No Strata on complex, neighbours not paid insurance

I live on a complex where there is no strata in place.

We have found out that not all the neighbours have paid their insurance premiums and we therefore aren't insured for the full 12 months.

My question is, what can you do in this scenario? Obviously as the neighbours to pay but if they refuse what do you do?

How do you start a body corporate?

Any advise on how to manage issues on the complex when no strata is in place is appreciated.

 

What was the plan when you bought it knowing it didn't have body corp?

 

A strata can be compelled. Just talk to a lawyer.

However they must be idiots to let that happen. I mean look at the options:

1) Pay ~$300-500 a year each for insurance.

2) Pay the above insurance plus $3-5k a year for a strata manager.

Just ask them which one they would prefer.

 

A strata body corporate is mandatory under state law and unless its a exceptionally old complex it seems wrong and may have lapsed if a single owner sold off units. In 2016 old unregistsred schemes had to implement the new modern bylaws and that could need legal advice. Even a duplex has one that is informal. It may just possess the building insurance policy and both owners share the cost. Insurers dont allow each owner to self insure. Each owner may co-ordinate external repairs and maintain common area.

You blame "them" but you are equally at fault as a owner. Who is the insured ? What sort of mickey mouse policy is it ? What is the title ? Generally in a strata each owner has a allocation named like SP 123456 and the SP is on title after it is registered. Council and land titles all corordinate that when the approval was issued long ago. Each unit will have a % allocation and that includes common areas as well as their specific unit. To finalise a strata requires the supreme court to be involved. It is a perpetual body. View - NSW legislation

How do rates work ? Is your title reference a "SP" ? Council normally wont issue rates unless there is a registered SP.

Contact NSW Fair Trading and discuss with their strata team as they may guide how to remedy it and they have strong powers in Div 3A to act and investigate. A strata manager can only be appointed by a strata body and you dont have that. A strata manager may need to assist and support the transition. Once a body corporate is implemented it has powers to oblige owners to pay levies which address maintenance, insurance and defects. NCAT can also issue orders Div 4,

How did that get past legal advice when you acquired ? It may asist to review the title issues as a start.

 

Thanks this is useful information!