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[clockwise]

Our building has a shared facility administered by Building management committee(BMC).

the BMC is made up of three members, residential lot, retail lot and a top floor owner(not subdividend stratum). I’m one of the owner in the residential lot.

the residential lot pays 90%of BMC expenses

we have a Strata Managment Statement(SMS) seething our rules for the BMC.

the SMS was revealed to us 3 years after the building was built. The SMS was prepared by developer’s solicitor. Every year every member elects their BMC representative. One of the clause of the SMS states ‘anything done by the BMC representative has the same effect as if it’s done by he member’.  Then our SM(appointed by developer originally) took advantage of this clause, he put a motion in the BMC meeting and let our BMC rep vote in favor of a part time manager(remuneration $60k plus GST for 20 hours a week. Contract term for one year and auto renewable for 3 year after the first term expiry). The SM did not put in a motion in residential lot to let us vote. Also, the contract signed was revealed after it’s auto renewed. 

i think the BMC mechanism was misused by SM and it’s unethical to do this. Any one has any thoughts on the issue?

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[Jimmy-T]

Looking at your other posts, on your maintenance fund and on your cladding inspection, I think your strata manager may be over-servicing the scheme, trusting that the BMC will support his appointment because the minority stakeholders get a lot of benefit for very little outlay.

I think you should get your committee to agree to an audit of your services by an independent expert, including a review of contracts and the circumstances under which they were made.  There’s a company called Strata Answers who provide this kind of service (for a fee, of course).

But it sounds to me that you are being baffled with BS from people who may well be feathering their own nests at your residential owners’ expense.

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[g-g]

Clockwise – my own experience is similar to yours and I believe the practice you describe is common practice – unfortunately.

A good reason not buy an apartment in a scheme governed by BMC.

I will resist the temptation to get on my soapbox about BMC, but please take JT advice and spend the time (money?) to review existing services and get yourself prepared to challenge the next appointment for BMC manager, SM etc.

A starting point would be to get very acquainted with your SMS (ask SM for a copy) and the Strata Schemes Development Act 2015 – https://www.legislation.nsw.gov.au/~/view/act/2015/51/full

I was once told by an eminent strata lawyer that BMC are a developer favourite because they control the ‘stupid and ignorant’ residential owners.

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[clockwise]

Thanks JT and Puddn!

this SM is just so cunning and we really want to kick him out. The strata company is ranking top 5 based on the units they manage in NSW. They are actively seeking for new buildings from the developers and their fees are excessive(I think every lot pays $400 a year for both admin and mgmt) and it’s way above industry standard.

before the 2015 Act came into force in nov 2016, they had all the buildings they manage sign a three year contract with them under the 1996 Act. Our scheme did too and the agreement will expire next year.

I went through the SMS and one of the clause said ‘the member must appoint the same SM the BMC appoints’. The developer entered into a 5 year agreement with this SM in 2014 and it will expire next year too.

I was just elected as our scheme’s committee member and the BMC rep. I really need to discuss about seeking independent advice to make sure we can get rid of this SM next year.

thanks again!

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