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19/11/2011 at 1:12 pm #7776
We had a EGM to terminate the current agent, because after we read through the past documents (minutes and notice), we found out this agent has actually never been properly appointed. I mean the EGM which was held for its appointment has no quorum presented. We even searched for legal advise and gained support of this agent not appointed properly.
Now when the Owners Corporation comes to terminate this agent, they refused to return the books and records and would’ not pass over to our newly appointed agent where a proper assignment took place. The terminated agent still sends us the levy notices and ignore our request.
What shall we do?!! Can Fair Trading Help? And if we apply to CTTT for adjudicator order, will us be given a fair judgement? Desperate help needed!!! I believe this is a rare case, because I don't believe anyone would experience an strata agent as worse as we have experienced. We like a small strata of 6 lots only, however two of the lots are commercial lots own by the same owner and we strongly believe the agent is on bias of the commercial lots, because they are both real estate agents.
Could Jimmy or any experts guides us on what to do?? We are first home owners.
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19/11/2011 at 6:08 pm #14182
In addition, this agent not only refuses to return the books and records, they even sent me a letter tell me release access for plumber to do works for the commercial lot owner, it has never been mentioned in any of our former meeting of getting access to my garage, not that I want to create a trouble here. But I am just not convinced of what they are doing is right.
The letter they sent to me for accessing my garage state the reason that the commercial lots owner is paying for water for owners up stairs, which is referring to me, lot 1 and lot 2 residential owners, and if we don't grant the access, we might be out of water. What the!!!?? I checked with Sydney Water, that we are all paying for our own water usage up-to-date, we have our own water meter, so what kind of hilarious reason are they making up? This lead to me suspicion on the agent helping the commercial lot owner to do jobs for their own benefit while cost will be charged to the owners corporation. Very suspicious! Because you know why? The two commercial lots down stairs were previous one lot, it got subdivided, and pervious meeting mentioned about a separate toilet is needed, however the minutes did clearly state any cost relating to the subdivision, the commercial lot owner is responsible for it, now they want to fool us around because the agent was actually a friend of the commercial lot owner.
We (all the residential owners) knew we hold the rights, but sometimes when you experience someone who's barbaric, there's not much you could talk to them. We have even thought of sending out request to Today Tonight, because the media help would be a lot greater then Fair Trading I guess, because the residential owners are all first home owners and come from non-English speaking countries. Not to apply sympathy here, but I guess that relating to why even we have things properly done, the agent and the commercial lots owner still ignore us and even threaten or bully us.
20/11/2011 at 2:01 pm #14188ilovebbg – while some people do have problems with Fair Trading and the CTTT, it's still worth giving a complaint through the proper channels a try. I'd think very carefully before going to one of the tabloid TV programs, since you may get more than you bargained for by involving that sort of so-called journalism.
You can be assured that your old strata manager is not the only one.
Here's another idea: Is your old strata manager a member of either the professional association Strata Community Australia (formerly ISTM)? That organisation has a code of ethics which it may be able to enforce.
The Real Estate Institute also has a strata division, but experience with the strata manager (and REI member) we sacked earlier this year tells me you may not get a sympathetic hearing… doesn't mean you shouldn't try.
We have plenty of first home owners and people of non-English speaking backgrounds in our unit complex… probably part of why our former strata manager chose to ignore most owners… but it shouldn't make any difference. However it IS hard to change and all you can do is persist with trying to sort it out. In the long run it's worth it.
21/11/2011 at 4:01 pm #14204lovebbg,
About terminating your current Agent.
Your Agent (Strata Manager) must think that their appointment is legal, so check the “termination” clause in the Strata Management Agency Agreement that your Owners Corporation (O/C) should have signed with that Agent.
You may find that your O/C has to give 3 months written notice before you can terminate the Agreement, and that approach may well be easier (and quicker) than the CTTT's adjudication process.
About the water meter – you really should let a Licensed Plumber access your garage. Just make sure that you get a Certificate of Compliance from the Plumber as that will tell you exactly what work has been done.
24/11/2011 at 1:54 pm #14223Whale said:
lovebbg,
About terminating your current Agent.
Your Agent (Strata Manager) must think that their appointment is legal, so check the “termination” clause in the Strata Management Agency Agreement that your Owners Corporation (O/C) should have signed with that Agent.
You may find that your O/C has to give 3 months written notice before you can terminate the Agreement, and that approach may well be easier (and quicker) than the CTTT's adjudication process.
About the water meter – you really should let a Licensed Plumber access your garage. Just make sure that you get a Certificate of Compliance from the Plumber as that will tell you exactly what work has been done.
Dear Whale,
Yes you are right, the agent did think they have a valid agreement. Therefore me and another EC ask for an inspection of the agreement. And you know what we found out?!! — The agreement was signed by one owner (the commercial lots owner, who introduced this agent at the beginning). We brought the agreement to the lawyer, and an legal letter was given to the agent stating they are not properly appointed due to
1. The EGM of appointment doesn't have quorum, which only the manger presented in the meeting, no proxies, no any other owners.
2. The agreement was only signed by one owner which it does not comply the Strata Act Sec 238. Common Seal needs to be affixed with consent of two persons, owners or Secretary and another EC.
The agent didn't reply to our lawyer directly on the two points, all he claimed was the commercial lot owner owns two lots, so he signed twice. I mean, even I come from a non-English speaking country, but I did have a certain level of understanding English. “Two persons” == is a purl from, means 2, no matter how many lots the person owns, he still consider as one person, however he does have the no. of votes according to no. of lots he owns. The legislation has make it very clear, hasn't it?
24/11/2011 at 2:15 pm #14226Gilgal1 said:
ilovebbg – while some people do have problems with Fair Trading and the CTTT, it's still worth giving a complaint through the proper channels a try. I'd think very carefully before going to one of the tabloid TV programs, since you may get more than you bargained for by involving that sort of so-called journalism.
You can be assured that your old strata manager is not the only one.
Here's another idea: Is your old strata manager a member of either the professional association Strata Community Australia (formerly ISTM)? That organisation has a code of ethics which it may be able to enforce.
The Real Estate Institute also has a strata division, but experience with the strata manager (and REI member) we sacked earlier this year tells me you may not get a sympathetic hearing… doesn't mean you shouldn't try.
We have plenty of first home owners and people of non-English speaking backgrounds in our unit complex… probably part of why our former strata manager chose to ignore most owners… but it shouldn't make any difference. However it IS hard to change and all you can do is persist with trying to sort it out. In the long run it's worth it.
Dear Gilgal1,
Thank you for advise. This is actually a very interesting case if it's been brought up to the media. Anyway, we did convene a EGM to go for Mediation last Saturday. And guess what, the commercial lot owner gave the proxy to the strata manager, with all votes against our motions, and she even tries to stop us from starting the meeting by saying, your didn't have enough notice, which we did emailed to all owners 7 days before, they she wants to inspect the proxy forms, then she claimed that one of the proxy cannot vote due to levy not up to date, blah blah blah. After all, I said: “you may say we are not properly convening this meeting with your saying, you may leave and I will have it noted to the minutes.” She then said nothing and let the meeting starts and passed me the proxy form she hold.
We then email the strata agent for common seal to be affixed to the Mediation form, not out of our expectation, she didn't reply on our request. Luckily, the Fair trading officer understands our story and told us the common seal is not necessary, as long as a valid meeting has convened. Such a relief at that moment.
Whether or not they are in the ISTM, I am not sure. I may did a search to find out. Thanks for your advise.
24/11/2011 at 2:34 pm #14229Just to give people a bit know information about our case:
The strata agent didn't give us any information about the agreement, the commercial lots owner is the only one who knows about the exist of the agreement, because he reckon he rules.
What even shocked us when we were told about the exist agreement right after termination notice was sent to the agent is: The agreement doesn't have a term, but a termination notice of 36 months.
So if didn't send the termination notice to the agent and if we didn't inspect the agreement, it means the contract goes forever + 3 years notice from the time we terminate them.
I would like to ask everyone, will you bind yourself to an agreement with a new agent you've never deal with for limitless time and give them 3 years notice if you found them not satisfied?!!
24/11/2011 at 6:49 pm #14228!!!Interesting updates!!!
The case has become even more interesting now! A neighbour lives up the street came to me today with a Council letter of the commercial lot owner of our SP lodging a Development Application on change the use of his lots to short term accommodation.
It shocked us!! Because first, we as owners have never granted approval for the change of use of the lots, because we believe it might change the strata levy, it may affect the common property usage and management etc. So who granted the approval?!
Straight away we called the Ryde Council and received a recent letter from our terminated agent to the council, stating the approval was make consent to the owners corporation. OMG!!! It's fraudulence!!! Now it's even obvious to blinds why the agent refused to return the books and records, because they are doing things for the commercial lot owners.
Can't remember how many times the Secretary has emailed the agent to stop and activity relating to our account since the termination notice to them in Sept, how many times we remind them that they cannot act on behalf of the owner corporation because they are terminated.
My question is: is it considered to be a illegal?!!! It's far be on non-professional conducts of what the agent did I reckon. I really want to expose our case to the public and expose the name of the agent, so at least I tried to prevent others from falling into a deep hole like us!
24/11/2011 at 11:29 pm #14232This sounds very like a criminal case of gaining financial benefit by deception (or whatever the legal jargon is).
You need to talk to a specialist strata lawyer immediately about getting the required ruling from the CTTT to stop this planning procedure, get all your documents back from the strata manager and get the police involved.
You're right. This is serious. And once the strata manager has been charged and convicted you can broadcast their name far and wide with impunity … but not before.
Call a lawyer now.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
25/11/2011 at 6:43 am #14234I agree with JimmyT about calling in the police and taking legal action. It all sounds even worse than I initially thought.
By the way, to check if your old strata manager is a member of Strata Community Australia NSW (formerly ISTM) phone them on 02 8904 0450. I've found in the past that the search facility on their website doesn't always show all members names, so it's best to ask – and to see if they can help too.
Good luck
25/11/2011 at 1:56 pm #14239Thank you Jimmy and Gilgal1,
Do any of you have any strata specialist lawyer than you know? Please kindly advise. Thanks!
Today, me and my neighbour (the Secretary) went to [the local] Council and found out our Councilor of our ward, we spoke to him. And all we get is:
” The council doesn’t care about your strata issue, anyone can submit application form for Development, you may talk to the councilor of State if you think your strata agent is doggy….” So what’s all about strata living?!!! What’s all about body corporation? If the council doesn’t get involved of strata, then why would our terminated agent sent a letter and instructed council to lodge application and with our common seal?!! People are shifting their responsibilities! Anyway, we then did went to the State council and lodge our enquiry.
We have been fighting for our rights since Sept this year, not to ask for sympathy, but we are just ordinary people who have a family to take care of. Some times I was really exhausted and willing to just sell my property and move, but my soul tells me that once I started I have to finish it, because this to be continued, it’s really unfair for the next owner.
By the way, I had contacted StrataRes, and browsed through their web site and found them really transparent, and I love the different level service they provide, hope they can give us some profession advise, and we dare to have someone professional to take care of us.
25/11/2011 at 3:11 pm #14243You'll find the names and contact details of lawyers I'm happy to recommend here. But be aware that after the initial consultation, you will have to pay.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
26/11/2011 at 12:25 pm #14253Question: is a EGM necessary for the EC to search for legal advice? I am afraid we are running out of time. And at the moment, the EC has 4 members, the commercial lot owner, the terminated strata manager, me and the other residential owner. So and ECM is not an option I reckon.
26/11/2011 at 6:28 pm #14259You and your neighbour can apply directly to the CTTT for an emergency order to impose a Strata Manager to run the building until this is sorted out. The running of the building is clearly dysfunctional and possibly corrupt so you need to clear the decks and the statutory imposition of a strata manager – who takes over all the duties of the OC and EC – may be the simplest way to do that.
First you will need to find a strata manager who is prepared to take on the role, then make an application for an adjudication imposing a statutory manager using THIS FORM. Then at the same time you need to make an application for an interim order using THIS FORM.
The idea of the Interim Order is to prevent any further misuse of the Owners Corporations seal or any other powers while the sacked Strata Manager still has all your papers.
You'll find a case study about the appointment of a strata manager HERE. It's a very different situation from yours but it will give you an idea of how it works.
If you have a new strata manager lined up, they may well help you with all this. If you don't have one arranged already, have a look here for some I recommend (although there are plenty of other excellent operators). Just make sure whoever you choose is a member of Strata Community Australia (formerly ISTM) or you could be entering a whole other world of pain.
(7A) Other limits on exercise of proxy
A vote by a proxy who is a caretaker, an on-site residential property manager or a strata managing agent is invalid if it would obtain or assist in obtaining a pecuniary interest for, or confer or assist in conferring any other material benefit on, the proxy.(7B) For the purposes of subclause (7A), material benefitsinclude, but are not limited to, the following:
(a) an extension of the term or an additional term of appointment of the proxy as caretaker, on-site residential property manager or strata managing agent,
(b) an increase in the remuneration of the proxy,
(c) a decision of the owners corporation not to proceed with, to withdraw, to delay, to compromise or to settle litigation or other legal proceedings relating to the proxy,
(d) any other decision of the owners corporation that affects litigation or other legal proceedings relating to the proxy.
As far as needing an EGM goes, yes you do need one before you can get legal advice (for which you are paying) but that can be called by getting signatures from 25 percent of owners. However, many OCs pass a motion at their AGM allowing them to seek legal advice as and when may be necessary, so that might already be on the books.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
27/11/2011 at 11:18 pm #14280Jimmy, you save our world! I will try to follow the instruction.
Last AGM was done with the sacked agent in August, I don't recall anything about legal advice.
And you reminded me something else, the by-law was not even mentioned in the AGM, however 2 months after the AGM was held, the sacked agent sent us a copy of by-law straight away.
31/03/2012 at 5:52 pm #15176Hi everyone, not sure if you still remember this case, here's some dramatic updates.
1. Regarding to the strata agent issuing a letter on behalf of the owners corporation authorizing the commercial lot owner to change the use of his lots to boarding house, was finally rejected by Ryde Council, after we appeal direct to the councilor of the ward.
2. However our application for Adjudicator order to terminate the current agent and appointing new strata agent was dismissed. =(
Before we submit our case to Fair Trading and CTTT, we were told by both officers that the applicants to the Adjudication Order needs to be OC, we therefore convene a EGM for such authorization, but the Adjudicator dismissed our case claiming the applicant cannot be OC! 2nd reason for order dismiss: no committee meeting was held to authorize such application if the OC is applying for such order, isn't a EGM sufficient? Are both reasons given contradict to each other?
3. The strata agent we are still fighting against, yesterday sent us a special levy notice of total $15000, and telling us the insurance will increase from $3850 to $7000, and stating insurance company won't renew our insurance until we fix the sewage pipe! Our secretary straight away asked for reasons, black and white proof of what the special levy is for and what exact problem is there with the sewage pipe. Because our building is still under builder warranty, any structural problem will need to chase up the builder. If it's related to the subdivision of the commercial lot, the commercial lot owner is responsible for it. Unless the above two circumstances are excluded, why should the owners pay to fix something we don't even know there's a problem with?! Guess what the strata manager reply? — “Therefore no proof this is a building defect, there's some reason the insurance company saw the sewer pipe problem, and it has been a issue since 2010.”
What the?!!! No one has ever mentioned about the sewage pipe problem in any previous meeting, and without any engineering report what make the strata manager say this is a sewage issue. Is it all bull shit?
The commercial lot owner had recently put a sale ad in the market, I am guessing the strata agent is trying to use the urgent insurance issue as an excuse then push the rest of the owners to pay for something we do not need to pay. From the beginning, we smell fishy things between the strata agent and the commercial lot owner anyway. Both of them are owner of Real Estate agent.
Now my questions is:
1. The insurance is going to expire soon, what if we want to find out the exact sewage problem and didn't pay the insurance in time. What could happen to us?
2. Can the strata manager refuse to answer the chairman's queries regarding to insurance and common property issues? Because I as the chairman also sent email to the Strata manager questioning all the doubts, but the strata manager refused to answer my queries, in stead claiming that I have to pass the inquires to the Secretary before reaching the strata manager? (Note: the Secretary and all owners were copied in the emails when I sent the queries)
3. If one insurance company refuses to insure the property, shouldn't the strata manager ask quotation from other insurance company?
4. Shouldn't the strata manager provide the insurance report of what reasons lead to the dramatic increase of the strata premium?
5. What should we do if CTTT dismiss our case, what could we do? Because this strata agent was not illegally appointed/executed from the beginning anyway, why it's so hard to terminate them?
6. Please advise any solutions to fight for our rights. =(
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