent, submitted the application, and gained approval in less than 12 months from commencement. With solar generation as the next step for the site, the ability to store energy in an onsite battery and how EV Charging will be incorporated is being discussed. This is an example of how a collaborative, well planned, adaptable Energy Strategy, including an Embedded Network, can provide a path to the future of energy in Strata. Should you or a project you are involved with be interested in discussing Energy Strategy, including consideration of an Embedded Network or Microgrid, please contact us for an informed discussion about your Energy Strategy.
PROJECT TIMELINE Dec 2017 Nov 2018 Jan 2019 Apr 2019 Jun – Sep 2019 Sep 2019 Sep – Oct 2019 Dec 2019 Feb 2020 Ongoing
Client first approached ENM Solutions Business Case information received Business Case completed ENM Solutions formally engaged EN retrofit consent campaign AER Individual Exemption submitted AER Public Consultation AER approved Individual Exemption Physical retrofit completed Sustainable transition to Microgrid
The responsibility to keep stakeholders informed and stay up to date with the changing rules, regulations and technologies is an important one. ENM Solutions is an independent expert and leading provider of energy and Professional Services in Embedded Networks and Microgrids. Our expertise in defining your Energy Strategy ensures your Strata is not only prepared to address these challenges, but to optimise the value and opportunities they present.
AEMO Accredited Embedded Network Manager. 1300 000 366 Info@ENMSolutions.com.au www.ENMSolutions.com.au
17
I've Been Reported for Stealing Common Property Power! We recently ran an extension cord from a common property power point to light up our car space. I’ve been reported for stealing power. Really! My partner and I are renting a ground floor apartment in Melbourne. I recently carried out some maintenance work to my car in our designated basement car space. To illuminate the area, I ran an extension cable to a common property power point for a short period of time. A resident reported this to the Owners Corporation and the Owners Corporation emailed my real estate agent outlining that I was committing theft by using the common property power. What are the rules and regulations around residents using common area power points and electricity? Did I commit a crime?
Requesting permission from the committee before utilising the OC power supply is a good idea that may avoid future tensions or nasty messages from rental agents. Interesting situation! Generally speaking, if you wanted to use anyone else’s electricity that was not your own (in any setting), surely you would agree that it would be polite to simply request permission first? And doing so may result in avoiding being accused of “committing theft” in the agent’s words. In saying that, if you have indeed used the common supply without seeking permission I can understand why some may be upset at this. So let’s just agree that moving forward, requesting permission from the committee before utilising the OC power supply is a good idea that may avoid future tensions or nasty messages from rental agents. 18 www.lookupstrata.com.au
With all of this in mind, let’s quickly look at what it might cost if someone wanted to run a halogen light bulb from common power. According to commercial lighting supplier (LEDified) [http://www.ledified.com.au/], running a 50W Halogen Bulb for 8 hours at a rate of $0.30 per KWH will come to an almighty $0.12. Yes, you read that right! 12 cents. Far from sheep stations. If it were me wanting to do the same on a recurring or regular basis, I would request permission and would offer to tip in $10.00 for the annual OC Christmas party fund which, based on my calculations, would forward fund around 666.666 hours of electricity consumption (devils in the detail!). It is also important to mention, you must also respect its position if the Owners Corporation decides for whatever reason that it does not wish (or is not comfortable) allowing you to utilise its common electricity supply.
READ MORE ON THIS TOPIC HERE
Deryck Walker | SMTI
deryck.walker@smti.com.au
There may be legitimate concerns around a third party using the supply with, for example, items that have not been tested and tagged, which has the potential to open up a can of liability worms for the Owners Corporation if something were to go wrong. I hope you found this response energising and illuminating.
Don't fall behind!
Laws effecting
Owners Corporations will be changing from 1st Dec 2021 Let us help you get up to speed in a single session with our small group, or one-on-one OCAA intensive online training
Simply follow the QR code or go to www.smti.com.au/ocaa-certification
19
As a Lot Owner, Can I Put Forward an Agenda Item?
Q
A
I’m an owner of an apartment on a small block of 10 and on the committee. We don’t have committee meetings and our AGM is soon. Do I have the right to put forward or suggest an agenda item?
The manager, the committee or a lot owner can submit agenda items to be discussed at the AGM.
Rob Harris | WestVic Strata robharris@westvicstrata.com.au
20 www.lookupstrata.com.au
READ MORE ON THIS TOPIC HERE
The manager, the committee or a lot owner can all submit agenda items to be discussed at the AGM. The notice of meeting is to be distributed to each lot owner 14 days prior to the meeting so the owner just needs to make sure their agenda item is submitted to either the strata manager (if there is one) or the secretary for inclusion. You also need to consider what type of agenda item you’d like to submit. For example, Unanimous and Special Resolutions must have the exact text set out on the notice of the meeting whereas an Ordinary Resolution just needs the subject matter as a discussion point. If the owner is not sure what type of resolution their subject fits into, let me know and I can advise further.
21
OC Responsibility to Investigate and Repair Defects - Wall Cracks
Q
One wall in my unit has developed substantial cracks over the past 10 years. The owners corporation has investigated the cause but the insurance company has denied the claim. Is the OC responsible to repair any damage?
Paul Cummaudo | Roscon Group info@roscon.com
READ MORE ON THIS TOPIC HERE
I own a unit in Victoria that has, over the past 10 years, developed cracks in the northern wall. The owners corporation investigated the stormwater drains and found them to be blocked and overflowing. This has been repaired. They submitted a claim to the insurance company who sent out a structural engineer to investigate the problem. He did a review of the levels of the building and came back with an opinion that the wall had sunk due to the nature of the soil. He did not carry out a soil test as he said he was not authorised to do this and described the damage as “slight”. The insurance company subsequently rejected the claim (which was for damage caused by water escaping from the stormwater drains over a period of 16 years, causing subsidence). Is the owners corporation responsible for remedial action to repair the cracks in the outside walls even though the insurance claim has been rejected? Can I ask the owners corporation to pay for a second independent engineer’s investigative report regarding the cause of the damage?
A
If the cracks deteriorate further since the insurer’s engineers report, I would strongly recommend the Owners Corporations to get their own independent engineer’s investigation.
It’s difficult to know how to answer this one without looking at the insurer’s engineering report, which I assume wasn’t provided to the Owners Corporation. However, these are the guidelines taken from Guide to Standards and Tolerances 2015. Concrete slabs: If the damage is ‘slight’ (refer to the table below) they need to be monitored for 12 months, so no sudden repairs are required. Walls: If the damage is category 2 – Slight <5mm (refer to the table below) they need to be monitored for 12 months, so again, no sudden repairs are required.
Without looking at any drawings or the Plan of Subdivision (POS), the Owners Corporation should be responsible for periodic inspection and maintenance if the stormwater assets (drains) belong to the owners corporation. The initial engineer should have recorded the cracks so OC can monitor them for the next 12 months. If they get bigger, then the OC can undertake a further structural inspection with a soil test. It is the Owners Corporation’s responsibility to attend to all maintenance as per the Owners Corporation Act. All remedial action to repair the cracks in the outside walls falls with Owners Corporations. If the cracks have deteriorated further since the insurer’s engineers report, I would strongly recommend the Owners Corporations to get their own independent engineer’s investigation done as soon as possible for peace of mind.
23
Appointed as Chair Without my Knowledge
Q
I live in a 4 lot strata building. Our newly appointed strata management appointed me as Chair without my knowledge, consent and approval. Do I have to accept?
A
As you have not been appointed by the Lot Owners, or via a majority vote, your appointment is not official.
It is possible that your Manager appointed a Chair due to stipulations within the Owners Corporations Act that a Chairperson must be appointed see Section 98 and Section 105:
98 Chairperson of owners corporation (1)If an owners corporation does not have a committee, the lot owners must elect a member to be the chairperson of the owners corporation.
105 Chairperson of committee 1. The members of the committee must appoint a member of the committee to be the chairperson. 2. An appointment as chairperson under subsection (1)— a. Is to be conducted by means of a majority vote;
b. may be revoked by means of a majority vote.
However, as you have not been appointed by the Lot Owners, or via a majority vote, your appointment is not official. It is worth noting that there is no penalty outlined within the Act for not appointing a Chair, and many Owners Corporations do not have one. We would recommend that you email your Manager to say that you do not accept the position, and to advise the remaining 3 Owners that the position of Chairperson is still vacant.
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The Knight Team | The Knight ella@theknight.com.au
Expert Owners Corporations Lawyers
Tisher Liner FC Law provides quality and cost effective legal services to Owners Corporations and their Managers across Victoria and the ACT Our highly experienced team provide quality assistance to owners corporations, committees, lot owners and managers of owners corporations in a wide variety of legal matters including:
Phillip Leaman
• General advice and governance; • Interpretation of plans of subdivision, common and private lot boundaries;
Phillip Leaman LLB (HONS), BCOM Principal Lawyer pleaman@tlfc.com.au
• Levy recovery; • Domestical building dispute claims and Water Act claims; • Adverse possession and compulsory acquisitions;
To see a list of matters we've been successful in or to access our OC information resources please visit our website or sign up to our blog.
• Easement and amendments to plans of subdivisions; • Creation and enforcement of owners corporation rules; • Preparing leases and licences over common property; • Advice on repairs and maintenance and application of the Benefit Principle; and • Prosecuting and defending claims made at VCAT by Owners Corporations and Lot owners.
Level 2, 333 Queen Street, %el ourne, Victoria, 3000 I +613 8600 9333 ocenquiry@tlfc.com.au I tlfc.com.au
25
If the OC Owns the External Face of the Building, Who Pays for Painting?
Q
If the OC owns the external face of the buildings, how can they make lot owners pay for the cost of painting the building?
I am the chairman of the committee of an Owners Corporation. I cannot find where the OC’s Plan of Subdivision has any definition of building boundaries – it only shows the lot boundaries and common property. There are 25 lots, 6 of which are duplexes sharing one common wall, and the rest are stand alone homes. I’m having a hard time understanding where the boundaries of the buildings belong to the lot owner for the purposes of painting. One lot 26 www.lookupstrata.com.au
owner wants to paint their lot in a completely different colour than the existing colour of the complex and she is in one of the duplexes. I assume that Section 53 of the Owners Corp Act applies. I also think that since the Plan of Subdivision doesn’t appear to define any building boundaries (the complex was built in 2007), then the boundaries of the buildings are deemed to be the “Median”, which if I understand right, means the OC owns the external face of the buildings. If this is correct, then why is it that the OC makes the lot owners pay to paint their own buildings?
A
As a general rule, where there are no defined notations, the median boundary applies and the exterior wall would be common property.
Plans of subdivision vary greatly and expert advice and a thorough review is necessary as different regulations apply depending on when the plan was registered. It is difficult to provide an answer without viewing the plan of subdivision. As a general rule, where there are no defined notations, the median boundary applies and the exterior wall (if the wall is on the lot boundary) would be common property and the Owners Corporation would have an obligation under Section 46 of the Owners Corporations Act 2006 to maintain it including the painting. Section 53 of the Act would not usually apply to painting works. However, if the painting wholly or substantially is for the benefit of one or some, but not all, of the lots affected by the owners corporation then
the Owners Corporation must apply the benefit principle under Section 49 of the Act and the amount payable by the lot owners is to be calculated on the basis that the lot owner of the lot that benefits more pays more. The Owners Corporation needs to undertake an assessment to work out the appropriate calculation. As for the colour that must be painted, unless there is a covenant or an enforceable Owners Corporations rule which is registered on title, the Owners Corporation may have difficulty forcing the lot owner to have a particular colour. The advice above is of general nature only and does not constitute legal advice. Suitable advice will depend on the particular plan of subdivision, the rules that apply and relevant circumstances. It’s always best to obtain fulsome legal advice from an expert in the area.
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Phillip Leaman | Tisher Liner FC Law oceanquiry@tlfc.com.au
At Dulux, we recognise that property protection starts with innovative solutions, durable coatings and quality products. Extending beyond coatings, we offer our commercial expertise, service and support throughout the project journey to assist you to protect your property over its serviceable life as efficiently as possible. We specialise in supporting painting projects for strata-managed properties and can help maintain and protect your asset with top quality specialty coatings, and complimentary professional advice – including help to coordinate strata paint projects.
Our Property Services team can support your paint projects with: • Dulux Authentic Colour® advice & support
• Tender support & industry contacts
• Comprehensive range of market leading paints & coatings products – including remedial products
• Project assistance & support for quality assurance
• Access a range of Ultra-Low VOC products • Tailored specification and support for scope of works
• Stakeholder engagement including committee presentations • Discounts for Dulux paint • Handover & maintenance support
Contact George Fragias at Dulux to discuss how we can support and add value to your property and paint projects. E: george.fragias@dulux.com.au T: 0418 244 714 duluxconstructionsolutions.com.au
Backing the Experts™ 27
Can I Access Details of the Other Lot Owners
Contacting owners in your building
Q
A
I wish to make contact with other owners of our complex. As a lot owner am I entitled to ask for a copy of the owners register from the manager and contact them or would I be contravening any privacy laws. The owners corporation must make these records available to you, but may charge a reasonable fee for a copy of any record.
28 www.lookupstrata.com.au
As an owner within an owners corporation you are entitled to inspect the records of the owners corporation pursuant to section 146 of the Owners Corporation Act 2006. The owners corporation must make these records available to you, but may charge a reasonable fee for a copy of any record. This fee must not exceed the prescribed maximum fee. These records include the owners name and mailing address.
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Michael Darby Quantum United Management Pty Ltd michael@quantumunited.com.au
29
Intercom Systems Who pays for repairs?
30 www.lookupstrata.com.au
My intercom is broken but I’m not sure if the fault is with my handset or the entire unit. Who pays and how do I get this fixed? My intercom system is not working. I’m not sure if the problem is with my particular handset or an issue with the main system. I’ve reported the problem to the strata manager and they have stated it’s the unit owner’s responsibility to pay for the handset if it’s broken. If it’s is the complete unit downstairs that is the problem, who is responsibility to investigate and repair the problem?
The owners corporation can have the intercom repaired and then “may” on-charge the owner of the lot, if necessary. When it comes to servicing an intercom system, it would be best to approach the owners corporation committee for direction. Committees can see (or do) things differently from one to the next (as long as they don’t breach their responsibilities or regulations).
To determine which piece of equipment is at fault will require a technician to visit the site and assess both units. The initial inspection or call out may need to be covered by the lot owner. Again, there’s no harm approaching the committee for their view on this. The subsequent repairs may be covered by the owners corporation if the committee approves. In summary, prior to engaging a contractor, seek direction from your committee to determine how they approach any repairs relating to the building’s intercom system.
The Owners Corporation Act 2006 section 49 (1) and (2) states:
Cost of repairs, maintenance or other works An owners corporation may recover as a debt the cost of repairs, maintenance, or other works undertaken wholly or substantially for the benefit of some only of the lots from the lot owners, but the amount payable by those lot owners is to be calculated on the basis that the lot owner of the lot that benefits more pays more. If a committee follows the letter of the law as per above, whenever a buzzer needs repairing, they can have it repaired and then “may” on-charge the owner of the lot that “owns” that specific buzzer. OR, seeing it’s the external head unit located at the main entrance of the building, the committee may have a “swings & roundabouts” approach knowing that at some point, all other owners may face the same issue. In this case, the committee may be happy to have the buzzer repaired and paid through the owners corporation. On the other hand, if the fault is with the handset INSIDE the private lot, then unless the committee instructs otherwise, it would be the lot owner’s responsibility seeing the faulty handset is only benefitting the one lot and no-one else.
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Guy Garreffa | StrataPoint guy@stratapoint.com.au
What Do We Need to Know Before Getting
a Defibrillator? Q
A
We would like to have a defibrillator in a common area in our strata building. What legal or other issues do we need to be aware of? There are very few concerns with having an AED installed on common property.
With over 30,000 sudden cardiac arrests each year, it is not a surprise that the question of installing these life saving devices has arrived at the Strata doorstep. Automatic External Defibrillators (AED) are designed to deliver a shock to the heart to return it to a normal rhythm. A defibrillator does not restart a heart once it has completely stopped but rather detect and treat (with electric pulse) an irregular heart rhythm commonly associated with sudden cardiac arrest. With nearly 60 Australians dying each day from abnormal heart rhythms (arrhythmias), the AED truly is a lifesaving device. Outside of a hospital, survival rates from sudden cardiac arrest are 10%. The presence and correct use of an AED can increase a person’s chance of survival to 70%. A person has the best chance of survival if a defibrillation shock is delivered within 3-5 minutes of them collapsing. That is certainly not enough time for an ambulance to arrive, but plenty of time for you to run to common property and grab the AED. 32 www.lookupstrata.com.au
These devices SAVE LIVES As with anything new brought into the realm of community/strata living, we must always consider legal ramifications and practicality. Thankfully, in terms of risk management, there are very few concerns with having an AED installed on common property. The (certified) devices are all designed to only provide an electric shock on a heart that is experiencing irregular rhythm. An AED will NOT deliver a shock to a healthy heart or to a completely flatlined heart. So, the risk of accidental electrocution is near non-existent. Manufacturers and installers of these devices record very few tampers or vandalism issues even with devices left out in national parks and beaches. Having these devices fitted inside an alarmed cabinet also deters any tamper from residents, visitors and particularly children.
There are currently no regulations that a committee must follow when installing one of these devices, simply a minor maintenance routine. We would strongly suggest that members of the committee (and any residents willing) complete a short training course on how to use an AED. An AED is simply another piece of first aid equipment that most first aiders can utilise to save a life. Maintenance requirements are very minimal, the device simply needs to be tested (turned on) at a minimum of 12 month intervals and a light is displayed throughout the year showing it is operational. The batteries vary in their life expectancy with most having a 3- 5 year lithium battery fitted. Simply install the device in easy view of a path of travel (ideally the building entrance or pool area), advise all residents of its purpose and location and check it each year. I think we will soon see the AED a common place item in our strata buildings with South
Australia currently in the process of passing a bill that will see AEDs MANDATORY in all commercial schemes and in all residential schemes of 10+ lots. No doubt, the rest of Australia will follow suit in time. Thankfully, in most states, the installation of these devices could be funded through the Sinking Fund/ Capital Works Fund meaning you likely won’t need to levy owners any additional monies to provide this life saving device. Such a simple decision to install an AED on your common property WILL mean the difference between life and death when a resident or visitor suffers a sudden cardiac arrest. It may be a mum that has tripped down the stairs and hit her head whilst taking the kids to school. It may be the tradesperson that falls off the ladder. It may be the lovely old dear who lives in unit 3. At some point, this device will save a life, it may even be yours!
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Dakota Panetta | Solutions in Engineering dakotap@solutionsinengineering.com
33
New Changes to Numbers on the OCC
Could you clarify changes to numbers on an Owners Corporation Committee?
The new changes say that a committee has a maximum of seven but it can resolve to have up to 12. The result is going to be the same. The current situation is: a committee must have a minimum of three and a maximum of 12 members. It’s perfectly lawful when electing a committee for an OC to resolve to reduce the numbers to somewhere less than 12 but more than three. Just to repeat: a maximum of 12, but an OC can resolve to have less currently. The new changes say that a committee has a maximum of seven, but it can resolve to have up to 12. It really ends up the same result. Currently, it’s 12 and you can come down, with the amendment it’s seven but you can go up.
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Tim Graham Bugden Allen Graham Lawyers tim@bagl.com.au
35
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AUDITORS Property Audit & Assurance
Strata & Managed Property Auditing Specialists P: 03 9525 3777 W: http://www.lowelippmann.com.au/ E: paa@llca.com.au
Would you like your Strata Story featured in the next edition of The VIC Strata Magazine? We want to share your strata stories with the LookUpStrata community. Some examples of what you may wish to share: • A project you have implemented in your complex that has made a positive impact (e.g a process, community building activities, parking procedure, ect) • Do you have a funny story to share about strata living? • Have you received a response back from one of the LookUpStrata professionals that has positively impacted you or your complex? • Have you made a change to improve sustainability?
If you would like to share your strata scheme story with the LookUpStrata community, Please send your story and photos to: administration@lookupstrata.com.au Disclaimer: If you send your strata story to
administration@lookupstrata.com.au,
you are agreeing to have your story published on the LookUpStrata platform or via social media. We must have written permission from each individual shown in the photo. Submissions may be refused for any reason.
PRINT YOUR DIRECTORY HERE
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