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I am a tenant in a strata building. Recently, with very short notice, the EC posted signs to state that a new key system would be in place and would issue 2 keys per unit. With regard to additional keys we had made as spares the EC apparently took a vote NOT to repay any key deposits for the old locks (despite issuing trust receipts for each $50 key). It’s pretty off behaviour, these guys have probably pocketed a fair amount of money for lost keys anyway and all the interest for those deposits for many years. Is there anything I can do to force the EC to honour returning the key deposits?
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Have they charged you an additional key deposit on top of what you paid for the other keys? If so, that does not seem fair.
I can understand that if there are security problems, and maybe too many of the old keys in use that they would want to change quickly.
They should supply you with replacement keys on a 1 for one basis so long as all your old keys were supplied by the Strata and you paid for them.
Or refund you the $50 for any keys you hand in over the 2 they are supplying as replacements.
Why do people have to be so sillly. Not you sunjoy, the OC. Yes there is something you can do, well actually two things I think.
The trust deposit you originally gave them was security in the event of you losing keys. You haven’t lost any keys. They decided to replace the keys, so under the terms of your original agreement you are entitled to that deposit back, or to apply the deposit to the new keys. It doesn’t matter what they may have resolved between themselves, you haven’t agreed to that and you are one party to that trust arrangement, in a trust situation one party can’t change the terms unilaterally. It is actually quite a serious matter to appropriate trust money, however small the amount might be.
So I suggest you send them a firmly worded letter stating that you paid that money under a trust arrangement and that they have no grounds to vary the terms of that arrangement, therefore you expect the return of the money forthwith. If they don’t, you will contact Fair Trading and make an application to the CTTT.
Another option is for you to contact your landlord and/or the agent.
You need the support of 75 percent of all owners voting at a general meeting to change a by-law – it’s really not that easy. ECs can’t enact or change by-laws.
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In my experience, advice from the Department of Fair Trading can be a bit wonky. Not that long ago they told me to apply for an order against a builder who had gone bust – I told them that wasn’t going to achieve anything as the company was insolvent, all it would do was cost us money. So I would take what they tell you with a grain of salt
Back to this issue – even if the OC had passed a by-law, and I doubt that they have, that by-law could not apply retrospectively. What I mean by that is that you paid the deposit for the keys under whatever rules applied at that time, and the OC (or the EC) cannot unilaterally change those rules without your consent. You paid them the money under specific terms, and those terms still apply.
For example, if someone was given permission to keep a pet, and the OC subsequently put in a by-law banning pets, the new by-law would not apply to that person and that pet, because they were given permission under a by-law that permitted pets. You cannot apply a new by-law retrospectively.
Jimmy’s right – it is very difficult to put in a new by-law and I doubt that the OC has done that. The EC can’t institute rules to suit themselves. One thing I wonder is where they have put the money, as it is trust money it doesn’t belong to the OC, so if they have moved it to the sinking or admin funds then that is a breach of the trust arrangement.
Another option would be to lodge a claim with the Small Claims Tribunal for the return of the money, that would probably be the cheapest option for you, refer link below. I do suggest you contact your landlord though and see what they have to say.
Oh well done, that is great news!
And thank you for the update.