Stratalive Spring 2013

Spring 2013

The Man Behind Sydney’s Best Penthouses

Highrise Harry Celebrates 50 Years The Newest Technology In Strata

CONTENTS

Contents 9-15

Strata in Perfection – Ken Stevens

16

Saving on Power

18-19

Meriton Celebrates 50 Years

22-23

Building Defects – General Claims Process

21-31

Four of the Best – CBRE Residential

33-37

Strata 101

38-43

Insurance Commissions – The Myths and Facts

44-45

Opinion – Wade McKenzie

50-51

Technology – MYBOS

52-53

Technology – iButler

56-57

Strata in Conversation – Kelly + Partners

60-61

Breakfast Point – Lightthouse Hill

65-73

Strata Made Easy – Westpac

75

Housing Evolution

76-77

Hearing Dogs

79-87 Q&A 88

Sydney Olympic Park

90

Licensed Tradies

92-93

Small Home – Big Styled

94-95

Setting Up a Home Office

97

Living With Books

99 Townview

4 StrataLive Spring 2013

100-101

Bedroom Bliss

104-105

Paint Like a Pro

108-109

Exclusive Use By-Laws

112-113

Keeping Cool Through Spring

114-115

Child Safety

116-117

Spring Clean Your Home

118-119

The Garden Room

120-121

Your Moving Checklist

WELCOME

Welcome to your Spring Edition of StrataLive

S

trata. As we always say, behind that word is a whole lot of grunt. It is the preferred lifestyle of the 21st Century As you can see, we have changed the name of our magazine to be in line with our website stratalive.com.au.

In this edition we look at a very popular strata topic right now – insurance commissions. We also look at some great new strata technology and we show around one of the best penthouses in Australia where Ken Stevens, his wife Judit, their two young sons, a dog and two cats have chosen the strata way of life.

Many of the industry specialists will help you with issues in relation to saving on power, building defects, what you need to do before buying in a strata scheme and how to get the information you need.

And of course Georgia is back to give you some great tips with the practicalities of living in an apartment. She is going to show you how to paint like a pro, turn your bedroom into a sanctuary, fit an office in anywhere, get ready for that big move and for this time of the year, how best to spring clean your home.

Our legal experts have been busy answering your questions on stratalive.com.au and our Q&A is full of some really interesting predicaments lot owners have found themselves in.

I hope you enjoy this edition of StrataLive and remember, you can always keep up to date at stratalive.com.au where you are welcome to join the forum and ask questions of all our strata experts.

Best wishes, Cindy

Publisher Byline Media Pty Ltd Editor Cindy Martin Production Magazines byDesign Contributors Barry Hyland, Georgia Madden Front Cover The Ritz Penthouse, Cremorne Point. Story pages 9-15. Photography Joanna Davidson Byline Media Pty Ltd 332 Commercial Road, Vineyard NSW 2765 (02) 9627 1627 E: info@byline.com.au Magazines byDesign Level 4, 33 Lexington Drive, Bella Vista NSW 2153 (02) 8883 5890 E: linda@bydesigngraphics.com.au

StrataLive Spring 2013

5

ADVERTORIAL

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Strata in

perfection

Ken and Judit Stevens with sons Jack (left) and Christopher.

Meet the Man Behind Sydney’s Best Penthouse Apartments

By Cindy Martin The Ritz photography by Joanna Davidson

Y

ou would expect this story to start with ‘Once Upon A Time’. It is the perfect fairytale. Set in a breathtaking location amidst pure luxury and exclusivity, there is romance, a charming hero, his exquisite wife, their two gorgeous boys, a dog and two cats. And just for good measure we are even going to throw in a movie star.

But we are far, far away from Fantasyland as we follow one man on his journey to make this dream a reality. Who would ever have thought that boring old strata could be at the centre of this perfect bedtime story? Well, meet its creator – the man behind the most extraordinary castles in the sky – Ken Stevens.

Our hero is a dashing former International executive with United Artists. Working the dream job on the Bond and Rocky movies, and hundreds like them, he almost married every lad’s fantasy – a Bond girl.

StrataLive Spring 2013

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STRATA IN PERFECTION

Photos: The Ritz – Cremorne Point.

“All style, sophistication and intelligence. She is the most extraordinary hands on mother to our children. I am truly blessed.”

10 StrataLive Spring 2013

But that was before he met his true Princess. In 2001 a mutual friend introduced Ken to Judit, an exquisite Swiss/Hungarian beauty that he extols as “All style, sophistication and intelligence.

She is the most extraordinary hands on mother to our children. I am truly blessed.”

Romance blossomed instantly, and they were married in a fairytale wedding in December 2002. Attended by the Police Commissioner’s family, Federal Court judges and guests from Switzerland, Hungary, Germany, the United Kingdom and the United States, they even received a letter from Buckingham Palace. Held at the magnificent Benelong Restaurant at the Opera House overlooking Sydney Harbour, the highlight of the evening came when the groom sang Barry White’s My First, My Last, My Everything to his shocked but smitten bride.

So OK girls, how jealous are we right about now?

Not only is he a charming, sauve, gallant and devoted husband, the home he has created atop the exclusive The Ritz at Cremorne Point is simply out of this world. With the most extraordinary views for as far as the eye can see, this is strata living at its very best from every angle.

The sun is setting and Ken and Judit’s two young sons, Jack and

Christopher, lap each other around the rooftop oasis in their electric cars. They duck and weave to avoid their golden lab, Roxy, as she basks in the last of the afternoon warmth. Watching on, their two Burmese cats are perched happily on the balcony having easily adapted to a strata lifestyle.

This is family apartment living at its harmonious best, although it is not the lifestyle Ken originally chose for the family.

Long before The Ritz there was La Corniche. After leaving the film industry Ken turned his hand to property development. And with that came the birth of the best apartment brand in Australia. Not just world class, not just exclusive, this was Brand Stevens and the clear frontrunner to claim the altar of perfection. These four breathtaking apartments were their creator’s first foray into the world of development. Not only did La Corniche win accolades from some of the industry’s leading architects, designers and property journalists as the best apartment development in Australia, it set a standard by which other prestige developments continue to be judged.

It is amazing that someone who is so obsessively precise in the accuracy of his design is so humble, but the man behind this magnificence is every bit the pie and more.

STRATA IN PERFECTION

Hugely successful, Ken leads a quiet private life shunning the A-List and heading the more discreet Elite-List.

Instead of building a showpiece and throwing open his doors to Sydney’s society, Ken’s vision was to shroud his creation in privacy and seclusion, allowing few to see the magnificent fruits of his labour.

Seldom a sale is made at La Corniche, but back in 2002 Ken sold his own apartment for $8.45 million – a staggering record of $28,547 a square metre. It smashed the Australian record by $5,500 a square metre and still holds the Lower North Shore record after more than a decade.

The same purchaser also acquired Ken’s second apartment in the building and bought that for $6.25 million. The development has smashed property records since it was built in 1996, with each of the four apartments breaking the record price for a unit in Australia.

All the apartments now have international owners and Ken’s former apartment is for rent with a record asking price of $6,000 per week. Likely to be snapped up by international talent on an extensive stay in Sydney, it ensures the privacy and security sought by superstars such as Ricky Martin and Seal.

“La Corniche was my baby,” Ken said. “I planned, designed, sued the StrataLive Spring 2013

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STRATA IN PERFECTION

Council (twice), raised the funding, developed, wrote the by-laws, and lived at La Corniche for six years.

“It was over specified and built to the highest standards. Quite honestly, it was a labour of love.

“Funnily enough during my six years in residence I was the only person who ever attended a strata meeting, as the people I sold the other apartments to all lived overseas.

“It was just me, the strata manager and a handful of proxies.

“I was chairman, treasurer, secretary, the lot. No disputes, no problems. It was probably one of the smoothest Owners Corporations on record and the maintenance was perfect because it was my baby and my home.

“It is an extraordinary building in many ways and, given its very prominent position on a main point in Sydney Harbour, every time we cruise past it on the boat both of our young boys say “Daddy, there is La Corniche, you built that”…yes, I will always be very proud of it.”

And this is where our aforementioned movie star enters front and centre. As rumour has it, megastar actor, John Travolta was lunching at Sails restaurant 12 StrataLive Spring 2013

across the road from La Corniche.

While hoeing down on lobster, quaffing champagne and taking in the most magnificent view Sydney Harbour has to offer, he spied the splendor of the apartments carved into the cliff-face above him. Not knowing if any of the apartments were on the market for sale, he rang the agent who was looking out for a property for him and asked him to make enquiries with the intention to buy.

Unbeknown to Mr Travolta, Ken’s apartment was on the market for sale exclusively through Ken Jacobs of Christies Prestige Homes. And before the movie star could even get a look in, a couple from the Bahamas not only bought Ken’s unit but the other as well.

So what does La Corniche have that so many others do not?

Firstly, it offers Sydney’s most spectacular harbour views and sits over the very forefront of McMahons Point.

In Ken’s own personal apartment, the huge living and dining area is in French limestone and leads to a wraparound terrace. The commerciallyequipped kitchen is fitted with integrated Gaggenau appliances and the meticulous finishes, including two

pairs of 18th-century Chinese antique doors, create a stunning focal point.

The three bedrooms each have an en suite bathroom, and each of the bathrooms includes a spa. The opulent master en suite has a television, seven-head shower with a porthole to the harbour, oval spa, fireplace and of course a superb view.

La Corniche has acoustic protection between floors, an oxide-rendered exterior finish and an enormous hydraulic lift to cater for grand pianos, antiques and oversized couches like the ones Ken designed and had custom built for his apartment.

The award-winning recreational facilities include a heated pool and spa, air-conditioned gym and sauna-steam room.

A remote-control access triple car security garage with an additional storage room opens on to a lobby-style entry foyer.

Additional features include video intercom security, concealed combination safes, automatic irrigation systems and extensive landscaping.

When Ken and Judit made the decision to marry, it was with the

STRATA IN PERFECTION Photos: La Corniche – McMahons Point.

“La Corniche was my baby,” Ken said. “I planned, designed, sued the Council (twice), raised the funding, developed, wrote the by-laws, and lived at La Corniche for six years.

knowledge they would start a family after a few years of fun and travel. And even for a man with such vision, the idea of bringing up a family, a dog and cats in an apartment did not sit well.

So Ken and Judit sold the apartment and bought a waterfront house on Shellcove Road, Neutral Bay complete with boathouse, jetty and a sports cruiser where they lived the early years of their son’s lives.

But while they still lived on the water, they did not have the extensive views they enjoyed at McMahons Point. Across the bay, Ken watched with interest the major renovations going on at the building directly opposite his home. That development was The Ritz at Cremorne Point – regularly admired and dubbed one of the best on Sydney’s exclusive North Shore.

“I had heard a lot about ‘The Ritz’ over the years and I knew Simon Symond – the brother of Aussie Homes Loans boss, John Symond – had developed the building and had owned the penthouse,” Ken said.

“I was told it had to be sold because of a development that failed during the GFC and that at one stage his

penthouse was on the market for a staggering $29 million.

“I had heard that the apartment and views were spectacular so I thought I would take a look and send the details to some of my international friends who acquire trophy properties.

“But as soon as I walked in, I knew right away it was for us.”

“The old house had been lovely.

It even had a stone chapel where a wedding and baptisms had been performed. But it was tired and had become a maintenance noose around our necks.

“Having doubled our money from the purchase to the sale we felt there was no more upside to the property as it stood. To add further value $2-$3 million would need to be spent so it was without question better to move on and capitalise on the tremendous Ritz penthouse opportunity.

“The ‘value add’ and ‘lifestyle’ benefits where a huge step up so we had no hesitation in making the move.

“We now look down on the tired old girl which reminds us daily of the burden of maintaining such a property. Here at The Ritz there is no such burden on our

time. Everything is spanking new and perfect. We kept our boat and simply moored it nearby so we retain access to the water but we dumped all the baggage that was associated with such a house. What a relief.”

With all thoughts of backyards for the kids and their furry friends forgotten, Ken knew that with some changes he could make The Ritz penthouse exactly right for the family. Afterall, it was bigger than a huge house.

“In the hands of the mortgagees at the time it appeared vulnerable but I was totally flabbergasted when I bought it for a fraction of the original asking price,” Ken said.

The Symond’s had done an amazing job with the development and the finishes (including Italian stucco and massive marble slab floors and walls.)

But some things just didn’t suit so Brand Stevens went into action.

“We bought the apartment but did not have to settle until 15 months later,” Ken said.

“It gave me plenty of time to plan, and the first thing we needed to do was fix some layout problems and waterproofing issues.

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STRATA IN PERFECTION

14 StrataLive Spring 2013

STRATA IN PERFECTION Photos: The Ritz – Cremorne Point

“Then we knuckled down and converted the two apartments into one penthouse. We made it parent friendly, kid friendly and pet friendly.

“Initially the neighbours were understandably a little anxious when they heard we had a dog but once they found out she was a lazy older Labrador who had no interest in creating any disturbance everyone in the building accepted her as warmly as they accepted our whole family,” he said.

“The resident owners are all experienced, sensible and indeed nice people.”

Brand Stevens is now firmly stamped on The Ritz penthouse after giving it the ‘La Corniche touch’. Ken has completed the reconfiguration of the two apartments into a purpose built penthouse of enormous proportions (1,133 square metres).

He has combined the elements of a spectacular penthouse with the practicality of a family home. The kid’s playroom and roof racetrack takes up the entire top floor. There are eight bathrooms, six garages, two offices, enormous living areas and eight balconies in addition to the entire roof terrace.

“Three years with receivers and tenants meant the penthouse was rundown and needed serious restoration including paint, carpet, motorized blinds, awnings, sound system, intercom, air conditioning, under floor heating, data cables, lighting, office fitout, garage doors etc,” Ken said.

“It would now easily be worth double the $8.1 million we paid for it in what we refer to as the deal of the decade.

“The stressful history of the building, GFC, previously unsuccessful marketing campaigns, receivers and mortgagees in possession, tenants in occupation all aligned like stars to create the circumstances that resulted in the amazing deal being closed.

“All the dramas of events of recent years are over and a very harmonious,

“In the hands of the mortgagees at the time it appeared vulnerable but I was totally flabbergasted when I bought it for a fraction of the original asking price.”

friendly and experienced Owner’s Corporation now runs smoothly, supported by competent strata management and an excellent building manager whose knowledge of the building and diligence is a huge bonus.

“I am impressed by the work of the Owners Corporation before our arrival. They completed extensive waterproofing rectifications, painting and other major maintenance issues very effectively.

“We are now finalizing some cosmetic upgrades such as new gym equipment, planting and upholstery in common areas. The result is basically a new building for all resident owners and tenants, he said.

The common areas of this boutique building of only nine apartments include six star recreation facilities. There are four pools, two gyms, sauna, steam room, squash courts, changerooms, a waterfall and a poolside entertaining area. All of this is shrouded with floor to ceiling stone walls and arched waxed Italian stucco ceilings.

“The gyms are great for adults and I use them daily,” Ken said. The squash court provides a year round all weather haven for ball sports. Our boys play squash, racketball, basketball, dodgeball and more. They love it as much as the heated pools.

“So from a family perspective this strata environment works brilliantly in every way. Strata living is the future and indeed it can be great when you get it right.

Ken retired 17 years ago this month aged 41 although he remains active looking after family business and investments. He has thought about doing another development but he is loving watching his sons grow and always being there for them.

“I’m blessed to be in that fortunate situation and don’t take it for granted,” Ken said.

“We have traveled the world extensively and I have run businesses on four continents. I can honestly say that I cannot think of a better place to live than this piece of strata heaven.

“Unless our fellow Australians make a shocking error at the coming election we are here for the duration. Otherwise Switzerland beckons. We all have Swiss citizenship and passports. We are in fact today proudly flying the Swiss flag atop The Ritz to celebrate Swiss National Day. “Perhaps creating a La Corniche in the ski fields of Gstaad may be fun. If commonsense prevails we will stay here. Either way I am now developing a project of another kind going back to my roots.

“I am doing a motion picture project with a long time colleague, the former President of a major Hollywood movie studio. I can’t say much about that just yet, except to say that it will be classified as the proverbial ‘chick flick’, he said.

So, all this talk of movie stars, directors, chick flicks and living happily ever after in strata living bliss, leaves us with just one thing to say…

That’s a wrap.

StrataLive Spring 2013

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SAVING ON POWER

Saving on power for owners Big Buying Power Saves Apartment Owners in Electricity Costs

W

ith electricity prices more than doubling over the last five years, according to the NSW independent Pricing and Regulatory Tribunal (PART), many people are desperate to find ways to reduce their energy costs so they can pay their bills. A number are facing having their electricity cut off as numbers of disconnections soared last year by 25 per cent over the year before.

But some apartment owners are getting great deals and saving on their energy costs thanks to their sheer numbers and savvy strata managers.

Pica Group CEO Greg Haywood said that in the first initiative of its kind, BCS Strata Management and Carbon and Energy Reductions (CER) had teamed up to provide apartment owners with some initiatives that would save thousands off their electricity bills by reducing their energy consumption.

16 StrataLive Spring 2013

First up CER is able to provide BCS’s strata schemes with electricity supplies at lower than retail rates.

“Soon we will be able to provide a discount, unconditional offer on electricity in bulk as if each of our strata schemes was the retailer buying from the wholesaler – they are then not paying marked up prices for their electricity consumption in common areas for lighting, lifts, pool pumps, electric garage doors and so on.”

In New South Wales, CER is registered for the Government’s Light Replacement Project and is about to embark on a program of replacing energy consuming down lights and halogen tubes with more efficient ones and all for free.

“The new 7-watt LED down lights being offered are re-engineered to CER’s standards and have a 50,000 hour life span and a five year warranty. The down lights give up to 90 percent reduction in energy consumption producing the same

amount of light as the metal halides they replace. The LED tubes last three times as long as fluorescent tubes and give the same light output while reducing energy consumption by up to 60%,” Mr Haywood said.

“CER is also auditing some apartment buildings we manage to map their energy consumption. Of the first 20 buildings they completed reports for, nearly $250,000.00 worth of energy and maintenance savings will be realised in the first year if they proceed with the scheme we are putting in place.”

The most exciting offer though, involves solar power and does not require strata schemes to lift a finger or spend a cent, which will be magic to the ears of many executive committees.

“The biggest problem with solar power for commercial properties is it’s huge investment that takes many years to generate a return,” Mr Haywood said.

“As an alternative, CER has created it Solar Power Purchase Agreements program. This program allows them to sell solar generated electricity to strata schemes. This means having solar panels on the roof of the building but CER owns, installs, insures and maintains them.

“They then sell the energy to strata schemes for their common area needs at up to 20 percent off their current rate and annual increases will be no more than CPI or 2.1 percent.”

With electricity prices increasing at around 16 percent each year for the past 6 to 7 years this equates to an impressive saving. The savings over the contract period involve absolutely no capital outlay for the strata scheme.

Once the contract is over the solar generation units, which have at least another five to 10 years of life, are transferred to the strata scheme to give free electricity for the years that remain.

This article appears courtesy of BCS.

MERITON IS STILL HOT PROPERTY

Meriton is still HOT Property …50 Years On

By Cindy Martin

I

t was back around the time of the 2000 Olympics that I first met Harry Oscar Triguboff (HOT), I remember the day well.

After working in the property industry for over twenty years I just happened upon a fabulous job working as the property editor for The Sun-Herald newspaper – A Fairfax publication.

I had followed Meriton for years and now working as a property journalist, I had the perfect opportunity to request an interview with the Harry Triguboff.

Unfortunately my request was met with less enthusiasm than I had hoped. It seems back then Harry had little time for Fairfax journalists because of their negativity towards Meriton and indeed, Harry himself.

Eventually, Harry begrudgingly agreed to see me. His marketing manager at the time said he would “give me a few minutes”. It was with much trepidation that I walked into his office where I waited for what seemed like an exhaustive amount of time.

When he eventually came in after fanning the flames of some small catastrophe, he briskly shock my hand and while looking down at some papers on his desk asked me what I wanted.

I explained that I wanted to do a story about Meriton.

“So what dirt are you going to sling at me this time,” he asked.

He was not expecting the answer.

I stumbled out a nervous mixed up diatribe about how I was excited about what he was doing and that he shouldn’t tard me with the same brush as green property journalists who

18 StrataLive Spring 2013

wouldn’t even get off their lazy butts to go and take a look at his product for themselves before judging Meriton on hearsay only. And yes, it came out as breathlessly as that last sentence you just read. But I had his attention.

He invited me to sit down and we chatted for close on an hour about each of his developments, what he was working on and what he had coming up. We had become fast friends in that short period of time.

I realised that a lot of journalists reporting on property in the media had not evolved over the years. Harry is the first to admit that he built to suit a market in his earlier projects but even back in 2000, his products were on par, if not better than other prestige developments in the marketplace.

Since then, he is one of the few developers to make it through the GFC unscathed and the Meriton product is better than ever. Now after 50 years and at the age of 80 his empire is the strongest it has ever been and homeowners and investors implicitly trust his product largely due to his longevity in the property industry.

Over the years I have learnt some very valuable lessons from Harry. And one is value itself.

Harry always says that you must offer your buyers value and an affordable product.

In fact, if he cannot see value in a product himself he won’t buy it or use the service.

An example of that is when he was on a trip to London and he told me that he was “not happy” about the fact he could not find a razor for under three pounds. So, he walked around London for hours until one was found.

Another was when he was in China and he only wanted to hire a car for two hours to make a trip across the city but the shortest period he could hire a car was four hours. He turned on his heel and jumped onto the nearest di shi (Chinese bicyle taxi) and headed off.

While these are small examples, it is this attitude that gives his buyers value for money. He just does it on a much larger scale.

His excitement with each of his projects never wanes and he never loses sight of the fact that he is building for his buyer. I remember when he was building World Tower and he rang me up to “come take a look”.

Taking a look entailed taking an outdoor lift up some 60 floors and then walking up the last 10 flights to “get the right picture”. As Harry jogged up the 10 flights of stairs,

MERITON IS STILL HOT PROPERTY

Meriton Managing Director - Harry Triguboff.

I breathlessly dawdled behind. When we reached the top – Harry five minutes before me - he asked me what I thought his buyer’s would think.

“You know, it is all about them,” he said.

Harry’s loyal investors love him. He takes the time to talk to his market to find out “if I am doing it right”. He looks at what they are going to see from every angle.

As many would know, Harry sponsors the Wests Tigers.

At the launch of one of his developments at Rhodes last year, many of the team’s players were at the launch. Opened by Barry O’Farrell, Harry insisted that the team, their coach at the time and all the officials take a trip up in an outdoor construction lift, yet again, to take a look at the view from the top of the building from his buyer’s perspective.

All the team were joking about the lift going down and if it did, that would mark the end of the Tigers, the head of the State Government and the country’s biggest developer – all in one blow. I looked across at Harry fast approaching 80 at the time, a big smile on his face enjoying every second and then right next to him, Benji Marshall as white as a ghost, unable to join in the joviality of his team-mates and far from enjoying the experience.

As Harry extolled the virtues of the development and the views his buyers would enjoy, he didn’t have the ear of his most celebrated player. All Benji was worried about was taking that trip back down again.

At 80, Harry still has more life and energy than those half his age. He loves talking about what he hopes to achieve over the next 20 years and leaves no doubt he will be around for Meriton’s 70th Anniversary.

Having built over 60,000 apartments, Meriton buildings are a huge part of Sydney’s landscape. Having snapped up some of the city’s best sites recently, Meriton appear to have their hands full for now but Harry says if the land becomes available he will keep buying.

“I have a very loyal Chinese market but I would like to see every Australian able to buy property,” Harry said “Reducing the interest rates is helping but they still need to reduce them even more.

“I have a lot to achieve over the coming years so you can now bugger off and let me get on with it,” he said.

Truth be known, his language was actually a lot more colourful than that but still inoffensive in his special trademark delivery.

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BUILDING DEFECTS

Building Defects General Claims Process

U

nder the Home Building Act 1989 (HBA) claims can be made against faulty or defective building work.

The purpose of this Industry Update is to provide a basic outline of the processes and the potential timeframes for these to occur. This document is not to constitute legal advice particular to your circumstances and is only a guide on processes and not an assessment of the legislative regime.

This Industry Update applies to works under taken under the Home Building Act (ie not including commercial, industrial or retail strata schemes). There are fundamentally 3 types of claims under the HBA: • Claims where the owner can take action against an insurer in the first instances (first resort policies); • Claims where the owner must take exhaust all action against builder before commencing action against an insurer (last resort policies); and • Claims where there is no insurance. These to be taken against the builder and developer only.

Step 1 - Initial reporting and information As with any claim an owners corporation must gather sufficient information so as to satisfy itself that there was defective works undertaken. This will entail engaging suitable experts and legal advice on the issues to be claimed (potentially).

There are a range of documents that are important to any claim and they include: • a copy of your Home Building Act 1989 insurance policy and terms and conditions which may be on the scheme’s records (if relevant).

• all plans, specifications, certificates, diagrams and other documents obtained or received by the original owner relating to the parcel or building (which are to be provided by the original owner at the first annual general meeting), such as: • development consents, • complying development certificates and related endorsed plans, • compliance certificates, • fire safety certificates, and • insurances and warranties obtained relating to the parcel or any building, plant or equipment on the parcel.

Step 2 - Identify the defects In order to take any action the owners corporation will be required to seek expert help in identifying the defects to the

22 StrataLive Spring 2013

building. In order to do this you will need to engage suitably qualified experts, consultants and engineers. Ensure that anyone engaged by the owners corporation has the requisite expertise, have professional indemnity insurance and is willing to attend Court and give evidence should the matter go to Court.

You will need to identify: • the building defects; • defects that breach the statutory warranties contained in the Home Building Act, and • other defects you may be able to claim under the terms of your insurance policy (if relevant).

There are many reasons why you may not be able to claim a defect, such as, it is a repair and maintenance item, it was part of an existing building, it was a design defect for which the developer may be liable, it satisfied the deemed to satisfy provisions or was an alternative solution under the Building Code of Australia.

In all of these you need to start with the end in mind and it is our view that these consultants and experts need to be properly engaged before they provide any advice that the owners corporation intends on relying on in any proceedings. To do so (as mentioned above) requires the owners corporation to carry out some due diligence on the expert/consultant and engage them properly so that any information they provide is able to be used in any future proceedings if this is required (see draft motions below).

Experts must also be properly engaged/instructed to carry out their role otherwise there is a risk that their reports and findings may not be admissible in any later proceedings.

Step 3 - Notify the insurer and builder Notify, notify, notify that is the message in this step You must notify the insurer and builder within 6 months of becoming aware or of when you ought to have become aware of a building defect. Failure to do so may result in your claim being unsuccessful.

As this is an important step in the proceedings and in order to ensure that the owners corporation are covered the owners corporation should pass resolutions to serve the notice on the builder/developer (see motions below). The notification should include as a minimum the following: • Name and address of the owners corporation; • Details of the person providing the report on defects; • The nature of the defect;

BUILDING DEFECTS

• The potential method of rectification of the defect; • That the notice is issued under the HBA; and • That the owners corporation requires the defect to be rectified within a certain timeframe otherwise action may follow.

Once a notice is issued a copy of it and all correspondence relating to the defects must be kept for future reference.

Step 4 - Liaise with the builder/Developer You should then liaise with the builder to make arrangements to have the defects repaired.

Step 5 - Make a claim In making a claim (be it on the insurer or through the Tribunal/ Court system) it is recommended that you make your claim earlier rather than later. There are a range of timeframes for lodging claims depending on which legislative system that applies. These are strictly enforced by all parties including the Tribunals/Courts, so if you are late your claim will be dismissed in its entirety.

In making a claim there are forms to fill out and procedures to follow regardless of whether the matter is an insurance claim or a Tribunal/Court claim. This part of the process is the

most critical and can take time. Generally timeframes under this part of the process can run from some months to years depending on the defects involved, the strategies of the builders/developers/insurers and the internal processes of the decision maker.

It is strongly recommended that any of this work is undertaken by solicitors and barristers as the area is complex.

Step 6 - Determination of claim (insurance matters only) The insurer must provide a determination on your claim. There are time limits on the process of claims but these are rarely adhered to by the insurer. An owners corporation can appeal against the non-action by the insurer but legal advice should be taken before any such action is taken.

Step 7 - Appeal against determination (optional in insurance matters only) If you are not satisfied with the insurer’s determination you can appeal to the Consumer, Trader and Tenancy Tribunal or other court dependent on the monetary amount. There are strict time limitations for appealing which must be complied with, otherwise you may be prevented from lodging an appeal.

A TYPICAL TIMELINE FOR INSURANCE CLAIM A typical timeline is as follows:

Item

Time frame

Preparing documents for claim

3-6 months

Lodging claim

4-6 weeks

Insurer dealing with initial lodgement

2 weeks

Insurer appointing an assessor to discuss with owners corporation

2-4 weeks

Inspection of site (insurer and owners corporation expert)

2-4 months (complete with discussions, reports, agreement on issues etc)

Final assessment by insurer

4-6 weeks

Agreement on scope of works

2-4 months

Tender period

2 months (depending on scope of works)

Engaging contractors

1 month

Commencement of works

1-2 months

Note: Under the Home Building Act an insurer has 45 days to make a determination on a claim. In reality the process is rarely completed in this time frame. An owners corporation does have rights if a claim is not determined in this time and advice should be taken during the process.

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The people people.

Four With More

By Barry Hyland Discerning apartment buyers have forced developers to lift their game, and virtually every new residential development today is infinitely higher in function, form and style than those of yesteryear.

Stratalive talked exclusively to leading Australian real estate agency CBRE about four of Sydney’s newest and most interesting projects:  Air at St Leonards  Union Balmain  Capitol at Bondi Junction  DNA at Camperdown

FOUR WITH MORE

The High Life T

here is excitement in the air at St Leonards, generated by a striking apartment tower offering panoramic views and resort-like facilities.

Air is located in Atchison Street, just a one-minute walk from St Leonards railway Station.

This modern 25-storey tower offers a fashionable pad for the young and upwardly mobile who like to live close to the action but who equally know how to relax. Living at Air will be a balance between the activity of St Leonards-Crows Nest and the peace and pampering options available at the podiumlevel spa, swimming pool, sauna, gymnasium and sun terrace.

Air will have a mix of one, two and three-bedroom apartments, starting from $490,000. The open-plan kitchens feature stone benches, mirrored surfaces, warm timber floors and are filled with quality European appliances. The bathrooms are all about personal indulgence, with zen-like designer spaces and luxurious fixtures.

Glazing is used extensively to maximise solar penetration into each apartment. Living areas and seamless wintergardens offer privacy whilst still making the most of the panoramic views, which include Sydney Harbour and the CBD. The cosmopolitan lifestyle of St Leonards and neighbouring Crows Nest is certain to be a drawcard. Crows Nest is known as ‘the Paddington of the north’ with its melting pot of restaurants, cafes, hotels and bars, giving it a vibrant village vibe.

“Residents of Air need never use their car to get to work, do the shopping or meet friends for a drink, reducing the stress of urban life,” said Tim Rees, a director of CBRE Residential Projects.

“Apartments on the lower north shore are extremely popular, particularly those close to a railway station.

Fortunately the apartments at Air are priced to attract people with an eye for value, including those just entering the property market who are eligible for the first home owners grant.”

Air is being developed and built by the well-respected Holdmark and should be a sound investment as its location appeals to corporate tenants, young professionals as well as students attending a range of nearby TAFE colleges.

“The area is home to major employers such as the Royal North Shore Hospital, the Northside Medical Centre, the ABC and the Gore Hill Corporate Park,” said Mr Rees.

“Professional people will also appreciate that Air is just minutes by train to the business hubs of North Sydney, Chatswood and the CBD.”

Air, 6-16 Atchison Street, St Leonards Ph: 1800 806 088 www.airstleonards.com.au 28 StrataLive Spring 2013

FOUR WITH MORE

Green with Envy

I

t’s never easy gaining approval to build a large-scale apartment development, regardless of the location. That challenge is magnified in long-established suburbs with divergent architectural styles created over many generations, and parochial residents naturally protective of their neighbourhood.

Balmain is one of Sydney’s most historic areas so knowing that the 202 apartments at Union in Terry Street are under construction tells you two important facts: The architecture must blend into Balmain’s heritage streetscape, and

the built form must meet stringent environmental standards.

Anka Property Group brought together the formidable team of Turner Architects, SJB Interiors and Aspect Landscaping to ensure a 5-Star sustainability rating for Union, both inside and out.

With landscaping being fundamental to residents’ health and psychological wellbeing, Union places great emphasis on green sanctuaries, permaculture initiatives and passive energy saving innovations.

Its sprawling rooftop park will become a tranquil environment for both relaxation and socialising. It will have distinct grassed zones, traditional lawn areas, shade trees, barbecues, meandering pathways and strategically-positioned seating. Asian-inspired giant bamboo will add a ‘green screen’ to enhance privacy and provide added relief from the sun.

Anka also plans to establish community gardens on the rooftop for

those ‘green thumb’ residents who hanker to cultivate their own vegetables, herbs and flowers.

On ground level an open park will act as an urban oasis, complemented by sculptural stone gardens.

The scale, diversity and quality of the landscaping at Union goes far beyond ‘green dressing’ because it doubles as a stormwater biofilter and a heat sink.

Sustainability continues inside each apartment with highly efficient appliances, enhanced insulation, passive and solarboosted energy, smart meters, natural ventilation, and reduced lighting loads.

“Full praise must go to the developer for the lengths to which it went creating this environmentally-sensitive building,” said Ben Stewart of CBRE Residential Projects. “Not only does the architecture of Union add to the appeal of Balmain but the ‘urban ecology’ initiatives will help ensure a sustainable community for future generations.”

Union Balmain, 120 Terry Street, Rozelle Ph: 1800 331 321 www.unionbalmain.com.au StrataLive Spring 2013

29

FOUR WITH MORE

The Buzz of Bondi B

ondi Junction is one of Sydney’s busiest and most exciting centres – a business, shopping, entertainment and transport hub serviced by many of the eastern suburbs’ finest amenities. With almost everything to make life a pleasure, Bondi Junction has also become a great place to live.

Capitol is the latest residential development to take advantage of this convenience, offering 93 cool and contemporary apartments.

When Capitol reaches its full height of 20 levels the tower will prove a stunning addition to the Bondi Junction skyline. The design by Dickson Rothschild has strongly defined curves and vast expanses of glass which rise above a linear sandstone base with a timber-slated awning shading the pedestrian area.

“Young professionals like living close to the action, and Bondi Junction has a buzzing vibe to it unmatched by many other centres,” said Tim Rees of CBRE Residential Projects.

“Capitol will be in high demand because it offers a wide range of apartments with internal finishes and views unmatched in this location.”

Floor-to-ceiling glass windows and spacious balconies maximise natural light into each apartment and allow residents to capture the expansive views of Sydney Harbour, the bridge and the northern district skyline, particularly from upper levels.

The exceptional interiors by awardwinning BKH showcase the best features of urban living. The gourmet kitchens have Miele appliances, Astra Walker tapware and CaesarStone benchtops,

Capitol, 253 Oxford Street, Bondi Junction Ph 1800 663 395 www.capitolbondi.com.au 30 StrataLive Spring 2013

with penthouse kitchens upgraded to sophisticated Carrara marble.

Engineered timber floorboards in Oak Chalet Grey add warmth and elegance throughout the apartments, while custom-made broadloom carpet graces the bedrooms.

Capitol could hardly be more convenient for transport, shopping, restaurants and entertainment. With Westfield at your doorstep and just a three minute walk to the train and bus station and a 10-minute bus trip to bustling Bondi Beach, Capitol is destined to become Bondi Junction’s latest prestigious address. It’s also handy to Centennial and Cooper parks, playing fields, schools and the eclectic village of Paddington.

“The apartments at Capitol will appeal to those who love the eastern suburbs lifestyle,” said Mr Rees.

FOUR WITH MORE

The Inner Best

T

he first stage of DNA at Camperdown is taking shape and should be completed by mid-2014.

DNA has been designed

by Marchese Partners and is being privately developed by Mark Mezrani, who developed The Biscuit Factory on an adjoining site.

DNA’s four buildings range in height from four to seven storeys and encircle two landscaped ‘chill-out’ gardens.

From level three, views east to the CBD skyline kick in.

“We have broken down the development’s scale by creating a series of intimate-size buildings where neighbours can get to know one another and generate a sense of community,” said architect Eugene Marchese.

“Because affordability is the number one issue with Sydney property, apartment sizes have been reducing, but we think the layouts at DNA are the most efficient we have ever designed.

They are clean and uncluttered with lots of glazing to allow natural light in, clever storage ideas, and balconies that exceed prevailing standards for the area.”

Remaining in stage one are:  Studios (from 39 to 44sqm. internally plus 6-25sqm balconies) from $450,000  One-bedrooms (from 54 to 56sqm. plus 8-25sqm balconies) from $565,000  Two-bedrooms (from 82 to 88sqm. plus 12-64sqm balconies) from $710,000  Three-bedrooms (from 103 to 135sqm plus 14-58sqm balconies) from $1,025,000 Camperdown is for the young, the young-at-heart and the upwardly mobile.

This is largely due to the ‘melting pot’ of students, academics and professionals who, by day, attend or work at Sydney University, the University of Technology, Sydney TAFE, private colleges and Royal Prince Alfred Hospital, and by night frequent the arthouse cinemas, bars, hotels, cabarets, restaurants and galleries.

Murray Wood, a director of CBRE Residential Projects, says Camperdown offers a cosmopolitan lifestyle close to the CBD, parklands, educational and sporting facilities, and entertainment venues.

“The central location of DNA makes it an ideal base for professional people who seek to live close to transport routes and their workplace,” said Mr Wood.

“Since construction started there has been a noticeable pick-up in enquiry because purchasers want certainty about completion.”

DNA, 5-11 Pyrmont Bridge Road, Camperdown Phone 1800 662 590 www.dnacamperdown.com.au StrataLive Spring 2013

31

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Strata 101 1. Before buying into a Strata Scheme 2. How do I get information I need 3. Information for people in the initial period

LESSON 1

Before buying into a strata scheme F

ind out as much information as possible about the management of the scheme itself, for example: Is there a strata manager? Is the building properly insured? Are there enough funds to cover long term repairs and maintenance? Is there outstanding building work, or is any planned which could mean additional special levies?

• Organise to get a Section 109 Certificate which provides a good deal of information and organise a detailed strata search through a specialist company or your solicitor/ conveyancer.

• Find out which parts of the unit will be included in the ‘lot’ and where the common property boundaries are.

The registered strata plan defines the boundaries between common property and lots in a strata scheme.

Common property boundaries are usually shown on strata plans by thick black lines. Pay close attention to items such as balcony walls, railings, sliding doors and garage doors, as strata plans may differ on whether these items are part of the common property or not.

For enquiries about interpretations of a strata plan contact the Land and Property Management Authority on 1300 052 637 or email them at planinfo@lpma.nsw.gov.au • Don’t forget ongoing costs such as levy contributions to the administration and sinking funds.

How much are they? Can you afford them? Remember the levy amounts

34 StrataLive Spring 2013

can change, and that you may be asked to pay extra levies in some circumstances.

• Find out if any alterations have been done to the unit. Were these approved by the owners corporation?

• Think carefully about the impact of strata living on your lifestyle. Have you seen the by-laws (rules)? Can you keep a pet? Can you hang washing outside or will you have to buy a clothes dryer? Will it be difficult for you if there are restrictions on visitor parking or where your children can play? Also, be aware that bylaws can be changed by the owners corporation.

• Besides looking at the unit, also have a look at the whole building. Some buildings have high quality and expensive finishes such as polished

granite or marble foyers. These must be maintained along with the swimming pools, lifts and gardens and the costs will impact on your levies. Alternatively, the building may be run down and in need of repair.

Find out if there is building work planned and if it will be an extra cost to owners.

• Check if there are any restrictions on the use of the common property which could affect you, for example if you want to change the flooring, install air conditioning, or prune the trees which shade your balcony. You will probably need the permission of the owners corporation.

Information supplied by the Office of Fair Trading – www.fairtrading.nsw.gov.au

LESSON 2

How do I get the information I need?

B

efore you buy into a strata scheme you should get a Section 109 Certificate from the owners corporation. So what is a Section 109 Certificate? A section 109 Certificate gives information about the strata scheme including the following: • The names and addresses of the executive committee members, the managing agent and caretaker (if there is one) • The levies to be paid by the owners • Any outstanding levies • The address where the records and financial statements can be viewed • Any special by-laws made by the owners corporation in the past two years.

If a levy is outstanding before the Certificate is given and it is not shown on the Certificate, the purchaser is not responsible for the payment. However, if any money becomes outstanding after the Certificate is given, the new owner and the old owner are both liable for payment.

If the information is not supplied within 14 days after you asked for it, the owners corporation could be fined up to $220.

How to get a Section 109 Certificate If you are an owner, or you have an owner’s or mortgagee’s or covenant chargee’s permission, you may write to the owners corporation and ask for a Section 109 Certificate. The Treasurer must give the Certificate under owners corporation seal. The Certificate must be in the set form. There is a fee.

How to inspect the records of the owners corporation It is important that you inspect the books and records of the owners corporation before buying. Sometimes your solicitor will arrange to have this done for you, but not always. There are companies which specialise in inspecting the books and can organise a ‘strata search’ service.

If you are an owner, or you have an owner’s or a motgagee’s or covenant chargee’s permission, you may ask the secretary of the owners corporation or the managing agent to let you inspect the books and records of the owners corporation. The request must be in writing and accompanied by the required fee.

The owners corporation must let you look at all the records and should make arrangements with you to do this.

When you are looking at the records you may make copies (for example, a copy of the strata roll). Unless you have the owners corporation written permission you must not take any of the records away. There is a set fee to look at the records.

An inspection will show the history of maintenance of the building and provide a valuable insight into any complaints lodged by other owners. It may also show plans for future spending.

Information supplied by the Office of Fair Trading – www.fairtrading.nsw.gov.au

LESSON 3

Information for people in the initial period Unit entitlement: each lot has a comparative value that is decided when the strata plan is registered. The unit entitlement of each lot is set out in the Schedule of Unit Entitlement on the strata plan and is used to calculate each owners contributions for levies and voting entitlements.

T

he owners corporation starts when a strata plan is registered with the Land and Property Management Authority NSW. At this stage, the owners corporation will often consist of just the original owner, who is usually the builder or developer.

These are the definitions you will need:Covenant charge: a person who holds an agreement over the property which imposes certain obligations or restrictions.

Initial period: the initial period begins when the strata plan is registered and ends when one-third of the unit entitlements have been sold. This period may last only a few weeks, or may last for years. In some schemes the initial period never ends because not enough unit entitlements are sold.

Mortgagee: a person or company who lent money to a person to buy a property.

Original owner: is the owner of the scheme when the strata plan is registered and is usually the builder or developer.

36 StrataLive Spring 2013

The Initial Period Restrictions during the initial period During the initial period, the owners corporation must not: • change or cancel the by-laws or make extra by-laws that do not give a right or obligation to all owners or all lots • alter common property (except under a development contract) • incur a debt for more than is set aside in its funds to repay • borrow money or give securities • appoint a strata managing agent or caretaker to continue after the first AGM • sell any common property.

Application to the Consumer, Trader and Tenancy Tribunal to alter common property The Consumer, Trader and Tenancy Tribunal (CTTT) provides a low cost dispute resolution service for Strata Schemes.

During the initial period, the owners corporation can apply to the CTTT for an order to waive, vary or extinguish a restriction about the initial period.

If the restrictions are not obeyed, the original owner is liable for any debt or loss of the owners corporation or an owner.

Duties of the original owner During the initial period the original owner is responsible for all the duties of the owners corporation, unless an executive committee has been appointed. The owners corporation may hold general meetings and appoint an executive committee before the first AGM, which may be important if the initial period is continuing for a long time. Owners will still have to pay levies during this time, and are still able to request meetings and be part of the decision making process.

First Annual General Meeting The original owner must hold the first Annual General Meeting within 2 months of the end of the initial period. There can be a fine of up to $1,100 if this is not done.

Notice of the AGM must be given to each owner and each first mortgagee and covenant charge shown on the strata roll. This must be done at least 14 days before the meeting.

Distribution of book and documents At the first AGM, the original owner must give the owners corporation: • all plans, occupation certificates, specifications, diagrams, maintenance and service manuals, depreciation schedules and other documents and policies relating to the strata scheme • all development consents, comply development certificates and related endorsed plans, ‘as built’ drawings, compliance certificates (within the meaning of the Environmental Planning and Assessment Act 1979), fire safety certificates and warranties

obtained or received by the owner or lessor and relating to the scheme or any building, plant or equipment in it • any other document or item relating to the scheme or any building, plant or equipment as prescribed (for example, sewer diagrams) • the certificate of title for the common property, the strata roll and any notices or other records about the strata scheme, but only if the original owner has control of them • the accounting records and the latest financial statement A penalty of up to $11,000 can apply to a breach.

Voting rights of the original owner At the AGM, if you are the original owner and still own half or more of the total entitlement, and a vote by poll or special resolution is called, the value of your vote is reduced to one-third of your unit entitlement, ignoring any fraction.

If the motion is to elect the executive committee and you are the original owner and own half or more of the lots, your vote is reduced to one vote for each three lots you own, ignoring any fraction.

If a poll vote is called on the election of the executive committee, the value of the original owner’s vote is reduced to onethird of the total unit entitlement, ignoring any fraction.

First AGM agenda A long as the set agenda is used, the first AGM is valid even if it is called or held after the fixed time. The set agenda includes the following:

• insurance cover • the election of executive committee members • by-laws • appointment of strata managing agent • accounting records • restricted matters and levies • preparation of 10-year sinking fund plan • whether a caretaker is to be appointed.

If the first AGM is held but an executive committee is not appointed, an owner, mortgagee or covenant charge can make an application to the Adjudicator for an order to appoint a person to hold a general meeting to appoint the executive committee.

An adjudicator can make decisions or disputes or complaints which have not been resolved by mediation.

If an executive committee has been elected at the first AGM but no office bearers have been appointed, an application to the Adjudicator for an order to appoint a person to call an executive committee meeting to elect those officers.

Failure to hold the first AGM If the original owner does not hold the first AGM, an Adjudicator may appoint a person to hold the meeting. The owners corporation, an owner, or a mortgagee of a lot, may make an application to the Adjudicator for this order.

Information supplied by the Office of Fair Trading – www.fairtrading.nsw.gov.au

INSURANCE COMMISSIONS

Insurance commissions: The myths and facts It’s pretty much all Black and White

A

big topic at the moment around the corridors of the strata industry is insurance commissions and how they affect you – the lot owner. We have asked the biggest underwriting insurance agency CHU Underwriting to explain it to you.

Introduction The NSW Government is considering imposing a prohibition on Strata Managers (and only Strata Managers) from receiving commission for insurancerelated activities for strata schemes.

Such a move will remove choice, and

38 StrataLive Spring 2013

cost Owners more. In this article, we would like to debunk a few myths that are circulating the industry and have been put forward in support of such a ban.

Background Why do insurance companies pay insurance intermediaries such as insurance brokers or agents (e.g. strata managers) a commission?

Insurance companies traditionally employed large teams of sales and distribution staff to go out and sell their insurance offering. Over time, Insurers recognised that Insurance Brokers

and Agents were in a better position to distribute their product. Brokers and Agents had better relationships with their clients, understood the risks well, and having them sell the insurer’s offerings and paying them a commission was far cheaper than employing teams of staff. Most administrative functions could be taken care of as well. So this form of distribution still dominates most product lines apart from basic household insurances where the internet (direct sales) is increasing in popularity for domestic purchases.

INSURANCE COMMISSIONS

What does a commission payment cover?

All advocacy and administrative time in quoting, transacting and servicing an insurance contract for a scheme. For most schemes, the commission also covers time spent on claims which - if otherwise set as a Schedule B feebased arrangement - can be very costly due to the many hours of work performed in managing unexpected claims. The Agent or Broker only gets paid if the contract completes, so there can be a lot of time given to quoting and preparing an insurance contract for a scheme for no reward. For most small to medium sized schemes, receiving the insurance services of an Agent or Broker is extremely attractive, because there is no separate cost imposed, with the insurer only paying the commission to the successful Agent or Broker. There is no additional cost to budget for.

What else should I know about what this commission payment can cover?

• Training - Under financial services laws, in order to provide financial

services (providing advice and arranging or otherwise dealing in insurances) Strata Managers need to be trained and then appointed as a representative (distributor or authorised representative) by an Australian Financial Services (AFS) Licensee. The Owners Corporation is the beneficiary of the knowledge gained through this process.

• Supervision - Once appointed, and depending on the level of authorisation, Strata Managers are then subject to ongoing training, monitoring and supervision (including audits). This provides a direct benefit to Owners Corporations because the AFS Licensee cannot abrogate responsibility through this mechanism.

• Insurance - AFS Licensees must provide professional indemnity (PI) insurance protection for the activities of Strata Managers they have appointed as representatives where they are acting within the authority provided by the Licensee. This provides a direct consumer protection benefit to Owners Corporations

through having the AFS Licensee business and assets standing behind the Strata Manager in the event of any acts, errors or omissions.

• Advocacy – Strata Managers have a fiduciary responsibility to owners, so they need to give general advice to effectively meet owners’ expectations. They can only do this if they are trained and properly appointed in accordance with legal requirements. Importantly, in times of adversity, they need to collaborate with many insurance representatives.

• Data & Transactions – Strata Managers need to collect, hold and present the data of a building to insurance markets, whether via a Broker, or direct to Insurers or specialist Underwriting Agencies.

These activities include: – Maintaining risk data and claims histories to negotiate best options; – Maintaining a schedule of business activities for commercial premises; – Organising/updating insurance valuations;

StrataLive Spring 2013

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INSURANCE COMMISSIONS

– Completion and lodgement of documentation; – Collection and payment of premiums; – Receipt of certificates; – Assistance with obtaining certificates of currency; – Coordination of repairs and administrative activities in the event of a claim.

• Repairs - Strata Managers will perform work when damaged common property needs repair.

The cause of damage is not always obvious, and any issues around causation – i.e. accidental damage (covered by insurance) or maintenance-related (a scheme cost) are generally sorted out after all the work has been completed. The Strata Manager is in the best position to quickly act on such matters, which is efficient and cost effective for owners.

Myth or fact; the core contentions: Myth #1 – Government intervention is required on Commissions Fact: There is a complete lack of evidence of any systemic problems.

Insurance intermediaries are regulated federally by Australian Securities and Investments Comission (ASIC). We could not establish any reported ‘commission’ disputes with the Financial Ombudsman Services (FOS), nor could we establish any such disputes or concerns raised with ASIC. In January 2013 the Australian Consumer and Competition commission (ACCC) wrote to SCA Victoria advising that a complaint had been received alleging that the insurance commission provisions, together with those relating to fixed annual fee increases, in their standard management contract may breach Consumer Law provisions on anti-competitive conduct. SCA Victoria provided a detailed response and on 10 May 2013 the ACCC advised it would take no further action. (a) Regulatory intervention ought to be saved for cases of market failure or clear systemic failures that impact consumers, competition, or market efficiency. New regulations should 40 StrataLive Spring 2013

only be introduced where there is a clear and demonstrated net consumer benefit. There is no case made out here, just examples of poor service experiences which ought to result in the services of those professionals being reviewed. (b) Insurance (financial services) is regulated by the Act. The issue of commissions within the strata industry was reviewed in the last 18 months, and within the general insurance industry broadly over the last four years (as part of the Federal Government FOFA review). No changes were made1. (c) If there did exist a case to prevent a professional and regulated Insurance Agent such as a Strata Manager from being remunerated for insurance-related services (that is, financial services), then the proper jurisdiction rests with the ASIC in their administration of the Act. (d) The proposed regulation is akin to restraint of trade for one profession, to the benefit of others, and will most likely reduce competition in the strata insurance market.

Myth #2 – This prohibition will NOT come at additional cost to Owners.

Fact: Incorrect. The prohibition will increase costs to Owners on average by 16.7%2. Premiums will fundamentally remain the same as Insurers continue to pay Brokers and other insurance intermediaries’ commissions.

As Strata Managers replace commission income with fees, Owners will inevitably pay more, or reduce professional management services – either way, such unintended outcomes are far from ideal. (a) There is an underlying assumption that Strata Insurance premiums will reduce as commission income to Strata Managers (paid by insurers) is replaced by fee income (paid by owners). Whilst Brokers and other insurance intermediaries continue to be remunerated by Insurers for their insurance related work, premiums are unlikely to reduce. (b) Competition ensures that Owners Corporations are the beneficiary of

all forms of remuneration, including commissions, through lower base management fees. Benchmarking studies3 support the fact that in the absence of these commissions, management fees would need to increase commensurately. (c) Higher costs will present affordability issues, and cut back in services. The flow on effects will result in Strata Management companies cutting back staff numbers, or risk moving into trading difficulties. (d) If an individual Owners Corporation wants to remove commission based revenue from their arrangements with their Strata Manager, they can do so in accordance with their management contract. Fee and/ or commission arrangements are a choice available today.

Myth #3 – Commissions are ‘Conflicted Remuneration’ Fact: Yes, conflicted revenue now has a statutory definition, which extends to include some types of commission arrangements. However, commissions on general insurance products – including strata insurance – are explicitly excluded by the same statutory provisions. That is, commissions paid to Strata Managers are by definition NOT conflicted remuneration. (a) The activities of Strata Managers (as Insurance Agents) and Brokers are governed federally by financial services laws that are now embedded within the Corporations Act 2001 (Cth) (the Act). (b) The issue of conflicted remuneration and commissions was most recently dealt with by the Federal Government as a part of the FOFA4 reforms following losses sustained by investors as a part of the GFC. (c) Effective from 1st July 2013, Section 963A of the Act defines “Conflicted Remuneration”, and Section 963B makes it clear that commissions paid in connection with general insurance products fall outside that definition. (d) If there is a case for further regulatory intervention, then it

INSURANCE COMMISSIONS

should be addressed within the federal financial services framework under the jurisdiction of the Australian Securities & Investments Commission (ASIC).

Myth #4 – Strata Managers receiving insurance commissions is a conflict of interest.

Fact: Yes, they are in a position of conflict of interest, but so are other insurance intermediaries (including Brokers). There is no evidence to suggest that insurance intermediaries are not managing such conflicts appropriately. Rules governing management of conflicts of interest are set out in the Act5 and associated Regulatory Guides issued by ASIC as the financial services regulator. (a) There is nothing illegal or improper with being in a position of conflict of interest. It is common for professionals and those holding office (such as Owners sitting on Executive Committees). It is how that conflict is actually managed (disclosed or otherwise dealt with) that is important. (b) Other insurance intermediaries within the strata sector are fiduciaries to the Owners Corporation (such as Insurance Brokers) and are also remunerated via commission. These intermediaries are inherently in the same position of conflict all the time. (c) It is the professional action the Strata Manager and Brokers take to discharge their fiduciary duties towards the Owners Corporation that is important in assessing compliance.

Myth #5 – Commissions are a disincentive for Strata Managers to obtain lower premiums.

Fact: There is no evidence to support this contention. An insurance policy is a contract, and as such is subject to offer and acceptance every 12 months.

Strata Insurance is readily and frequently transferred for small differences in cost.

Any difference in commission income is usually not material to the strata manager whose main source of income are fees from the Owners Corporation.

In purely commercial terms, any loss of commission income by reducing the costs of premiums to a client will usually be more than offset by the improved prospect of retaining that client at contract renewal. (a) Across Australia, the cost of insurance is primarily driven by claims costs and insurance-related taxes, which collectively can make up over 60-65% of the total cost.

Commissions are paid on base premiums, and represent <10% of the total insurance cost. (b) Importantly, if commissions are only prohibited for Strata Managers, and other insurance intermediaries continue to be remunerated by commissions, the “disincentive” concern is not resolved. It is merely transferred from one group of professionals to another. (c) The value of a Strata Manager’s business is inherently linked to the number of schemes it manages, so there is a disincentive (in being flippant) to gain a few more dollars in insurance commissions at the risk of losing thousands of dollars’ worth of Management rights.

Myth #6 – Commissions are not transparent Fact: Not true: the financial services sector in Australia has a world class disclosure regime6, and the Property, Stock and Business Agents Act 2002 (NSW) (PSBAA) adds strength to this for the NSW strata sector. (a) The standard SCA Strata Management agency agreement in NSW provides consumers disclosure and choice. It has on the front page the option for any Owners Corporation to prohibit their Strata Manager from the receipt of commissions. A simple tick of a box is all that is required to opt in or to opt out, and if so, what fees will then be struck. (b) This myth ignores the fact that many schemes choose the Fee/ Commission arrangement with Strata Managers because it is a fixed cost, and very efficient for

small to medium sized schemes.

Why remove choice? (c) A full fee-for-service model generally works better for larger schemes, and most large schemes have already chosen such arrangements without regulatory intervention. (d) This myth also ignores the fact that Executive Committee members who agree and bind the Owners Corporation to a fee and commission arrangement with their Strata Manager, are often not the same Executive Committee members who question the arrangement at a later stage. If the problem is about difficulty in readily accessing this type of information, it can be addressed in a number of different ways.

Comment: Where transparency can be improved is during the quote and renewal phase of the insurance process, where remuneration is not always split out between premiums, taxes, commissions, and broker fees.

Some insurance intermediaries do not break down insurance price until the invoicing phase. Of greater concern, this insurance information is ‘dumbed down’ to indemnity limits and price only, with no consideration for or communication of scope of cover, reputation, insurer credit risk, insurer claims payment track record, and so on. As an industry, we can do better here.

Myth #7 – Strata Managers as Insurance Agents deny Owners advice Fact: Not true, as most Strata Managers are trained to give general advice as a minimum, and/or use Brokers (as required) to give advice as a part of their service offering. If there is a lack of advice for Owners, a prohibition on commission payments to Managers will not address this concern. (a) Brokers are generally trained to give personal advice. Strata Managers can be trained and appointed

by AFS Licensees (for strata, they are generally Underwriting Agencies or Brokers) as Authorised Representatives with Personal or StrataLive Spring 2013

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INSURANCE COMMISSIONS

General Advice authority, or no advice. Under-skilled or uninformed professionals (Strata Managers or Brokers) contribute to owners’ poor experience with lack of advice or poor quality advice. (b) Unless a scheme specifically asks their Broker to give ‘full personal advice’ on their needs, they will simply be provided quotes with an advice limitation clause included (“general advice warning”).

Myth #8 – Strata Managers as Insurance Agents deny Owners choice and/or competition.

Fact: Not true. This contention is unfounded, and made on the premise that historically there have been only two AFS Licensees who would distribute their products and services via Strata Managers. Most Managers, if not all, will also have relationships with Insurance Brokers to obtain quotes from other insurance markets as needed, or upon instructions from their scheme.

Accessing multiple insurance markets is not restricted. (a) By law, it is the scheme that decides where the insurances are to be placed, not the Strata Manager or Broker. (b) Some Insurers will pay Brokers a higher level of commission (up to 23.5% plus other benefits) than the two AFS Licensees referred to above (who cap at 20%). (c) Competition is made up by the number of Insurers times the number of distribution points (Brokers and Agents). There are many Insurers with strata insurance products and services, with new Underwriting Agencies entering the market in recent years. It is a very competitive market. (d) If the 300+ Strata Managers in NSW are, through the proposed ban on commissions, forced into a position whereby they can no longer provide insurance-related services, this will reduce competition significantly, and deny owners choice. (e) Insurer (non) profitability has been the single biggest reason for 42 StrataLive Spring 2013

Insurers to either pull out of this sector, or for them not to enter it.

Strata insurance has not been a very profitable class of insurance over the last few years, as seen by consumers through premium and excess increases from insurers in recent times.

income (from any source) is reflected in lower base management fees. (c) Unless any Strata Manager or Broker demonstrates value, whether remunerated by commission or fees, their relationship with an Owners Corporation is unlikely to be enduring.

Myth #9 – Strata Managers as Insurance Agents denies advantages of large buying power and claims management that Brokers can bring.

Fact: Not true, and a somewhat uninformed contention. The premise of this myth assumes all Brokers have large buying power and can use this to leverage claims outcomes. (a) Many Strata Managers have insurance portfolios equal to or larger than some Insurance Broker’s portfolios. But size does not always equate to leverage. (b) Any Agent or Broker who has a strong and trusted relationship with their Insurers can leverage outcomes with claims advocacy. If they also have scale in their trading relationship, this can help further. (c) Given nearly two-thirds of claims are single repairs/invoices, and most repairs are completed by the Strata Manager before a claim is made, arguably Strata Managers can be more influential in claims than Brokers.

Myth #11 – Commissions within premiums can increase the amount of tax payable.

Fact: Fire and emergency services tax rates are reset periodically to match the estimated and actual costs of funding these services. If all premiums were lowered in one year, the rates of taxation would increase to cover the same costs. (a) A better outcome is for this archaic way of funding fire and emergency services to be abolished, and replaced with a general tax across all property owners. At present, only the prudent who choose to insure pay the tax, with uninsured owners receiving the benefit of the same fire and emergency services. (b) All other States (save for Tasmania) have abolished this costly system for insurance buyers, the most recent being Victoria. The NSW Government has just delayed a transition away from this method of taxation for another two years. (c) Strata laws make it compulsory for Owners Corporations to insure, there is no choice. They are providing an inordinate share (relative to those not living in strata) of funding for fire and emergency services.

Myth #10 – Commissions can inflate Strata Management income for no extra work.

Fact: This is only true if insurance premiums rise faster than the indexation rates built into a management agreement. However, it ignores the fact that Strata Managers (and Brokers) take the risk that when premiums reduce, they cannot recover lost revenue. (a) It is Insurers who set commission rates, and these can be adjusted to take into account rising premiums.

Strata Managers generally are worse off when premiums reduce (like they did for a large part of the 2000’s). (b) Competition ensures that additional

Myth #12 – Consumers understand the benefits of having their Strata Manager appointed as an Authorised Representative of a Financial Services Licensee (Agent or Broker).

Fact: There is a very low level of awareness of the financial services regime which governs insurance companies, insurance intermediaries, and their representatives. The regime is embedded into the Act, and contains a number of significant benefits for consumers. A Strata Manager as

INSURANCE COMMISSIONS

an Insurance Agent can be trained and appointed as an Authorised Representative, and their authorising AFS Licensee must then supervise, audit and provide PI protection for that Manager in the event of any act, error or omission resulting in loss or damage.

This provides the Owners Corporation a significant level of financial security. (a) Not all AFS Licensees’ will appoint the Strata Manager as an Authorised Representative, because it is a significant risk to take on, and expensive to manage. This is to the detriment of Strata Managers and Owners. (b) Lack of Owner awareness means that they do not take this into account when deciding on their insurance

advisors or their insurance provider it is rarely discussed. (c) There has been little discussion on this topic between Government and other stakeholders during the recent review of strata and community scheme laws, and this needs to be addressed.

Myth #13 – A prohibition on commissions for Strata Managers will address consumer concerns.

Fact: The main consumer concerns appear to be related to transparency, conflicts of interest, and/or poor service levels. A prohibition on commissions to Strata Managers does not solve any of these. Further, such a ban will not resolve the contract certainty issues that some Strata Management

Appendix A1 What were some of the arguments to have risk products (general insurance) excluded from FOFA reforms?

The federal FOFA review included general insurance products, or risk products, such as Strata Insurance products. Many papers were presented by industry stakeholders arguing for the federal government to exclude risk products for several reasons.

Here is a sample of some of those arguments: • General Insurance (GI) products are short term in nature and renewed annually.

• The risks for consumers was generally less for GI products than Investment products.

• Remuneration structures in GI were less complex than for Advisers in financial planning.

• ASIC inquiries have proven there have been no problems, or in other words they believe their conflict of interest policies are working.

• The Financial Ombudsman Service (FOS) has dealt with very few cases of commission-related disputes.

• Globally, no other regulator has gone as far as banning commissions on GI products. In the UK, the Financial Services Authority regime is that commission disclosure on GI products is optional.

• There are many detriments to banning

companies are looking for. There are other measures that can implemented to address such concerns. (a) Education for Owners and other stakeholders is a great challenge for the whole industry. Banning commissions will not improve understanding - other remuneration structures will replace commissions and not improve misperceptions. (b) Transparency can be improved, but prohibiting commissions on its own will not improve transparency. (c) Poor service from any professional should be met with a review, and if the experience is so bad, then Owners can consider termination.

Poor service will not be resolved through banning commissions.

1. There were several reasons behind this decision, some of these are articulated in Appendix A.

commissions on GI products, and they collectively outweigh the benefits on introducing a ban. Some of these include: – Reduced availability of personal advice – I ncreased cost to consumers – Reduced competition on insurance terms – I ncreased - under-insurance/ non-insurance • Insurance is a grudge purchase, investments are designed to increase wealth.

• There is a different thought process on whether to pay on a fee/time cost basis or not.

Additional arguments included that a commission model within GI products has some consumer benefits, including: – Intermediaries only get paid if the deal gets done.

– The commissions cover services such as claims assistance, which could be a significant additional cost for consumers if charged on a time cost basis.

– There is an overall public benefit to encourage adequate levels of cover.

– It is an extremely efficient form of distribution, and.

– Commissions align remuneration with transactional volumes.

2. Survey of 6 managers on changes to fee arrangements for 14 schemes between 8 & 25 lots (ave 15 lots). Cost increases ranged between 6% & 25% (ave 16.7%), primarily driven by the fact that insurance premiums will not automatically reduce.

3. Macquarie Bank and Strata Community Australia.

4.The Future of Financial Advice initiative (which introduced the concept of bans on ‘conflicted remuneration’, including commissions) was the government seeking to strengthen retail investor protection and improve consumer confidence in the financial planning industry. It was their response to an enquiry by the Parliamentary Joint Committee on Corporations and Financial Services in the wake of corporate collapses including Storm Financial and Opes Prime. It had nothing to do with general insurance. The government has acknowledged that insurance has significantly different features from investment products and has specifically excluded it from consideration in discussions around banning of ‘conflicted remuneration’.

5. Section 912A(1)(aa) requires only that a Licensee must have in place “adequate arrangements for managing” conflicts. What is “ad-equate” is necessarily subject to case-by-case assessment based on a number of factors including size/ nature/complexity of the business and nature of its activities. ASIC regulatory guidance (RG 181 – Licensing: Managing Conflicts of Interest) also does not require that steps be taken to “avoid” conflicts – “avoidance” is only one of several suggested methods for managing conflicts. Specifically, ASIC discusses three mechanisms for managing conflicts: “controlling”, “avoiding” and “disclosing”. A combination of any or all of these may be appropriate depending on the circumstances.

6. The requirements of the federal financial services regime mandates disclosure in relation to pricing and remuneration arrangements through compulsory disclosure documentation including Product Disclosure Statements and Financial Services Guides.

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Wade McKenzie - Managing Director - Strata Republic

OPINION - WADE MCKENZIE

Cannibalism in the strata management industry Is your building sitting in the murky waters of price-cutting.

The truism: ‘You get what you pay for’ is coming back to bite some Owners Corporations Barry Hyland reports.

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roperty owners risk losing a lot more than personalised and responsive service if they select their strata manager based solely on price; they risk the prospect of a dwindling asset and possible legal action as a result of management failings.

So says Wade McKenzie, principal of Strata Republic, one of Sydney’s well-respected independent strata management companies, who has branded the ‘cut-priced’ strategy of some operators as being against the best interest of customers, and the industry as a whole.

“Every business knows that selling services for less than cost is unsustainable.

Yet some strata management companies are doing just this: promising big, charging little, delivering even less. These operators are cannibalising what, in the main, is a very professional industry,” said Mr McKenzie.

“The result is frustration among owners over the lack of service.

More worrying it the possibility that the maintenance needs of a building are being neglected, and the legal, accounting and statutory requirements of a owners corporations are not being met. The repercussions for each owner can be disastrous.”

A recent jobs survey shows staff turnover within the strata management industry is at a record high. The prime reason is burn out – too much work is being piled on to managers by cutprice operators. The health of the employee, and the lots under his or her management, suffers.

“A strata manager is a highly specialised profession, requiring people skills and knowledge of the law, accounting, maintenance, valuation, real estate and mediation. Reputable companies know there is a limit to how many lots a strata manager can handle efficiently. Once resources become overstretched service falls, and it’s then inevitable problems will arise,” Mr McKenzie said.

“A well maintained and run property stands the best chance of appreciating in value, which is what every owner wants. They also deserve peace-ofmind that comes from having attentive and professional management.”

Imagine the consequences if an overworked strata manager forgot to renew a building’s insurance or neglected to act upon a safety issue.

It could lead to injury, with the owners corporation being deemed liable because it hadn’t done its due diligence before appointing the strata manager.

“Competition is healthy in our industry because it provides owners with choice and forces companies like us to ensure our staffing is right, our systems are at the cutting edge and our productivity is at an optimum level.

But if companies are offering unrealistic fees then something has to suffer, which will be service and protection for owners,” said Mr McKenzie.

“It’s not unlike the motor trade.

Would you risk a mechanic who cuts his price – and possibly corners – and jeopardise the efficient running and safety of your car?

Three vital questions So, how does an owners corporation judge the merits of a strata manager?

Mr McKenzie suggests asking these pertinent questions before deciding: 1. How many strata schemes will our manager be administrating? (The industry standard is a maximum of 60-70, although Mr McKenzie believes it should be closer to 30-40) “Everybody knows what happens when you are overworked,” Mr McKenzie said.

2. What support network will our manager have? “It’s important to know that there is a team of people, plus the appropriate systems and technology in place, to support the manager,” Mr McKenzie said.

3. Is the strata management company accredited? “Check that they are licensed by Strata Community Australia, and have the appropriate certifications and insurances,” Mr McKenzie said.

Strata Republic strongly recommends that an owners corporation check with the Department of Fair Trading if any disciplinary actions or issues of non-performance have been recorded against those strata managers under consideration for appointment.

“We are being approached by an increasing number of owners corporations who have become disillusioned by cut-price operators.

These owners now appreciate that price should not be the sole factor in determining the merits of a strata manager,” said Mr McKenzie.

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TECHNOLOGY - MYBOS

Who’s the boss?

New technology puts owners in charge of their building

By Barry Hyland

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t an age when most Aussie blokes are chasing footballs and females, Sam Khalef was chasing a business dream. The then 19-year old was formulating an idea for a computerbased building management system.

His entrepreneurial drive was continually thwarted by naysayers and a lack of finance, but persistence has paid off. Now, seven years later, Sam’s MYBOS system is being successfully

50 StrataLive Spring 2013

used by more than 85 properties throughout Australia, including Sydney, the ACT and Adelaide.

MYBOS is a secure, private, webbased system that effectively manages the day-to-day requirements of a building. In a nutshell: it empowers owners corporations (OC) to take control. And not only is MYBOS efficient and easy to use, it is cost effective – just $2 per month per lot.

Owners corporations (OC) can use the system even if they have a building manager employed, as is the case with the mammoth Jacksons Landing residential development at Pyrmont Point which has 22 separate strata schemes.

“OC’s like to buy the system and compel their building manager to use it because it gives owners a full record of every aspect of a building and the community,” said Sam. “Even if the

TECHNOLOGY - MYBOS

building manager leaves or the OC decides to change building management companies this information and intellectual property remains with the OC.” Sam’s work ethic is inspirational.

After leaving school he took on a junior building management job where he assisted senior managers in their dayto-day running of properties. Shortly after he enrolled in a strata management course and completed his diploma.

It wasn’t long before Sam realised how much easier building management would be if technology was introduced.

“I could see the enormous amount of paper shuffling that was happening

in building management and knew there must be a better way to streamline the process and make everything more professional and more responsive.”

Armed with his knowledge and experience, Sam began to formulate a ‘wish list’ of features that would aid building managers and Executive Committees. Then he planned out what was needed, registered the name MYBOS, designed a basic system, and hired computer programmers to turn it into code.

“I had very limited funds, no-one was prepared to back me, and many people told me to I was doomed to fail. I’m glad I didn’t listen to them.”

By 2010 Sam was ready to test whether MYBOS actually worked in a ‘live’ situation. Again Sam showed his resilience, making numerous unsuccessful cold-calls and shrugging off repeated knock-backs before a breakthrough. Yes, the building management company running Walsh Bay Apartments would agree to trial the system.

It took a full 12-months of evaluation, R&D, and feedback to hone the system into an effective on-line tool. But Sam had what he needed – a glowing endorsement of MYBOS from one of Sydney’s most prestigious residential developments.

He then changed roles from creator to salesman, working all hours to convince building managers and lot owners to allow him to demonstrate the benefits of the system.

As more people sampled MYBOS, word spread.

“All this time we were getting feedback and suggestions from users on how the system could be improved and made more dynamic,” said Sam. “Earlier this year we launched Version 2, and we are continually making upgrades.

“One of my key aims is to ensure the system remains simple to use and requires a minimum amount of training.

If people are prepared to give me 30 minutes of their time I will show them how MYBOS will benefit their strata scheme.”

Sam is happy to give obligation-free demonstrations of MYBOS to building managers and members of an Executive Committee. Ph: 1300 912 386, sam@ mybos.com.au, www.mybos.com.au.

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TECHNOLOGY – iBUTLER

At your service Apartment living has never been this easy Smart home technology has become the latest battleground for residential developers looking for an edge in an increasingly competitive property market. Longton has just added two breathtakingly clever ‘weapons’ that ensures this war is over, reports BARRY HYLAND.

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ome of Australia’s most luxurious apartment complexes have concierges. But have you ever heard of one with a butler?

Prepare yourself for a revolution.

The progressive development company Longton is introducing a butler service into its latest two projects, Avantra at Mascot and Uptown at Roseville.

But this butler is not flesh and blood.

It’s a customised app that Longton has patented to make apartment living so much easier and more convenient.

Each Longton apartment is furnished with an iPad3 that is loaded with the iButler app, along with home automation software and a residents’ only social media platform. iButler is just like a computerised concierge, combining technology with a bank of secure, intelligent, on-site lockers which can only be accessed by authorised residents and suppliers using unique passcodes.

Goods ordered on iButler – such as groceries, clothing and dry cleaning – are delivered to one of the nominated lockers, which automatically triggers an ‘alert’ on the resident’s iPad3 and mobile phone. On collection, the iButler registers that the locker is free again for use.

Service providers, such as cleaners, chiropractors and babysitters, can only gain access to an apartment by the resident creating a temporary passcode which they can change at will.

This breakthrough technology means that instead of spending time running around to shops and service providers, everything comes to the locker or apartment. No stress. No battling traffic.

No parking fees or fines.

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iButler in action at Longton’s Mascot showroom.

TECHNOLOGY – iBUTLER

Right: A delivery is made to one of the iButler lockers, which has compartments for dry cleaning, groceries, refrigerated goods, courier items etc.

Apart from the convenience, iButler ensures goods and services are cheaper because of Longton’s bulk purchasing rate. Longton’s centralised billing system will issue residents with one fully-itemised bill each month for payment in one lump sum.

Apartment living has never been this easy.

But wait, there’s more.

Longton’s two latest developments will also support a social media network called iCommunity which uses Twitter and its Chinese sister, Weibo, to create a virtual neighbourhood. Residents will exchange messages about neighbourhood events, community initiatives and classified advertisements, while the system will post daily updates on weather, news, sports, finance and cinema session times.

These messages will not only appear on a resident’s iPhone but be displayed in multi languages on an electronic noticeboard in the lobby of each Longton building.

“We understand our residents’ needs to connect and be part of the community,” said the CEO of Longton, Steven Yu. Daring to be different is all part of Longton’s corporate mantra: ‘No respect to status quo’.

“We strive to set trends, not follow them, so we create Australia’s most advanced apartment buildings,” said Mr Yu. “That’s the basis of our company slogan; we are not satisfied with what the local industry is delivering so we are setting new standards.

“The last thing we want is to offer a similar style of development to the runof-the-mill, so we search the world to

source the best technology and services.

If we can’t find what we want then we create it ourselves.”

Longton set tongues waging last year when it launched Futra at Mascot, which offered a living environment in the spirit of ‘The Jetsons’. Here the units are not simply apartments... they are iApartments, with entry gained through fingerprint recognition.

Each comes with the latest iPad and charging stations – both wall-mounted and portable – plus Z-wave wireless technology so the home automation system is always operable. This cordless system controls the majority of electronic functions, including the lighting, blinds, television, cinematic quality 3D theatre, and Bose surround sound system.

Music can be piped directly from an iPod, iPhone, iPad, and iTunes through speakers into the living room, kitchen, bathroom and master bedroom.

Residents can pre-program a favourite piece of music to begin playing when they arrive home. The equipment will turn on or off to preset instructions, and can be controlled from remote locations.

The iPad can become an electronic recipe book in the kitchen . . . and even read a bedtime story!

“Futra sold very quickly because professional people, in particular, want the resources to be as productive at home as they are at the office, and purchasers

were prepared to pay a premium for the latest technology and inclusions,” said Mr Yu. Avantra and Uptown raise the bar even further. As well as all the technological inclusions its apartments have premium fittings and finishes, such as Italian designed and manufactured tiles, wide timber floorboards, plush broadloom carpet – the same make of carpet found in the US White House – Delonghi and Miele kitchen appliances, Grohe tapware, wine cabinets and integrated joinery.

Master bathrooms are pure indulgence, with an over-sized shower, heated flooring, heated towel rails . . . the quality is exceptional.

“Our iApartments are far larger than average, have multi-dimensional aspects and extensive outdoor living spaces,” said Mr Yu. “Our clientele is astute, so we have to give them top quality appointments and finishes, which we do at excellent value.”

Avantra and Uptown purchasers will also have the option of buying furniture packages from Italy to complement each development’s light and dark interior schemes.

“We have worked closely with Poliform to craft unique furniture solutions worthy of our prestigious projects,” said Mr Yu. “If a buyer has existing furniture then we’ll offer to buy it from them and donate it to a charity.”

StrataLive Spring 2013

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KELLY PARTNERS

Making the Strata Industry Better for Consumers Kelly+Partner’s CEO, Brett Kelly speaks to two industry leaders, David Ferguson and Greg Haywood.

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trataLive and our sister site stratalive.com.au are all about you, the lot owner. Getting information to help you deal with the complexities of strata. We are building a strong relationship with the experts in the strata industry so you have the knowledge to help you make more informed decisions.

Brett Kelly, CEO and founder of Australia’s leading Strata Audit firm, Kelly + Partners, recently held the second of his four Strata in Conversation lunches at Aria Restaurant.

At this lunch Brett interviewed David Ferguson and Greg Haywood. David Ferguson is the Managing Director of Strata Plus and for the last four years the President of Strata Community Australia (NSW) (SCA). Greg Haywood is the chief executive officer of the largest strata company in Australia, BCS, and he is also a director of SCA National and SCA (NSW).

The first question Brett asked was specific to lot owners and executive committees.

“How would a consumer differentiate the different levels of strata management services being provided by the market?

Brett asked.

“And where does the SCA accreditation fit into this?” he added.

David Ferguson took the floor.

“It is interesting Brett, that in the last 20-30 years strata has grown up. We have moved from the walk up to complex strata schemes and multi-million dollar budgets. It is pretty clear that the skill sets required to manage those two different entities are entirely different. Top strata managers could hold down jobs as CEOs without question. And you know, a lot of them are paid in that sort of range.

“So, how do we as an industry react to that and make sure we can differentiate our services, the way our members approach things? It’s through an accreditation pathway.

Controlled and with the recognition bestowed on members by their peers. So I think it’s an important part of how we are going to approach the industry when employed,” David said.

“And Greg, in your business, obviously it’s an enormous company across a whole lot of size and complexity points, but also geographically. How do you guys go to market, you know, to a sector that’s so varied?” Brett asked.

“Basically a lot of our branches are very much regionalised,” Greg said.

“Obviously the main core is the Sydney region, Gold Coast, Brisbane and Melbourne. But when you start to get out into the other areas, we actually still think of ourselves as a regional player in that particular market.

Strata audit Specialists

KELLY PARTNERS

“And what we do with those regional offices is bring in the back office function. In other words we are looking for synergy.

We also put in technologies as well to actually enhance what we can do.

“So basically we have business as usual in those regional areas jus so that we can get consistency across a whole range of business. We vary from some regions as being quite small, like a mum and dad operation with say 5,000 lots and then we move up to 40,000 lots. That’s how it works,” Greg said.

“Do you think the consumer cares,” Brett asked.

“Do you think consumers are educated enough to differentiate between strata management service levels? In our industry in accounting, everyone is an accountant apparently.

Obviously in the medical field there is a clear understanding between the difference of a GP and a brain surgeon, you hope right? But in your industry and ours, you know, everyone is a strata manager. How do you better educate the consumer and is it just entirely price driven.”

Greg answered first.

“I think that the answer is they do see a strata manager as being a strata manager. I mean we have undertaken a number of customer surveys both our own customers and also customers of some of our competitors. And basically they see that strata management side as just a given and it really gets back to the other services that you can provide where you can set yourselves apart from the pack you might say.

“So it’s critical to have a look at what you are delivering as a total package and that, because as you said, the basic stuff, everyone does it. It’s a bit like you said about the accountant. So it’s a matter of what you can bring to the table? And in other words what can you do to add value for the client that they don’t already get or can’t be offered.”

And David’s response.

“The question is, is a strata manager providing compliance or are they providing advice? And that is the base levels of that level.

So I suppose part of the accreditation system is to bring levels of different people into that. But can the consumer differentiate?

Perhaps only just now. At the pointy end of the market people are realising the difference, you know, everybody’s websites tell you they are going to do the same thing.

“And there is a lot of referral business that separates companies. But, I think we can probably do a bit better to actually put some rigour around it…I guess what we are seeking to do is wrap it all into one industry,” David said.

And the rest of this interview with Brett will be featured in a book Brett will publish at the conclusion of his lunch series.

If you would like to attend any of the remaining lunches, lot owners are more than welcome. Just contact Matt Weisse at matt@kellypartners.com.au or call 9923 0800.

We provide value-added, on time services, nationally to Strata Managers.

We understand the pressures on Strata Managers.

Kelly+Partners is one of Australia’s leading accounting and business advisory practices.

We share the passion and commitment required Clients include strata managers, commercial and to successfully perform in this dynamic industry.

Our dedicated strata audit team is backed by a vast residential property managers, real estate agencies, knowledge of taxation – income, capital gains, GST. investors, developers, construction companies, Email our specialists or phone on 02 9923 0800. commercial and residential builders.

Peter DaWkinS peterd@kellypartners.com.au rex Hoeben rex @kellypartners.com.au

RenoDesign 306

kellypartners.com.au

LIGHTHOUSE HILL

Lighthouse Hill – Breakfast Point Sixty-Five Percent Boast Beautiful Views

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t was all about the views when Rose launched its latest building in Breakfast Point – Lighthouse Hill on Saturday 6 July. Since then 40 apartments have sold as buyers clamour to purchase their stake in these magnificent apartments with stunning views.

Sixty-five percent of the eye-catching apartments will have magnificent views from three different perspectives – either to

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Sydney Harbour, the city skyline and Harbour Bridge or Sydney Olympic Park and Blue Mountains.

Lighthouse Hill is nestled on top of a hill on one of the highest parts of Breakfast Point which overlooks 15 hectares of manicured gardens and open spaces. The building will comprise 100 beautiful apartments.

LIGHTHOUSE HILL

Bryan Rose, Managing Director of Rose said, “This is a very special building that is already attracting strong interest from potential buyers. Apartments with views are always very popular in Breakfast Point and are often the first to go. There are 17 apartment configurations to attract a broad mix of buyers.

Many of our buildings have attracted all ages from the 20’s to the 60’s and Lighthouse Hill is expected to do the same.”

“The impressive apartments will continue the Rose tradition of excellence and have been carefully crafted with the finest designs supported by luxurious fixtures and fittings. Breakfast Point’s world class facilities including a village centre, Country Club, Community Hall and village green are within a short walk from Lighthouse Hill.”

One hundred and fifty eight deposits have been taken at Breakfast Point this year, with seventy four recorded in The Hamptons which was the most recent release in February.

Lighthouse Hill’s luxurious apartments will enjoy air conditioning, European Miele kitchen appliances, Caesastone benchtops and splashbacks, imported Italian tiles, 100 per cent wool carpet and floor to ceiling glass sliding doors leading to the balconies.

Lighthouse Hill comprises 37 one beds, 47 two beds, 13 three beds and three penthouses. Many apartments feature studies and 11 courtyard dwellings are available.

Prices for apartments start at $495,000 for a one bedroom with an internal size of 58 sq m, two bedroom apartments start at $705,000 featuring an internal size of 82 sq m, $975,000 is the starting price for three bedrooms with an internal size of 120 sq m and penthouses start at $2.3 million with an internal space of 210 sq m.

Rose is currently preparing two more releases. The first will be four townhouses known as Lighthouse Mews and the second will be a very special release of six Harbour front houses.

Two new display apartments can now be viewed at Breakfast Point. One is a large two bedroom plus study with Harbour views from the verandah, and the other is a stunning two level, three bedroom penthouse with picturesque northerly Harbour views.

For further information visit www.breakfastpoint.com.au or phone 1800 888 325 StrataLive Spring 2013

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STRATA PLUS

Market Announcement â&#x20AC;&#x201C; Strata Plus Northside

T

he Directors of Strata Plus, David and Olivera Ferguson, are pleased to announce that Strata Plus Northside is now operational at 43 Hume Street Crows Nest.

We are proud to advise that Jodie Smithson has joined our team as our Senior Strata and Branch Manager lending her 7 years of strata experience to the extension of our business.

By having a presence on the North Shore, Strata Plus can now deliver the long sought after local service to our valued Northside clients.

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Our qualified and well trained team of 27 strive to provide honest and personal service. Our strata managers are licensed and accredited through Strata Community Australia (SCA).

We have a 12 year proven track record with a stable and secure portfolio of residential and commercial strata schemes, building management committees, and community schemes.

This can only happen with our simple aims of transparency, best practise and providing value for money to our owners.

David Ferguson, Managing Director has been in strata since 1995.

He served as President of Strata Community Australia (SCA) NSW since 2008, Director since 2006, and Director of SCA National Board since 2011.

Enquiries: David Ferguson or Jodie Smithson p: 9319 1899.

STRATA PLUS

Transparency around Insurance

I

nsurance and commissions is a topic that our Executive Committees are becoming interested in. Not surprising, given that for most it is the single largest expense in your scheme’s budget.

Strata Plus is taking this opportunity to help you understand: • the terminology; • what we do for you as your managing agent; and • steps we have taken to improve transparency around this matter.

Insurance operates in the framework of the Financial Services Regulation (FSR) legislation, which is regulated by Australian Securities Insurance Commission (ASIC).

As your Strata Manager, we can assist you in: • discussions as to whether legal insurance obligations are being met; • completion of any documentation to be used by the insurer in the assessment of the risk; • liaison between your scheme and the broker or insurer during the insurance renewal process; and • lodgment and monitoring of claims as they occur.

This is known as “dealing and arranging” to ensure that your scheme is insured and meets legislative obligations.

In turn, these functions are technically considered “general advice” within the FSR legislation.

So how have we dealt with this at Strata Plus?

Our Strata Managers are Authorised Representatives (ARs) registered with ASIC under license of companies we consider look after our clients’ best interests. Being an AR enables the strata manager to perform these expected duties.

The Strata Management Agency Agreement we have with your scheme includes the insurance management services we provide.

• Schedule A1 of the Agreement clearly reflects our obligations according to Schedule 6 Clause 6(f) of the Property Stock and Business Agents Regulations.

• Schedule A2 sets out the related duties.

• Schedule C together with item 6 on the front of the Agreement discloses whether commission or a fee is received.

The dollar amount of commission or broker fee received is provided in the documentation emailed to Executive Committee members as part of the insurance renewal process. At Strata Plus we strive for trust and transparency, which is why we have also added a commission or brokerage fee disclosure to our Annual General Meeting template. This will ensure that ALL owners are aware of the costs involved.

If you’d like to discuss this further, please call the Strata Plus Directors, David or Olivera on 9319 1899.

Strata Plus www.strataplus.com.au StrataLive Spring 2013

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making it seamless When an industry changes as fast as strata management, it can be tricky keeping up. Westpac has a team of dedicated relationship managers whoâ&#x20AC;&#x2122;ll work with you to effectively manage levy collections and bulk creditor payments. Helping you stay in control, to put more energy into growing your business.

Talk to our National Head of Strata about how we can support you: Jason Roach on 0448 455 556 Or visit westpac.com.au/industry

Š2013 Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.

Strata made easy Supported by Westpac

A Adjudicator – A third party from a consumer/tenancy tribunal who decides on strata disputes. The involvement of a tribunal is often a second or third step in the disputes process, with a preference to see disputes settled locally where possible.

Administrative Fund – A fund, for the benefit of the Owners Corporation, used to cover recurring expenses of a strata scheme. This will include anything from electricity and gardening, right through to the maintenance of common property. A portion of levies charged to owners is based on the estimates of these expenses. Separate consideration is given to amounts that are required for the Sinking Fund.

Agenda – In a strata context, the agenda is a list of motions or issues to be voted upon or discussed at a meeting.

Having a complete list of agenda items is essential prior to the meeting, as matters not on the agenda should not be voted on. It is important that all attendees are provided with this prior notice, as particular agenda items may influence the decision to attend.

Aggregate Unit Entitlement – The net sum of all individual entitlements in a strata scheme.

Alterations – Alterations are any improvements or renovations that are proposed or made to common property. Generally, the Owners Corporation must provide approval to complete such work, which can range from minor repairs through to major structural renovations.

Most by-laws, or special rules of a strata scheme will include a statement that effectively prevents owners from making changes to their property that materially changes the overall appearance of the building. This might range from the addition of balconies through to external colour schemes that change the fundamental appearance of the property.

Annual General Meeting (AGM) – An AGM is a meeting of owners and other interested parties (which are typically defined within the strata roll) that meet once a year. After the first AGM, an AGM must be held each year.

The agenda for an AGM can take a variety of shapes and forms but will generally include a: • Statement of the financial position and performance of the Owners Corporation • Motion that accepts the financial statements as provided to the Owners Corporation • Confirmation on the insurance policies that a currently held by the owners’ corporation and whether they are appropriate in terms of cost and risk coverage. An incomplete insurance policy can expose the Owners Corporation to substantial risk should an incident occur.

B Boundaries – Another source of confusion within strata managed properties is a clear understanding of where the lines between individual lots and common property are drawn.

These rules govern the space within which an individual generally has the right to manage their property as they see fit (although reference should be made to the by-laws/special rules and the definition for alterations to identify possible exclusions). A well designed and documented strata plan should highlight common property boundaries via thick black lines, and be distributed so that all property owners are aware of these arrangements. All strata plans are registered, so if still unclear, reference should be made to the registered copy of the strata plan.

Breaching of by-laws/special rules – On occasion, an Owners Corporation and/or managing agent will be asked to manage situations where a by-law has been breached. As with many instances when it comes to strata management, common sense and discussion is encouraged, however further remedies exist to issue a notice to comply on the person(s) who are breaching it. If this continues, various remedies exist across different states to pursue action as required (e.g. in NSW the Owners Corporation can apply to the Consumer Trader and Tenancy Tribunal for a financial penalty to be imposed on the individual).

Budget - An estimate that outlines the future expense and income streams that a strata scheme is expecting to see over StrataLive Spring 2013

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the coming year. A separate budget will be prepared for both the Administrative and Sinking Funds by taking into account the surplus or deficit carried over into the new financial year.

Building Manager/Caretaker – A role that is more commonly associated with larger schemes, a caretaker will typically manage the co-ordination of the maintenance for the property.

The roles of the caretaker are delegated to them via the Owners Corporation, Key responsibilities for a caretaker may include the management of: • Common property • Access to and use of common property by tradespersons • Maintenance and repair of common property It is important that the caretaker is officially appointed via a contract, as this will detail their responsibilities and avoid any potential conflicts in regards to general accountabilities. As this is fundamentally important to the running of a strata managed property, the first AGM often includes an item to decide whether there needs to be a caretaker appointed (as discussed, this will usually depend on the size and structure of the premises).

By-Laws/Special Rules – The all important (and often disputed) set of rules that all residents (both owners and tenants), in the strata scheme are expected to abide by. They can vary greatly between premises, but will generally cover topics such as safety, security, the keeping of pets, sound rules and the use of common property. The relevance of certain rules will change over time, and as such, owners are commonly invited to draft and propose rules that are voted upon in general meetings.

C Chairperson – A chairperson is a key position held within an executive committee, with the designated person working 66 StrataLive Spring 2013

closely with the treasurer and secretary. The primary role of a chairperson is to preside over all meetings that are hosted, and ensure that they run to agenda. Further, to ensure that decisions are made in line with the by-laws that are set out by the committee.

Children – Most schemes will contain a number of by- laws/ special rules that relate to children, and primarily to ensure that they remain safe when on common property. This is particularly important in the context of insurance and public liability. A well-constructed set of by-laws/ special rules will identify and manage the risks associated with unsupervised children playing in common property, as well as highlighting areas on the premises that may be considered high risk. Outside of retirement village strata schemes, they are not allowed to prevent or restrict children from living on strata premises.

Common Property – In essence, the area of land and parts of a building in the strata plans that do not form part of a lot.

Common property is jointly owned, and the Owners Corporation is responsible for the management of all areas that are defined as per the spaces set out in the strata plan. Defining what is common property is a complicated (and at times, passionately debated) topic, but essentially includes the following: • All external or boundary walls (including doors and windows) • Floors including a ramp or stairway • Boundary walls including any door, window or other structure within the wall and their working parts • Ceramic tiles originally attached to a common property surface (e.g. the floor or boundary wall).

• Pipes in the common property or servicing more than one lot • Electrical wiring in the common property or servicing more than one lot

• Floor boards originally installed Certificate of Title A document that details who has ownership rights to a property. The Owners Corporation should also hold a title deed that confirms their rights to the common property via entitlement. The certificate of title should be registered at the respective office in each state.

Common Seal – The official stamp that an Owners Corporation can use to indicate its official agreement. Strictly speaking, the stamp must show the Owners Corporation’s distinctive number, which includes the registration number of the strata plan. The stamp can be applied whenever the Owners Corporation executes a document.

Company Nominee – A person nominated by a company (in writing) to vote on its behalf at meetings.

Company Title - A slightly different style of land ownership where a person receives the entitlement to live in a residential building by acquiring shares in an incorporated company that owns the building. As with a standard purchase of property, the purchase of shares in the company gives the shareholder the contractual right to occupy and use a specific space within the building (as well as being subject to the house rules that govern things such as common property).

Covenant Chargee – A person or legal entity who holds an agreement over the property which can impose an obligation to engage in or refrain from a specified action (e.g. an agreement to build a fence).

D Delegation of Power – As it relates to body corporates, voting rights are generally allocated according to the number

of units (as opposed to the number of individuals). If an individual owns 50% of the units in a strata complex, they will be entitled to 50% of the votes. This is important in terms of understanding the hierarchy of power, which in essence can see decisions from the body corporate flow through to the executive committee, which in turn may go down to the delegated officer and/or subcommittees that are set up for a specific purpose (e.g. to provide advice on a specialized piece of legislation).

E Election of the executive committee – The executive committee is elected (or re-elected) at each AGM. The committee’s first decision will be to agree on who holds the key positions of chairperson, secretary and treasurer.

Exclusive Use – A special right granted to an owner to use a part of the common property (e.g. the use of a garden bed or car space). The right may be granted for a purpose that ultimately benefits others in the property.

Executive Committee (EC) – The Owners Corporation will elect an executive committee that makes many of the dayto-day decisions about running the scheme on its behalf. The Owners Corporation will usually reserve the right to over rule executive committee decisions.

Furthermore, they can limit what they can make decisions about, which may include the imposing of a number of obligations and/or restrictions. These rules are generally discussed and agreed to at the AGM. Executive Committee Meeting (ECM) – A meeting of the executive committee members which excludes non- committee members unless prior authorization has been given.

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Extraordinary General Meeting (EGM) – These meetings may occur during the year as required. Examples of when these will be called include to: • Change, cancel or make new by-laws/special rules • Appoint or dismiss a strata managing agent • Agree on the need for capital works and any associated funding requirements to support the activity (be it via a one off levy or through seeking finance via bank) There are a number of ways to convene an Extraordinary General Meeting, depending on the legislation for your jurisdiction.

The most common ways are: • By majority vote of the executive committee • If owners entitled to vote, and who together hold at least one quarter of the total unit entitlements, give a written notice to the secretary asking for the meeting to be held.

Floor Coverings – Increasingly, a number of strata schemes have by-laws that require floors to be treated and/or covered to prevent noise being heard in other lots. The increasing prevalence of highrise apartments is driving this. Rooms that are exempt from this are typically kitchens, laundries, lavatories and the bathrooms of a property, although it is important to review the by- laws/special rules to have a full understanding of what is required.

F

G

Financial – Strata ‘jargon’ that is often used to identify an owner who is up to date with all of their levy payments and other financial contributions.

Garbage – Whilst this would appear to fall squarely in to the category of common sense, it is the responsibility of the owner/ occupier to maintain a clean, dry and adequately covered garbage bin in their lot. Furthermore, that all garbage is securely wrapped. Depending on the cycle, garbage should generally be placed outside no earlier than 12 hours before collection.

First safety inspections – The Owners Corporation is responsible at all times for ensuring that access is given to all parts of the scheme so that necessary first safety inspections can take place as required. It is important that all property owners are also aware of their obligations as it relates to providing access to their property for these inspections.

First Annual General Meeting (FAGM) – The first meeting of owners and other interested parties (as noted on the strata roll). This meeting should generally occur as soon as is practical.

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Furniture – It is important to notify the executive committee where plans have been made to move large objects through common areas. This assists the committee in terms of them being able to support the move wherever possible. (e.g. by covering up the lifts to avoid damage). Some schemes will have by-laws/special rules in place which will specify times when residents may move in/out.

Gardens/Backyards – A question raised often in general meetings, is what the owner has the right to do in respect to their backyard. Certain activities may be classified as alterations, which attract their own set of rules should they fundamentally change the appearance of the building. The general rule is that as long as the backyard is part of the lot, the owner can do what they want as long as it doesn’t breach a by-law (e.g. damaging common property or creating excess noise).

An owner or occupier must not damage any lawn, garden, shrub, plant or flower on the common property and should not use any part of common property as their own garden unless a specific motion is passed to allow this.

Guests/Visitors – In essence, another topic that should be covered by common sense principles. An owner/ occupier should at all times ensure that invited guests are behaving in a way that will not disturb other residents and their guests.

This provision applies irrespective of whether the individual is within private premises or on common property. The behavior of guests is quite often covered within by-laws, particularly when it comes to issues such as the use of a pool and visitor car parking spaces.

H Harmony – Industry jargon that is used to describe the general level of ‘owner contentment’ that exists within a scheme.

Having an active and consultative approach to identifying and managing issues as they arrive is usually the best approach to achieving the right harmony outcomes. This is generally a topic raised during general meetings, with the result at any one time being influenced by things such as disputes between neighbours, local government councils, other owners, the executive committee and many other individuals.

Home Warranty Insurance – This type of insurance was created to protect consumers when a builder and/ or contractor (e.g. plumber, carpenter) passes away, cannot be found or becomes insolvent. In essence, the insurance is there to cover situations where the builder is unable to fulfill their obligation to the consumer. In NSW, this insurance generally covers situations where a builder is unwilling to honour such commitments and their licence is suspended for failing to

comply with a money (Compensation) order in favour of the homeowner made by a court or the consumer, trader and tenancy tribunal. Exclusions, limits and conditions apply, and it is recommended that you read your policy to understand what situations are and aren’t covered.

I Initial Period – A period of time that commences on the day that the Owners Corporation is constituted (date of registration of the plan) and ends on the day when there are proprietors of lots, other than the original proprietor, the sum of whose unit entitlements are at least 1/3 of the aggregate unit entitlement (or as determined by legislation).

Insurance - The relevance and importance of insurance is something that flows through right from the building of properties to the ongoing management of them once they become lots within a strata scheme. The Owners Corporation is responsible for making sure that all necessary insurance policies are in place and are up to date. All policies should sit with an appropriate insurer to minimize risk should a policy need to be enacted.

Different types of insurance include: • Building insurance – This type of policy covers the building if damaged or destroyed by fire, lightning, an explosion or any other cause that is stated within the policy. The purpose of the policy is to cover the reinstatement or replacement of the building to put it in the same condition as it was when new, remove debris and cover all expenses that area required to bring the place back to its original state (e.g. architects).

• Public liability insurance – This insurance ensures that there is sufficient cover for death and/or injury that results from any activity for which the Owners Corporation could be deemed responsible.

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• Workers compensation insurance – This type of insurance ensures that all individuals who are working on a property are covered for workers compensation.

• Voluntary workers insurance – This type of insurance covers the Owners Corporate against damage that it may become liable for when a person completes work as a volunteer and on behalf on the Owners Corporation.

Unpaid Levies – Unpaid levies may incur interest if not paid on time. If the unpaid levy goes beyond a set period of time (usually defined within the by-laws), the Owners Corporation has the ability to take debt recovery action. Conversely, an Owners Corporation may also consider the provision of a discount where levy payments are received before they are due.

L

Lot – A lot is defined as a dwelling within a strata scheme that comprises the living space within the boundary walls of the property space. Car spaces, garages, laundries, marinas etc can also form part of a lot or be a separate lot themselves.

Laundry Items – Specific by-laws may prevent an owner and/ or occupier from hanging washing towels, bed sheets, clothing or anything else on any part of the strata scheme (e.g. on the balcony) where it can be seen from outside the building.

Levies – In terms of a definition, levies are contributions by the owners to the Owners Corporation to cover regular expenditure, as well as to fund future capital works activities. In some states, the amount that is paid by each owner is regulated by the unit entitlement of their respective lot, with contributions being splilt between the administrative fund and the sinking fund.

As defined in this guide, the administrative fund primarily exists to fund day-to-day operation expenses, with the sinking fund in place to fund long-term future expenses. In terms of the longer term expenses, the sinking fund can be utilized to cover anything from re-painting of the common area, landscaping, elevator maintenance through to the addition of solar panels.

From a lot owners perspective, one should be aware from the outset as to what the levy will be, and more importantly, what the state of the property is and what the levy will cover.

Levies in strata schemes that have a number of shared facilities can quite often be expensive, particularly as it relates to swimming pools, saunas, tennis courts, etc.

Levy Register – A historical record of levy contributions made.

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M Minutes – A documented record of all discussions, decisions and action items arising from meetings held by the Owners Corporation and executive committee. General meeting minutes should be sent out with the notice for the next general meeting (or if possible, earlier).

Minute Book – A document repository (that is usually hardback/bound, but may be electronic), that holds the notices and minutes of all meetings held by the Owners Corporation and executive committee. The minute book is important and is commonly used as evidence in disputes where there are differences of opinion in regards to what was agreed to in meetings.

Model By-Laws – A standard set of rules that can be utilized as the actual by-laws for a strata scheme or as the template from which specific by-laws are created for the community.

Motion – A proposal that is put forward for consideration at general meetings.

N Noise – One of the most common ways that this is seen is often in conflicts about noise, and as such, strata schemes have specific by-laws in place that dictate what is and isn’t acceptable.

As with many strata by-laws, common sense should prevail, although it is also worth noting that visitors are generally expected to be made aware and abide by these same rules when visiting. Most by-laws will included remedies to issue breach notices and/or fine individuals that do not comply with the agreed upon noise rules.

Notice of meetings – Notice of both an Extraordinary General Meeting (EGM) and an Annual General Meeting (AGM) must be given to each owner of a lot in advance. Notices for a general meeting generally contain: • A motion to confirm the minutes of the last meeting • Other motions to be considered at the meeting • Motions that need a special or unanimous resolution • A copy of the minutes of the last general meeting • If it is the AGM, a motion for the election of the executive committee and the number of members that will form the group Noticeboard – Whilst perhaps a minor detail, it is important to keep in mind that a noticeboard is only required if it is stated as such in the by-laws. Where a noticeboard does not exist, all meetings and other notices will be sent to each owner directly.

P Parking - Another common source of discussion, and at times, debate amongst Owners Corporations relates to parking rules. Generally owners and residents cannot park on the common property without the explicit permission of the

Owners Corporation. Visitors are invited to park in designated visitor parking spaces where an allowance has been made for them.

Parking Lot - A lot designed primarily for storage of boats and/or motor vehicles. This type of lot is commonly also known as a utility lot.

Pest Treatments - Most states will include regulations that require residents of multiple occupancy dwellings to be notified when licensed pest controllers apply pesticides to any areas of their parking lot.

Poll - A method of voting at meetings where each owner’s vote has a value based on the lot’s entitlement.

Proxy - A person appointed (usually required in writing), by an owner or mortgagee to attend a meeting and vote on the appointer’s behalf. The proxy form should: • State the duration of the proxy. Typically for a period of time or a specific meeting • State which matters the persons acting as proxy can vote on • Detail how the person acting as the proxy should vote on a motion for the appointment or continuation in office of a strata management agent • Have no effect if the person who gave the proxy attends the meeting and votes in person Pruning Trees - If the trees are common property, it is the Owners Corporation’s responsibility. If the trees are part of the owner’s lot, then the owner needs to ensure that they manage them. Having a thorough understanding of the bylaws is usually the best way to understand what requirements apply.

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Q Quorum - The minimum number of eligible attendees at a meeting before a motion can be formally voted upon (keeping in mind that the motion needs to be included in the agenda beforehand).

R Repairs - The rules that govern repairs are relatively simple (in theory). The Owners Corporation must repair anything that relates to common property, and the owners must repair anything within their lot. In practice though, this is not always the case. As a general rule, anything that is inside the airspace of the unit is the owner’s responsibility and anything that is outside is the Owners Corporation.

Again, it is important to have a clear understanding of the bylaws for any specific rules that relate to repairs, and ownership clarifications for any particular item(s) within the premises.

In terms of managing repairs that are Owners Corporation responsibilities, the managing agent or secretary of the Owners Corporation should be notified in the first instance. For large/ expensive problems, a general meeting may be required to agree on the next steps.

Resolution - A decision reached at a meeting based on a motion that is considered at a meeting. There are three types of resolutions.

• Ordinary resolution: a decision of the meeting (made after the taking of a vote) • Special resolution: a special resolution is where no more than 25% are cast against the motion, (based on unit entitlement). This includes votes in person and also proxy votes.

• Unanimous resolution: a unanimous resolution is one where no one votes against the motion. If a nuanimous resolution 72 StrataLive Spring 2013

is required, all owners should be at the meeting or should participate in voting via a proxy. This includes owners where their levies are not paid and up to date.

S Safety Audit - An inspection carried out by a qualified professional on the current status of the health and safety standards for the scheme.

Secretary - One of the three main office holders of the executive committee, with the other two being the chairperson and the treasurer.

The key responsibilities of the secretary include: • The preparation of minutes of meetings and putting a motion to confirm the previous minutes • Issuing notice for the Owners Corporation and its executive committee • Managing the strata roll and ensuring that it is kept up to date at all times of the year • The provision of information on behalf of the Owners Corporation • Convening meetings of the Owners Corporation and its executive committee (apart from the first AGM) Sinking Fund - A sinking fund is specifically for the management of major repair and replacement work on a scheme. This can cover a wide variety of activities, including everything from the re-painting of the property through to the placement of solar panels.

The general idea of the sinking fund is that it should ensure that there will be enough money available to pay for expenses when substantial work needs to be undertaken.

SP - Commonly used industry jargon for the term Strata Plan.

Special Levy - An at times unpopular additional levy contribution that is paid by the owners to cover unplanned, unexpected or underestimated expenditures.

Special Resolution - A resolution that requires at least 75% of votes present to be in favour of the motion. As per the other votes, the concept of unit entitlement comes in to play, and the vote is based off this calculation. Failure to reach 75% of the votes in favour will see the motion being defeated.

Strata Inspections - In some states, prospective purchasers are permitted to inspect the books and records of an Owners Corporation. Alternatively they can purchase a report that provides records of the body corporate and other information that may be of relevance (particularly when a prospective purchaser wants to make an assessment of important details such as the amount of insurance cover).

Strata Managing Agent (SMA) - In most states, a suitably licensed and qualified professional entity (or individual) that is appointed by the Owners Corporation to manage the affairs of the strata scheme in accordance with all responsibilities that have been delegated to them.

Strata Plan - The actual plan registered at the respective land titles office showing the building on the land, the lots that make up the plan and all areas within the premises that are deemed to be common property.

Strata Roll - The register of the owners of every lot in a strata scheme including any utility lots.

the Owners Corporation to allow an inspection to be carried out on the records and accounts of the strata scheme.

U Unanimous Resolution - A resolution that requires 100% of the votes at a meeting to be in favour of the motion (including votes from owners who are not up to date in terms of their levy payments).

Unit Entitlement - Each lot within a property is given an entitlement. The amount of the unit entitlement will vary depending on a number of things, such as the size of the lot and what is contained within. These entitlements govern what percentage of the annual budget levies will be paid by each lot owner. These same entitlements transfer across to voting rights in most states.

Utility Lot - A lot designed for the storage or accommodation of boats, motor vehicles or other goods. It is not to be used as a residence/ for commercial use.

V Vehicles - An owner or occupier must not park or stand a vehicle on common property without the written permission of the Owners Corporation.

Voting - Each executive committee has one vote at a meeting.

A decision on any motion at an executive committee meeting is made by a majority vote.

Strata Search - A strata search is where an owner or mortgagee of a lot, or a person authorised by them, requests StrataLive Spring 2013

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HOUSING EVOLUTION

Housing Evolution Easing home owners into strata living

By Barry Hyland

A

new generation of large apartments with their own lobby and exclusive lift access has been developed to temp empty nesters and affluent baby boomers from their family homes.

‘Transition apartments’ are within boutique developments such as The Heritage at 150 Walker Street, North Sydney to ease home owners into communal living, minimising the impact of having to share facilities for the first time with neighbours, and dealing with Owners Corporation matters.

The Heritage apartments range from 148m² to 182m² internally and have three bedrooms with an optional fourth bedroom, 2.5 bathrooms and copious storage options. The oversized rooms, high ceilings and full-height glazing accentuate the feeling of spaciousness and allow residents to entertain in a style they were accustomed to when living in a house.

“Empty nesters want to escape the maintenance chores of a house, and they like the idea of moving into a lively location, but most baulk at the thought of multi-unit complexes where noise can be an issue and privacy can be compromised,” said Nick Rickard, General Manager of the Moore Development Group which created The Heritage.

“We are offering people a compromise to make their transition from a family home into strata living as seamless as possible.”

Gaining entry to the ‘transition apartments’ at The Heritage differs from conventional multi-unit developments with their hotel-style corridors. The security lift at The Heritage only stops at an authorised floor, opening directly onto a private lobby which leads to the living spaces and an integrated east-facing balcony. Floor-to-ceiling windows optimise light and views to Sydney Harbour.

“Going from being ‘Lord of the Manor’ into a strata development where other people have an equal say in the way things are run is a major issue for many people. That’s why we conceived ‘transition apartments’,” said Mr Rickard.

“There is only one common wall so noise is not a problem.

Privacy is enhanced, security is cutting-edge and each ‘transition apartment’ has practical entertainment spaces every bit as opulent as a house, as well as storage cages on one dedicated level.”

Another major attraction of The Heritage is its petfriendliness... so much so that Mr Rickard quipped: “if you don’t have a pet we’ll buy you one!”

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The Heritage ‘transition apartments’ are: Internal 148-182m² External 10m² Price (from) $1.425-M Levies (approx) $860-$1,600 per quarter They have wide frontages – from 12 to 14.4-metres – providing vantage points from the balcony, living area and the master bedroom. A clever design feature is a spacious family room/study that can easily be turned into a fourth bedroom, providing flexibility to cater for guests.

Externally The Heritage has a rich palette of materials, carefully selected for their enduring properties and low maintenance qualities. Internally, opulent touches include travertine floors, timber veneer joinery, Smeg appliances, underfloor heating in bathrooms, electronic sun-shading devices and track lighting.

The rooftop has a practical terrace with barbecue facilities and extensive views for all residents to enjoy.

Colin Griffin from CBRE Residential says ‘transition apartments’ are aimed primarily at empty nesters and affluent baby boomers making their first move from a family home into an apartment.

“Downsizers are used to having space, and the additional bedrooms allow other family members to come and go as they need. North Sydney is convenient location for friends to visit and you’re very close to the CBD,” said Mr Griffin.

The Heritage will be completed within days. For an inspection contact Colin Griffin on 8969 8500 or 0419 233 689. Further information is on www.theheritagenorthsydney.com.au

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HEARING DOGS

We know Guide Dogs are allowed… but what about Hearing Dogs?

A

by-law cannot prevent an owner keeping a hearing dog on a lot or common property.

But just what is a hearing dog? And when will an owner be allowed to keep one even if there is a by-law banning pets in the building?

Introduction Mr and Mrs Drexler live in an apartment in Pyrmont with their Jack Russell terrier named Larry. The owners corporation of the building passed a by-law prohibiting the keeping of animals in the building. Mr and Mrs Drexler said that the by-law did not apply to them because Larry is used as a hearing dog. They relied on section 49(4) of the Strata Schemes Management Act 1996 which says that a by-law cannot prohibit or restrict the keeping on a lot of a dog used as a guide or hearing dog.

The Litigation The owners corporation applied to a strata schemes adjudicator for an order that Larry be removed from the building.The owners corporation was

successful and Mr and Mrs Drexler were ordered to remove Larry from the building. Mr and Mrs Drexler successfully appealed against the adjudicator’s decision with the CTTT deciding that Larry was a hearing dog and could remain in the building. The owners corporation appealed against the CTTT’s decision to the District Court. The owners corporation argued that Larry was not a hearing dog and therefore Mr and Mrs Drexler could not keep him in their apartment because of the by-law prohibiting pets in the building.

What is a Hearing Dog? Section 49(4) of the Strata Schemes Management Act 1996 provides as follows: • A by-law cannot prevent keeping of guide dog • A by-law has no force or effect to the extent to which it purports to prohibit or restrict the keeping on a lot of a dog used as a guide or hearing dog by an owner or occupier of the lot or the use of a dog as a guide or hearing dog on a lot or common property The strata legislation does not define ‘hearing dog’. The term is defined in the Macquarie Dictionary as “a dog which is trained to aid people with a hearing disability by alerting them to such noises as the door bell or the telephone ringing, fire or burglar alarms, etc.” This definition recognises three components of a hearing dog: it is “trained”, it assists person with a hearing disability, and it provides this assistance by alerting the disabled person to household

noises such as doorbells, telephone and alarms. But the definition does not describe the type or scope of training or the manner of alerting the disabled person.

In the District Court the owners corporation tried to narrow the meaning of “hearing dog” by arguing that the term had a technical meaning and applied only to dogs which had a particular period of training (6-8 months), which provided a particular level of assistance (alerting the disabled person to smoke alarms, door knocks, door bells, etc) and utilised a particular manner of alerting the disabled person (by touching the disabled person and leading them to the source of the sound, except in the case of a smoke alarm where the hearing dog would drop to the floor). The owners corporation relied on brochures supplied by an organisation responsible for training hearing dogs known as Lions Hearing Dogs Inc. District Court Decision The District Court disagreed with the owners corporation’s interpretation of the meaning of ‘hearing dog’. The Court said there was no reason to limit the plain meaning of a hearing dog in this

HEARING DOGS

way. The Court held that the proper meaning of a hearing dog in section 49(4) is a dog trained to assist a person with a hearing disability (be it partial or complete) by alerting them to some normal household sounds, such as a telephone or a doorbell.

But, the inquiry did not stop there.

Section 49(4) requires a dog be “used” as a hearing dog to qualify for the exemption provided by the section. The District Court held that a dog is “used as a hearing dog” if a not insignificant part of its function is to alert a person with a hearing disability to normal household sounds. But the Court said that as a practical matter, it is necessary that a dog, to be used as a hearing dog, be trained so that it can provide the assistance that a hearing dog is trained to provide.

For these reasons (and others) the District Court concluded that Larry is a hearing dog meaning the by-law prohibiting pets did not apply to him as a result of which Mr and Mrs Drexler were entitled to keep Larry in their apartment for use as a hearing dog.

Conclusion The decision in Drexler provides guidance for the circumstances in which an owner or occupier of an apartment will be able to keep a guide or hearing dog where the building has a by-law prohibiting the keeping of animals, or requiring the permission of the owners corporation in order to keep pets.

If a resident wants to keep a dog in his or her apartment on the basis that the dog is a hearing dog, the dog will need to be trained to assist the resident with a hearing disability by alerting them to some normal household sounds such as a telephone or a doorbell and the dog will need to be “used as a hearing dog” meaning a not significant part of its functions will include alerting the resident to normal household sounds.

No doubt similar requirements will need to be met for any resident seeking to keep a guide dog in a “no pets” building meaning, in general, to qualify as a guide dog, the dog will need to be trained to lead or guide a vision impaired person and used in this manner by the

resident seeking to keep the dog.

Finally, the Drexler case provides a salutary lesson for an owners corporation seeking to enforce a “nopets” by-law against a resident who claims to be using a dog as a hearing or guide dog. The owners corporation engaged in an expensive and protracted battle to enforce the “no-pets” policy for the building ultimately losing and being ordered to pay Mr and Mrs Drexler’s legal costs as well as having to bear its own costs through three separate proceedings.

An owners corporation seeking to enforce a “no-pets” policy must think very carefully before taking legal action when confronted with a resident claiming to be entitled to an exemption from the policy on the grounds that he or she is using a guide or hearing dog in their apartment or on common property.

An owners corporation placed in this position should ask the resident to provide information about the dog particularly in relation to its training and the types of tasks it performs to assist the resident as a hearing or guide dog to enable an assessment to be made as to whether or not the dog is, in fact, a guide or hearing dog that is being used in that manner by the resident and is therefore able to be kept in the building.

By Adrian Mueller - JS Mueller & Co Solicitors

StrataLive Spring 2013

77

Responsive, adaptable and cost-effective access to top-quality legal expertise in Strata & Community Title Chambers Russell Lawyers is proud to be able to offer its clients the highest quality legal expertise in all facets of Strata & Community Title Law, from building defects, construction, and insurance law to dispute resolution, service contracts, by-laws and more.

Chambers Russell Lawyers is staffed by widely recognised experts in the field with experience acting for all stakeholders in the Strata & Community Title space, from individual lot owners and owners corporations through to ASX 200 companies and the New South Wales Government.

Call us to speak directly with Partners Scott Chambers and Daniel Russell today. p +61 2 9233 1201 f +61 2 9233 1365 e info@chambersrussell.com.au Office Suite 404, 350 George Street SYDNEY NSW 2000 All correspondence to GPO Box 7100 SYDNEY NSW 2001

Q&A

Q&A U

nderstanding strata is not always easy. That is why we started www. stratalive.com.au.

Strata lawyers and managers come into the stratalive forum to help lot owners who are having issues. Legal experts Daniel Russell from Chambers Russell Lawyers, James Moir from JS Mueller & Co Lawyers and Michael Pobi from Pobi Lawyers have helped out some of our lot owners. If you need help, go to www. stratalive.com.au These opinions are given on limited information so please remember to always seek independent legal advice.

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Q&A

Q

Two years ago we lodged a complaint against the builder to Office of Fair Trading (OFT) with a long list of building defects. To cut the story short the builder managed to rectify most of the defects within the stipulated date as requested by OFT. However, some of the defects resurfaced and despite numerous attempts to contact the builder, there was no response from him. Our warranty period is expiring very soon and I am wondering what is the next course of action the owners corporation can undertake? We are in dire straits currently.

A

You definitely need to engage a lawyer. It would be rare to be able to pin down the relevant time limit to within a month, so you could already be out of time.

There is a great variety of time limits and they all mean different things.

The “warranty period” is really a time limit to take proceedings for breach of statutory warranty. For most strata schemes (other than very recent ones) this time limit is 7 years from “completion”, which is almost impossible to pin down (even after section 3B was introduced into the Home Building Act 1989 to try to “clarify” it). It cannot be extended, and it applies whether or not you have been in discussions with the builder, have notified the builder of issues, or have obtained an order from the Office of Fair Trading.

The statutory warranties are effectively promises as to the manner in which the work is to be done and the result to be achieved by the works, such as that the work will be performed in a proper and workmanlike manner, and will comply with law (such as the terms of the development consent or construction certificate).

An action under the statutory warranties is for the cost to rectify breaches, not for the builder or any other party to return to attend to repairs, although if your proceedings are in the

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Consumer, Trader and Tenancy Tribunal (which has jurisdiction for claims up to $500,000) then the Tribunal can make orders for repair instead of damages.

Under the Home Building Act 1989 your action would be against the builder, but you could also have an action against the developer of the property if the relevant definitions are met.

The fact that you obtained an order from Fair Trading does not of itself assist you in the proceedings for breach of warranty. You might however be able to argue that there was a binding agreement reached, and you could therefore have a separate cause of action for failure to comply with that agreement. Although you might have a longer time limit to sue on any such agreement, the truth is it would be only in rare circumstances that you had such an action to start with, and even if you did it would be much more limited in scope, and would most likely not be good against the developer at all.

The other main source of redress under the Home Building Act 1989 is Home Warranty Insurance. There are different policy periods for different kinds of losses, and strict rules regarding how and when you can claim. Your building probably has either “last resort” insurance, or no insurance at all (if you have four or more storeys, depending on when your scheme was built, there might not have been any requirement to obtain insurance).

If you have last resort insurance, it generally only responds to a claim if the builder is dead, disappeared or insolvent. Under the Act, you must also have properly notified the insurer of losses within the relevant policy periods (unless an exception applies), and have “diligently pursued” enforcement of the warranties (which could mean suing the builder, although at present it is not defined). You will not be able to claim at all after 10 years from “completion”.

Occasionally there is a viable action against another party, such as a designer, engineer, or certifier, but the necessary circumstances are rare and

you would need to seek specific advice.

Answer: Daniel Russell – Chambers Russell Lawyers

Q

These last few days I’ve been having this headache of trying to figure out whether I can claim compensation from the owners corporation for work that I need to pay for my bathroom - or not. It’s quite complicated. We bought our place last year and rented it out and recently we moved in.

It has a bathroom with combined shower/bathtub.

Since it’s very inconvenient to have to climb into the bathtub every time we need to shower, we decided to get a builder to remove the bathtub and install a walk in shower with shower screen. It’s been all good until now, but the problem appeared when the builder removed the bathtub, we found out that there was a lot of water damage below the bathtub, sign of very poor waterproofing and workmanship from the builder when they built the place. Water creeps into the three sides of the wall surrounding the bathtub and the structure was rusted and the bottom of door frames show signs of rust. So on top of my renovation work, I need to pay extra $2,000 for waterproofing all three walls and retiling work before he can install the shower screen.

My builder thinks that this is a strata problem and I need to claim back from them for this expense. My strata manager said that according to the strata law, I need to waterproof my own bathroom. Where do I stand?

A

Firstly, if you have been doing works that affect the common property walls, floor and membrane, you should have obtained the permission of the owners corporation first. It sounds to me like the works you are doing would require a special resolution in a general meeting at least under section 65A, and would usually be the subject of an exclusive use by-law.

Q&A

You will need to consider the terms of any such approval. If there is a by-law it may pass on the obligation to maintain the affected common property to you.

Otherwise the general proposition at law is that, if you undertake works to common property, you have no claim against the owners corporation for compensation. At best you could have a right to abate a nuisance that the common property is causing, but even if you had that right, you do not have a right to claim compensation for your costs of the abatement. At worst your repairs to common property would be illegal and you could be liable to the owners corporation to reinstate and/or compensate the owners corporation.

Keep in mind too that some parts of the works might be lot property (waterproofing on non-boundary walls for example) whereas some might be lot property (floor membranes for example).

You might look to negotiate some kind of arrangement with the owners corporation where the costs are shared according to the share of the area affected that is common property or lot property. Otherwise you might be able to demand that the Owners Corporation effect repairs to its common property itself (unless a by-law has made you responsible for it) and if there is a dispute consider seeking orders from a Strata Schemes Adjudicator.

Answer: Daniel Russell â&#x20AC;&#x201C; Chambers Russell Lawyers

Q

I purchased an off plan one bedder unit as an investment and was advised by the sales agent that the estimated levies would be approx $500 per quarter two years ago. The building is now complete and I just received my first strata invoice which is $1005 per Quarter.

The building only consists 12 units over three levels and has a small lift inside the building. No other facilities at all. When I checked with the strata manager why the levy charge is so

high, I was advised that there is a BMC statement in my sales contract and the shared facilities fund BMC has occupied quite a big amount of my levy. There were two projects under the same developer, one big building consists some of commercial shops with 65 units and my building is located in another street and the address is different, so not sure why we have to share the BMC. The strata manager asked me to check with my solicitor to see if it has BMC on the sales contract, and my solicitor said no.

What do I need to do? Can I dispute the BMC charge?

A

Generally speaking the obligation to pay levies arises by force of legislation and does not depend on what was in your purchase contract.

So if your strata scheme is part of a Building Management Committee and is obligated to contribute under the Strata Management Statement that would generally be the end of the story.

You could inspect the records to make sure that contributions were properly raised, meetings were duly held, and that the terms of the Strata Management Statement are actually being followed, but keep in mind that if there is a dispute under the Strata Management Statement there may be very limited means to pursue it.

In the ordinary course your solicitor would conduct the necessary property searches prior to settlement, which would reveal the existence of a Strata Management Statement. They would then advise you about it and what options you might have under the contract or more generally at law. If this did not occur, unless there is some other explanation, your solicitor may have been negligent.

You should consider engaging another lawyer to review your conveyancing file and consider whether or not you have a claim against your solicitor.

Answer: Daniel Russell â&#x20AC;&#x201C; Chambers Russell Lawyers

Q&A

Q

We have managed to get a very average bunch of people on our executive committee and it is very clear they’re in it for themselves. They violate the bylaws on a weekly basis parking for days in visitor spaces and then have the hide to put notices on other cars and threaten them with fines!

They’ve also decided to vote to give the secretary/chairperson “reimbursement for photocopying and phone calls” - however its an obscene amount - $2,500! I’m quite sure there are no receipts to back this claim up.

Obviously getting them to raise it at a meeting will be pointless - what are my next steps? Managing agent? CTTT?

A

Section 25 of the Strata Schemes Management Act 1996 is conveniently entitled “Can members of the executive committee be paid?”. It provides: An owners corporation may pay to a person who is the chairperson, secretary, treasurer or a member of the executive committee such amount as the owners corporation determines at

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Q&A

an annual general meeting in recognition of services performed by the person for the owners corporation in the period since the last annual general meeting.

The ingredients here are (1) that it be determined at an annual general meeting; and (2) that it be in recognition of services performed since the previous annual general meeting.

There is nothing in the legislation about reimbursement of costs. It is a grey area but it is probably safe enough to assume that the owners corporation can effectively pay executive committee members reimbursements for expenses that are really those of the owners corporation which have been paid for by executive committee members. This would naturally include copying, printing, postage, and telephone expenses.

The biggest issue in that case would probably be about properly accounting for the GST and any input tax credits that the owners corporation might be entitled to.

But if the payment is not actually a reimbursement, it is outside of the grey area and amounts to a payment for services which may only be done in accordance with section 25.

Answer: Daniel Russell – Chambers Russell Lawyers

Q

I am currently an owner on a strata plan with 36 lots and two years ago there were some water seepage issues in some of the owners lots and so the executive committee (EC) decided to get the developer back to rectify the issues. The OFT was called in to inspect the buildings and we were given a list of defects that needed attention which the developer agreed to fix. However, a minority of the owners (i.e. certain members of the EC) were not happy with the developer personally and questioned his work.

They tabled a motion at the AGM after informing the owners corporation that the developer had refused to return to rectify the OFT defects list and all

other works not listed in the list to pursue a legal case. Lawyers were called in to advise and the owners corporation based on the information provided decided to pursue an independent inspection of some of the lots with issues and followed by the hiring of builders to fix said issues.

The amount that was put forth by the EC is a whooping estimate of $500,000 with which they want it financed by a special levy of $10,000 to $12,000 per lot! Owners baulked at that amount and protested and yet in the minutes it mentions that motion has been resolved and made no mention of the protests from the owners.

Now some EC members and owners have banded together to fight this levy as we’ve only recently discovered that the developer has always been available to rectify the works as per the OFT list but was told not to come in by the rogue EC members as they were not happy with his work. Seeing that we were misinformed and misguided on the issue by the EC, we see no need to pay such an extraordinary amount of money to fix the defects as the developer is around to finish the works required. The EC and strata manager’s stance is that the OC has no say in this and that we are to fork out the levy as told.

So the OC decides to obtain the strata roll so we can call on a meeting to discuss and vote upon removing the rogue members of the EC and the termination of the strata management. We were stonewalled by the Strata management in obtaining the roll being quoted we need the written permission of all the owners which we believe is false. The owners also believe that the management and possibly the rogue EC members knew something was up and the minutes for the AGM were delayed for a week before being distributed to us. In it was an Item that was not tabled for discussion nor voted upon. The item reads as follows : Item 12: RESOLVED That the Owners Corporation do not determine

any matters that are to be determined only by the Owners Corporation in a General Meeting.

To our interpretation, that line essentially removes our right to decide on anything regarding our strata plan no?

When we questioned the strata management about that item this was the excuse given: The minor typing error cannot be corrected now as the minutes have been sent – however it should not cause too much confusion.

Can’t an errata be sent out to amend that item? We’ve also noticed the EC and strata manager have a habit of including motions that were not tabled and marked as resolved in an increasingly alarming amount. Meetings were held whatever motions were tabled and on a number of occasions objections were ignored, questions were unanswered, major issues were never voted on are marked as resolved with no mention of the objections in notes or much worse erroneous notes were recorded.

In desperate need of help.

Q&A

A

The strata roll is part of the owners corporation’s records. You are entitled to inspect and take copies, however you need to use the procedure provided for in section 108 of the Strata Schemes Management Act 1996.

(If you are on the executive committee there are other provisions which could apply).

Keep in mind that the termination of the strata managing agent is a contractual issue as well as a procedural issue. You will see plenty of examples on stratalive.com.au of failed attempts to terminate managing agents due to the terms of the contract and/or failure to meet the internal procedural requirements of the owners corporation.

You will also see discussion elsewhere on stratalive.com.au about the requirements for removing executive committee members.

The Owners Corporation can determine by general meeting resolution that certain kinds of decisions may only be taken in a general meeting (that is, it can reserve powers to itself to the exclusion of the executive committee or strata managing agent). This is required agenda item for an Annual General Meeting.

Item 12 looks like the Owners Corporation has resolved not to restrict any powers to general meeting. I would not be worried by it, unless the meeting did in fact resolve to restrict some matters to a general meeting resolution.

Perhaps it could be corrected to state that the item was not put to the meeting (if that is the case) but the result would be the same.

There are no rules about how much discussion must be narrated in minutes, only that the outcome of resolutions must be recorded. Generally speaking as a result most minutes do not note any discussion, just what was resolved.

If you want to amend the minutes you can vote on it at the next general meeting (which must include an agenda

84 StrataLive Spring 2013

item to confirm the previous minutes).

To put things in perspective, I don’t think that a week could be classed as a delay in your managing agent providing minutes of a general meeting.

Generally you should keep in mind that an offer by a developer to rectify imposes no obligations on an owners corporation. It is entirely something within the owners corporation’s prerogative to accept or refuse.

Ultimately an owners corporation is a democracy. It sounds to me like a democratic decision was made, which I would not describe as “rogue” in any sense.

Of course in the same breath your proposal to seek to resolve your grievances through requisitioning a further general meeting is the appropriate democratic process to follow.

Answer: Daniel Russell – Chambers Russell Lawyers

Q

We have just held our AGM and first meeting of elected residents to the EC is tomorrow night when Chairperson/Secretary/Treasurer will be elected. The previous Chairperson has also advised that we must nominate and elect someone for the Admin position of being responsible for “Signing of Delegation letters to our Stata Manager to undertake action on behalf of EC”. I asked what this was all about and was told it was a obligation/ regulation. I have searched through the OFT site and can not find anything that relates. I have not been on the executive committee for some time and I am sure some things would have changed, but I would have thought this would be one of the Secretary’s duties ie: notifying the strata manager if something was required by the executive committee. Is there some things that require a letter with a signature? In the old days it was done via a phone call or email. If anyone can help me before I go to the meeting it would be greatly appreciated?

A

The only positions that need to be filled are Chair, Treasurer and Secretary.

Decisions by owners corporations can only be made three ways: at a general meeting, at an executive committee meeting, or under delegation by the agent. You can’t delegate to someone the right to make a decision.

I guess you can delegate the signing of letters to a particular owner, but you certainly don’t have to. Normally the Chair or Secretary signs letters.

Answer: James Moir – JS Mueller & Co Lawyers

Q

I live in a strata complex which has seven visitor carparking spaces and one common property car space which is reserved for couriers and tradespeople. Our caretaker permenantly parks his trailer in a visitor car space and also has a boat which he parks in the ‘courier space’. I have raised this issue but the executive committee (of which I am now a member) continues to support the caretaker and has decided that it has the right to grant the caretaker permission to permanently occupy these two parking spots.

I have proposed that this should be put to the owners. What are our rights here? What can I do to put an end to this?

A

The owners corporation/ executive committee can in some circumstances give people the right to park in designated visitor spots. For example, the owners corporation can grant exclusive use or lease it (special resolution), and the executive committee can arguably grant a non-exclusive licence to occupy. This is subject to it being a breach of a DA as well.

Proper procedures do need to be followed though. And there need to be actual decisions.

Q&A

Owners can’t serve section 45 notices, so you’d need to get an order that the caretaker cease parking there.

If he did, in breach of the order, you’d seek an order to fine him up to $5,500 plus legal costs.

Answer: James Moir – JS Mueller & Co Lawyers

Q

I live in a small strata building of four townhouses. All the townhouses face our next door neighbour, who has recently built a second storey on their house.

A small consequence of this is that I can now see into their kitchen window, and they can see into my lounge.

We have a line of small trees on the boundary of our terrace - that faces the neighbour, and an iron railing fence and temporary bamboo screen on my side of the fence for privacy, but I’m finding it inadequate.

So the question - I want to build a nice horizontal wooden fence inside the iron railing, to replace the bamboo screen.

- Do I need strata approval for this, as no other townhouses will be affected by it (we are all separated by high walls) and

it will be inside the boundary shared with the neighbour?

A

Assuming your proposed installation is on common property and the posts holding up the fence are installed in the ground, owners corporation approval would be required and the owners corporation may ask you to submit a by-law for your proposed works which makes you responsible for the maintenance and repair of the wooden fence and common property areas affected by your works.

Q&A

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Q&A

This is not legal advice and the strata plan would need to be checked for location of boundaries.

Answer Michael Pobi – Pobi Laywers

Q

I understand that the front door to a unit and the original lock plus any replacement of that lock is common property. There are a number of anomalies with that situation: - If the OC owns the front door then in the absence of anything to the contrary in the Act, which there isn’t, it follows that it has the right to remove it without the approval of the lot owner, for example for maintenance.

- If the OC owns the door then it is responsible for re-painting the inside of it when it gets scratched or damaged, even though such damage can only be done by the owner/occupier.

- If the OC owns the lock then it follows that it is entitled to a key to the lock.

- If the lock is an old style deadlock that requires a key to open from the inside and a resident gets burnt to death as a result, then the OC would be liable for damages.

Comment from a solicitor would be appreciated on the above.

A

I agree that the front door to a lot is normally common property usually because the door is situated within the common property perimeter of the lot.

Subject to me reviewing any by-laws registered on the strata plan and the strata plan itself, it is quite uncommon, but I have seen it sometimes, that some strata schemes have by-laws which make it an owner’s responsibility to maintain and repair the front door to their lot. If there is no such by-law, then the front door is common property.

The original lock installed on the front door at the date of registration of

the strata plan is undoubtedly common property, based on the principles in Seiwa’s case. If the lock is replaced by the owners corporation to comply with its duties of maintenance and repair under section 62 of the Strata Schemes Management Act 1996 (SSMA), the replacement lock will remain common property.

If an owner or occupier decided to replace an original fully functional and working lock because they simply want a safer lock, it could be argued by the owners corporation that the new lock is the owner/occupier’s responsibility as the new lock would be that owner/ occupier’s personal property ie. form part of the lot.

Assuming that the front door is common property, the owners corporation has the responsibility to remove/replace/repair/maintain it.

The owner/occupier is responsible for re-paintng the inside surface of the front door due to the definitions of lot and common property under section 5 of the Strata Schemes Management Act 1996. The owners corporation is responsible for repainting the outside of the front door.

I have never heard of an owners corporation or its strata managing agent having a key to the door lock of an owner or occupier’s lot. Even if they did, they would require either the owner/ occupier’s consent for access (otherwise it is trespass to land) or an Adjudicator’s order for access under section 145 of the SSMA. If the lock is an old style deadlock that requires a key to open from the inside, I can’t understand why an owner/ occupier would not have a key to it.

Please note that the above does not constitute legal advice and should not be relied upon as I would need to review the strata plan, by-laws to confirm.

Answer: Michael Pobi – Pobi Lawyers

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SYDNEY OLYMPIC PARK

That’s what friends are for...

Good sport Lindsay buys a second apartment at Sydney Olympic Park for his guests

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uccessful businessman Lindsay Carrucan is a believer in the witticism “too much sport is never enough”, so he bought a large apartment in the first residential building at Sydney Olympic Park.

Living within a short walk of the State’s major sporting events and facilities has proven so enjoyable for Lindsay that he recently purchased a second apartment in an adjoining building, which is under construction.

“I’m thinking that we’ll keep the new apartment for friends and family who love visiting here... particularly when the Easter Show is on, the V8 Supercars are racing or there’s a big match at the stadium,” said Lindsay.

“We’ve had friends staying overnight for the State Of Origin, and other friends were quick to reserve their beds when the Wallabies played the Lions.”

Lindsay and his wife Cici live in a three-bedroom apartment on the 23rd floor of Australia Towers, which was completed in 2012. Their spacious apartment has spectacular 180-degree views, from Epping over the CBD to Botany Bay. A bonus for sports-mad Lindsay is that it also overlooks the new training facility for the GWS Giants.

Their latest purchase is on the 27th level of One Australia Avenue which, at 120 metres above sea level, will be the tallest residential building in the inner-west. It is expected to be completed around mid-2015.

“We were living in an apartment at The Rocks before

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deciding to move to Sydney Olympic Park because of its location,” said Lindsay, who was a competitive distance runner and race walker in his younger days. “I love going to all sporting events and I enjoy using the jogging and bicycle tracks, the recreational amenities and the parklands around here.

“On weekends it can be really peaceful, but whenever there is a big concert or event someone in the building will hold a party where we’ll have something to eat and drink before walking to the stadium or the arena.

“It’s so convenient and a great deal of fun.”

Lindsay began his career as a teacher, but his background in athletics helped him gain the rights to introduce Nike shoes into Australia. He now controls two education-related companies, based in the Blue Mountains.

“Living at Sydney Olympic Park means I’m traveling against the traffic to and from work, and each trip takes me less than an hour,” he said.

“Frankly, I can’t image a better place to live. It’s beautiful, and often at night my wife and I stroll around the precinct which is well lit, well maintained and safe. If we want to take public transport we have regular bus and train services.”

There is still a good variety of apartments available at One Australia Avenue, which can be viewed at the display centre on the corner of Australia Avenue and Herb Elliott Avenue daily from 11am. Further information is available on 1300 882088 or through the website: www.1australiaavenue.com.au

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real estate valuers 89 StrataLive Spring 2013

LICENCED TRADIES

The Importance of Using Licensed Tradies Steve Ellis from Result Trade Services warns against DIY plumbing and electrical

By Steve Ellis

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ith the increased costs of living these days, plus all the renovation “reality” shows like The Block, there is a surge in property owners undertaking their own repair and maintenance work. This can be life-threatening in regards plumbing and electrical work.

For some trades like plastering, tiling and painting, it is reasonable to expect that people will “give it a go” themselves.

People are taking on potentially life risking work like plumbing and electrical work and it is a real concern that home renovators could be putting themselves and their houses at risk.

Plumbers and electricians are highly skilled trades that provide a crucial service for the residential, commercial and industrial sectors. All related work needs to be to the highest standard as plumbing and electrical typically affects public health and safety, specifically the potential for the contamination of drinking water supplies and electrocution.

Plumbing work can encompass a broad range of tasks including water supply, drainage, sewage, heating, cooling and gas fitting. Specific elements that are typically fitted by a plumber include water pipes, taps, sinks, baths, showers, hot water systems and elements of a property’s drainage and sewage system.

Electricians are generally responsible for lights, power and communications in your home.

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Common Plumbing and Electrical Problems: Some of the most common problems around the home are related to plumbing and electrical issues. This includes the following commonly encountered situations, which typically require the services of a licensed plumber or electrician: • Leaking taps • Leaking toilets • Faulty hot water systems • Leaking roof • Blocked drains • Bathroom renovation • Gas appliance installation • Burst water pipes • Light replacement • Appliance installation • Power point relocation • Smoke detectors • Security systems • Ceiling fans • Phone lines • Gas point installations Licensed plumbers and electricians: Only licensed contractors are authorised to carry out plumbing and electrical work and ensure that all the work under their control complies with all the relevant standards and regulations.

If you are unsure if your tradie is licensed ask to see some proof of this or contact your local State Authority.

Licensed plumbers and electricians are required to complete extensive on site experience, attend very intense training

courses at TAFE and other training organisations. All work shall comply with the Australian Standard of AS3500 and AS3000. There can be very costly mistakes made and often it cost more to fix up others problems than it would have cost in the first place to get it done by a reputable licensed tradesperson.

For more information, call Result Trade Services on 1300 780 760 or visit our website www.resulttrade.com.au

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Supporting local communities

SMALL HOME - BIG STYLE

Small Home

Big Style

By Georgia Madden

Tricks for Decorating For Families with Kids in Mind Living in a small home can be challenging at the best of times, but never more so than when you’re sharing with children.

With little or no space for outdoor play, games are invariably brought inside and the living room soon resembles a day care centre. A shortage of storage and lack of privacy can all add up to a stressful environment. But there are a number of tricks you can use to make it more bearable.

Do Style and Kids Mix? In a word – yes! Go for a simple, clutter-free scheme with a few lively accents, such as a feature wall, bright cushions or an unexpected work of art.

If your current layout feels cluttered, consider paring back your furniture and investing in a few double-duty pieces with hidden storage.

Rather than automatically seeking out kiddie furniture, interior designer Barbara Bromley of Bromley & Tate Interiors suggests adapting grown-up pieces: “Use the drawers of an armoire for toys and books, and consider creating a storage and display area for kids in the closet by adding colourful shelves. Shut the doors when it’s not in use.”

Also, check out some of the mini versions of design classics available today – uber-chic, child-sized chairs, tables and ottomans that are smart enough to leave out on display (try www.kidostore.com.au and www.top3.com.au).

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Look Underfoot Keep things off the floor as much as possible. According to Barbara, “the more you see of the floor in a small space, the larger it will feel.” This is where great storage comes in, and a tough approach towards decluttering.

Barbara suggests that you stick with one style of flooring throughout all adjoining rooms of the house for continuity. Choose rugs and carpets in slightly darker shades than the walls and with flecks of bright colour that will appeal to children.

For flexible children’s seating, Barbara believes it’s hard to go past the classic beanbag – they’re great for television watching and can easily be moved out of the way (cocooncouture.com.au makes retro versions). Also consider modular and stackable furniture (check out bebeonline.com).

Smart Storage Seek out every available storage opportunity – under beds, behind doors, on walls and even above windows. If budget allows, consider built-in storage to fit your requirements exactly. Otherwise, opt for floor-toceiling shelving, tall chests of drawers and stackable boxes.

Barbara is a big believer in multifunctional furniture– ottomans with hidden storage, and storage trunks that double as a coffee table. Other doubleduty pieces include sofas with built-in storage, bedheads with shelving and

windowseats with storage underneath.

Make it easy for the kids to pack away, with labeled toy boxes and accessible baskets and containers.

Two of Barbara’s favourite kid-friendly storage solutions are placing a low-level bookcase against the back of the sofa for books and boxed games, and string bags on their walls for craft supplies.

Stay In The Zone Screens are a wonderful way to create separate zones for adults and children within an open-plan room, and they can be drawn or removed as required.

Choose between decorative, folding screens or something more permanent such as sliding panels.

A great tip from Barbara is to hang curtain fabric from the ceiling and attach it to the floor for an inexpensive room divider. Bookshelves can also be used as room dividers, and some even come on lockable castors so they can be shifted around.

You can also indicate a change in

SMALL HOME - BIG STYLE

zones by laying different flooring, such as rugs, as well as social groupings of furniture.

Focal Points Draw attention where you want it, and away from where you don’t by creating eyecatching focal points. A great feature wall covered in bold wallpaper, or a sofa covered in bright, patterned cushions will detract attention from any children’s mess. Use smart lighting – a mix of ambient and accent lighting – to showcase your focal features to their advantage.

Other collections that make strong focal points could be a wall of black and white family portraits, a great work of art (which might just be your child’s kindy painting transposed onto a canvas), a group of eyecatching ceramics or something as simple as a sculptural twigs.

Porters Paints and Murobond now carry brightly-coloured chalk painted that you could apply over an entire wall – not

only will it keep your little one busy, but the results are sure to catch people’s eye.

Keep it light in the day. Lightweight window treatments in soft shades will make a space appear larger and brighter.

Kids’ Rooms Make your child’s room a special place they’ll want to spend time in. If space is short, consider a bunk bed for the overnines, with a spare bed underneath or even a desk and shelves. Go for well-organised storage, and make the space creatively appealing with a small

craft table, music and fun decals on the wall.

Be strict about decluttering – clothes they’ve grown out of and toys they rarely play with should be sold, given to charity or thrown away regularly.

Turn Down The Volume There’s not much you can do about a crying baby at night, but it can be stressful for the parents and a nuisance for the neighbours. Sound proof your home as much as possible with carpets, thick rugs and curtains.

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HOME OFFICE

Setting Up a Home Office Set up a practical home office in even the tiniest of spaces

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hether you have a dedicated study or just a corner of the living room, the latest products and technologies allow you to set up a practical office at home.

Technology has firmly established its place in our lives, and most of us will need some form of an office at home for a computer and printer. Whatever space you have available – whether it’s a dedicated study, a nook under the stairs or even a corner of the kitchen worktop – you’ll find furniture and technology to fit. The trick is to carefully assess your working needs and decorate in a way that marries style with function.

What do you need?

Step one is to work out what you really need from your home office. Will you be working from home every day of the week? Do you need to host client meetings here? Is there any

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special equipment that needs to be accommodated, or will your office need to double-duty as a guest room? Or perhaps you just need somewhere to catch up on your personal admin? Will you be the only one using this space, or will there be others too? Answering these questions will help you figure out exactly how much space you need, and where you can comfortably get your work done.

Where’s the best spot?

Even in the smallest of homes, there’s always a spot for some form of an office, even if it’s just a wireless laptop on the kitchen counter. If your requirements are pretty low-key – you only need a tiny spot to surf the web or do admin, for example – consider a laptop on a small table housed in the nook under the stairs, inside a cupboard-office, or on a section of the kitchen or dining table.

Take care to avoid the busiest spots in the home, though, as you’re more likely to be distracted or bumped when people are coming in and out.

If you need more space and a bit of peace and quiet to concentrate, aim to locate your office in a separate room with a closing door. If your work means that you really need to spread out, then you’ll need to choose somewhere with enough space for a generous desk.

There are other considerations too: if there are times you’ll be hosting client meetings in your office, then you might need a sofa, some comfortable chairs and a table. If lack of space means this is out of the question, take a flexible approach and host your meetings around the kitchen or dining table.

Wherever you choose, make sure there are enough power sockets for all the equipment you’ll need, such as printer, computer and fax machine.

HOME OFFICE

Never overload powerboards – if necessary call in an electrician to install extra sockets.

Efficient storage Good storage is the key to a successful home office. First, look at exactly what you need to store and allocate a space for everything. Everyone’s needs are different – some people require extensive shelving for books and reference material, while others might need an oversized mood board on the wall for cuttings and tearsheets.

Next, reconfigure cupboards and shelves to suit your needs, and add to your storage if necessary. A mixture of open and closed storage will give you the most flexibility as unsightly items, such as the printer or fax, can be hidden behind closed doors, and day-to-day paraphernalia such as paperwork can be kept out in pretty, fabric-covered trays or files. Things you use every day such as files, paperwork, pens and such should all be within easy reach, while those you use less frequently, such as printer cartridges, can be stored at the lowest and highest points of a shelving unit or cupboard.

Choosing office furniture The trend nowadays is for a home office that doesn’t look like an office. Instead of office chairs, desks and filing systems, look for stylish pieces that would look

good anywhere in your home, such as an upholstered dining chair and an antique bureau – they will give your office space personality, and link it stylewise with the rest of your home.

But keep in mind that office furniture still needs to be comfortable and practical, particularly if you’re sitting at your desk for any length of time. Chairs should be supportive (look for one that supports your back, and positions your knees slightly lower than your hips so that your spine is in a neutral position).

Your desk should be deep enough to house a computer or laptop, and wide enough to accommodate paperwork, pens and a phone. It should also be at the right height so that your computer screen is at eye level.

Home office style The style of your home office will largely be dictated by where it’s located, and how you like to work. If it’s situated in an open-plan space, stick with colours and finishes that blend in with the surrounding scheme. Or, opt for an office that’s built into a cupboard so that it can all be tucked behind closed doors when not in use.

Having a dedicated room for your home office allows you to exercise more flair. If your work is artistic, surround yourself with colours and imagery that will inspire your creativity. If you prefer to concentrate without distractions, opt for

soothing tones, low-key patterns and uncluttered walls.

Colour has a big impact on our mood and productivity, and the occasional burst on the walls or fabrics is all that you really need. For a cosy, den-like feel you could paint the wall behind the desk, or all the walls in the room, in rich comforting tones such as chocolate or plum. Or, for something more invigorating go for fresh, energising shades such as apple or silver.

Lighting It’s crucial to light your work space properly to avoid eye strain. Make the most of any natural daylight by positioning your desk near any windows or double doors. If you work at night, add a desk lamp, ideally on a movable arm so that you can project the beam right where you need it.

Cover windows with a simple blind or venetians to control the amount of light coming in on very bright days, and to reduce outside distractions.

Personalise your space One of the greatest benefits of working from home is that it’s your space, and you’re not dictated to by the style of others. Personalise your home office with artwork or a series of photographs on the wall that will lift your spirits every time you enter the room, and give clients a little hint into who you are.

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Our innovation inspires creativity.

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Manu Feildel - Chef

LIVING WITH BOOKS

Living with Books Drowning under a sea of books? Check out our creative solutions to storing books!

By Georgia Madden

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ooks can take up an awful amount of space in a small home, so it’s important to be ruthless about what you keep and creative about the way you store them.

Books can quickly take over a small home, spilling out of cupboards and even accumulating in piles on the floor. If you’re living in an apartment or townhouse, you probably don’t have the luxury of a dedicated library, so it’s important to constantly revise your collection and keep hold of only those volumes that earn their place.

Display them in interesting decorative ways that not only keep them off the floor, but provide colour and interest in a room scheme, and give your guests a little insight into your passions.

Display books in imaginative ways Most people tend to display their books by theme, such as travel, art and photography, for example. But to give your collection some visual interest, why not display books by colour or size?

A row of Penguin paperbacks, with their distinctive orange spines, will become a strong visual feature in a room. Similarly, a pair of symmetrical groupings of books on either side of a fireplace will give a sense of order to a room.

To avoid the ‘library feel’ or row upon row of horizontallystacked books, try mixing them up horizontally and vertically, with some of your favourites displayed face-forwarwd.

Aim to include some open space between your books for visual relief, and add colour with a few display items such as vases or framed photographs.

Look for unused space to store books Where is the best place to store books? In short, anywhere you can find the space! Along a hallway or corridor is ideal, but other oft-overlooked areas that won’t compromise your floor space include under the stairs, either side of a fireplace, and all the way around the window in a study.

Floating shelving, which is sold in all different lengths and finishes at Ikea, is another great way to store books without taking up precious floor space. Store your more attractive books in open shelving, and conceal less sightly behind cupboard doors.

Built-in versus freestanding storage A good bookcase is a sound investment as it will take an enormous amount of books without taking up too much

floorspace. The two main choices are built-in and freestanding, both of which have their pros and cons.

Built-in bookcases are the most space efficient as they are made to fit your room’s exact measurements, and can be designed to match the architectural style of your home. But they can be expensive and can’t be taken with you when you move.

Freestanding bookcases generally have adjustable shelves, which can be shifted up or down as your collection evolves, and they can also double as room dividers in an open space.

They are less expensive than built-ins, but are unlikely to be as space efficient.

If you opt for built-ins, measure the size and depth of your collection so that your custom-made shelves will take up the least amount of space possible in a room. Most bookshelves are around 250mm depth, which takes a single row of averagesized book. However, if you have a very large collection it might be worth extending this so that you can house two rows of books, one behind the other.

Design your bookshelves to fit the bulk of your collection, which will probably be average-sized paperbacks. A small collection of extra-large books, such as atlases and photo albums, should be housed elsewhere such as in drawers under the bed or displayed on the coffee table.

Add something different Jazz up a dull bookcase by lining the inside with graphic wallpaper or even old maps. Make sure you can see inside your bookcase with inner downlighters or spotlights from the ceiling above.

If your books are not looking their best, why not re-cover them with beautiful book paper and hand-write titles along the spines.

And don’t forget about unsightly magazine collections - store them in attractive paper- or fabric-covered magazine holders from shops such as Officeworks.

Look after your books and bookcases Harsh sunlight will fade your books, so make sure you store them away from direct rays.

Protect the joints of your bookcases by not overstacking them with books (which can also lead to unsightly sagging).

And make sure you can reach any volumes stored up high a set of folding library steps won’t break the bank and can easily be stored away when not in use.

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SOCIAL MEDIA JUST FOR STRATA?

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Strata Stress Be Gone!

TOWNVIEW AUSTRALIA

Townview Australia The team at Townview Australia are experts in the field of difficult access building maintenance. Below Mike King of Townview answers some commonly asked questions about why you would use Rope Access to service your building?

What is the difference between Rope Access and Abseiling?

Well, Abseil comes from a German origin: from German abseilen to descend by a rope, from ab-down + Seil rope. So you can see that Rope Access is actually the same thing. The only difference is that when done industrially, the standards require that two ropes are used instead of one, as is used recreationally. This double rope, double backup system is why we have the best safety record for working at heights in the industry.

When does Rope Access come into play?

Rope access can be used for anything from long term projects through to emergency response for external repairs and make safe purposes. The main purpose is to safely bring a tradesman into work position for the effective application of the works required.

Why is Rope Access the fastest way to deal with an emergency situation on your building’s facade?

Just call a Rope Access Company and you can comfortably within the same day have a tradesman in position, taking care of almost any external building maintenance emergency issues you may encounter.

How competitive is Rope Access?

With the light nature involved in this access system, we are able to be on site and safely in position within a very short period of time. Coordinating with City Councils for Footpath Permits and any other access requirements is very streamlined in this industry. Leaving much more room in the project budget for the task at hand.

What kind of work can be done using Rope Access?

Although Rope Access has traditionally been known for use in the window cleaning industry, we are able to get just about any type of tradesman into position to carry out the works. Painting, Concrete and Render Repairs, Building Reports and Surveys can very easily and safely carried out with skilled technicians.

How invasive on our building will the works be?

This is the beauty of this form of access. In between shifts and over weekends, the site is left clean and tidy, giving you back your premises without the cluttering appearance of heavy scaffolding or machinery.

Townview Australia Building Maintenance Experts External Building Maintenance Difficult Access Specialists • External Building Maintenance • Concrete & Render Repairs • Protective Coatings • Inspections & Reports • Waterproofing & Sealant Works

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BEDROOM BLISS

Bedroom Bliss Create a Gorgeous Retreat

By Georgia Madden

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reaming of the perfect bedroom? Here’s how to get the look Whatever your style – pared-back minimalism or over-the-top decadent furnishings – your bedroom should be a relaxing haven to unwind in at the end of the day.

There’s nothing quite like escaping to your own private haven when the world outside becomes too chaotic. Cocoon yourself in a bedroom that appeals to all of your senses, with eyecatching furniture, interesting, tactile furnishings, and a soothing colour scheme that speaks to you. Bedrooms this season are going decidedly glam, so get ready to add some bolder, unexpected hues and luxe furnishings.

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First step – get organised Don’t ask too much of your bedroom, particularly if it’s small. It should be a place of rest and relaxation, so perhaps that means finding a new home for the vacuum cleaner or concealing the home office in the corner behind a folding screen.

Keep clutter at bay and mess from piling up on the floor.

Reorganise your cupboards: clear out unwanted clothing and accessories (the last thing you want is your cupboard spilling out the moment you open the door), and add storage inserts or new double-duty hangers if necessary.

Locate additional storage opportunities for things such as spare blankets and smaller non-essentials – look underbed, in recessed alcoves or behind doors. If necessary, have built-in cupboards made along one wall. Blend them seamlessly into the background by painting doors in the same colour as the walls, or alternatively used mirrors doors to visually enlarge your bedroom space.

Choose soothing colours and add a touch of personality When it comes to choosing the style and colour scheme, remember that this is a personal retreat for you, so it should reflect the look you’re naturally drawn to. Do you like a simple, minimalist interior or something more glamorous? Would you like to use an eclectic mix of furniture and furnishings? Tear pages from magazines of the rooms and schemes you love to get a sense of what will work best.

BEDROOM BLISS

Are there any special pieces you want to incorporate, say a beloved cabinet or upholstered armchair? If they’re looking tired, think about giving them a fresh look by re-staining them or recovering upholstered pieces in a contemporary fabric.

Don’t worry too much about creating a matching scheme – a key look in bedrooms right now is for non-matching furniture and even pieces that could have been brought in from another room, say a pair of mismatched bedside tables or a luxe mirrored chest of drawers.

When it come to bedlinen, fashion is moving away from very pale pale neutrals to more decorative prints, often with a botanical or geometric theme. Block colours are moody and earthy – charcoals, pearly greys, cool blues and sea greens.

Richer, cocooning shades such as burgundy and plum are also appearing. If you’re drawn to very bold brights, keep in mind that fiery reds and oranges are not conducive to the best night’s sleep.

Sleeping Beauty For the best night’s sleep, invest in the best quality mattress, pillows and linen you can afford. Not only will they last you longer than cheaper ones, but they’ll feel wonderful at bedtime.

A feast of texture Your bedroom should be a feast for the senses, so think about adding lots of different, interesting textures that will feel gorgeous to the touch and provide plenty of visual interest. For example, a pile of cushions in different fabrics on the bed, a sheepskin rug on the floor, woolen carpet, rich velvet curtains, and a lacquered bedside table.

Set the right temperature Control the temperature in your bedroom with warm woolen carpet or rugs, adequate heating and a ceiling fan for summer.

Time for bed Your bed is the most important piece of furniture in a bedroom, so let it take centre stage. Some show-stopping choices would be an antique French bed, a four-poster or a bed raised on a platform.

If you’re not in a position to buy a new bed, what about adding a fabulous upholstered bedhead? Look in antique and even shops, or trying making your own in a decadent patterened fabric, or with eyecatching button detailing.

Get the right light Lighting is an important part of your bedroom scheme, and can make the difference between a harsh, uninviting atmosphere and a truly nurturing space. Add warm, ambient lighting from an overhead light on a dimmer and a series of lamps, and an anglepoise or wall-mounted lights with stronger, directional light for reading.

Choose window treatments that are practical and reflect your bedroom’s style. Velvet curtains look wonderful in winter, but will they be too heavy in summer? Diaphonous sheers look romantic and light, but are they dramatic enough counterpoint to a luxe scheme?

Create interesting focal points Create drama by adding one or two interesting focal points.

Line one wall with a richly-patterned wallpaper in a metallic or geometric-patterned finish – an ideal spot would opposite the bedroom door so that it’s the first thing you see when you enter. Hang an intricately framed mirror, a group of prints or find a spot to display a medley of ceramics that tone in with the scheme and style of your bedroom. Or, add a touch of whimsy – a twinkling chandelier or an old-fashioned dressmaker’s dummy to hold necklaces and scarves.

Indulge the senses Set the mood for relaxation with beautiful-smelling candles and music piped in through discreet or concealed speakers.

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PAINT LIKE A PRO

Paint Like a Pro Cancel the decorators! It’s time to pull on the smock, grab your brushes and give your home a paint job that would make even the professionals proud.

Georgia Madden

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othing beats a fresh coat of paint for giving a room a whole new look in a flash, and with so many enticing effects and finishes now available it’s temping to simply rush out and get started this second. But a professional-looking finish requires more than just slapping a bit of paint onto the walls – you need to prepare the walls properly, get the right brushes, and select the right finish for the job.

Choose the right paint for the job There are so many different paint types to choose from – matt, silk, high-gloss - each suited for different uses and areas. When deciding on your paint finish, think about where it will be used, and how much wear and tear it will receive. As a guideline, the following finishes are suited to: • Eggshell – a perennial favourite for its very soft sheen, this finish suits an area of mid to low traffic such as a dining room.

• Low sheen – suitable for busy family homes, this paint is washable and has a very soft, light-reflecting sheen,

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plus it’s moisture resistant so it suits kitchens and laundries.

• Flat finish – this very matt finish looks great in low-traffic areas such as bedrooms. It is totally non-reflective and tends to scuff easily, but it hides a multitude of sins.

• Satin or semi-gloss – The perfect choice if you like a glossy look, but don’t want to go all the way, as it has just a little bit of sheen. It’s easy to apply, wipeable and moisture-resistant.

• Hi-gloss – this finish requires immaculate preparation as it will show up every little imperfection in your walls. Once applied, it’s smart, durable and wipeable.

Acrylics vs enamels Water-based acrylic paint has traditionally had fewer toxins and is easier to mop up than oil-based enamel paint. Acrylic paint is generally used for walls, while enamel is used for woodwork such as doors, window frames and skirtings. You can now source low-emission enamels which are far kinder to the environment.

Take a good look at colour It’s impossible to tell what a whole room will look like in a certain colour from a tiny paint swatch. Buy a tester pot, paint an inexpensive canvas from the newsagent or art supply shop, and prop it up against the wall for a few days. This way you’ll see how it looks at different times of day and under different light conditions.

Eco paints Painting your home has traditionally been a pretty smelly business, with toxic fumes entering the room for years after application. The new generation low – and no-VOC (volatile organic compounds) and low-odour paints have little or no smell, few or no toxic baddies, plus they’re far kinder to the environment. Look to companies such as Porters Paints, Dulux, Aalto, Wattyl id and The Natural Paint Company for lowtox paints in a range of finishes.

Preparation preparation preparation The success of your outcome largely depends on the work you do prepping

PAINT LIKE A PRO

the walls beforehand. Before you put paintbrush to wall, you’ll need to: 1. First, clean the walls thoroughly with liquid sugar soap, and make sure you wipe off all residue as soap will prevent paint from adhering properly 2. Next, use a scraper to remove any loose or flaking old paint.

3. Prime the walls to maximise the sheen once they’re painted, and make the whole job look far more professional.

4. Fill in any cracks, gaps or holes in the walls, then smooth it all down with sandpaper.

5. Vacuum the room thoroughly once the dust has settled.

6. Apply your undercoat.

7. Once it’s dry, you’re ready to paint!

Get the room ready Remove whatever furniture and accessories you can from the room.

Whatever you can’t take out, push into the middle of the room and cover with drop sheets. Also cover all floors.

Put masking tape up on any windows or trims. Remove all the room’s hardware – doorknobs, hooks and window latches – pop them in a zip-lock bag and label exactly where they’re meant to go back.

Don’t forget a ladder to reach tricky

places. You’ll need a pair of ladders with a plank between them if you’re dong the ceiling, or a roller with an extendable arm.

Don’t forget brushes Buy the best quality you can afford, as better brushes mean a better paint job.

They’re easier to clean than cheap ones, and will see you through many paint jobs.

Use synthetic or nylon brushes if you’re painting with water-based paint. Use natural bristles for oil-based paints.

Look for unfinished wooden handles as they’re easier to hold, and tapered or angled bristles to reach awkward spots.

Rollers are great for large areas – lamb’s wool ones give the best finish, although they’re more expensive than synthetic ones. Always run your hand through the bristles of a new brush to loosen them before you start painting.

Follow the right sequence First, start by stirring the paint very well with a paint stirrer. Once you’ve tipped out the quantity you need into a tray, replace the lid so paint doesn’t dry out.

Start by painting the ceiling and work your way down. Paint a 30-40cm strip all around the edge of the ceiling, then use a brush or roller to paint in strips across the

shortest dimension.

Then paint the walls, doors and windows, followed by architraves. Paint the walls in 1m strips in a broad M or W pattern, starting with an upward stroke. Then fill in the gaps and smooth over with up and down strokes, always painting into the wet edge of the previously painted area.

And when you’re finished...

Take off the masking tape before the paint is dry or you risk it chipping. Don’t forget the practicalities: it’s a good idea to paint doors early in the day so that they dry by evening and can be closed. Wash your brushes: those used in water-based paints can be cleaned with water, and oil-based paints in turpentine. Always store your clean brushes hanging face down. Now stand back and admire your handiwork!

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EXCLUSIVE USE BY-LAWS

Exclusive Use By-Laws – Getting them Right What happens when these by-laws remain silent

By Adrian Mueller - JS Mueller & Co Lawyers.

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y-laws which grant owners rights of exclusive use and enjoyment over common property in strata schemes are meant to specify who will be responsible for the ongoing maintenance and repair of the common property concerned.

But what happens when these bylaws remain silent on this issue or do not deal with the issue properly?

A Typical Problem Quite often, the failure of an exclusive use by-law to adequately deal with the responsibility for the maintenance and repair of the common property gives rise to a dispute between the owners corporation and owner concerned. Take, for example, a typical exclusive use by-law which permits the owner of a penthouse apartment to build into the roof space above. Often these types of by-laws will specify that the owner of the penthouse apartment is responsible for properly maintaining and keeping in good repair the roof space above their lot. But does this include the roof itself? And, if it does, does this make the owner responsible for replacing the roof when, many years down the track, the roof is in need of replacement. Or is the owner only required to arrange for the roof to be maintained and have minor repairs carried out to it? The answer can mean the difference between an owners corporation having to spend $200,000 replacing a roof or being able to pass on that responsibility to the penthouse owner.

Does “repair” include “replace”?

A related issue was considered by the NSW Supreme Court in 1976. An owners

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corporation approached the Court for orders to confirm that it had the power to rectify defects in the original construction of its building by adding draught resisters to doors and waterproof flashings throughout the building to keep out water and make the building weatherproof.

The Court concluded that the owners corporation did have the power to add the draught resisters and waterproof flashings and held that its obligation to “repair” the common property included the responsibility to “renew” or “replace” parts of the common property where required by adding draught resisters and waterproof flashings to make the building weatherproof: see Proprietors of Strata Plan No. 6522 -v- Furney & Anor [1976] 1 NSWLR 412.

But the position is not that simple.

In the early 1990s a dispute erupted between the owner of a commercial lot in the lower ground floor of a building

in the Sydney CBD and the owners corporation of the building regarding the air conditioning system for the building.

The owners corporation had spent $50,519.63 on maintaining and repairing the air conditioning system to its rated capacity. Nevertheless the air conditioner still failed to supply an adequate level of comfortable and cool air to the lower ground floor. The Supreme Court concluded that the owners corporation needed to replace the air conditioning system to ensure that an adequate level of comfortable and cool air was provided to the lower ground floor. But the Court decided that the owners corporation’s duty to “maintain” and “repair” the common property did not extend to cover the “replacement” of a discrete system forming part of the common property (such as an air conditioning system) by a new or different system, and that the replacement of the air conditioning

EXCLUSIVE USE BY-LAWS

would be done pursuant to the separate duty imposed on the owners corporation to renew or replace the common property where necessary. The Court held that the owners corporation’s duty to “properly maintain and keep in a state of good and serviceable repair” the common property was separate from and did not overlap with its duty to “where necessary, renew or replace” the common property: see Proprietors – Strata Plan No. 30234 -v- Margiz Pty Ltd [1993] 32 NSWLR 294.

The Answer to the Problem So back then to our example of the exclusive use by-law which made the penthouse owner responsible for “maintaining and repairing” the roof space into which he had built but which

made no mention of the responsibility for the “renewal or replacement” of the roof structure. Would the owner be responsible for replacing the roof or would this responsibility fall on the owners corporation?

If the by-law says nothing about the repair or replacement of the roof structure itself, then the responsibility for replacing the roof may fall on the owners corporation. But if the by-law does mention the roof structure, the better view is that the owner probably is responsible for replacing the roof because the owner’s obligation to “repair” would most likely extend to cover the “replacement” of the roof.

But the position is far from clear and there are strong arguments going each way.

Get it Right The lessons to be learned from this example are that in any exclusive use by-law, the part of the common property covered by the by-law should be clearly specified, and the responsibility for the ongoing maintenance and repair of the common property concerned, as well as the responsibility for the renewal and replacement of that common property, should be clearly spelt out. This will help avoid what could become costly and protracted disputes between owners corporations and the owners benefitted by these by-laws.

This story was supplied by JS Mueller Lawyers.

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Leaders in Strata Law

P: 9562 1266 W: WWW.MUELLERS.COM.AU

KEEP COOL THROUGH SPRING

Keep Cool Through Spring All the cooling appliances that offer energy saving and good looks

By Georgia Madden

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ith around 40 percent of our power bills going on cooling our homes in spring and summer, it pays to look for a system that provides adequate cooling and is efficient to run. Today’s cooling appliances offer energy savings and streamlined looks, plus a host of useful extreas such as eco mode, retractable fan blades and replaceable air conditioner covers to fit in with just about any decor. So now you can stay cool and comfortable all summer long.

So what are the main choices when it comes to cooling appliances?

Ceiling and Wall Fans Don’t underestimate the cooling powers of the humble fan – a properly positioned ceiling or wall fan with the right size blades will do a great job keeping you home cool. Fans cost a fraction of the

KEEP COOL THROUGH SPRING

price of a new conditioner, and they’re far cheaper to run.

The latest fans offer a host of appealing features such as reverse cycle mode to help keep you home warm in winter (See the range of Martec Ceiling Fans, www.martecceilingfans. com.au), ‘mix and match’ blade styles (available at Beacon Lighting, www. beaconlighting.com.au), and super sleek styling to complement a modern interior (Check out Matthews Fan Company, www.matthewsfanco.com. au). Portable and desk fans have come a long way too – look for designs with full 360 degree rotation that offer allround cooling, weatherproof outdoor fans that can be installed on the balcony (see My Fan, www.myfan.com.au), and chic bladeless designs by Dyson (www. dyson.com.au), which will take up very little space in a small apartment.

Air Conditioners For the greatest control over your home cooling levels, it’s hard to beat an air conditioner. But his is a major investment and requires quite a bit of research before you hit the shops.

Once you’ve worked out the type of system you require, go armed with all the necessary information, such as your room measurements, your home’s

orientation, and whether you want the whole home or specific rooms cooled.

When choosing a new air conditioner, pay close attention to the energy star ratings – the more stars, the cheaper it will run. It’s also worth looking for costsaving features such as energy saving or eco modes, and replaceable panels (check out the range at www.lg.com/ au) so that your air conditioner blends in seamlessly with your interior.

The main options in air conditioners include traditional window to wall models, which are among the cheapest to buy, but may be bulky and costly to run; split systems that offer energy saving mode and reverse cycle for winter; and ducted air conditioners, which deliver cool air to the home through vents in the walls or ceiling.

Another option is an evaporative cooler, which cools the warm air entering your home and blows out a cool breeze.

Evaporative coolers are cheaper to run than traditional air conditioners, and come in portable and ducted models.

However, they are not suited to homes in very hot or humid regions.

Passive Cooling Before you switch on the air conditioner, think about what other measures you can take to cool your home without

resorting to artificial cooling. Are the seals on your doors and windows in good working condition to prevent hot air leaking in or cooled air escaping?

Are your windows properly shaded?

Louvres, blinds and awnings will all significantly reduce the amount of heat and glare entering your home through the windows, without adding a cent to your power bills.

Consider fully rotating window louvres, such as those at Breezway (www.breezway.com.au), which give you complete control over the heat and light flow, and can be fully closed off to provide privacy when required. Another option is insulated blinds, which trap the heat before it enters you home, and come in a vast array of stylish graphic patterns.

Double roller blinds combine a blackout blind and insulated sheer in one device, so that you can cut the heat while still maintaining your view.

A fixed arm awning on the balcony or terrace will protect your interior from the harsh heat and glare, and has the added benefit of making your outdoor seating area more comfortable in summer. However, be sure to consult your strata manager about the rules and regulations governing your building before installing an awning or any other external cooling device.

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CHILD SAFETY

Educate or Legislate From January this year there were changes to the Building Code of Australia (BCA).

C

HU – Australia’s largest, most experienced strata insurance specialist – was recently invited to a ‘round table’ discussion with other industry professionals and the AMA, on the important topic of child protection; specifically the prevention of children falling from windows within strata buildings.

From January 2013 changes were made to the Building Code of Australia (BCA) requiring new buildings to have locking devices preventing windows being fully opened (inhibitors). This will affect homes and units in a positive step towards protecting children.

What about older buildings? The amendments aren’t retrospective!

Views were aligned – if any child falls from a window of any height, it is one too many. But how do you resolve the problem, given that large numbers of buildings don’t meet safety standards?

Ideas included: Educate – Inform people they’re at risk. Window openings greater than 125mm represent dangers to children who, by nature, explore and climb. As more people move to apartment living, furniture in rooms will be used by children to climb to windows, with potentially nothing more than a fly screen protecting them from falling.

Legislate – The Home Building Act 1989, BCA, Strata Schemes Management Act 1996 (SSMA) and the idea that State governments consider special purpose legislation were discussed. In 2006 the NSW government passed special purpose legislation requiring all homes to install smoke alarms – this approach could be used to mandate installation of inhibitors.

Where to from here?

If legislation is introduced, falls from balconies and badly maintained buildings should also be considered. CHU supports

changes to the SSMA that encourage proper inspection of health and safety risks within strata buildings. A safety report with ‘make safe’ recommendations reported to Committees and Strata Managers could make a difference.

We acknowledge legislation takes time – in the meantime people and children are at risk.

In the interim CHU would encourage: Strata Managers – educate owners, mitigate the risk. Create a ‘safety culture’ – after all, owners may be found legally responsible for injuries and damages for foreseeable incidents.

Real Estate Agents – encourage landlords – a $10 window lock is a good investment for the safety of tenants’ children.

Given property inspection frequency, it’s not unreasonable to take some action to warn landlords about unsafe windows.

Home/Unit Owners – locking devices may be considered unnecessary; you may no longer have children at home.

Statistics show a large percentage of accidents involve visitors.

Windows are common property in most schemes; notify your committee about your interest to make-safe your unit. This request would be difficult not to support.

Tenants – approach agents/owners, request devices that protect children and visitors from harm. This type of request is unlikely to be rejected.

In conclusion Safety legislation is an effective enabler in the long term and is encouraged by CHU. Legislation needs to be right, properly targeted and applied. This will unfortunately take time, discussion and lobbying.

While we wait, we educate, starting with you today. You are now aware of the problem so who can you educate to help save children’s lives? Develop that safety culture now - You can make a difference.

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SPRING CLEAN YOUR HOME

Spring clean your home Say farewell to winter with a thorough spring clean of your home

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pring is just around the corner, so fling open the windows, let the fresh air in, and give your home a full spring clean to banish the winter blues.

One of the best things about living in an apartment is that there’s less to clean, but small spaces tend to gather dust and clutter quickly, so you’ll still need to do a thorough spring clean at least once a year. Plan your cleaning attack meticulously; list all the jobs that need to be done, allocate plenty of time, and stock up on supplies. After it’s all done and dusted, open the windows to let the fresh air stream in, and sit back and enjoy the satisfaction of a job well done.

Make a list of jobs Go around each room and do an inventory of all the cleaning jobs that need to be done. Allocate at least a couple of days, or several blocks of a few hours or so, and decide where to begin. It’s often less daunting to start with the easiest jobs first and work up towards the more challenging ones.

Don’t forget all those little hidden jobs, such as cleaning the ceiling fans, front door, locks, computer keyboard and screen, and the phones. If you have a balcony or terrace clear leaves, cobwebs, dust and wipe down any dirty plant pots or planters – you may find it easier to move small pots into the bath and wipe them down there.

Spring Cleaning Checklist • Dust all surfaces, including books and lampshades.

• Clean venetian blinds – a good trick is to pop an old, clean sock over one hand and run it along each slat to remove dust.

• Mop and/or vacuum all floors. If necessary, have wooden floors polished and re-varnished.

• Check the floor protectors on your furniture legs – these are crucial protection for wooden floors. Check the pads are still in place underneath

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•

• •

• •

each of the legs, and replace with new ones if necessary.

Clean out the fridge and microwave – get rid of any food past its use-by date, and store the rest in an esky while you clean the fridge. Wash down the interior of the fridge and microwave with warm, soapy water.

Vacuum the dust from the coils at the rear. To remove stubborn odours from the fridge, pop a small dish of baking soda inside overnight.

Clean the oven.

Wash the windows, inside and out (if you’re above ground level, have a window cleaning professional do this). Use a soft brush to remove dirt and cobwelbs, then wash windows with a mild solution of white vinegar and water. Dry with a squeegee and then wipe down with paper towels or a clean white cloth.

Clean all windowsills.

Clean mirrors.

SPRING CLEAN YOUR HOME

• Clear out and wipe down the interior of all cupboards – any redundant clothes, shoes and accessories should be donated or thrown away. Launder and bag up out of season clothes and store at the top of cupboards, under beds or inside an ottoman. Replace any bent or broken hangers.

• Vacuum and flip the mattresses.

• Dry-clean the curtains, duvets and pillows (or, at the very least, hang them out to air in the hot sun).

• Have carpets and rugs professionally cleaned.

• Clean your washing machine – run it empty on a super-hot wash to remove any build-up of detergent and scum.

• Check filters in washer and dryer.

• Check the filters and beaters on your vacuum cleaner, and replace the bag if necessary.

It’s not just about cleaning If you haven’t done it for a while, this is the time to check the batteries in all the smoke alarms in your property. Also check batteries in your torches. What about the fly screens on the windows and doors, and any other small repairs such as chipped tiles, broken hinges or scratched paint?

Fix them yourself, call in a handyperson, or contact your strata manager about any repairs in communal areas.

Declutter cupboards and drawers Small homes become cluttered fast, so it’s essential to stay on top of your belongings.

Drawers are notorious mess traps – take the time to go through every drawer in the house, filing or recycling old papers, throwing out junk, and creating order with new drawer organisers if necessary.

Then attack the cupboards. If you haven’t worn an item of clothing for a year, or

touched that bottle of sauce or jar of spice in the pantry for the last six months, it’s time for it to go. Divide outgoing items into three piles: 1) rubbish, 2) charity, and 3) friends and family (but don’t overburden them with any unusable cast-offs!)

Stock up on cleaning supplies Check that you’re properly stocked-up with cleaning supplies to get all the jobs done, and pick up extras if necessary. At the very least you’ll need rubber gloves, paper towels, clean white cloths, an all-purpose cleaner, glass cleaner and oven cleaner. If you have a problem with mould or mildew between your tiles, you’ll need a specialist cleaner for this too. Also scrubbing brushes, a toothbrush for cleaning little nooks and crannies, and rags. Plus plenty of bin liners for all those old clothes, papers etc.

Many people are concerned about the toxins in modern cleaning supplies.

If you’re keen to go down the natural route, stock up on baking soda, vinegar, lemon and pure soap flakes, which are great for all manner of cleaning jobs.

You can also purchase natural cleaning supplies from websites such as www. cleanconscience.com.au and www. naturalcleaningproducts.com.au.

THE GARDEN ROOM

The Garden Room Transform Your Balcony into An Appealing Outdoor Room

By Georgia Madden

I

n a small home every little bit of space counts. Extend your home in a flash by transforming your balcony or terrace into a gorgeous outdoor room.

Buying outdoor furniture a few years ago was a pretty straightforward affair – it really came down to a choice between this timber table and that one. But today’s breed of outdoor furniture, with its ultracomfy sofas, oversized loungers and sculptural occasional tables in materials such as aluminium, plastic and synthetic wicker can make your head spin. On the plus side, as the lines between indoor and outdoor furniture blur, it’s becoming easier than ever before to transform a dull outside space into a garden room to be proud of.

Ask The Right Questions The latest trend is for outdoor furniture that resembles indoor furniture – it’s super-stylish, comfortable and versatile. But while the label might say ‘weatherproof’ it’s a good idea to do your homework and find out whether that means it can withstand belting rain and harsh sun, or is better suited to a shady, protected setting.

Assess the conditions on your balcony or terraced garden before you hit the shops, so you know the right questions to ask. How much sun does the area receive and when? Is it exposed to wind, rain, a harsh climate? For furniture – does it need to be specially treated to extend its lifespan, and how often?

If you fall in love with a piece of furniture that’s not particularly durable, make sure it’s lightweight enough to be moved inside or can be accommodated in outside storage.

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THE GARDEN ROOM

What Style?

When it comes to choosing the furniture style, decide whether you want a complete contrast to your interior, or a complementary look. A scheme that naturally extends from your interior with, for example, the same coloured flooring and a similar furniture style, will make the whole space feel larger, and the transition between indoors and out appear seamless.

Make your outdoor room a place you actually want to spend time by choosing comfortable pieces. Think upholstered outdoor sofas, cushioned chairs and daybeds that follow the natural curves of the body.

Decide what you want to use your outdoor room for. If you’ll be cooking and eating outside, opt for a table and chairs setting, but make sure they don’t swallow up too much space – you and your guests still need to be able to move comfortably around. It’s a good idea to choose the smallest table you can, ideally with an extension for dinner parties or family gatherings. Keep chairs to a minimum – extra seating can be folded and stored away.

Do you really need a traditional table and chair setting? If the area is for relaxing, a comfortable sofa, armchair and coffee table might be better options.

New technology has allowed designers to produce outdoor furniture that was once inconceivable – synthetic wickers, fine wire, powder-coated aluminium, plastics and weather-treated, recycled timbers. For some of the best modern designs, check out Ke-Zu, Space and Domayne.

Those Little Touches Accessorise your outdoor area the same as you would your interior with cushions, collectibles, outdoor lamps and candles.

The latest swathe of outdoor fabric looks and feels divine, and comes in everything from classic to ultra-modern designs.

Keep in mind, however, that it should be cleaned regularly and brought inside in winter and during harsh conditions.

Accessories for the outdoor room are going oversized – Eco Outdoor sells outdoor beanbags and extra-large

cushions, Missoni has a done a range that includes outdoor ottomans and Designers Guild’s outdoor range features fabrics that can be used as panelling for large areas.

Create Focal Points Most balcony or terrace gardens have walls on three sides, so the eye is instantly drawn upwards. Bring attention back down by creating focal points at ground and mid-level. Use terracing and raised planters to create visual interest.

To counteract the ‘boxy’ look of most balcony and terrace gardens, add curves with furniture and planting that takes the eye on an interesting journey.

The Right Plants As a rule, simple works best in a small space, so opt for a select group of potted plants rather than an abundance that will make the area feel cluttered and uninviting.

Harmonise your planting with the decor inside, or use it as an opportunity for a splash of colour that will draw the eye outside. Camouflage any unsightly elements in your outdoor space, such as an ugly brick wall or fixed garden shed, with a lick of neutral paint that makes it blend into the background or a lattice with trailing plants.

If you want to visually extend a small outdoor space, try placing small-leafed plants against the farthest wall to give the illusion of more depth, or plant with receding colours.

Outdoor Kitchen Do you have room for an outdoor kitchen? These fully constructed cooking areas take the idea of throwing a couple of sausages on the barbie to a whole new level – they’re built-in areas complete with sink, bar fridge, barbecue and even a small oven (try Barbecues Galore for a good range). While they can be expensive, they’re a great way to draw your guests outside and can often add to the value of your home.

Storage Don’t forget to factor in storage to your outdoor area. Use the shed or built-in benches with storage underneath to

tuck away folding chairs and cushions in winter. Look for outdoor coffee tables with drawers beneath them, and consider wall-mounted storage.

Lighting A successful lighting scheme will make or break your outdoor area. Assess natural daylight before you decide where to position the chairs and table – ideally they should be in a shady spot for relaxing or dining. If you’re under the full blare of sunshine, consider using a retractable awning or umbrella to provide some shade.

Install good task lighting for dining and food preparation, and ambient lighting (uplighters and downlighters) to create a magical mood at night. Add candles for drama when you’re entertaining (but never leave a burning candle unattended).

And don’t forget you’ll need adequate heating if you want to use the area yearround – gas patio heaters on a stand or smaller tabletop versions are now available in high street DIY stores at affordable prices.

Flooring Don’t forget what’s underfoot in your outdoor room – it should be clean, comfortable and easy to walk on. Look for chic outdoor rugs, such as those from Pappelina at Nordic Style or the heavily-textured designs at Domayne.

Alternatively, conceal an ugly concrete surface with slate chippings or golden shingle.

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YOUR MOVING CHECKLIST

Your Moving Checklist Plan a hassle-free move with our handy moving checklist

By Georgia Madden

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t’s often said that moving home is one the three most stressful events in a person’s life. But instead of mopping your brow at the mere thought of calling in the removalists or sorting your mountain of belongings, give yourself plenty of time, get organised well in advance, and follow our handy timeline for planning the perfect, hassle-free move.

What will you need to do?

Find a removalist: So a search and call removalists for quotes, or use online services such as www.comparequotes. net.au or www.relocating.com.au to get competitive quotes over the internet.

Have your moving date and new address to hand so that movers can check their availability on the spot.

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You’ll get different prices for different truck sizes, and the number of movers you book. Remember that it can often work out more cost-effective in the long run to use a larger truck that only needs to do one run, and to have more muscle to get the truck packed up fast.

Get ready to do it yourself: If you’re prepared to pack boxes, hire a truck and move everything yourself then you’re likely to save yourself quite a bit of money. But it’s well-worth booking in friends and family to help you on moving day.

Start a moving folder: This is really your moving bible. Keep all quotes, receipts and your moving inventory here.

Packing supplies: If you’re packing up your belongings yourself, you’ll need to order sufficient packing supplies. Buy or hire proper packing boxes (often available through your removalist) and remember that it’s best to overestimate the amount you’ll need so that you won’t be short on the day. Wardrobe boxes with a hanging bar are incredibly useful for packing and moving clothes.

YOUR MOVING CHECKLIST

the bathroom or kitchen cupboard. If you have half a day or more, aim to go through a whole room.

Sort belongings into three piles - those you’ll take with you, those for charity or friends, and things for the bin. Begin researching your removalist and order your moving supplies. Book your removalist, and get confirmation of cost, date and arrival time. If you have pets, arrange to have them looked after by friends, a pet sitter or kennel on the day of the move.

Packing paper: Forget newspaper, which rips easily and can leave marks. Instead opt for proper packing paper that gives your belongings a decent amount of protection. Unlike bubble wrap, it can also be recycled Bubble wrap: You’ll need this for fragile items, such as plates and glassware.

Tape and tape gun: Invest in plenty of packing tape and a couple of tape guns to seal up boxes quickly.

Marker pens: So you can label your boxes for quick identification. Mark room numbers on the side of boxes as the tops are likely to be covered by other boxes.

One Month Before Let your new building know your moving date so they can arrange to allocate the goods lift or protection for the general lift.

Start packing those things you only use occasionally, such as sporting equipment or the bread maker. Label each box with what’s inside and where it’s meant to go.

Put aside anything essential or very valuable, such as jewellery or important paperwork, which you should personally transport with you on the day of the move. Alternatively, put it in a safety deposit box.

Arrange additional insurance for valuable items such as artwork or antiques.

Organise a change of address with the post office. Notify your utilities services (gas, electricity, water, telephone and internet provider, Foxtel etc) that you’re moving and require disconnection. Also inform key contact about your change of

address such as the RTA, NRMA, your bank, credit card company, insurer, doctor, dentist and children’s school.

Arrange to have any medical or dental records forwarded to your new doctor or dentist.

Book the day off work on your moving day.

Two weeks before Start packing clothes and other dayto-day items, again, all clearly labelled.

Go through the fridge, freezer and cupboard for any perishables you can use up before moving day.

One week before Call in at the pharmacist to refill any prescriptions and other essential items you don’t want to run out of such as nappies and toothpaste. Call the removalist company and reconfirm all details.

A couple of days before Give your fridge a proper clean and, if necessary, defrost your freezer. If necessary, print out a map and directions for your new home to give to the movers.

Moving Day Put your essential moving items and moving folder somewhere safe for the move. Have refreshments at the ready for your movers (and yourself!) Keep some cash handy for a tip for the movers if they’ve done a good job.

Moving trolley: If you’re doing the move yourself, you’ll need a trolley on wheels to move heavy boxes to and from the truck.

Six to eight weeks before the move Find your nearest charity bin or work out which local charities are seeking donations. Some charities arrange collection of larger items such as whitegoods or mattresses, but they’ll need to be in top condition.

Start decluttering your home one room at a time. If you have five minutes, go through a single drawer. Half an hour, StrataLive Spring 2013

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