2. Owners need to understand exactly what they have let themselves in for when buying into a complex.
Will you take this body corporate to be your lawful wedded …?
In John’s opinion, compliance with body corporate requirements is similar to a marriage. Inevitably there will be “for better or worse” aspects to the relationship and the only way to avoid potentially nasty surprises, is investigate thoroughly prior to getting involved.
However, once the decision has been made to buy, the owner needs to accept full responsibility for his side of relationship. That means reading all the body corporate material as it is issued to keep up on business, exercising the right to vote, and perhaps serving on the committee.
Forestalling financial woes
The most difficult matters to deal with, he says, are often financial, and a dispute can easily arise because an owner has not understood or is not able to meet the fees.
It is imperative for prospective owners to review the financial records and/or to have a professionally qualified person go through them on their behalf. A search will reveal any issues the body corporate is facing. The types of questions to ask are:
• Is there a history of disputes? Have they been solved? • Is there a long term maintenance fund? • Are the levies reasonable? (Insufficient funds to meet immediate as well as future maintenance needs can escalate into a very difficult problem very quickly.) • Are any one off projects planned? If so, how are they going to be financed?
Ignorance is neither a defense nor a protection. John says one of the most painful circumstances is for an owner to have their property sold in order to pay what is owed. Due diligence done at the right time would likely prevent that situation from arising.
Dealing with differences
In all instances whether it be loudness, littering, visual pollutants (washing on the balcony, painting the wall pink …), pets who poop in inappropriate places, car park disagreements, security issues, or financial concerns, talk to the property manager first. If the matter cannot be resolved ‘in house’ - between the owner and the body corporate the next step could be to take advice.
Mediation
A 3rd party mediated intervention between the parties concerned can remove any heat from the situation, giving both sides of a dispute an equal hearing. A mediator will not make a decision; rather they will facilitate a discussion leading toward reaching a mutually acceptable and binding agreement. A mediated agreement is less formal that going to court.