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I have an issue in my strata block where the developer has made additions and alterations to common property without approval. I raised objections however subsequent unit sales have had terms inserted in them that indicate the owners acknowledge and support the alterations.
Legal action for breach of contract has been threatened against other owners if they do not give their support at an upcoming EGM to validate the alterations and additions. Due to their not wanting to enter legal dispute, it is likely the motion will be voted up. I think this is utterly ridiculous and want to contest it. What is my best approach to take?
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Some developers are real charmers, aren't they – unable to come to terms with the idea that once that have sold a property, it doesn't belong to them any more.
There's a section of the strata Act that I think might be relevant to you. It says:
(7AA) An original owner or a person connected with the original owner
may not cast a vote by means of a proxy or power of attorney given by another
owner of a lot in the strata scheme concerned if the proxy or power of
attorney was given pursuant to a term of the sale contract for the lot or
pursuant to another contract or arrangement that is ancillary to the sale
contract.(7AB) Any contract or arrangement referred to in subclause (7AA) is
unenforceable to the extent that it requires the giving of any such proxy or
power of attorney.So what you should be telling your neighbours is that there's no point in voting for this because it's illegal anyway. And as for suing for breach of contract – it's more likely that you'll collectively be able to sue for the return of Common Property to its rightful owners.
Moreover, there's a possibility that the new Federal laws on unconscionable contracts may apply here too.
Get together with a couple of other owners and hire a specialist strata lawyer to look at the details of the case. Then get them to send a letter to your developer explaining how the law forbids this kind of blackmail by contract. Also, have a motion to resume the common property added to the general meeting with the advice for the strata lawyer added as an annex to the motion so that everyone can see it.
Your developer needs to learn that they can't bully and blackmail owners with empty threats of legal action when they, more than likely, are the ones on the wrong side of the law. And your neighbours need to learn to stand up for their legal rights.
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Hi GB2011
Thanks for your response.
Unfortunately, in order to properly respond to your questions, considerable time would be required for which we would need to charge a fee.
Please let me know if you wish to engage me to provide answers to your questions.
Regards
Chris Kerin
Senior Lawyer
TEYS Lawyers
The Strata Law Experts
02 9562 6500
Suite 73, Lower Deck
Jones Bay Wharf
26-32 Pirrama Rd
Pyrmont NSW 2009Don't miss our next
monthly webinar:
Death On The Common
Property – Who's Guilty
Register here nowI'm planning to base this week's Flat Chat column on this so let's see what comes up after bthat.
JimmyT
If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. 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. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.