[Dudley]

kiwipaul & Whale, many thanks for the information.

As one of our owners is not living locally arranging a general meeting is difficult. Could the “Special Resolve” be conducted by mail? If so, would it be necessary to register the “Special Resolve” and pay the circa $100.00? 

It seems that registering such a slight issue seems total “over-kill” and may be just bureaucracy gone mad.

I know that three of the four owners support the e-mail idea and feel that the absentee owner would have no objections either.

 

 

 

 

[Dudley]

Further to my previous post,

Can I, as a member of the EC, ask the other owners to support a special resolution  – in line with Sect 62 (3) (a) & (b).

If there are 4 owners, with equal voting entitlements, and 2 are for and 2 against the special resolution – what are the next steps?

[Dudley]

Once again this forum has provided me with answers to “what do I do next”.

 

Whale, you are right, I am in NSW, Sydney area.

PeterC, your information, confirmed by Whale, has addressed the issues I am experiencing. As always – nothing is simple – there is a history of “bad-blood” between me and my neighbor, the subject of my initial inquiry. They (married couple) and I are on , the EC. I have over the last few years, since my retirement, have become more active in the decision process of the Strata plan.

In doing so I have “locked horns” with my neighbors who have in the past more or less run the show. The 4 townhouses are all owned by the original owners, one owner lives in the country and has had a rather frequent turnover of tenants (multiple tenants at the same time) current tenants are the best – so far. The other owner chooses not to be involved and really wants a quiet life.

The reason for my increased involvement was the amount of owner specific and cosmetic expenses being charged to the strata plan. In addition the “straw that broke the camel’s back” was the direction that the strata plan would change our garbage collection arrangement from shared green, glass and paper recycle bins to individual bins for each townhouse. As you can imagine this, with garbage, would result in 16 bins for 4 terrace style townhouses with limited bin storage room. I might add that my neighbor locks their garbage in their garage. The council was advised of this decision without any discussion with any other owner. I was successful in stopping this plan.

Since then our communications have deteriated to the point that all contact is via e-mail. The strata manager has been placed in the crazy position of ensuring that he confirms that any decision is agreed to by both members of the EC. Enough of the dramas.

The current position, as I see it.

I need to get an “expert” opinion on the problem – which is occurring in all residences to my knowledge – structural or cosmetic.

If cosmetic, discuss with the other owners the various options available to us. I might add that I have repaired minor cracks caused by settlement of the residence over the circa 17 years of living here.

I know I’ve rambled but I appreciate the advice I get from this forum. I am so uncomfortable with the tension this is creating.

[Dudley]

Good Afternoon All,

My Strata Plan’s AGM is scheduled for next week. I believe that I am much better prepared as a result of the information which has been provided via this forum. I have just a couple of questions, which the answers to will complete my preparations for the AGM.

Over the last several years our Strata Plan has been charged for the preparation of a tax return. I have never seen a completed tax return, nor has there been a item in the cash management report showing a credit for income, other than the normal levies. In addition the cash management report shows that cash is held in the Strata Manager’s Trust Account. I believe, from information given in previous replies, that it is not necessary for a Strata Plan to complete a return if no income, other than the levies, has been earned. (Taxation Ruling No. IT2505) I believe I would be justified in requesting that the Strata Manager credit the cost of the unwarranted strata plan tax returns to the strata plan. I accept that the chance of success would be marginal.

If I was to request that the Strata Plan’s cash be removed from the Strata Manager’s trust account and deposited in a account for the Strata Plan. Are there restrictions on where the money is deposited and what is a realistic/secure place for and return on the funds?

As always suggestions and/or advice will be gratefully received.

Dudley

 

 

 

 

[Dudley]

Once again I offer my sincere thanks for the advice and information.

I have received my notice of the AGM, so I will be asking the pertinent/impertinent questions.

I have, in my previous posts, listed my areas of concern. As I am one of 4 owners and the other owners seem content to “go with the flow” It’s up to me to see if I can improve our strata plan’s performance.

I’m sure my inexperience in this area is obvious so the next AGM is not something I am looking forward to but it is something that I feel must be done.

 

 

[Dudley]

A couple of quick questions re the next AGM

The notice of the AGM has included in it a list of motions, usually the same each year.

One concerns the approval of the financial statement and if consideration be given to the appointment of an auditor – how important is this?

What is the correct procedure to have included in the motions/agenda items I wish to be discussed at the AGM. The items are trust account, tax returns, communications between SM & owners and “approved/preferred” trades people.

Many thanks,

[Dudley]

Kangaroo & JimmyT,

Many thanks, I feel much better prepared for the AGM with the information in your replies. 

It appears that our SM has just charged for anything that they can and not offered any suggestions on how to reduce costs. In a small plan with virtually no involvement by the owners it has been a “no-fuss” contribution to the SM.

I guess the next AGM could be interesting.

In closing, many thanks to all who have offered advice and suggestions.

 

[Dudley]

As usual, I have some further questions – this forum is such a help to me.

Our strata plan is small (4 townhouses) and does not have a lot of common area and is not complicated.

We have been paying $120 for a tax return preparation for 5 years, not however in 2012/13 albeit the amount was in the budget – with no explanation why not. I have never seen a tax return or any indication of interest on our sinking funds.

My questions,

Should copies of the tax returns be distributed to the EC?

Our funds are held in the agent’s trust account – is interest paid on funds in a trust account? If so who get the interest?

Should I question the need for a tax return given JimmyT and PeterC’s responses?

 

[Dudley]

Good evening All,

Many thanks for those who responded to my queries.

The replies have alerted me to issues which I had not considered – especially the tax situation. I may be simplifying the issue but as I understand it if the strata plan receives $100 in interest, it has a tax liability of $30.

Then there is the question who prepares the return and who pays for the preparation?  Last but not least how is the income amount, which is to be added to the taxable income of the owners communicated? 

Re: raising these issues at the AGM.

Should I communicate my wish to discuss these issues and request that they be listed on the agenda or just raise them when the motion requesting that the financial statement be approved is raised?

I am, as I’m sure is obvious a “babe in the woods” in the strata world and all advice and suggestions are gratefully received.

 

[Dudley]

Many thanks to all re “average cost” is gives me a factual starting point to start discussions from.

re disbursements: I am amazed by the “cost” of mail, photo-coping, postage etc which is charged each month.

Is it possible to request that all communication from Strata Manager to owners be via e-mail? I accept that all owners would have to agree to this.

 

[Dudley]

Whale,

Many thanks for your reply.

Just to clarify one point.

In my first post I said the removal of the tree was arranged by the managing agent, i.e. the agent who is managing the rental of the townhouse, not the strata manager of the strata plan. The removal was carried out at the request of the owner.

The first time the strata manager was aware of the issue was as a result of a communication from the owners managing agent who was advised by the person who removed the tree that there were termites in the stump. The strata manager advised the EC of the issue only after the (townhouse with the tree) owner was in contact with another owner in the strata plan.

I know it is now getting complicated.

One last point – the tree reached circa 20 feet high before its removal.

Regards,

Dudley

[Dudley]

Good Morning,

I have been following this thread and I am not quite sure what “Proxy Farming” is. I think that I am experiencing the effects.

Regards,

Dudley

[Dudley]

@kiwipaul said:

@Cosmo said:

Strata Mangers are required to inform of any commission they receive and that is usually done as an addendum to the management agreement they enter with the OC. From what we saw the ‘level’ of commission is negotiated between an Insurance Company and the Strata Manager, usually it is between 15% and 20%.

Beware here because our Strata Manager keeps claiming that they receive no commission from the insurance supplier (they even state it on their AGM agenda).

But I’ve since discovered that some agents don’t charge commissions they charge Broker and admin fee instead and so by claiming they don’t charge commissions they might be correct, but are they charging this fee instead. Are they required to declare if they receive fee’s instead of commission.??

Awaiting a suitable time to challenge our SM about this.

Hi Kiwipaul,

Our SM charges commission and admin fee!

I assume that it is acceptable for the EC to contact a broker direct and arrange our insurance. Are there “pitfalls” that I should be aware of if I elect to follow this path. I guess a potential insurer would want a current valuation, if so, the SM should produce the valuation if requested.

Dudley

[Dudley]

@JimmyT said:
What is A PDS? Please see previous comments about overuse to abbreviations.

Hi Jimmy T,

A PDS is a Product Disclosure Statement supplied by the Insurance company giving the quote, it contains complete details of the policy being offered. It enables the competitive insurance quotes to be evaluated by comparing “apples with apples”.

Please accept my apologies for the abbreviation. As I’m sure you have noticed, I am very new to the strata world and this web site – my interest has been stirred by necessity – I seem to be “it” in my small strata plan (4 town houses).

Please bear with me, I’m sure that I will get better over time.

Regards,

Dudley

[Dudley]

@gusmich said:
Hi Dudley,

Being involved in several schemes over the past 20 years there is no problems with you arranging your own quotes and tradespeople. The strata manager usually checks the contractor’s details like licences and insurances I get them to write it all on the quote.

Unlike Rob T, I usually find that most Strata contractors are around 30 -50% more expensive and usually do low quality work. I was a builder so I have some knowledge.

Also strata contractors tend to ignore you once they have the job preferring to deal with the SM as they want to get in and out as quickly as possible, do the least amount of work possible and charge you as much as possible for the job.

Some advice for you before you gets quotes;

Have a very good and accurate job specification/requirement ready in writing. THIS WILL SAVE YOUR BACON IF PROBLEMS ARISE.

Check with an estimator how much you should be paying for the work.

For example recently i had a quote from the strata roofer to re-point our ridge capping. The quote was around $4000 . The going rate for re-pointing is around $25 l/m. I got the job done for $1600 and the work is exceptional.

Lastly and the most important thing to consider;

Never expect any thanks from other owners even if you save them heaps and get better work done.

Hi Gusmich,

Many thanks for your reply.

Our strata manager has proved that he is most reluctant to even discuss any contractor other than those on his “list”. However, I can live with this and your advice is most welcome.

Your observations and comments reflect my experiences with our strata contractors as well.I will make sure that I confirm any contractors licenses and insurance as well as having a clearly written scope of works.

Last but not least your final comment is so TRUE! 

[Author]

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