I am a committee member of an owners corporation. The

Good Morning

I cannot tell you if the principle should apply but you have to be aware that there are pitfalls to doing anything.

The following link give you a recent case determined by the Victorian Supreme court and it also states the following if you apply the benefit principal

The implication of the decision is that an owners corporation will forever lose an opportunity to seek the contribution of more funds from a lot owner under the benefit principle if fees have already been levied on a lot liability basis, or the cost of the works has already been paid out of the owners corporation’s maintenance fund.

https://www.strataconsultants.com.au/742-2/

If you apply it you will not be able to get any more levies from the lot holder that relate to this problem on the lot holder that you have charged. The other though have to pay.

Also if you wish to apply it it has to be reasonable and the following is from the Department of consumer affairs on what should be considered.

Applying the benefit principle

The benefit principle simply means that those who benefit more, pay more. It does not always need to be applied in an exact way if it is not practical to do so. The assessment only needs to be considered reasonable.

Applying the benefit principle may not always result in lot owners paying other than according to their lot liability.

For example:

• when the greater benefit of works to a lot owner are offset by their having paid higher annual fees (because of their higher lot liabilities) or
• when works on one lot are offset by indirect benefits to the other lots; for example, by raising the value of the entire building or by reducing the possibility of legal actions against the owners corporation.

https://www.consumer.vic.gov.au/housing/owners-corporations/finance-insurance-and-record-keeping/fees

If there is a dispute between the OC and the unit owners then VCAT will be the one to make the decision on whether applying the Benefits principal is reasonable

But be aware if later it is decided to change all the windows you cannot charge these unit owners.

I hope this assists and answers your question

If you wish to have a phone call to discuss this in more detail please elect a call or I can send you a request.

I hope this makes sense and is of assistance. If you have found my answer to be helpful, please rate me five stars so I can get paid for my services to you. You rating my work 5 stars allows me to continue to provide a service to those who require it.

I am happy for you to ask further questions on anything you wish more detail on.

Let me know if I have answered your question today.

Regards

Leon

Good Morning

I'm sorry but I do not deal with the funding side of the site I only answer the questions after you agree to pay for a certain amount.

I do not know who you discussed the payments with as I do not deal with outside the site.

If you choose to take the matter to VCAT and you employ a solicitor you will be looking at paying the solicitor of fee of around $440 per hour and assuming there are 2 appearances with the tribunal as well as the preparation of affidavits and reports from experts to prove that it is only those units that require a replacement the process could cost you in the vicinity of $10,000 if the hearing is to go ahead and the tribunal to give a final decision.

But the tribunal does have the right to make the decision.

I'm happy to pass on your question about the fees to the administrators and I will contact you.

Let me know what you wish to do.

Regards,

Leon

VCAT will not provide you with any advise.

They are not permitted to and they advise you see a Solicitor.

I will do that

I am not sure how you got to me, as I said I am an end user and only answer the questions.

I hope I have assisted you today

Once I pass it on I will not be able to reply to anything further as the question will be locked so please do not think I am being rude.

Regards

Leon

You are welcome.

Regards

Leon