I spoke at length with my Man from the Ministry who confirm that the original owner (developer) is liable for debts calculated on the basis of his retained ownership of the remaining units and their unit entitlements.
By sending out incorrect invoices, he is in breach of the Act which requires him to base levies on accurate estimates of costs.
My contact suggests checking this with Fair Trading by sending a question on this online form. You want a direction in writing from Fair Trading as to the correct procedure the developer should be following which you can then pass to him
He also suggests that you and the other owners pay contributions calculated on the basis of your unit entitlements so that you are still ‘financial’ and can vote at the AGM.
At the AGM, you can ask for evidence that the developer has paid his proper share of contributions. If he hasn’t, he can’t vote. Even if he can, he will be in the minority provided all of you purchasers stick together.
Serious irregularities at the AGM may well reult in it being declared invalid
The question of the caretaker contract is very worrisome. All such contracts negotiated before the first AGM have to be approved at the AGM or they fall over. I worry that your developer may have signed a feather-bedded contract from which he has received payment but which you have to service.
If you get to the AGM, either reject the contract until such times as other quotes can be viewed and considered or, at the very least, limit the contract to one year.
If you can possible do so, delay the AGM until after November 30 when a whole new set of owner-friendly laws come in.
And when you get there, choose a size of strata committee that would exclude the developer who sounds like a bully and is already a nightmare to deal with.
If only three owners want to be on the committee, make it a committee of three (you vote on the size of the strata committee before the election) and don’t elect the developer.
These small scale developers need to realise that when they sell units, they don’t belong to them any more.