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Topic
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We own a garden apartment which is currently rented out to tenants. Unfortunately it has just come to our attention, that at the last AGM the strata approved the construction of a bike rack in the garden/courtyard that faces our lounge room and bedroom windows. The courtyard previously had a lovely private garden, which no one else used, half of which they have ripped out to put down a huge concrete slab with bike rack for 4 bikes.
There are 8 units in the block and it appears that 2 committee members were at the last AGM and approved the bike rack (the treasurer and one other person). The rack was the treasurers plan and idea and we suspect that he did the work himself, paying himself $4,000 for the construction. No other quotes were obtained and the invoice submitted to the strata manager bears his last name. We are in the process of confirming whether he did the work himself.
The outlook from the apartment has been completely ruined by the destruction of the garden and the unsightly bike rack and it has reduced the value of our property. The tenants are not happy about their loss of privacy, and as our unit was the only one affected by this decision we think they should have contacted us as it is completely inequitable. Unfortunately there was a proposal sent out before the last AGM that included the plans for the rack however this was sent to an old address and we didn’t get see it until it was too late.
There is another AGM coming up in November and we would like to know what our rights are regarding:
a) removing the treasurer from the committee due to the competing interests and failing to act in the best interest of all owners. We are aware that he has been paying himself out of strata funds for various jobs on the property in non-arms length transactions
b) removing the bike rack and reinstating the garden bed and lawn
Thanks, Katrina
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@kparbs said:
There is another AGM coming up in November and we would like to know what our rights are regarding:
a) removing the treasurer from the committee due to the competing interests and failing to act in the best interest of all owners. We are aware that he has been paying himself out of strata funds for various jobs on the property in non-arms length transactions
b) removing the bike rack and reinstating the garden bed and lawn
Thanks, Katrina
Removing the treasurer is easy. Firstly you get four other owners to agree with you and either turn up or give you their proxyr, then you have a majority.
At the AGM you choose the number of members of the EC that you want (let’s say five, for instance) – this is a mandatory part of the AGM process – then you elect the five people you want on to it, obviously excluding the guilty party.
Next, if the bike rack was established as the result of a special resolution by-law, you will need one more vote to overturn the decision as it needs a 75 percent vote in favour. If not, a simple majority – which you already have – will see the bike rack removed.
However, if the rest of the owners aren’t bothered about the treasurer paying himself for actual physical work (rather than EC work, which is forbidden) there’s not a lot you can do except take the Owners Corp to the CTTT for undermining the amenity of your lot or possibly changing the use of a garden to a bike rack without the proper by-laws (whatever they may be).
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Hi Katrina, is the garden area on your title or is it common property?
If its on common property and the other owners agreed to erect the bike rack ( I assume you didn’t attend the AGM) then your between a rock and a hard place.
You could ask the EC to screen it off with some planting such as a hedge so you don’t see it as much or some kind of privacy screen. That may be your best solution in this case.
On the other hand, if the garden area is on your title you will have no problems removing the bike rack.
Seems you’ve been outvoted since you don’t actually live there.
I hate to say it and sorry kparbs Katrina, but this superbly illustrates why people who own investment units should really take an active part in the Owners Corporation; going to all the meetings and reading and replying to correspondence when necessary.
Notwithstanding Katrina said the AGM (notice / agenda I assume) were sent to an ‘old’ address. I trust she notified her real estate agent of any change of address and the Secretary of her Owners Corporation and the strata manager if there is one.
I DO hope the use of the old address wasn’t the strata manager’s fault. But what if she notified everyone properly and it WAS the strata manager’s fault? Does she have any recourse? Same question if it was the OC secretary’s oversight.
Decisions made at an AGM can be challenged on the basis that someone was denied a vote and that vote would have changed the outcome, provided they challenge within 28 days (I think).
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It is now required that ‘conflict of interest’ are disclosed on all decisions. I would consider that the treasurer paying himself for work based on decisions made by the OC falls into the conflict of interest in the decision making process. I get a feeling that the treasurer is proposing decisions where he can carry out works is common.
Pretty much I see possession as 9/10 of the law. You may wish to consider removing the offending bike rack (exclusive use of common property??) and return the area to original. I would consider doing this at own expense for the enhancement value to own property.
Alley cat