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again we are having more problems with the initial owner / developer of our 14 unit strata scheme. Early in 2016 the developer advised us and the other owner ( only 2 Apartments had been sold) that we would need to pay 1/3 of the very large water bill received by him as we were the only people living in the complex. He said he would also pay 1/3 even though he only lived here part time. This was despite the fact that he had a full time maintenance person who was watering lawns sometimes overnight and from time to time left the hose on for days at a time . In addition to our quarterly levy we paid the developer our lot percentage amount ( 7%) of this water account .
Two more people have now bought in to our Strata scheme, the initial owner/developer has now sent our new neighbours and us an email stating that we are indebted to him and due to this outstanding debt we do not have the right to vote at the First AGM which he intends to hold shortly. He has also stated in that same email that he would not support our nominations for a position on the Strata Committee and as he has the majority vote then he will have the say, he says. He still owns 10 units and now intends to transfer one to his partner (who is an overseas country citizen) so he can retain the majority vote.
My questions are these :
1. How should we respond if he does not allow us to vote at the first AGM?
2. How should we dispute his claims that we owe him money for the water?
3. Should we apply direct to NCAT for an adjudicator to appoint a Strata Managing Agent so this guy can be removed from his position of “Owners Corporation” during this initial period?
Your advice on this would be very much appreciated
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@Faraway girl said:
At last the 5th Apartment in our 14 Lot Strata Scheme has been sold ( with, we have been told, a requirement in the contract that the developer holds the proxy).As has been explained elsewhere, the proxy demanded as part of the contract is invalid under section 27 of the Act. Your problem is getting someone to get it through the developer’s skull that he can’t ignore the law.
We bought into this Strata Scheme because we were told by the developer that it was for older residents or those residents who have disabilities.
Is there a difference in the development requirements for long term residential Strata units and short term.?
You need to check the development consent and under what terms it was authorised. It sounds to me as if your developer doesn’t have the appropriate consents for this and you can pass by-laws insisting that the council zoning be observed.
But first you need to get your strata manager on board.
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The solicitor can attend and speak as a proxy for an owner – and should have a written authorisation to do so.
Presumably they will be fully briefed on why they are there and will have their own strategies for dealing with your developer.
But you have to be absolutely clear on what you want to achieve and you have to have all your numbers locked in to make sure you can achieve what you want with the minimum of fuss.
You have the potential to:
1. Elect a committee that doesn’t include the developer (which I would say was a given). You would do this by first setting the number of committee members at a level that only includes those who are on your team – or at least don’t include the owner – and are prepared to serve, then electing only them.
2. Rescind or reject any contracts that are presented that seem suspicious or inflated in any way.
3. Set the budget at a reasonable level and reject any payments that favour the developer.
4. Adopt only the Schedule 2 by-laws as contained in the Strata Scheme Regulations.
I can’t over-stress how critical this is for you and your neighbours. You need a united front and, I hate to say it, but while your heart would want you to be at a funeral, you will be living every day with the consequences if you don’t turn up at your AGM and your plan falls apart.
Get your neighbours informed and activated. Decide on a strategy and follow it through. The lawyer should only be there for if and when chummy starts breaking the rules, to tell him the grounds on which his decisions will be challenged – at his expense – at NCAT.
The answer to question 5 is to hire a solicitor who is prepared to take the fight to the developer, there and then, and explain the facts of life to him in a way that he can’t fail to understand.
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