Apr 20

Written by: Joanne
Wednesday, April 20, 2011 

While it is more than 8 years since the problem of leaky buildings became apparent, it still affects many Body Corporates. Critical to successfully addressing the problem is appropriate professional guidance from those who can correctly and accurately identify the various obligations and rights of owners and the Body Corporate. Flowing from that assessment, the necessary decisions relating to repair and potential defect litigation can be examined. Boutique has the expertise to assist you through the various steps.

  • The Director of Boutique has been involved in over 60 leaky building complexes (more than 2000 units).
  • Boutique has over 20 complexes in various stages of repair and litigation, including two in Tauranga.
  • Boutique provides specialist and independent support to owners through what are invariably extremely trying times.
  • Boutique was appointed by Sacramento Body Corporate to assist in the establishing of processes to manage the repair of the largest leaky building complex in New Zealand (153 units at Botany Downs). Repair work commenced in January 2010 and will be completed in June 2011.
  • Owners in many complexes have been able to recover substantial costs from defect litigation against parties identified as responsible. Most cases are settled at mediation, however the level of success depends upon the strength of the owners’ case. Boutique has been involved in several cases where owners have received over 100% of the cost to repair.
  • The Government recently outlined a truncated settlement option for owners relative to 50% of the repair costs. The exact terms of this scheme are yet to be finalised, however, registration with the WHRS (Weathertight Homes Resolution Service) would appear to be a prerequisite.
  • Funding of repairs is always a challenge. Boutique is able to support owners through the process, thereby restoring value to the units with the issue of code compliance certificates.  External funding for the Body Corporate can be arranged where appropriate.
  • Section 48 of the Unit Titles Act is often required to empower a Body Corporate to carry out necessary repairs.  This is critical where the rules and plans provide the obligation for repairs rests with individual owners rather than the Body Corporate. BBCL's Director was involved in the first application to the High Court under Section 48, and has been instrumental in numerous similar schemes since. Further information on some of the cases Boutique has been involved in can be seen under the section Recent Case Law.

 

Botany Palms Howick Times
Restoring value to Sacramento Apartments
Transitional rules
Body Corporate Leaky Claims
Quake Impacts
Weathertight Homes Financial Assistance Package
Lessons from the Quakes
The Unit Titles Act 2010 – the New Act
Leaky Buildings