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[OverIt]

So now you are all aware I am having some building maintenance issue with let’s say invest 1. Invest 1. & invest 2 where under the same SM lets say SM 1. Invest 2. Is now under SM 2. And what a excellent SM never seen a SM work this way before, no nonsense and for the first time in over several years invest 2. Owners are working together and getting on.

 

Invest 2 when managed by SM 1. Was under compulsory strata management,  whilst under compulsory strata management SM 1. Undertook illegal building works and the property ended up subjected to council orders and fines. SM 1. Did not take any liability and the Owners ended up resolving the issue, paying the fine and negotiating with the council. We would have liked to claim back from SM 1, however no Strata Manager Lawyer would represent us at the time. Common comment from lawyers was “will not seek indemnity from a strata management company as we have a reputation to up hold”.

 

Now SM 1. Is managing with the same strata manager person invest 1. Isn’t this a conflict of interest? Any suggestions on what I should be doing? This situation has no concern to the EC under invest 1, it’s a personal issue so I have not raised it with them but should I? 

 

Thanks you, look forward to a response. 

Topic

[Jimmy-T]

EDITOR’S NOTE:  I was so confused by the punctuation in the original of this posting that I stopped reading it.  Then it occurred to me that others might have done the same – hence the lack of any replies – so I have gone back in and edited it.  The problem, if you are interested was cause by putting a full stop after numbers, meaning the software started another sentence.  Here is how I think the posting was intended to read.

@OverIt said:
So now you are all aware I am having some building maintenance issue with let’s say invest 1.

Invest 1 & invest 2 were under the same SM lets say SM 1. Invest 2 is now under SM 2 and what a excellent SM. never seen a SM work this way before, no nonsense and for the first time in over several years invest 2 owners are working together and getting on.

Invest 2 when managed by SM 1 was under compulsory strata management,  whilst under compulsory strata management SM 1 undertook illegal building works and the property ended up subjected to council orders and fines.

 

SM 1 did not take any liability and the Owners ended up resolving the issue, paying the fine and negotiating with the council. We would have liked to claim back from SM 1, however no Strata Lawyer would represent us at the time. Common comment from lawyers was “will not seek indemnity from a strata management company as we have a reputation to up hold”.

 

Now SM 1 is employed by the same strata manager person as invest 1. Isn’t this a conflict of interest? Any suggestions on what I should be doing?

 

This situation has no concern to the EC under invest 1, it’s a personal issue so I have not raised it with them but should I? 

 

 

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.

[tiamaria]

I am still confused!

[OverIt]

 

JimmyT thank you for clarifying how the software behaved, also gramma is not something I master in, so thank you for fixing. 

 

TiaMaria I am not sure how to make it any clearer, I showed it to a friend that doesn’t know anything about the situation or strata and they understood it.

 

[Kangaroo]

Nah, wasn’t the punctuation, I still don’t understand the situation.

Part of the unclarity is whether SM1 and SM2 are persons, perhaps working for the same SM company, or whether they are different SM companies.

Why is this a personal issue?

Exactly what do you think is the conflict of interest?

[Jimmy-T]

It reads to me that a strata manager who stuffed up with a building previously has now joined the company that came in a cleared up the mess.

If that’s the case, all you can do is arrange a meeting with one of the principals of the new firm and tell them that you are uneasy about this arrangement and why.  You could certainly ask them to make sure that strata manager never has anything to do with your building and they will probably get the hint that you aren’t impressed with the calibre of their employees.

But it’s not a conflict of interest unless someone has competing responsibilities and fulfilling one would mean defaulting on the other.

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.

[OverIt]

It happens that 2 x invest properties happen to be with the same strata company, with the same strata manager, this strata manager stuffed up big time on one of my investments that we moved to a new company. The problem is he still managers my other investment property, although I spoke to the principle, the principle refuses liability and refuses to remove this clown off my investment. In the mean time we are having all sorts of problems getting a response, getting things fixed, the principle won’t respond either, the EC are being difficult as well. 

 

Hope theirs has made it clearer. 

 

[Jimmy-T]

OK, so who is the strata manager to whopm you referrred as giving you exemplary service?

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.

[OverIt]

I don’t want to name them, company or manager. I just want to know what I should do about it. 

 

I am afraid what else will happen if I name them in public. 

[OverIt]

As for our strata manager which we moved to, I also don’t want to name even though they are fantastic, to much information it’s not going to be hard to guess who I am by some. 

[Whale]

I’m not sure that I fully understand your post either, but presumably you are not the only Owner that’s having problems with the ‘bad’ Strata Manager, so why not place a Motion on the Agenda of that Plan’s next General Meeting to terminate the Owners Corporation’s Agency Agreement with them, and to enter into a new Agreement with the ‘good’ Strata Manager?

In the meantime, have a chat with the ‘good’ Strata Manager about their willingness to take on the additional Plan, and if they are (willing) then seek their advice about how best to terminate the Agreement with the ‘bad’ Strata Manager.

…and liddle lamzy divey.

 

[OverIt]

Thanks whale, pretty sure that suggestion won’t work. 

 

I will ring the OFT tomorrow and discuss with them to get some guide on what to do. I seriously don’t know how to be any more clear.

 

A company with an assigned manager, happens to manage 2 investment properties I own, they stuffed one majorly that the Owners Corporation re-appointed a new manager. So I still have one left with this company with the assigned manager. This property  has some major issues (building maintenance) and I am not getting anywhere with the issues, I believe there is a conflict of interest and I am not being treated fair. 

 

I don’t know how else to say it. 

[Kangaroo]

@OverIt said:
It happens that 2 x invest properties happen to be with the same strata company, with the same strata manager, this strata manager stuffed up big time on one of my investments that we moved to a new company. The problem is he still managers my other investment property, although I spoke to the principle, the principle refuses liability and refuses to remove this clown off my investment. In the mean time we are having all sorts of problems getting a response, getting things fixed, the principle won’t respond either, the EC are being difficult as well. 

 

The SM company is appointed by the OC and works for them not you.

The SM company assigns one of their SM persons to manage your Plan.

It sounds like your EC are currently happy with the SM company and the SM person they have been assigned.

You could, as JT suggested, speak to your EC and inform them of the bad experience you’ve had with that particular SM person managing another property of yours, and if they are swayed, the EC could discuss the matter with the SM principal.

Or you could, as Whale suggested, put a Motion on the Agenda for the next GM to change SM companies to the “good” one you know about.

There is no “conflict of interest”.

[Sir Humphrey]

In what respect are the ‘EC being difficult’? The EC would have a lot more direct dealings with the manager. What is their experience? Since management responsibility lies with the EC (who engage a manager to help), why not talk to them about your previous poor experience with this particular manager?

[considerate and fair]

Enough already?

[OverIt]

Kangaroo, I am more than aware that the strata manager works for the OC not me. 

Yes enough already, the OFT has given me options. Thanks for those who tried to assist. 

[Author]

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