Strata Report and Building Defects

[Humphrey]

Hi,

I've had a strata report prepared for a property I've exchanged for - I'm still within the cooling off period.

There's an agenda for the upcoming annual strata meeting on Monday. It includes this item:

Defect Reports - Your Executive Committee have included three quotes to obtain a Building Defects Report for [Building name] (Motions 12 to 14), Once a Building Defects Report is prepared, an insurance claim will need to be lodged by a legal firm specialising in defects. The Lawyers will recommend that [Building name] also employ consultants for litigation compliant fire and hydraulics reports. A budget of $10,000 for legal fees is included and $60,000 for consulting fees, which is an estimate for the Building Defects, Fire and Hydraulics Reports.

The guy who did the strata report wasn't very helpful. Can anyone throw light onto what this might mean?

The building is approx 6 years old and I understand that sometimes these reports are done specifically to identify any issues before the builders 7 year warranty runs out.

However this looks to me like it could indicate something more serious. The only thing I've been able to find out is that some water damage to one of the units was supposed to have been fixed by the builder last year. I'm not sure if this is related.

Thanks for any light you can shed on this.

Regards
Ethann

 

[Propertunity]

Ethann,

Not enough information to give you any advice - sorry.

Motions 12 to 14 are what?

You may be right about the BC making a warranty claim before the 7 year expiry.

How many $'s are in the sinking fund?
How many $'s are in the admin fund?

If you are apying for a strata report, saying "The guy who did the strata report wasn't very helpful" is not acceptable. Go back and ask him again IMO.

 

[Humphrey]

Propertunity,

Admin fund approx. $260k, sinking fund is approx. $450k.

Here are the motions you asked about:
12, That the quote from ABC to inspect [Building] common property and four apartments in one day and to prepare a building defects report for $10,850 plus GST be accepted.
13. That the quote from DEF to inspect [Building] common property and four apartments and to prepare a building defects report for $11,700 plus GST be accepted.
14. That the quote from GHI to inspect [Building] common property and all units made available and prepare a building defects report for $43,500 plus GST be accepted.


I'm beginning to think that the strata report has missed something as I expect that there must have been a motion to commission the defect reports in the first place. I'm on their case and hopefully can get some resolution from them.

 

[Propertunity]

Admin fund approx. $260k, sinking fund is approx. $450k.

Yikes!! that's a lot of cash how many units in the complex - must be a lot!

 

[Humphrey]

I think about 80 in the complex. I could look it up but I'm so damn sick of looking at the strata report.

My first thoughts about the $ were the same

 

[Humphrey]

I managed to attend the strata meeting and the reports were being considered to identify any issues before the builders 7 year warranty runs out.