If you own a home unit, you can decide for yourself to update your kitchen and bathroom. But if your balcony needs repair, the other home unit owners need to agree.
The reason the other home unit owners need to agree to the balcony repair is that a balcony is common property, just like roofing and guttering, foyers and stairs, and fences.
The cost of maintenance and repair for common property is paid from the capital works fund, which is funded by strata levies. When an expensive repair is required, a Special Levy is needed.
In a well-functioning strata scheme, there will be a 10-year capital works fund plan which includes a budget for maintenance and repairs within the next 10 years. Strata levies will cover the cost. Special Levies will need to be raised occasionally – such as in the balcony repair pictured which cost $40,000 per balcony.
But some strata schemes are dysfunctional. They don’t have a proper 10-year plan, don’t have money in the capital works fund and won’t raise Special Levies.
What can a strata unit owner do in a dysfunctional strata scheme?
A strata owner can apply to the NCAT Tribunal for an order for repair orders and compensation orders. This is an expensive and uncertain process.
In a recent review of the strata laws, the NSW Office of Fair Trading has proposed it be given power to order repairs. This would be a great advance on the current situation.
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