By Adjunct Prof Graham Paddock

Prof Graham Paddock
Below is an example of a question on the discussion forum on Paddocks Club. We want to show what is available to our Community Members!

Damage from overflowing storm water drain

Member question:

During a recent storm, the stormwater drains overflowed and water went gushing into a few simplexes. This caused some damage to these units. An insurance claim was put in, however, the individual owners are now being requested to pay the excess for these claims. Surely, as the water came from common property, the excess should be paid by the BC? Your assistance would be greatly appreciated. Paddocks Club

Graham’s answer:
Yes, if the clear cause of the damage was the inability of the stormwater system to cope with the rainwater, the BC is responsible.

Because this is raised in the context of insurance and the damage was within the simplex sections, the legal situation is that the owners must pay the excess amount. However, they have a claim for this amount from the body corporate. The obvious shortcut is that the BC should pay the excess.

Levies paid in advance

Member question:

An owner residing overseas has an agent administering her unit. Levies are currently paid 12 months in advance and deposits continue to be received. Some time ago – when the levies were seven months in advance – I emailed the owner and agent advising them of the situation, however, the payments continue.

In the event of the sale of this unit would PMR 45 apply?

Graham’s answer:
I don’t think that PMR 45 applies to these amounts.

Because these amounts are being paid before they fall due, a repayment of the excess on transfer of the unit would not be a “refund of a lawfully levied contribution” but a refund of an overpayment. Also these pre-payments are not BC “profits or gains”.

Article reference: Paddocks Press: Volume 8, Issue 5, Page 5


Adjunct Professor Graham Paddock is available to answer questions on the discussion forum for Community Members of Paddocks Club. Get all your questions answered by joining Paddocks Club at

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