When Australian Strata Turns 50

In 10 days Australian strata title turns 50.  So, happy birthday strata title!!!

It’s an important milestone for Australians (and other people all around the world) who own, live and work in strata apartments.

When the Conveyancing (Strata Titles) Act 1961 started on 1 July 1961 in New South Wales I doubt anyone expected what would happen over the next 50 years.

The NSW laws were copied all around Australian within 10 years.  They’ve also been exported with one or other version being adopted and/or copied in Canada, New Zealand, Singapore, South Africa, Indonesia, Malaysia, Fiji, Philippines, Cayman Islands, India, Hong Kong, Dubai and the United Kingdom.

Today, multi unit housing currently represents approximately 25% of total Australian housing (numbering approximately 2.5 million dwellings).  And, in 2010, 51% of new housing in NSW was multi unit housing. So at least in some areas there’s now more new high and medium density housing being built than free standing homes.

Most importantly strata title has become an accepted and normal form of property ownership in Australia and is now seen as the future of housing for most people.  Today we have and will see generations of people who will only have lived in strata title apartments.

I’ve enjoyed being part of the last 25 of those 50 years and look forward to the next 10, 20, 30 40 or 50 years too.

Francesco …

A Strata Disaster in Insurance

The recent widespread flooding and other extreme weather in Australia have caused serious damage and loss, caused devastating losses, which have been borne by individuals and businesses, State and local Government, community organisations, the Australian Government, private insurers, and reinsurers, and have highlighted problems with insurance cover.

So, in March 2011, the Assistant Federal Treasurer, Bill Shorten MP, announced a review into disaster insurance in Australia which will concentrate on insurance arrangements for individuals and businesses for damage and loss associated with flood and other natural disasters saying "This Review provides an opportunity for an independent review of issues relating to insurance in light of the recent disasters, in the context of the long term funding of disaster relief".

The National Disasters Insurance Review will be chaired by Mr John Trowbridge, with Mr John Berrill and Mr Jim Minto as members and will report back to Government by the end of 2011.  The review will consider a number of specific issues, including -

• The extent of, and reasons for, non-insurance and underinsurance for flood and other natural disasters in Australia
• Factors that may impede the private insurance market in offering such cover

It’s a serious issue and it need addressing.

But, like many things strata corporations and strata owners are affected in different ways to other home owners.

At the moment in Australia whilst all strata corporations must insure their buildings for full replacement value most (if not all ) insurance policies exclude loss from flood and earthquakes.  So, in strata those things are not covered at all. There’s a debate about whether strata owners do or don’t realise this but, either way, this issue is part of the review. 

After submissions closed in May 2011, only one of the 12 submissions (made by CHU Underwriting) addressed strata issues.  It’s worth reading and says a few interesting things like –

• The proposed definitions of “flood” may not cover strata corporations since they refer to retail home building and home contents insurance
• The proposed definition of “retail client” may not cover strata corporations since they refer individuals and small business
• A new “Key Facts Statement” would complicate PDS disclosures for strata insurance
• Most strata corporations know that flood damage is excluded and CHU does not experience complaints or queries from strata owners about that
• A prescribed event coverage approach conflicts with most strata insurance which is based on coverage for all accidental damage with specific exclusions

These things highlight the importance and complexity of insurance in strata buildings.  And, how everyday things work quite differently for strata owners and how few people realise it.

So, keep an eye out for the developments and outcomes of this review.  And, well done CHU for highlighting the position of strata corporations and owners in Australia.

Francesco …

USA Strata Lawyer Scandal

Sometimes truth is stranger than fiction.  And, it’s no different in Strataland.

Here’s a story that defies logic and shows us all how human frailty, intrigue, power and obsession can occur anywhere.

In Las Vegas, USA a specialist strata lawyer called Nancy Quon is at the centre of a few scandals after being indicted on a felony drug charge in connection with an alleged suicide scheme and being at the center of a separate federal investigation into corruption and fraud within homeowners associations.

In the latest episode, police allege that Quon was trying to arrange her own death with drugs that she and her boyfriend, former Las Vegas police officer William Ronald Webb, purchased incorrectly believing they would be undetectable so that Webb and her family to collect on her life insurance. Quon has denied trying to kill herself.

You can read more about this here.

It’s just amazing!

Francesco …

Time Lapse of Manhattan Action

Yes, I know I post a lot about NYC time lapse videos.  But I can't help it when there's such good stuff out there. 


I guess New York is visually interesting with so much going on, is large so there's such a variety of things going on and has so many amazing buildings so it looks good.


So, here's another great video by Josh Owens at Mindrellic called Manhattan In Motion.



Mindrelic - Manhattan in motion from Mindrelic on Vimeo.


Enjoy.




Francesco ...

Strata Balcony Blues

Every now and again someone raises the question of unsafe and collapsing balconies (and balustrading) in strata buildings.

The warnings are timely because there are regular collapses as reminder of what can go wrong.  Unsafe balconies and balustrades are an ever present problem that has troubled schemes, owners and managers for a long time (and continues to do so).

In most cases the problem arises from one or more of three causes.

Defective Construction – the balcony or balustrade is not properly designed or constructed so it fails.  This is more common with balustrades when the lower fixing points corrode prematurely and fail under load.

Deterioration - over time balconies deteriorate and lack of repair or maintenance leads to balcony or balustrade failure.  This is more likely with timber decks and balconies than concrete, but if the building has concrete cancer it can occur in both.

Overloading - because too much weight is placed on the balcony.  This weight can be large pots or planters (especially when soaked with water), spas or small pools which can weigh from 1 to 4 tonnes and from too many people (especially on celebrations like New Years Eve, Australia Day and Mardi Gras in Sydney) if the balcony has great views.

There are many strategies available to schemes to deal with these risks and most strata corporations adopt them all.  From dealing with building defects, regularly inspecting the safety of balconies, undertaking routine and special maintenance, warning owners of load limits, introducing by-laws about maximum balcony use and acting on dangerous or foolhardy behaviours by apartment occupiers.

But despite all that balcony failures happen. 

The most renowned case in Australia occurred in Western Australia in the 1990’s and took over 10 years to resolve because the strata corporation had also allowed it’s building insurance to lapse.

So, watch out for your balconies and balustrades so we don’t all fall down.

Francesco …

I want a Rainbow on my Building Too

Everyone loves rainbows. 

They are majestic, uplifting and beautiful. And, there’s a pot of gold at the bottom of them.   So, how good would it be to have one directly over your apartment building?

Now you can as this inventive addition to the ARoS art museum in Aarhus, Denmark demonstrates.

It’s called Your Rainbow Panorama by Icelandic artist Olafur Eliasson and is a circular walkway with colored glass walls that sits on top of the museum.

  

It’s very cool and similar things could easily be built on top of apartment buildings everywhere.  


So, I want one.

See you at the bottom of the rainbow soon.

Francesco …

Upping Their Game in NSW

Are the NSW Office of Fair Trading and  the NSW Consumer Trader and Tenancy Tribunal upping their game?

The NSW Office of Fair Trading and the NSW Consumer Trader and Tenancy Tribunal are often criticised over it's handling of housing matters (tenancy, retirement village, residential construction and strata title) and the complaints are often fair enough.  Indeed, I've been critical of them myself.

But I've noticed that they've been lifting their game lately and that deserves comment. 

Over the last 2 weeks I've received (for the first time ever) an email newsletter from the OFT and the new Minister, Anthony Roberts called The Letterbox.  It covers a range of issues (with no mention of strata) but, despite that, it contains good, timely and helpful information.  You can see it and subscribe here. 

And, this week the NSW Office of Fair Trading has invited feedback on the new CTTT tenancy forms.  You can find out why and how here.  Comments are open until 30 June 2011 -so if you've got something to say to the CTTT, here's a chance.

Both initiatives are promising improvements in the right direction.  So keep it up OFT and CTTT since change won't happen overnight but with effort it will happen.

See you in an Office of Fair Trading and Consumer Trader and Tenancy Tribunal nirvana.

Francesco ...