All Topics / The Treasure Chest / Strata properties and repairs – who pays?

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  • Profile photo of PeterParkerPeterParker
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    @peterparker
    Join Date: 2003
    Post Count: 20

    Let’s say you’re buying a strata property that needs repairs (or preventative maintenance).

    You are faced with the following scenarios:

    1. You are aware of the repair before you sign the purchase agreement, so you make it a requirement that it be done.

    The repair happens to be one that’s recognised by the strata manager as necessary as it concerns several units. They will need to raise a special levy for it. No doubt the vendor will have to pay this if the levy is levied before settlement.

    What happens if the strata levy is taken after the settlement? As the new owner, I’d have to pay. But as the vendor has agreed to pay for the repair as a condition of the sale, I take it that I am within my rights to claim reimbursement from him. I would presume that if he doesn’t pay, he could be taken to court for breach of contract???

    2. Another situation is where a building inspection reveals that the building is sound. This means that you are bound to buy if all other conditions are satisfied. However the building inspector says taht some work is required for preventative maintenance (eg to stop a crack from growing). I can see two scenarios

    a. The work required is common to two or more properties. Thus it could be the responsibility of the strata manager. Obviously it is desirable (if you’re the buyer) that he work is done and paid for before the settlement so you don’t have to pay any special levy raised. Obviously the vendor wants to slow the work so the buyer pays. Is there any way the buyer can expedite this work?

    b. The work solely concerns the property to be purchased. I think it’s quite clear that if it’s preventative maintenance this is the purchaser’s responsibility.

    As a purchaser, I’m happy to pay for 2b out of my preventative maintenance budget, but if possible, I would obviously like the vendor to pay for 1 and 2a, as these are clear faults present before settlement.

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