[hawthornh]

Thanks everyone for the advice. 

We’ve sent off a list of demands to the developer via the Strata Manager, who of course denies any complicity in this affair (technically correct, morally a cop out). This included access by the owners corporation to the tenancy to inspect it and what it is being used for, which the Strata Manager said “I don’t think you can do that” – until I pointed out they were a tenant and if we give notice we can enter the premises. The room is currently not signed as to the contents, unlike other rooms such as comms room etc. I’ve questioned if it needs a sign for safety reason (eg, in case the fire brigade ever attends the premises they need to know what is in there possibly). 

I am reasonably confident they will comply with our requests, but who knows. We’ll give them some time. 

At the same time we are battling the developer to fix common area and lot defects and not getting anywhere. They are a well known developer in Melbourne and possibly our only hope is a threat to go public which would lead to damage to their reputation, which they would want to avoid as they are launching new projects.

[hawthornh]

@PeterC said:
In the ACT:

“S.33  Restriction on owners corporation during developer control period

An owners corporation for a units plan must not, during the developer control period, do any of the following:

(a) enter into a contract unless—

(i) the contract is disclosed in each contract to sell a unit in the units plan; and…

 

Thanks Peter, 

Unfortunately no such rule exists for Victorian Owners Corporations, must be unique to the ACT, but appreciate your feedback.

[hawthornh]

Thanks for the replies. Yes I think there is no doubt that the developer while in charge of the owners corporation did not act with due dilegence and for personal gain. As you point out we could prove it, but to what end? There are no real prescribed penalties, so it would just end up an expensive bun fight with no real result. 

We are however pursuing them for costs and to strike an agreement that this arrangement is at no cost now and in to the future to the owners corporation. If all else fails we will go public as I think the developer, who is still developing properties in Melbourne, will not want the bad publicity and would be more worried about that than any threat of legal action. So any contacts at the Melbourne Age for future reference would be good – just in case! 

Will let you know how we get on….

[Author]

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