By the Paddocks Club team
Below are examples of two questions on the Paddocks Club discussion forum, to show you what is available to our Community members!
Who must repair leaking pipes in a section?
Good day Paddocks,
Please advise who is responsible for the repairs of leaking geyser pipes in a unit? The geyser is situated in the roof of the unit.
The pipes are in the section, so the owner of the unit is responsible for arranging/doing the repairs and paying the costs.
Even if the pipes were in the common property roof-space, the owner would be responsible for the repairs to both the geyser that serves that section and the pipes attached to it.
Can a body corporate reserve funds in an owner’s private trust/bond account?
Noting the requirements from the act, they advise that the reserve fund must be an investment account however would a private trust account/bond account that one of the owners hold be acceptable?
Would all owners need to unanimously agree that they are happy for the funds to be saved there and accrue interest much higher than what a normal investment account would. Or would there be a fidelity issue/element involved if an owner holds the funds in their trust.
Prescribed Management Rule 21 restricts the scope of reserve fund investment vehicles to secure investments with one or more financial institution as defined in the Financial Services Board Act of 1990.
I don’t think an owner’s account would qualify either as “secure” or as a “financial institution”.
Article reference: Paddocks Press: Volume 15, Issue 02.
Graham Paddock is available to answer questions on the Paddocks Club discussion forum for Community members. Get all your questions answered by joining Paddocks Club.
This article is published under the Creative Commons Attribution license.