Indemnity Agreements, also known as Assumption of Responsibility Agreements, hold owners accountable for repairs and maintenance that would typically fall under the strata corporation’s purview. Such agreements encompass floor upgrades since strata insurance does not cover them, and future noise issues may arise.

The Act of Indemnities and Guarantees stipulates that interested parties must sign the Indemnity Agreement on behalf of the Strata.

As for the Council inspecting the underlay sample, it is advisable against it. The Indemnity Agreement’s intent may not align with such inspection, even though some buildings permit it. There is a risk that the owner might present a compliant sample but use a different one, potentially leading to noise complaints and non-cooperation from the owner, shifting responsibility back to the Council. Typically, if floor-related noise disturbances occur, the Council can require the owner to revert to carpeting or cover at least 60% of the floor with an area rug, ensuring the owner’s responsibility. Hence, it is imperative for the owner to use a quality underlay as mandated.

Find Blank Indemnity Agreement