The licensee has had experience with a medium sized building with a lot of first home buyers. Its location has attracted a large percentage of ethnic residents.
The building is riddled with defects within individual lots and throughout the common areas. The builder has gone into administration and a lot of the lot owners were in arrears. The Owners Corporation were also considered to be dysfunctional.
When the licensee started working on this Strata Scheme, the Owners Corporation had a small window of opportunity to make a Home Owners Warranty (HOW) Claim against the builder to preserve their rights under the HOW Insurance Policy.
Court cases told the strata industry and residential unit Owners, that to preserve ones rights, the best plan of action was to be informed about where one stood.
Accordingly, the licensee and his team co-ordinated correspondence, old reports and certificates and passed them onto a specialised defects solicitor for input and feedback.
Following the feedback from the solicitor, an Extraordinary General Meeting was held to explain to all Owners the options available to them, to further appoint the solicitor to manage the HOW Claim, to appoint a defects consultant, a fire consultant and to raise a special levy for the costs.
Whilst Owners did not like the idea of raising the special levy, a large percentage of the Owners agreed to it.
Defects and fire inspections of every unit were co-ordinated through all stakeholders over a two day period and the reports were provided to the solicitor and Owners Corporation as evidence for the HOW Claim against the HOW Insurer.
The above co-ordination resulted in the Owners Corporation preserving its rights under the HOW Insurance Policy by being able to lodge a complete and substantial Claim within the prescribed time.
The claim was successful for the Owner’s Corporation to the value of $7 million.
The scheme had all its defects rectified in accordance with the relevant Australian Standards by a remedial builder who also gave the Owners Corporation the appropriate insurances for their work.