Apartment Woes: Who Pays for High Rise Repairs?
If you live in a high rise building and you own your own unit, you need to be aware of your rights when it comes to repairs. Who’s responsible for footing the bill and how is this decision made? Well, this all depends on what needs fixing – is it a common area, or is it your own property? It might sound complicated, but here’s all the information you need broken down.
Strata vs Body Corporate vs Privately Owned – What’s What?
Firstly, you need to know the difference between a strata, a body corporate, and a privately owned building. A strata is a type of property ownership whereby the property is divided into lots (apartments or units) and common areas (like gardens, hallways, staircases, pools, etc). A body corporate is a legal entity whose role is to manage and maintain the common areas. Members of the strata (so individual owners who buy a lot within the building) pay fees into the body corporate which are used to maintain the common areas of the building. It’s the body corporate’s responsibility to manage these finances, as well as handle the building’s insurance, enforce by-laws, and resolve any disputes between individual owners. They operate under governmental rules and regulations that are outlined in legislation like the Body Corporate and Community Management Act 1997 in Queensland. A privately owned building is managed by one person or company.
So, Who Pays?
Basically, if the damage is to any common areas like the roof, the foundations, the hallways, the lifts, or the external walls, the body corporate is responsible for paying for the repairs. If a high-rise roof leak is causing damage to multiple apartments, the body corporate is responsible. If there is any structural damage to the building like concrete cancer or roof damage, the body corporate is responsible for paying. All this seems fairly straight forward, right?
Here's where it gets a little complicated.
In Queensland, the owner of a single unit within a strata scheme has limited legal protection regarding the body corporate’s finances. While the body corporate handles insuring the building and maintaining the common areas, individual owners can be held liable for any debts the body corporate may not be able to pay. This also means that if repairs turn out to be more expensive than originally thought, the individual owners may have to pay the extra cost.
If you are concerned about the condition of your high-rise building, you can book a skilled high-rise inspection to help you get a clear picture of what the issues might be before body corporate finances are used. It could help you and other apartment owners in your building to save money, time, and a massive headache while you deal with any potential financial fallout.
Daily Bulletin