Forum Replies Created
-
AuthorReplies
-
Hmmmm.
Yes we may need a lawyer. Or at least to get some legal advice.
Great. Thank you. Good to know.
I’m certain their inspection is legitimate and I have no desire to get in the way of them doing everything properly to build a decent building and not damage ours in the process. It could even increase our asset value if they do a good job.
My issue is more the dishonesty, lack of respect, care and basic courtesy, not bothering to ask permission and cutting corners and lying about it and distributing a letter to all residents in our block implying they have permission/ authority and thinking they can get away with it. It doesn’t bode well. (Along with the deal with council to change LEP restrictions and consequently massively overshadow our building). This shows a lack of regard for our well being. They were about to start spray painting our property when I interrupted them. They were very rude.
We need to know if workers are coming onto our property, who they are, if they’re licensed and insured, when, where, what they’re doing especially if they’re opening things up and poking into them and even driving into our car park and parking in people’s spaces.
It affects our insurance and disclosure obligations and the interests of owners and residents. We have a duty to maintain the common property etc etc.
Especially, considering serious costly damage that has occurred from developments, to neighbouring buildings in other LGAs. It happens.
06/09/2023 at 9:18 pm in reply to: Can a by-law stop kids playing on common property driveway? #70093If a child is hit by a car that would be really tragic and horrible for everyone. That is why there is a by law about not allowing unsupervised children in hazardous areas, eg. Where vehicles are moving around. It’s not just insurance questions. What if a child is seriously injured or killed? Both the family and the person who hit them would be damaged. I (lay person) read the by law as obviously hazardous areas are not play areas and adults should walk their children through eg. When coming home, parking and moving to your home. Strata tends to be medium to high density areas, ie. With traffic. There is also the issue of damaging people’s cars if throwing balls or riding bikes.
In my block people complain about kids playing in the car park or being unsupervised (usually because of the noise which can be irritating if they’re running up and down stairs for example). I usually like the sound of children and feel for the kids. (I grew up in a rural area with plenty of area to roam and frolic). Our strata has a park nearby but parents don’t always take their kids out or supervise them.
We installed a safety mirror so cars can see around the corner and it’s a little bit safer. We could try a speed limit sign or slowing devices as someone else suggested. Signs warning to look out for children could help too. We might even get our driveway gate fixed. There’s not really room for a play area on the property.
So, to answer the question, as others have said, no it’s not discriminatory. It’s about looking after the interests of everyone in the building.
I should add, I am Chair and Treasurer of our committee and there is nothing in our records discussing, mentioning or giving them permission and I’ve asked the Secretary and other committee members, and permission has definitely not been sought from our owners corporation to allow access to our property. We are in NSW. The developer is a private company and the contractors were private contractors for the developer, not connected in any way to a public or government agency or service.
I think it’s in the Home Building Act 1989 Schedule 1 definitions of residential building work, specialist work, and plumbing and drainage work and in the Home Building Regulation 5 Thresholds for contract requirements. I started investigating. Still not sure that waterproofing under $5000 is exempt though, as it still may be specialist work.
Not easy or practical to work out what’s lawful and how to maintain your building on a budget. But fun if you enjoy that kind of thing.
Yes, what Jimmy said.
If you stay where you are, you can hold your own meeting without the SM.
First, request an inspection of the records, and make copies – strata roll, minutes, annual reports, bank statements etc.
Document clearly and precisely and logically (unemotionally) what the issues are. Not holding AGMs for 3 years is pretty bad! And a clear breach.
Research and find other strata management options. List the costs/ benefits of each.
Contact everyone on the strata roll. Say I think we should change SM, or self manage, for these reasons. Here are some possible options, what do you think? (Keep it as painless as possible. Offer an easy solution that will save them money).
Then discuss with and listen to and negotiate with the people who engage. Together with them request an Extraordinary General Meeting from the secretary, with motions 1. to not renew current contract, (yes/ no) and 2. to choose a strata management option from the list (include an “abstain” option. Hold the EGM and vote. Do up the minutes. Send to everyone and give your SM notice.
As Jimmy said, a good potential new strata manager will help you.
If the secretary doesn’t call a meeting, you may be able to if you have other owners wanting the meeting:
Strata Schemes Management Act 2015
S36 Functions of Strata Committee
(2) A decision of a strata committee is taken to be the decision of the owners corporation. However, in the event of a disagreement between the owners corporation and the strata committee, the decision of the owners corporation prevails.
(3) The following decisions cannot be made by the strata committee–
(a) a decision that is required by or under any Act to be made by the owners corporation by unanimous resolution or special resolution or in general meeting,
(b) a decision on any matter or type of matter that the owners corporation has determined in general meeting is to be decided only by the owners corporation in general meeting.
(4) An owners corporation may in general meeting continue to exercise all or any of the functions conferred on it by this Act or the by-laws even though a strata committee holds office.You only need a 50% majority of yes votes from financial attendees at the meeting, for the above motions to carry.
- This reply was modified 2 years ago by .
Hi Sujenna,
I imagine with only 2 owners and 2 townhouses it would be fairly easy as long as the other person is cooperative. If they’re not, or refuse to pay levies it could become difficult. Or if you’re not good at budgeting and record keeping.
How much shared property is there? Driveway/ plumbing/ roof/ walls/ electrical? You need to see the plan drawings.
The main things will be –
1. Hold a meeting with the other owner with a motion to move to self management. Minute this and both sign it.
2. Inform the strata manager and give any required notice and/ or pay exit fee.
3. Set up a business transaction account with both owners as co signatories to keep trust funds – you’ll probably both need to go into the bank with the original signed minutes and your ID.
4. If insurance is due for renewal – Organise insurance – I recommend contacting Strata Fair brokers – they are very helpful and will save you money.
5. Inform utility companies of change in where to send the bills
6. Pick up your records/owners seal from the strata manager.
7. You may want to store your records using dropbox, Strata box, or Our Body Corp. The last 2 have more options to help with managing your strata. It’s also good to set up an email specific to your strata plan. This way all your records are backed up on the cloud.
8. Hold a meeting and elect a Chair, Secretary and Treasurer. Decide who will do what re record keeping, reporting, how much levies, issuing levy notices, organising contractors etc.
9. If there’s a current gardener/ cleaner – contact them about continuing arrangements.
10. Ongoing keeping accurate records in an organised and timely manner.
11. Create quarterly and annual financial reports (at minimum bank statement, matching list of income and expenditure items, and matching receipts) and an Annual budget.
12. Update details on strata hub, then Annual Reporting on strata hub.
13. Annual tax return/ report – very basic
14. Have at least one meeting a year and minute it.
15. Get quotes and contractors when needed (make sure they are licensed and insured) and supervise works and pay them.
16. Most important – be able to work cooperatively with the other owner to maintain shared property.
17. Familiarise your self with the strata schemes management act and regulations, and read up on the service nsw living in strata information pages
It doesn’t matter if you don’t do everything perfectly – you’ll learn and get better as you go. The main thing is that you can get along and agree with your neighbour about how you will manage and pay for things, and keeping records of this.
Definitely get a strata report – see how long the current contract is for and what the ending the contract terms are, as well as how much is in the sinking fund and what any issues have been.
Check the lot entitlements, are they equal or one higher than the other? – with only 2 owners you can get a stalemate. The one with higher lot entitlements would win every poll vote if it came to that.
I’d speak to the other owner and see what they are like and what they think. This is the main thing – how open they are to self managing, how much work/ time they’re willing/ able to put in, if they’ll pay levies and be responsible without needing a strata manager parent, if what you both want is compatible and can work – eg. Similar vision and priorities in how you want to manage your property.
If you decide to get a new strata manager, take your time and research them – check their standard contract and how clear it is about what is included and what is extra. Insist that monthly bank statements are provided as a contract term. Have a look at some of the properties they manage.
Some strata managers offer levels of service – eg collecting levies, paying bills, record keeping, budgeting, insurance arrangement included, and anything else like arranging contractors, answering queries is extra billed per item. You could choose something like this.
I hope this helps. Good luck 🙂
Hi Esmerelda,
Are you in NSW? (My answer relates to NSW. I’m not sure about other states).
Was it a new strata management company, or just a different person managing within the same company?
1. To change strata management companies, there needs to be a vote at a general meeting of the owner’s corporation.
2. Any major works, as well as changes to common property also need to be voted on at a general meeting of the owners corporation.
Check minutes of previous meetings to see if any of these works were on the agenda, in the budget, voted on/ approved at an earlier time.
Unless your strata manager is a compulsory one, this all sounds very irregular.
The owners corporation has to maintain the common property, however they should get to vote on choice of contractors, costs and timing of works, as well as how things will be funded, eg. Through existing budget, special levy, loan etc.
@Jimmy-T the solution they came up with was a generic/ specific email for committee, eg. Chair @blahblah. And this could be done for everyone. Create a specific email for your strata scheme, that you can be contacted on.
We now have a portal and people are free to use it or not use it. The main thing is that people can communicate if they want to.
The delay in getting hold of info, digesting it, working out what to do and then discussing with all owners, cost us thousands of dollars.
A big part of the issue has been owners lack of involvement or desire to be involved though. It doesn’t take much to put most people off.
@TrulEConcerned
I think eventually the strata roll, or enough details for owners to contact other owners, will be available on strata hub.
It is interesting, in these SCA webinars (below) about the [then] upcoming strata hub, how uncomfortable SCA reps are about the prospect of this info being freely available between owners. They cite wanting to protect their committee.
As the Fair Trading guy said, being available for communication with owners is an integral part of being on a committee. I believe that strata managers are more concerned with maintaining control through making it difficult for owners to communicate with each other. Divide and conquer.
I did get the strata roll and it was key to being able to contact owners and get together and vote to not renew with our strata manager. Strata manager tried to charge hundreds of dollars for it but provided the requested records within 14 days after I told them they couldn’t charge more than the prescribed fee. Plus I was and am a committee member.
Records have to be provided to the committee within 14 days, not 3 days. And as Jimmy said any owner can inspect the records for a nominal fee.
And they have to be provided regularly as part of the services they are paid for. (Strata schemes management Act part 4 division 3, and part 10 detail this).
Here is a video of a NSW Strata Community Association (the strata managers’ professional body) webinar on the Strata Hub.
- This reply was modified 2 years, 1 month ago by .
06/10/2022 at 11:42 pm in reply to: Is 20% strata manager commission for insurance premiums OK? #65690@TrulEConcerned no worries.
I did actually contact another broker months ago and they were not very helpful – required claims history which our strata manager held and we didn’t. I then later rang our current (at the time) broker before I contacted Strata Fair, and said our Owner’s Corporation had voted and we were moving to self management and I needed our claims history, and they told me our strata manager is their client, not our owners corporation, so we would have to ask our strata manager. I immediately rang Strata Fair and they were extremely helpful and told me that as we had voted for self management and getting our own insurance, and also had access to the seal, all we needed to do was sign a letter to transfer the brokerage, effective immediately, and they’d be able to access the claims history and all required info.
Why is this industry protected? In our case I seriously wondered if my strata managers’ real clients were his developer clients, and running our building and works fund down (devaluing our building and driving us up the creek without a paddle, ripe for a predatory developer) his real business.
I was thinking a lot of strata manager issues could be solved by having the strata roll visible to owners on strata hub, making it illegal for strata managers to charge an exit fee, and only allowing month to month contracts. Then they’d actually be accountable to their clients, or lose their clients business, like any other working person is. It would also be handy if owners corporation money could be held by an independent body, like tenants bonds are.
The current system is not sustainable.
Yes in deed, re why do they need a rule about strata managers handing over documents, (I was thinking if your mechanic wrecks your car or steals it, it’s just not on and doesn’t happen and there are avenues to rectify it. You pay a mechanic because you’re busy and don’t have time to be a mechanic as well as everything else. And they do it quick and well and skilled, for a fair price for a mechanic, at a price you agree and expect. So why on earth do strata managers get away with so much dodginess? And people accept it?)
and yes in deed a cheat sheet listing changes to the laws and pointing to the relevant sections would be fabulous.
And thank you. I have still yet to tunnel through this. This article is helpful.
Rules for secret agents. Ha ha! You must be a master of disguise and excel in eaves dropping …
@Court also check this page from Bannermans, which explains that any owner has right to owners records, and owners don’t even need to make a section 182 request (so shouldn’t have to pay, but a fee may be charged for preparing documents for inspection):
“There seems to be a common misconception that an owners corporation requires permission from its strata managing agent to access the strata roll and other records maintained for it by its agent. That access is often denied, frequently citing privacy law concerns. This is a misconception, because these are the owners corporation’s own records and it is entitled to them under various legal principles.”
“An inspection under Section 182 of the SSMA is not required. That is a procedure available to third parties, e.g. lot owners and is not required by an owners corporation, which is after all seeking access to its own documents, for which it requires no authority.
The privacy laws do not prevent an agent from disclosing, to its principal, information collected or held on behalf of its principal. In fact, the privacy legislation permits personal information to be collected, held, used or disclosed if required or authorised by law. The collection/access in issue is required by various provisions of the (“SSMA”). In other words, there is no sound basis for an agent to claim privacy concerns as a basis for withholding access.” -
AuthorReplies