Bill from body corporate to fix pipes?????

[THEHEATH]

Apparently the pipes under the building (or under the car parks that belong to the building) where I have my flat have some kind of leak which has been causing excess moisture in the soil. As a result there have been movements in the building, causing cracking etc. The other day I received a letter from the body corporate stating that they had approved a quotation for 34k for repairs, exploration work etc and that each owner was up for $1,900 (due in 28 days!).

Now in my heart of hearts I know that there's probably a by law somewhere saying I have to pay for this, but it just seems wrong to me? I mean I'm paying for the water companies infrastructure to get fixed. The way I look at it, if I order furniture and the truck breaks down on the way to delivering it then you don't send me the bill for truck repairs, so why should this be any different Not only have I endured paying for extraordinarily high water bills ($200+ for one person!) because their shitty infrastructure broke, but now I have to pay them to fix it and suffer the detrimental effects the cracking could have on the property!

Could someone please tell me this is ******** and that I don't have to pay it? Surely at the very least this $1,900 should be somehow credited against future body corporate contributions?? Any thoughts?

 

[yo yo ma]

This is called a special levy and it has to be paid... no way out I'm afraid.

All body corporates require owners to contribute to an administration fund to cover day-to-day expenses such as electricity bills and a sinking fund to pay for regular maintenance such as the painting of common areas.

But if major unplanned repairs are required to a property, or the money in a sinking fund falls short, a body corporate has the right to raise a special levy to cover costs.

A special levy can only be imposed if a resolution is passed by a majority of owners at a general meeting. But once the majority has ruled, everyone has to pay, even those who voted against the levy.

Gary Adamson, chairman of the Real Estate Institute of NSW's strata management group, says special levies are a constant source of disputes, because the costs can be substantial.

He says it is not unusual for repairs to cost more than $1 million.

Depending on the number of units in a block, that means each owner's share of the repair bill could stretch into the tens of thousands of dollars.

If you don't want to pay the levy, there is little recourse.

"If you can't afford it, I suppose the only option is to sell out, which is something a lot of elderly people are doing at the moment," Adamson says.

Special levies can be a trap for new owners, who may move into a block not realising they have to pay up.

Neville Sanders, chairperson of the body corporate chapter of the Real Estate Institute of Victoria, says it is vital buyers do the right checks before they purchase a property.

If a large levy is in the pipeline, it should show up in minutes from body corporate meetings, which prospective buyers can obtain. Sanders says buyers should also thoroughly inspect a property to spot any looming repairs that may not have been discussed at body corporate level.

The lifts in a building that is more than 20 years old, for example, are probably coming to the end of their life and will need to be replaced at owners' expense.

"People are often so excited about their purchase that they fail to do due diligence, but there are certain things that you should be aware of before you commit," Sanders says.

"Once you are in there is no choice. You are obligated to meet your share."

http://www.domain.com.au/Public/Art...ne=Don't let the body corporate drag you down

 

[THEHEATH]

Cheers. Yeah, I understood that they have the right to make special levies, but my main issue was paying for the what I see (somewhat conveniently I guess ) as the water companies infrastructure to get fixed for supplying the property. Another analogy, power lines get damaged in your street and power company comes out to get power back online. You don't get sent a bill for the supply issue to be fixed do you???

 

[The Y-man]

Which side of the water meter is it?

The Y-man

 

[yo yo ma]

Another analogy, power lines get damaged in your street and power company comes out to get power back online. You don't get sent a bill for the supply issue to be fixed do you???

The power lines are on the street though, not on the property.

Which side of the water meter is it?

This sums it up and I would assume the pipes are on the property side of the meter?

 

[stumunro]

You pay Sydney Water to bring water from the resevoir to your property, and no further. ( I actually think what we pay isnt enough for such a great, realiable service)

Do you think that the power company should replace your light bulb because they are supplying your power?

This is a service to you, and their responsibilities lie at the junction to the main.

I can understand your unhappy at having to dish up money unexpectedly, but do you honestly think someone else should foot the bill?

 

[marg4000]

The rules are the same for any property owner - once the service is on your property then you are responsible. If the leak was in the street then it would not be your problem.

These pipes were installed when the units were constructed therefore belong to the building and are the building owners' responsibilty (i.e., all unit owners) to repair.

This is an extra expense to your usual body corporate levies, but will be tax deductible.
Marg

 

[THEHEATH]

This is an extra expense to your usual body corporate levies, but will be tax deductible.
Marg

Not if it's a PPOR though right? I DO plan to move out later this year though and turn this place into an IP. What are the legalities if I hold off paying the bill until after I turn it into an IP? Can I do that and then claim the deductible?

 

[dave99]

Not if it's a PPOR though right? I DO plan to move out later this year though and turn this place into an IP. What are the legalities if I hold off paying the bill until after I turn it into an IP? Can I do that and then claim the deductible?

It "should" be OK, but I would check with an accountant to be sure.

 

[grossreal]

hi THEHEATH
simple answer you have to pay it.
one side line if it was a commercial or you had commercial lease in place the tennant would have to pay it as part of there lease requirement.( mine they pay all out going including any corp costs)
in your case it does not help but in mine it make me happy I have comm leases.
if it make you feel any better I don't think it will.
these are the joys of having resi property