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Topic
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This query relates to a NSW unit:
1) How can owners force a strata manager and strata committee to provide all owners with a copy of the management agreement? The proposed management agreement was not attached to the AGM Notice and was not presented at the AGM. At the AGM the motion regarding that agreement was skipped over despite several owners pointing that out. But the strata manager and strata committee ignored protests and raced through the AGM and closed it very quickly. This in itself is alarming and offensive. If this is not against the law, it should be.
2) Since then several owners have requested a copy of the agreement and have been ignored. A solicitor’s letter requesting a copy has also been ignored.
3) Can owners get a copy by inspecting Owners Corp records? Can strata managers charge for photocopying documents at such inspections?
4) Can strata managers and/or strata committees be removed for such behaviour? If so, is an application to NCAT the appropriate action?
5) The strata committee has also breached other by-laws and the legislation as well.
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Every three years when we renew our management agreement, the proposed agreement is included with the AGM papers and there is a motion to agree to it. Any owner is entitled to inspect the owners corporations records. The agreement should be available. It is reasonable to change a small amount per page for copying.
It is bizarre that a solicitor’s request to see the agreement (on behalf of an owner) would be ignored.
Your questions in order:
1) How can owners force a strata manager and strata committee to provide all owners with a copy of the management agreement?
When polite requests don’t work, then you have to threaten action – but you have to mean it. See answer to question 4.
2) … several owners have requested a copy of the agreement and have been ignored. A solicitor’s letter requesting a copy has also been ignored. Can owners get a copy by inspecting Owners Corp records?
Yes. Owners are legally entitled to view any documents related to the running of the strata scheme.
3) Can strata managers charge for photocopying documents at such inspections?
Yes. And they can also charge a set fee for the visit at which the documents are viewed. Contact Fair Trading for the current amounts.
4) Can strata managers and/or strata committees be removed for such behaviour? If so, is an application to NCAT the appropriate action?
You can apply to NCAT for orders that an unfair or illegal management agreement to be rescinded and for individual members of your committee to be removed – or the whole committee to be sacked – for failure to manage the strata scheme according to the Act. The first and obligatory step is to seek mediation through Fair Trading, which might be enough to make the strata manager and committee realise you and like-minded owners are serious.
5) The strata committee has also breached other by-laws and the legislation as well.
Again, this might be wrapped up in your application to Fair Trading. But remember that Fair Trading can’t and won’t make a ruling on this. Whatever happens, you can then (and only then) take your case to NCAT, at which point you and your fellow concerned owners might do well to consult an experienced strata lawyer.
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Noting that the management agreement would be a significant financial expense then surely there are two parts to its approval?
1) Approval of the new agreement to provide specific and specified services to the OC and residents to an agreed upon standard.
And then if approved:
2) Approval of the expenditure of funds to the company with the approved agreement.