Body Corp for Duplex

We own a few duplex pairs and an interesting thing happened to a friend of ours that raised some questions.
She owns a duplex. Insurance account arrives for the building so she approaches the neighbour for half. Neighbour says sorry I'm broke, can't pay. Not great for new neighbourly relations but that aside it raised these questions.
1. What are her options? I suggested that she pay the full insurance as she needs to be covered and then try small claims court.
2. A BC with regular contributions would negate this problem occuring but is it worth seting up with the ongoing fees etc just for a duplex?
3. If you were to set up the BC would you use a professional manager? Sounds like more expense to me - for just 2 units.

Fortunately we own both units of our duplexes but in the furture we may sell one and this has thrown up these questions.
Experiences and replys welcome.
 
Hi,

Dramas, I owned 1/2 a duplex, I bought in with a friend who purchased the other half. It was a strata title, and to complete the purchase it was necessary to obtain the "books" what happened was an agent "held" the books for a flat fee and we just paid that to get the books up to date and transferred, otherwise it costs about $800/yr to have it managed :(

Is it torrens or strata titled?, that could affect the type of insurance they will need I would think.

They could always pay the insurance and lodge a caveat against the neighbours title? no good for relations but;

a) they're insured
b) they have a means of getting their money back.

Also note, if its strata titled, they will need to obtain workers compensation insurance for the strata plan to comply with the law. The policy will be in the strata title's number.

Michael G
 
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