[daphne diaphanous]

The missing capital from the sinking fund (don’t know how long it’s been going on, but we know it is at least 4 years) will now have to be replaced with compound interest from the beginning of the breaches. All this has to be done by a special levy on the owners. The SM & the relevant ECs have some explaining to do. Meanwhile, we have notified Fair Trading, almost as soon as we became aware, so will not be overly popular with the neighbours. The 2 week delay in our action was due to having to do some research to get our facts right. I’d love to know how others have dealt with a similar situation, since we are highly unlikely to be alone in this quandary.

[daphne diaphanous]

I have yet another question. Our SM’s agreement was signed by two EC members back in 2001. One of those two sold up & moved out earlier this year, prior to the AGM. Is the agreement still valid?

[daphne diaphanous]

Thank you both Whale & scotlandx. Apart from being very informative, you’re also very entertaining, along with JimmyT & others. And yes, I will be taking it easy until the next AGM. Softly softly catchee monkee, as they say.

[daphne diaphanous]

Oh dear, oh dear! Our complex does have a pool & we have a particularly unattractive husband & wife team in their early sixties who walk to & from it in their swimmers (she wears a bikini, displaying her large, mushy, sagging mammaries & large, solid gut). Being in our late fifties, we are not overly attractive either & wouldn’t display our aging wares in that manner. However, revolting though the sight is, we don’t really care how they dress. Leave people to their illusions of youth & beauty. Avert your eyes & read a book or text someone as you walk away from unpleasant appearances.

[daphne diaphanous]

Further to my latest posting on this topic, the role of our conveyancing lawyers in their pre-purchase strata searches is now of some concern. We bought our property in September 2011. The strata documents provided by our lawyers do not include a copy of the management agreement. This being our first experience of strata living as owners, we relied on them (our lawyers) for advice & paid a pretty penny for what now appears to be a pig in a poke. Had we known this strata had given a power of attorney to an SM, we would never have bought this house. The AGM was an eye opener for us to see that no opposition to this agreement is possible through the OC. We have spent considerable amount of time & money to renovate the house we thought to be our final resting place. Does anyone know whether our lawyers’ lack of care in not obtaining a copy of the agreement is common?

[daphne diaphanous]

Well, I have now obtained a copy of our SM’s agency agreement & it certainly is a power of attorney of sorts & as I said earlier in this topic, “their point of view is to exclude the pesky owners, so they can get on with their business of administering our complex”.   

The agreement was signed & sealed in 2001, yes, 2001, 11 whole years ago & the method of renewal is by accepting the proposed budget at the AGM, which includes their fees. I don’t know how many of the OC realise they’re reviewing & renewing his services in this way. Naturally, the conditions never change, only their fees, which did not happen this year.

My husband & I are of the opinion that by placing the accounts & proposed budget much earlier on the agenda than my motion to discuss their removal from our service, they behaved unethically & we should be able to lodge a valid complaint against them for it. The election of the EC was proposed to be moved to the end of the agenda by the SM at the beginning of the meeting & my husband & I were the only dissenters. Providing me with a copy of the agency agreement well after the AGM, despite my request 4 weeks earlier, made sure I could not object to the order of my agenda item. Any opinions, anyone?

[daphne diaphanous]

Thank you scotlandx. I will take your advice & concentrate on the records.

[daphne diaphanous]

Thank you scotlandx. As for the my co-owners, I tend to agree with you; however, I’ll reserve my conclusions until I have seen all the paperwork, in case I’m being self-important & unfair to them at the same time.

[daphne diaphanous]

To add to my latest posting in reply to Whale, I will also get a copy of our by-laws from the Land & Property Dept, because I am not satisfied that our copy is the registered document. It consists of only one page, with no identification of our strata, a registration number or a date of registration. Since there is a $500 fee for registering strata by-laws or any subsequent amendments, I would expect to see some acknowledgement of it on the document & all its copies. We are in possession of nothing more than a photocopy of a generic document lifted straight out of the relevant legislation and/or regulation. Please feel free to contribute comments or advice all you knowledgeable Flat Chat fans.

[daphne diaphanous]

Dear, dear Whale, you don’t know the half of it. The principal is the papa bear himself, who shoved the junior administering our strata out of the way for the AGM. It is a family business, consisting of father, son & the not so holy mother ghost (or should I say bear?). He has already ignored my written request sent by registered mail on 29/10/12, which included my agenda item for the AGM to remove them from our service. Since the aforesaid item made it into the agenda, there can be no denial of my request for the copy of their contract. I will send another letter on Monday, again by registered mail, giving them until COB next Friday. After that, it is Fair Trading, along with a formal complaint to the licensing body. Mind you, having said all of that, I do not suspect them of any financial fraud. I think, their point of view is to exclude the pesky owners, so they can get on with their business of administering our complex.   

As for updating his agreement at the AGM, he gets around it by not changing his fees.

[daphne diaphanous]

Thank you once again scotlandx. As I said previously, the AGM minutes only show the EC members. According to the EC member who told me they didn’t have the SM’s contract (I don’t think he’s ever seen it), they found having specific positions too difficult in the past & decided not to have them. At the meeting, I proposed 8 members, 7 people nominated & all were elected unopposed. My husband & I did not nominate because we intend to reside overseas for part of each year (no more winters for us). However, we will not be going anywhere until we have solved the SM problem. Also, it occurred to me this morning that there may not even be a written contract or agreement. Is it possible?

[daphne diaphanous]

This afternoon I finally asked a long standing member of our EC, whether I could see a copy of the SM’s contract & found -shock, horror- they do not have a copy. My next step is a more formal letter to the SM. I don’t think I should have to pay to see this contract. Any advice anyone? 

[daphne diaphanous]

Dear FlatChatFan, we don’t have a secretary other than the SM himself, even though we do have an EC. I have been discussing this issue & seeking opinions in another topic entitled “chairing an AGM”, in the lead up to our AGM on 24/11/12. It is quite detailed to explain here. Please feel free to read it & give me your opinion and/or advice. I will be seeking to inspect the records held by the SM, as soon as I get a copy of his contract, because I think it will throw up more questions for me ask. Due to the cost involved, I don’t want to have to do it more than once (my husband & I are retirees). I would also like to add (since this forum is funded by SM companies among others) that I don’t have anything against SMs in general. I realise they deal with the nightmarish side of bureaucracy & do it admirably. I also realise that every owner ringing them up demanding answers and/or making complaints & generally whining, would make their businesses unworkable. The way to solve that problem would be to have copies of all of the documents they hold available through a properly run EC & keep notice boards. The more secretive they are, the more curious & suspicious we get, from my own experience & others’ I have read in this forum. In my opinion, no honest business needs to be secretive.  

[daphne diaphanous]

Thank you scotlandx.

[daphne diaphanous]

I know about the SM commissions on strata insurance being standard business practice. The extent of it however, seems to be -at least with him- something of a secret. I see no reason why we, the OC, shouldn’t know how much we’re paying him. His ordinary fee & related expenses are in the published accounts. We pay the insurance & he takes a cut of it. That is also what we pay him in the form of fees. Non? As for acquiring a copy of his contract from the EC secretary, the AGM minutes list only the office bearers, not their positions. 2011 & 2010 minutes are the same. He appears to have all positions & I noted his unchallenged chairmanship at the AGM with great interest. His secretiveness is what really concerns me. No business that is above board should be giving its clients the run around in this way. Non?

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