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When words aren’t defined in a statute/law their meaning reverts to the next best interpretation. Is it defined in another similar law? Does that interpretation make sense? If there is no other statutory interpretation the definition reverts to it’s ordinary meaning as in the dictionary.
I would say that as long as the strata agenda lists a review of the bylaws as being for discussion and the minutes note that that discussion took place and the outcome every thing would be ok.
I do have a problem with them using a garage for storage on a long term basis. That creates all sorts of questions about the use of the areas, insurance and liability should anything go wrong.
Our strata had an the issue of owners parking in front of their own garage but they weren’t using their garage for storage. Our Strata decided that as long as there was no nuisance created to others we didn’t have a problem with it.
Can I ask what is the ‘nuisance’ with them parking in front of their own garages?
If by parking in front of their own garages they create a problem for others I can see the nuisance. By nuisance I mean others accessing or using areas not just others complaining that ‘we can’t do that so why should they?’
If however no one else could use that space and it doesn’t inconvenience anyone, what is the harm?
Strictly speaking owners parking in front of their own garage in breach of by laws but surely the law needs to be tempered with a bit of practicality.
Maybe others have more learned views than me but my comments are:
What are the other rights beside “gross negligence, dishonesty or fraud” that the OC is being asked to sign away?
Consumer law protects a person from signing away rights that the law gives them. If a consumer signs a contract giving up their warranty rights that is not enforceable against the consumer so they still have warranty rights.
I am not exactly what rights you are referring to for your strata agreement but if you are not happy what happens if you just don’t sign it?
Maybe approach the department of fair trading and see what they say.
While it may be “obvious” who is doing this, in my view you have two strategies to deal with this. Both should be attempted at the same time.
When I refer to obvious in inverted commas, I mean without proof or hard evidence it useless and you run the risk of coming across as a unfounded complainer.
1. Surely there must be others in your complex who feel/see as you do. Sound them out. Try to get enough to make your views count.
2. Try to gather hard evidence of misdeeds eg glued locks, broken things. Not easy but others may be inclined to help especially if they have had something of theirs broken.
This will take longer and involve effort but it is the only way.
Pamster, please read here: https://www.fairtrading.nsw.gov.au/Factsheet_print/Tenants_and_home_owners/Strata_schemes/The_owners_corporation/FTR47_Sinking_funds.pdf
The formula is the 10 year plan. Ours is a small strata like yours. A 10 year plan is easily done by anyone with a bit of spreadsheet knowledge.
We have put into the plan: the things that need doing; their estimated cost; the total of sinking fund levys and the running balance of the Sinking fund (Capital works budget).
The spreadsheet will give you an idea whether the strata has put enough away for capital works.
Hi Bonnie, just to reinforce what Jimmy said. I have never heard of an insurance company being proactvie in the way you describe. It is very much more in their interests just to not pay out when you claim.
Our strata had a problem with balcony railings. The railings were compliant with the relevant safety codes when built. However since then we had some work done on the exterior which affected them and this meant we had to bring the railings up to the current code.
Some of our owners didn’t want to spend the money and just wanted to ignore the issue. It was pointed out to them that if (and it was a small if but isn’t that why you have insurance?) there was an accident the first thing the insurance company would do was send out an inspector and our claim on our insurance policy would be void. This would have left the OC and owners liable for any claim.
The OC has a duty to the insurance company to keep the property safe and in good repair. If the OC or individual owners know of a defect it needs to be addressed.
If the OC or owners couldn’t have reasonably seen the defect the policy would probably cover any claim. But as in our case we did something to the exterior which we should have known affected the railings.
@mypersonalpa said:
We gave her the Strata Plan Number and Address; the ABN and our Strata Roll. She is going to find out next week what else is needed, but in the meantime, trusting the Flat Chat Forum – could you please help with this? What else does the bank need? And, as a two lot plan, do we need separate accounts for Sinking and Admin, or one account but separate book-keeping?
thanks in advance,
Leanne
mypersonalpa, as for what the bank needs I can’t help you. What they need now is a lot different the rules are a lot tighter. However I am sure if this bank doesn’t help another might. The banks are, to a degree, protecting themselves.
You don’t need separate Accounts for Sinking and Admin. So separate book keeping is fine. What the law requires is that the Sinking and Admin monies be “Accounted for separately”. We have one account with $11,000 we know by keeping track of levys and payments that $6,000 is Sinking fund and $5,000 is Admin.
Hi Victor, our small strata has self managed for a while now. The difference between self managing and a manager is all administrative.
My tips:
Make your bank accounts fully accessible on line. Ours is set up so all owners can see the accounts and transfer money in but to pay out a ‘two person’ authorization is necessary. We have one owner who doesn’t have a computer but the necessary adjustments can easily be made.
Get all owner’s email addresses. All notifications and information can be done this way. Email is especially handy to notify of levys due and overdue.
It is probably necessary to have a bit of spreadsheet expertise for the 10 year plan that is required. A plan has to be done every 5 years.
Use google as I have found a lot of great authorities discussing how to do things.
It is gratifying to see money that would otherwise go to paperwork go into repairs and infrastructure.
An interesting addition to the topic. Our strata recently approached two firms to install locks that meet the requirements of the new laws. On both occassions we were told they would only quote to fit ‘permanent’ restrictions on the windows.
This was to be done by fixing aluminium angles or wood to the windows to ensure that they could not be opened more than 12.5cm ever.
On each occassion I referred the firms to the following “question and answer” on DFT’s web site at: https://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Strata_schemes/Window_and_balcony_safety/Window_safety_device_requirements.page
“Will this mean the windows will never be able to open?No. A window lock that allows the window to be fully opened, fully closed and also locked at 12.5cm complies with the legislation. When children are in the apartment, or on all common access areas such as stair landings, it makes sense to engage the locks at 12.5cm or less at all times to prevent falls.“I told the firms that we wanted locks. Despite this they refused to quote to install locks. Our search for a firm that will fit locks continues!
I don’t think the advice given to you by your Strata Manager is correct.
If you refer to: https://www.fairtrading.nsw.gov.au/sites/ftw/Tenants_and_home_owners/Strata_schemes/Bylaws_in_your_strata_scheme.page
It states:
Model by-laws
The Strata Schemes Management Regulation 2016 includes a set of model by-laws which provide ‘sample rules’ to guide the owners corporation in setting their own by-laws. Owners corporations can choose to adopt these or make changes to better suit their circumstances to manage issues in strata like overcrowding, pets, parking, and smoke drift. Schemes are not required to adopt or adapt any of the model by-laws, they are available to assist schemes in reviewing and making by-laws to suit their scheme. Model by-laws cannot be the by-laws for your scheme unless they are first formally adopted by the owners corporation and registered with the Office of the Registrar-General. (emphasis added)
However your strata must review their by-laws by 30 November 2017. Your strata may choose to use the new Model by-laws or keep their old ones.
Our strata recently reviewed our ByLaws and decided to adopt the new model ones (Item 5 on pets we selected option B, item 9 on smoking option A).
Our Strata currently has an owner do work and get paid for it. The 3 things we had to make sure of were:
1. The transaction was commercial. We got and compared quotes.
2. The work was performed and to standard.
3. That the transaction was transparent and voted on by the OC. Everyone knew about it and what it was for.
I don’t see a problem with someone associated doing work as long as the strata gets what it pays for.
Ruthee, my view is that it is up to the OC to direct the strata manager where to deposit the money and for whose benefit.
If the strata earns interest it is liable to lodge a tax return and pay tax at the company rate. Many small OCs avoid earning interest to avoid the cost of a tax return and tax. Many strata managers and banks encourage this as they get interest free loans.
Based on there being $40,000 in sinking funds it may be that the Strata Manager is relying on OC inaction/ignorance to profit their fees (they also may not be).
Whatever the case the OC should be able to access their bank statements or details of where and to whose benefit the $40,000 is deposited. It doesn’t ‘smell’ right that the strata manager is denying the OC this information.
Your OC needs to make an informed decision about where best to put the $40,000 to benefit the OC. It may be that there has been a long standing agreement that the sinking funds interest is available to the strata manager on the basis that the cost of preparing and lodging a tax return wasn’t worth it. If so any such ‘agreement’ should be re negotiated.
I do our Strata’s tax return as the only income we have is from interest. It is simple. We only earn $390 in interest and pay just over $100 tax but every little bit helps!
I am just preparing the agenda for my strata’s next AGM. Surely it would be appropriate and allowed to bring up such an item under any discussion regarding confirming the minutes of the previous meeting!
You first steps should be to contact Fair Trading and ASIC. I think it is illegal for a company to trade whilst in liquidation unless any contracts it makes are made by a liquidator. ASIC should be very interested. The more information you can provide ASIC the more likely they are to do something.
Names of the people from the company the strata dealt with while in liquidation would be number one. If these people were also directors of that company they could be in trouble. Even if you didn’t deal directly with them, my view is that the directors are responsible for ensuring this doesn’t happen.
Hi Robyn, to the best of my knowledge “a consultant firm” is not necessary at all. Strata laws do require assessments which cover a 10-year period with a review to be done every 5 years.
We do our own assessments via a excel spreadsheet every five years. It is not compulsory to implement the things listed in the assessments but they do form a very handy budgeting and planning tool for examining whether future needs for large maintenance items will be able to be met out of levys.
In NSW the relevant legislation is:
STRATA SCHEMES MANAGEMENT ACT 1996 – SECT 75A
Owners corporation to prepare 10-year sinking fund plans
75A Owners corporation to prepare 10-year sinking fund plans