Mr. Chen, an owner in Strata Plan VIS1234 in Victoria, accidentally left his bathtub overflowing, causing significant water damage to his unit and the unit below. The strata corporation's insurance claim resulted in a $15,000 repair bill for Mr. Chen's unit and $25,000 for the unit below, with a $10,000 deductible. The strata corporation's bylaws permit chargebacks for deductibles where an owner is responsible for the damage. What amount can the strata corporation charge back to Mr. Chen?

Question: Mr. Chen, an owner in Strata Plan VIS1234 in Victoria, accidentally left his bathtub overflowing, causing significant water damage to his unit and the unit below. The strata corporation's insurance claim resulted in a $15,000 repair bill for Mr. Chen's unit and $25,000 for the unit below, with a $10,000 deductible. The strata corporation's bylaws permit chargebacks for deductibles where an owner is responsible for the damage. What amount can the strata corporation charge back to Mr. Chen?

Answer options: ✅ $10,000, the full amount of the deductible.

• $25,000, the cost of repairs to the unit below.
• $40,000, the total cost of all repairs.
• $15,000, the cost of repairs to Mr. Chen's own unit.

Correct answer: $10,000, the full amount of the deductible.

Explanation: Under Section 158(2) of the Strata Property Act, if an owner is responsible for the loss or damage, the strata corporation may charge back the deductible amount to that owner, provided the strata corporation's bylaws permit it.