The following Q&As are about strata living in the Northern Territory have been asked by NT Lot Owners.
Table of Contents:
- QUESTION: If a plumber report states older hot water systems should be changed in case they break, can the strata manager demand they be changed?
- QUESTION: For a duplex, what is considered common property. We insurance and water bills and there is a plumbing leak.
- QUESTION: In the Northern Territory, can a body corporate manager be a proxy for owners? Is there a limit to the number of AGM proxies an individual can hold?
- QUESTION: What are the strata duplex rules? Are we required to have a registered body corporate or is splitting expenses ok?
- QUESTION: I’m looking to purchase an apartment in a Northern Territory strata scheme. Who sets the body corporate fees? Why is there such a variation between lots?
Question: If a plumber report states older hot water systems should be changed in case they break, can the strata manager demand they be changed?
Our Strata Manager appointed a plumber to do a plumbing audit for all the apartments in our building. The report stated that, in the opinion of the plumber, the electrical hot water system should be replaced as systems older than 12 years are prone to splitting. The building is 15 years old.
The Strata Manager has demanded we replace our hot water system within 30 days. There is nothing wrong with the hot water system. Are we obligated to replace the system because the Strata Manager has demanded? Does the Strata Manager have the power to demand this?
Answer: We would not likely deem this sort of maintenance request unreasonable, in fact we would usually recommend this sort of preventive maintenance as the standard to which managers and committees operate to save their owners money in the long run.
Firstly, it is great to get these plumbing audits done to ensure that common property utility services are running at their most efficient and detect for any leaks or breakages that may be causing damage to common property without the owners realising. For example, a slow leaking pipe that is sending water into a concrete surface or substrate can be detrimental to the integrity of your building.
As a general rule, electric hot water systems last between 10-15 years and in maintenance plans, this is what we would usually be budgeting. Your climate conditions however may reduce this due to high humidity and salt corrosion.
Given that your building is 15 years old and likely to be in a humid, salt corrosive location, we would usually recommend the hot water units be replaced by this time as well. Having a hot water unit burst because relief vales or pipes have failed due to pressure can be a catastrophic maintenance emergency for a body corporate. Particularly if it occurs over a weekend of public holiday. Given Australia’s current labour and material shortages as well, parts and trades may not be as freely available to service an emergency maintenance issue such as this, resulting in owners without hot water for days and damage to common property that would be slow to repair.
Whilst to the layman eye, the hot water systems may not appear to have anything wrong with them, they are an inevitable expense at some point. The question is, how much more would it cost for a major clean up should they explode one night causing damage to walls, ceilings, electrical systems etc plus the need to then replace them as well.
Regarding the obligation to replace them just because the strata manager has asked for this, it would come down to what powers the strata manager has been delegated. If the strata manager has the powers delegated by the owners to organise maintenance, they could initiate the replacement of these hot water systems giving consideration to the schemes financial health, sinking fund balances etc.
If you have concerns with the powers delegated to your manager, it could be something you discuss with a body corporate specialist or solicitor, but in first instance, I would suggest having a conversation with the strata manager to understand their logic and reasoning.
As per the above, we would not likely deem this sort of maintenance request unreasonable, in fact we would usually recommend this sort of preventive maintenance as the standard to which managers and committees operate to save their owners money in the long run.
Dakota Panetta Solutions in Engineering E: dakotap@solutionsinengineering.com P: 1300 136 036
This post appears in Strata News #607.
Question: For a duplex, what is considered common property. We insurance and water bills and there is a plumbing leak.
What is considered “common property” where there are only 2 townhouses joined by a single wall and we have no formal Body Corporate in place?
We share only 2 expenses – Building Insurance and the water & sewage bill (which are not on separate meters). There is a plumbing leak external to the building on the other owner’s outside area, directly in front of their property.
Am I responsible for any costs to repair? How do I check what is common property?
Answer: If the water is not on separate meters then you would think water leaks would be a collective problem.
I would need to look at the Plan of Subdivision to give a definitive answer however if the water is not on separate meters, i.e., common, then you would think water leaks would be a collective problem.
If the two owners are paying an equal share of the water bill I would strongly recommend that the leak is addressed before the cost for the water usage gets out of hand.
Rob Harris Northern Territory Strata Management E: robjharris@bigpond.com P: 1300 340 210
This post appears in Strata News #503.
Question: In the Northern Territory, can a body corporate manager be a proxy for owners? Is there a limit to the number of AGM proxies an individual can hold?
Answer: In the NT the Body Corporate Manager can be a proxy for the owners if the owner chooses to do so. In the NT there is no limit to the number of proxies an Individual can have.
This post appears in Strata News #404.
Question: What are the strata duplex rules? Are we required to have a registered body corporate or is splitting expenses ok?
Last year I sold one unit, half of our duplex. We have one shared water meter and joint building insurance.
What are the strata duplex rules? Are we required to have a registered body corporate, or is splitting expenses between the two of us ok?
Answer: Duplex sub divisions may be managed but there is no requirement.
Duplex subdivisions may be managed (we manage several on behalf of Defence Housing Australia) but there is no requirement.
It is perfectly OK to split expenses as long as the relationship between the two owners is sound.
If the relationship breaks down it can cause issues, for example, who pays for the insurance, in which case it is better to have the duplex managed by professionals.
This post appears in Strata News #154.
Question: I’m looking to purchase an apartment in a Northern Territory strata scheme. Who sets the body corporate fees? Why is there such a variation between lots?
Who sets the body corporate fees in a block of units? Are they determined by the number of units and/or apartment owners?
I have made an inquiry into purchasing a Unit and have asked for the body corporate fees. Why is there such a variation?
Answer: The sinking budgets can vary enormously from building to building dependent on the owner’s views towards long term maintenance such as painting programs, accrual of funds for long term plant replacement such as elevators, pools etc.
Body Corporate fees are set at each Annual General Meeting by the members present.
In the case of a Body Corporate that is managed by a Body Corporate Manager, we would prepare a budget and present this to the members for approval.
There are two budgets, administration and sinking.
A typical administration budget may include, but is not limited to:
- Insurance premium for the building structure and Public Liability cover
- Body Corporate Management fees
- Electricity
- Lift maintenance (if applicable)
- Pool maintenance (if applicable)
- Common water supply (if not metered individually)
- Sewerage charges (usually covered in other states in the council rates but not in the NT)
- Gardening
- Cleaning
- Maintenance of common property, e.g. painting, repairs
- Audit fees – in the NT all accounts have an annual audit
- Fence and gate maintenance
- Fire Protection (if applicable)
- Waste management
In other words, any common property maintenance / administration fees.
When the budget is agreed, the owners then agree on the amount of levies that need to be raised and we usually suggest a small buffer to cover unexpected expenses.
The sinking budgets can vary enormously from building to building dependent on the owner’s views towards long term maintenance such as painting programs, accrual of funds for long term plant replacement such as elevators, pools etc.
Some Body Corporates have sinking funds in ‘the thousands’ and some have zero – it is entirely up to the owners to make the final decision although as Managers we strongly recommend that something is in place for long term maintenance.
Lastly, when the budget has been approved, it is then divided up by ‘lot liability’. For example, in a block of 50 units, some may be bigger (two bedrooms versus one bedroom). This is set by the surveyor when the original plan is submitted for development and the Owners Corporation Act states that this is the method that must be used to share expenditure.
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This post appears in Strata News #152.
Have a question or something to add to the article? Leave a comment below.
EmbedYuhan Selva Ace Body Corporate Management Darwin (NT) P: 08 8981 8025 E: darwin@acebodycorp.com.au
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
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