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As my complex spirals further and further down the drain pipe of strata, thought I would share the latest.
A solicitor acting for someone buying here enquirer about financials. Old SM said all our paperwork sent on to new SM. New SM surprised as they are not managing us. Appears that our EC hasn’t managed to get around to signing a new agreement form yet. I mean has only been a few months since the old agreement lapsed.
So their inaction could affect the sale. No one knows where documents are, apparently we don’t have a managing agent. Can individual EC members be held accountable for an out of pockets due to this? Oh wait, they’re covered by insurance so they dont have to worry about anything. And that is why we find ourselves in this situation. The EC don’t worry about anything, do anything or get around to anything because its all ok they’re covered.
Now do you believe me that we are up the proverbial creek without a paddle? And do you see why I hope for a ray and light on this forum whilst scanning the real estate pages for an escape?
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Hi Struggler,
Sometimes I get negative feed back when I mention going to the CTTT but if what you have been posting is only half true which I am sure it is, then the only hope you may have is seeking the compulsory appointment of an administrator for your scheme.
Here are some pointers;-
1) To be able to have the CTTT consider orders to appoint an Administrator (Compulsory Strata Manager) you need to convince the Adjudicator that the OC is dysfunctional, which in your case should be reasonably easy.
2) Whoever makes the application, gets to choose the Strata Management Company and the Strata Manager, so make sure you ask around and interview one or two and choose one that can sort things out
3) Get a solicitor to help with the application as in doing so you can define what authority will be given to the Administrator (Compulsory Strata Manager) and the issues to be addressed.
The only down side is you need to be aware that you and the other owners may well lose all control of the OC. Appointments are normally for 12 months with the aim of the CTTT to see the Administrator (compulsory SM) to have any maintenance work to the scheme carried out (section 62), insurance etc in place required under the SSM Act and generally get the OC back on its feet. If the Administrator can do this sooner than 12 months they will normally hold an EGM and hand the scheme back to the owners (normally the Administrator will offer to stay on as the SM) if they can’t get the OC in order within 12 months they can seek an extension.
We have worked under many CTTT appointed Administrators and if you take time to find an experienced one it can result in the OC being put in a better position for all Owners.
A last word of warning to all, consider carefully before making an application to the CTTT to appoint an Administrator (Compulsory Strata Manager) As sometimes what you wish for can come back and bite you, as you may well lose any control. I can’t suggest strongly enough that you seek some legal advice first, the better the application is detailed in my opinion the better the outcome will be.
Hope this helps.
PS Just a word on EC members having the attitude that they are Bullet Proof as the Office Holders have insurance coverage, let me tell you that they are in for a big surprise. The Insurance coverage is to cover those EC officers who carry out or attempt to carry out their honorary position with due diligence and meeting their duty of care. We see far too often where insurers are able to get out of coverage because the committee has not met Duty of care etc which leaves the OC to meet any cost and/or with the committee members facing litigation with no Insurance coverage. The point is if you get on an EC you have a responsibility to manage the scheme in compliance with the SSM Act and others and in line with a reasonable duty of care.
Dear struggler,
Thanks for your kind words, I hope my contributions are of some help. Best with your situation, I try to give the benefit to all, but sometimes EC just need a nudge and sometimes lot Owners. Strata is all about working togather, but at times it’s a big ask. Many Thanks.
ckquote>>@struggler said:
Chris, just want to thank you very much for not only your words of wisdom on this matter, but also for your company’s sponsorship of this forum. Without both, would be very hard and time consuming to find such info to know what actions are available to take. Not only for me but for all the flat chatters you have advised.
Am considering leaving a note for owners. They are totally unaware of anything that is happening at the moment. Unfortunately this is not only the fault of the dysfunctional EC, but the “it’s all someone else’s problem” attitude to living in strata that owners here. I have been concerned for months but, as I have posted previously, it seems to be only me who notices or pays attention and it is therefore only me who wants to see something done. The others walk blissfully through the complex, not thinking that their indifference affects them. They walk past a broken post or light and don’t report it because that is what the EC do. And iwith an EC that does nothing when the problem is pointed out to them, then something has to give. I need owners to get angry and get aware and be concerned.
Hey Struggler, I sympathise, but gotta say there is some inaction by all. Don’t doubt your EC is incompetent. But really there is only one place for your files to be, with the previous SM. If the new agreement has not been signed files cannot be sent to anyone.Legally. When the agreement is approved by the OC, files will be sent to new agent. The OC needs to approve not the EC. EC are not decision makers for CP nor responsible re this. This should have been decided at AGM and the SM should have authority to sign off on OC behalf then. All financials should be at the current/previous SM until legalities are confirmed. So can be viewed.The onus should fall on your previous SM as they should still hold files and provide access to until the new agreement is signed. So badger them. Probably not what you want to hear, sorry.
Cheers, Best of Luck,
CBF
@struggler said:
What to do, what’s to do?After a sleepiness night considering my options thought I would put it to my fellow flat chatters. What do you think I should do or what would you do in m y position?
A brief synopsis – an EC who do not get around to doing any work, a complex that is need of repair, a complex that is full of people who don’t know what has been happening behind the scenes (nothing) and just think someone else is getting the work done.
So do I demand a time line of works from the EC, quoting the relations sections of the act (that quite frankly I don’t believe they would know what the act is) and tell them to produce this in a week? An EC that has meet discussed and organised quotes should be able to produce such in a week. Then tell them if they do not produce this I will take the matter further, advising their actions are sufficient to be found dysfunctional and again quote the relevant act? Do I leave a note for all resident owners telling them the EC has yet again not arranged any works and that if they want action they have to tell them to get on to it? Otherwise they will produce more quotes for the same works at the next AGM for the third year in a row? Or should I do both?
Any input or encouragement would be welcomed?
Struggler you have tried hard, in fact you seem to have given your all to the cause, but unless you think your location is the absolutely best place in the city/state/country to live, maybe it is time just to tart up your place, put it on the market, and try to get a peaceful life.
Why not start looking around at places now. If it is in Strata, you know what to look for before going there. If Torrens Title, then even though more expensive, maybe by the time the majority wake up where you are currently living, the special levies needed may make the extra cost of a house affordable by comparison.
The only problem, if you go to a house, we may not have the benefit of your experience and wisdom on this forum.
Hi,
I will stick my neck out again.
I think you have got the action plan right, but may I suggest that it would be better to have your demands put forward by a Lawyer. First it would be better to get some proper advice so as to understand your options fully and secondly I wold suggest that the EC and OC will take you much more seriously if your concerns are articulated in a legal demand letter.
The lawyer that comes to mind is Suzie Broome of Makinson & d’Apice Lawyers, Suzie only acts for OC and Owners and has a wealth of experience in similar matters, why not give her a call in the first instance.
Best to you.
@struggler said:
What to do, what’s to do?
After a sleepiness night considering my options thought I would put it to my fellow flat chatters. What do you think I should do or what would you do in m y position?
A brief synopsis – an EC who do not get around to doing any work, a complex that is need of repair, a complex that is full of people who don’t know what has been happening behind the scenes (nothing) and just think someone else is getting the work done.
So do I demand a time line of works from the EC, quoting the relations sections of the act (that quite frankly I don’t believe they would know what the act is) and tell them to produce this in a week? An EC that has meet discussed and organised quotes should be able to produce such in a week. Then tell them if they do not produce this I will take the matter further, advising their actions are sufficient to be found dysfunctional and again quote the relevant act? Do I leave a note for all resident owners telling them the EC has yet again not arranged any works and that if they want action they have to tell them to get on to it? Otherwise they will produce more quotes for the same works at the next AGM for the third year in a row? Or should I do both?
Any input or encouragement would be welcomed?
@struggler said:
So fasten your seatbelts, it’s going to be a bumpy ride!
Struggler, personally I do not think a letter from a lawyer is not worth the cost and paper it is written on. (Unless it is a subpoena of course.)
What does everyone think would happen if Struggler just gets his property repaired, and present the bill to the Treasurer/Secretary?
The problem is you need to money up front.
If they do not pay up, Struggler has a long paper trail to show how hard he tried to get the whole complex up to standard.
I would write a letter to the EC members (possibly copied to other owners) pointing out that they are failing in their duty under Section 62 of the strata Act. There is legal precedent to show that this section is absolute – it has to be followed regardless of the financial or other circumstances of the strata scheme.
You will require a schedule of works to be sent to all owners within 14 days or you will take action at the CTTT to have a statutory manager appointed. A statutory manager will take over all the duties of the Executive Committee and Owners Corporation for at least a year and will initiate any work needed to be done on common property. If there insufficient funds to complete all the work, a special levy may be raised.
There is no legal need for the SM to consult with owners during this period of appointment. The Owners Corp, as represented by the Executive Committee, has failed in its statutory duties and has therefore lost the right to run the building.
The SM will choose the quotes and the companies to do the work. They may also hire other services – like cleaners etc – to maintain the common property properly. The SM ihas a statury obligation to fulfill the letter of the law – they may not be concerned by any “off the record” arrangements that may be in place.
EC members also should be aware that, as they have been informed of the need for repairs and maintenance several times, they may now be guilty of culpable negligence. That means their EC insurance may be invalid if there are additional expenses that would not have been incurred if they had done the right thing. If they have invalidated their insurance by willfully neglecting advice that work was required, they could be personally liable for the additional expenses.
Finally, tell them that you don’t wish to go down this road but you aren’t prepared to allow continued mismanagement of the building to result in the further deterioration of the value of your and other owners properties.
Then quote the Act (below), maybe refer to the specific works that need to be done, and light the blue touch paper and retire to a safe distance.
62 What are the duties of an owners corporation to maintain and repair property?
(1) An owners corporation must properly maintain and keep in a state of good and serviceable repair the common property and any personal property vested in the owners corporation.
(2) An owners corporation must renew or replace any fixtures or fittings comprised in the common property and any personal property vested in the owners corporation.
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.
Dear Struggler
In a perfect world an owners corporation would be well run, the executive committee would have training and a working knowledge of the relevant legislation and all owners would want to protect and enhance their investment by getting involved. Unfortunately, some owners do take the ‘it’s someone else’s responsibility’ approach. An owners corporation has a strict duty to maintain common property and you are within your rights to insist the work be completed. You can take legal proceedings to force the owners corporation to conduct the work if necessary however we find that sometimes our approaching the strata managing agent and executive committee pointing out the duty to maintain property under section 62 of the Strata Scheme Management Act 1996 coupled with a promise that an application will be made to the strata schemes adjudicator to install a compulsory strata manager works wonders and commencing proceedings is not necessary.
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