Turmoil at unit block
Owners threatened with legal action over claims about new apartments
OWNERS of six apartments at a new Gold Coast complex are at war with the developer, who has threatened them with legal action over claims that the finished building falls short of what was promised in marketing material and units contain defects.
Buyers were told to expect “designer residences” with an “exceptional quality of finish” at the Careel Close, Helensvale complex, where 31 apartments have so far been constructed.
However owners spoken to by the Bulletin, including retirees who downsized in the hope of a “quiet life”, said their first few months in the building “have been a nightmare”.
The developer has now brought in lawyers, who have written to owners claiming a letter they sent about their concerns was false and defamatory, and demanded they apologise.
An independent building inspector hired by residents at the complex, where apartments were marketed at prices between $420,000 and $525,000, found 56 apparent defects in six units examined.
In his report regarding one of the units the inspector listed more than a dozen possible issues, six of which were described as “major defects or safety hazards” requiring “immediate attention”.
Among the concerns noted in the inspector’s report were:
Moisture damage and high moisture readings around a bedroom window.
Water ponding in a bathroom.
Vinyl flooring not properly sealed in the kitchen, living and laundry areas.
A consultant acting on behalf of residents told the Bulletin that in one unit the rangehood was not connected, while in another a countertop was not glued down.
Residents also complain that they were promised “stunning European appliances”, but were supplied with basic Ariston-branded products, including dishwashers missing their top skins.
An inclusions list previously sent to buyers – but later replaced – had instead listed Bosch appliances.
Owners also contend that a rooftop terrace promoted as a “space to relax” and enjoy the “friendly community spirit of central apartment living” bears little resemblance to images used to promote the development.
The images show a decked area with corner sofas, however terrace areas seen by the Bulletin feature artificial grass and hard wooden seats.
Small print on marketing materials stated that “all marketing materials, including brochures, plans and models, are illustrative only”.
Four of the aggrieved owners jointly sent a letter to other residents in the 31-unit complex outlining their concerns and encouraging them to join an “owners and tenants group”.
On October 6, the four owners, plus two whose units had been inspected and the owners’ consultant, Adam
Hammond, received a letter from lawyers acting on behalf of the building’s developer, Zeal Orb Pty Ltd.
The letter, from Bundallbased Ramsden Lawyers, accused them of “defamatory publication”. It said the “imputations of concern” had “no basis in fact” and claimed economic losses to the developer as a result of the letter were estimated to be “$50,000 to $100,000, if not higher”.
The legal letter demanded the named residents apologise, provide a statement saying the allegations in the letter were untrue, cease “knocking on other owners’ and / or tenants’ doors and accosting other owners and / or tenants on the common property of the complex” and agree to pay legal costs of $1800 “in respect of the preparation of this notice”.
The letter further stated that their client had acted honestly in its management of the body corporate, had referred defects in common property to the building contractor and had complied with relevant legislation in its management of the body corporate.
The letter was signed by Associate Lachlan Boyle and Managing Partner John
Ramsden.
Zeal Orb Pty Ltd’s address is listed as a duplex unit on a suburban Pacific Pines street.
The owners of the Discovery Apartments complex also wish to assess whether common areas may also be subject to defects, but have been frustrated in efforts to have the areas professionally examined.
The Bulletin was present at the invitation of owners when an independent building inspector employed by owners to examine common areas was told he lacked permission to do so by the building’s property manager, who asked him to leave and said she had called police.
The developer, Zeal Orb Pty Ltd, also acts as the body corporate’s chairman, secretary and treasurer. Such control is legally permitted under the Body Corporate and Community Management Act, which allows for developers to run body corporates on behalf of owners until an AGM is called and committee formed.
Under warranty, claims about defects can be made with the Queensland Building and Construction Commission (QBCC) for 12 months from practical completion for
minor defects and six years and six months for major defects. The responsibility to fix any defects found within the warranty period lies with the building contractor. The residents have yet to lodge a claim with the QBCC.
After expiry of the warranty period, responsibility for fixing defects moves to the body corporate.
The Bulletin asked the developer a series of questions via its legal representatives. Questions included:
Why the independent building inspector hired by owners to inspect common areas had not been allowed to do so.
Why the rooftop terrace differed to artists’ impressions provided in marketing materials.
If Zeal Orb Pty was prepared to enter into negotiations with aggrieved owners about their concerns.
Ramsden Lawyers, on behalf of the developer, said that because the matters raised were subject to defamation proceedings, “no substantive comment can be provided at this time”.
A second block of units in the Discovery Apartments complex is under construction.