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Subject: Strata manager holding records hostage! Anyone else dealt with this?
Hey FlatChatters,
I’m at my wit’s end here and need to tap into the collective wisdom of this brilliant group. I’m the treasurer of our strata committee (a thankless job at times, as many of you know!), and I’ve hit a brick wall with our strata agency.
Here’s the tea: I’ve been asking for a copy of some essential strata records – you know, the usual stuff we need to actually, well, do our jobs. But every time I ask, I get the same response from our strata manager: “Sure, as soon as you pay the administration fee.”
An administration fee! For records I, as the elected treasurer, am legally entitled to see! Aren’t the records property of the owners corporation?
Now, I’m no legal eagle, but I’ve done my homework. I’ve got the NSW Strata Schemes Management Act 2015 (50) open on my browser, and I’m pretty sure Section 182 doesn’t include a bit that says “…unless the strata manager feels like charging a fee that day.” My understanding is that the committee (and especially the treasurer!) should have free and easy access to these records.
I’ve tried being nice. I’ve tried pointing out the legislation. I even sent them a screenshot of the relevant bit, circled in a lovely digital red pen. Their response? A metaphorical shrug and a “that’s just our policy.”
It feels like they’ve put a paywall on our own corporate memory! How are we supposed to make informed decisions about our own building’s finances if we can’t see the paperwork without coughing up cash?
So, I’m throwing it out to you all:
· Has anyone else had to deal with this kind of obstinance? Please tell me I’m not alone in this frustration!
· What’s the magic word? Did you find a particular phrase or approach that finally made them budge?
· Do I need to get the whole committee to descend on them like an angry mob (metaphorically, of course)?
· Is the next step a formal complaint to NSW Fair Trading? I’d rather not go nuclear, but my patience is wearing thinner than the laminate on our common property flooring.Any advice, war stories, or even just a virtual cup of tea would be massively appreciated. It’s times like these you realise just how much power a stubborn strata manager can wield.
Cheers,
The Penny-Pinching (and increasingly frustrated) Treasurer
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Has anyone else had to deal with this kind of obstinance? Please tell me I’m not alone in this frustration!
Just last year I had the same issue with Netstrata whose boss tried all sorts of BS to try to wriggle out of their legal responsibility to provide the strata roll to our secretary, including sending a quote (to our secretary) from Flat Chat where I told a reader they had no legal right to be given the strata roll for free. The genius Netstrata minion who found this, edited out the part where I said the secretary was entitled to receive all the records. Clowns!
What’s the magic word? Did you find a particular phrase or approach that finally made them budge?
They were using the entirely spurious argument of protecting the owners’ privacy. We said we’d keep the files in a super-secure system – even though any owner could rock up to their offices, pay the $35 fee and expect to see and copy the files. Basically we offered them an off-ramp so they could do the right thing without losing too much face. They eventually quit as strata managers saying I had created a toxic atmosphere … but by then the Four Corners report hit our TV screens. Only their developer mate was sad to see them go.
In your case, the magic word might be “tribunal” – as in, “let’s take this to NCAT and get a definitive ruling.”
Do I need to get the whole committee to descend on them like an angry mob (metaphorically, of course)
Get the committee to agree that if the strata manager doesn’t hand over the documents (or make them available), you will take a complaint to Fair Trading, NCAT and Strata Community Association (NSW) and make a submission to the Fair Trading Task Force currently examining issues in strata management
Is the next step a formal complaint to NSW Fair Trading?
You could give them one more chance to provide the documents or else. But don’t make threats unless you are ready to act on them. That said, while Fair Trading’s response will be a slap on the wrist with a feather, no strata management firm likes to be spotlighted in that way and they will get it done.
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Have you checked the contract you have with your strata manager? Some SMs seem cheaper but they charge for ad-hoc services (such as providing documents) while other SMs charge higher fees that include more services, some of which you might not need as often as other OCs.
It is almost as if the strata manager knows the value of this information. Withholding it from the strata committee gives them power.
Are they at least providing you with a “quarterly cash management statement”? I used to get a list of financial transactions and lot position report every three months. For the Annual General Meeting, they are required to provide a “key finanical information statement”, balance sheet, lot position report, income and expenditure reports, budget for the next accounting period, capital works plan (every ten years), copy of insurance certificate.
Strata management agreement
Closely read the schedules of fees in the back of your strata management agreement. There might be something about how much it costs to retrieve information. There might also be a heading that says “hourly rates” followed by a list of job positions and dollar amounts.
Another way to get the strata roll is to knock on everyone’s door and politely ask who owns the place. Even if it is a tenant, they have a landlord / property manager.
NCAT applications
You can download the NCAT application form for “strata application”. It contains a long table of orders you can ask NCAT to make. It explains what you need to do before you submit the application. There are two “Orders about strata managing agents and buildings managers”. One is to terminate the strata management contract or make another order about an agreement. The other is to replace the strata manager with another strata manager of your choice.
Both NCAT orders require you to submit a copy of the strata roll. This would be difficult if the strata manager refuses to give it to you.