CASE STUDY: Who is responsible for water damage repairs?

CASE STUDY: Who is responsible for water damage repairs?

 

2nd Avenue Beachside Apartments, Burleigh Heads

2nd Avenue Beachside Apartments, Burleigh Heads

Height: 30 storeys                            
Built: 1988/89
No. of lots: 84
Body corporate chair: Ian Knight

Situation

Several unit owners noticed visible water damage in their properties, with water coming through windows and doors. Owners were unsure who was responsible for repairs: the individual lot owners or the body corporate as a whole.

With damage extending to more than half of the 84 lots, the committee decided it needed advice from a strata expert.

Process

“Based on a referral, we contacted Hynes Legal and spoke with Frank Higginson,” body corporate chair Ian Knight said. 

“Frank came down to meet us at the building in Burleigh Heads. After explaining the situation to him it soon became clear we were between a rock and a hard place. If we as the committee did nothing, a disgruntled owner could sue us for letting the building fall into a state of disrepair. But we couldn’t just fix one unit – when you’re dealing with water ingress that just moves the problem somewhere else. As Frank explained to us, the best way forward was a full building remediation process.”

Frank attended a town hall-style meeting of lot owners to explain how the process would work. The project would be paid for through the existing sinking fund and a special levy to be raised over seven consecutive quarters. Hynes Legal provided all the necessary motions and paperwork for the Annual General Meeting, with Frank attending the AGM to answer any questions from lot owners. 

More than 80% of owners supported the move. After a minor delay while the Office of the Commissioner for Body Corporate and Community Management considered and ultimately dismissed one objection, the project proceeded.

Outcome

“The project is done and paid for, free of debt,” Mr Knight said. 

“We replaced every window and door of every unit, pulled up tiles on verandahs and installed water membranes, then retiled. We painted the exterior and refurbished the foyer. The place looks amazing.

“Without Frank Higginson and Hynes Legal, the project would never have got off the ground. And now owners are in raptures about what has happened at 2nd Avenue.”

The refurbished building is now attracting good sales, with a significant increase in values well above the special levy.

Mr Knight said he had no hesitation in recommending the work of Hynes Legal and had already done so to multiple Gold Coast body corporate committee chairs. “If we had the same level of service from everyone else involved in this project as we did from Frank and Hynes Legal, I would have had a whole lot less stress,” he concluded.

 

How can we help your strata scheme?