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Indemnity Agreement

Indemnity Agreements (Assumption of Responsibility Agreement) make owners responsible for repair and maintenance of what would otherwise be the responsibility of the strata corporation. The floor upgrading is included in this kind of Indemnity Agreement as the strata insurance will not cover the upgrading and there might also be a noise issue in the future.

Who should sign the Indemnity Agreement on behalf of the Strata? The Act of Indemnities and Guarantees provides that the interest parties must sign the Indemnity Agreement.

Should Council inspect the sample of the underlay? It would be better not. The purpose of the Indemnity Agreement may not support Council to inspect the sample although some buildings do so. The owner may give you a good sample, but actually use another one instead. Then if the noise issue occurs, the owner may refuse to cooperate as the sample was viewed, inspected and approved by Council. That is to say, the responsibility may be shifted back to Council. Usually, when a noise disturbance is resulted from the floor, Council can demand the owner (1) to change back to the carpet; or (2) to cover a minimum 60% floor with the area rug. That is to say, the responsibility remains to be with the owner without question. Therefore, the owner must have a good underlay as requested.

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