Reply: 1
From: Michael G
Hi,
I understand your problem.
I'd hazard a guess, that you live in a duplex or some other form of semi detached dwelling.
I'd say that both units are strata titled, meaning you each own the airspace inside your buildings but share the costs of maintaining the building and surrounding lands.
With strata title, it is necessary to have a body corporate to manage this "common property".
With blocks of units or townhouses, a strata manager is normally appointed at a minimal cost of around $800 per year.
With such small configurations like yourselves, you may have opted to self managed the property bypassing the cost of a strata manager.
Regardless, a strata titled complex needs to have books showing the sinking fund, and its compliance to the strata title law.
This issue seems to only arise when a property is sold.
When I was selling my half of a duplex, I paid a strata manager a small fee (about $250) to update the books and create a strata certificate (this is what the solicitor wants to transfer the property - to see the strata title is up to date).
So what your other half needs to do is work out which one of you knows where the common seal and books are, else create them, and find a strata manager willing to update the books for them.
In regards to your insurance issue, the purchaser's solicitor (the one acting for the buyer of the unit), wants to see that the building insurance AND workers compenstation insurance is up to date.
As I mentioned before the common property is handled by the body corporate (in this case you and the other unit owner). What you should have in place already is a insurance policy that covers the replacement value of the building (the contents and fixtures are the individual owner's responsibility). You also require a policy to cover liabity that may arise if someone is working on the property (gardener, painter, plumber, etc).
Both these policies should be in the registered under the strata title's number.
If neither of you have such insurance, you're gunna need it now anyway.
This cost will be shared 50/50. You see, you need to pay your half in case the place burns down or an electrician zaps themselves.
I'd suggest you call around and get a good price then ask the other owner to write a cheque to the company where your getting the insurance from. Ensure your both not running around.
Its also a good exercise for you, since if you're there for a while you'll have to do it all again next year
Michael G