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  • Jimmy-T
    Keymaster

      The problem isn’t that your funds are being used wrongly – to repair common property -it’s that they are being used unfairly to only benefit certain owners.

      It sounds like you need to get your chair and secretary off the committee and, if need be, apply to NCAT for either their removal (if they manage to get themselves elected) or for the the statutory appointment of a strata manager.

      There was a reason Fair Trading changes the name of the committee from executive to strata – and that was to stop people awarding themselves special privileges. 

      Communicate with as many other owners as you can before the AGM and let them know how they are being ripped off.  If they don’t have the good sense to sack these self-interested committee members at the AGM  then you may have to do it for them

      If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
      in reply to: Can you change unit entitlements? #28543
      Jimmy-T
      Keymaster

        The simple answer is yes, under section 87 (below) you can seek orders at NCAT to reassign the Unit Entitlements.

        The easiest way to do it is to get everyone to agree but, as you said, you can’t get turkeys to vote for Christmas, and the owners of the larger properties may disagree.

        The next best thing is to get a majority of owners to make an application to NCAT as a body.  This is possible, especially if six owners would be paying less and four paying more, and would certainly defray some of the expenses.

        If that fails, you could seek orders yourself but add an additional request that the Owners Corp pays the costs.

        Those costs will include a professional assessment by an experienced strata quantity surveyor, because it’s not just size, it’s aspect and amenity.

        But clearly a large penthouse flat with a northerly view should be paying more in levies than a small ground floor flat permanently in the shade.

        87 ORDERS VARYING CONTRIBUTIONS OR PAYMENT METHODS 

        (1) The Tribunal may, on application, make either or both of the following orders if the Tribunal considers that any amount levied or proposed to be levied by way of contributions is inadequate or excessive or that the manner of payment of contributions is unreasonable:

        (a) an order for payment of contributions of a different amount,

        (b) an order for payment of contributions in a different manner.

        (2) An application for an order may be made by the lessor of a leasehold strata scheme, an owners corporation, an owner or a mortgagee in possession.

        If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
        in reply to: Multiple Renovations #28541
        Jimmy-T
        Keymaster

          Compromise is they key.

          Most owners are guided by their tradies on how much access they’ll need (as well as how much noise they will make and when).  The answer is usually always and all the time.

          But it’s amazing what happens when the committee limits access to the lifts for the transportation of materials and waste to times when people are less likely to be coming and going from work. 

          Similarly, if they say noisy drilling will go on for X hours, you should be able to say, OK, let’s make that all happen in specific periods to give other residents a break.

          In both cases, what was previously impossible suddenly becomes eminently achievable.  Tradies are only concerned with getting work done at a tine that suits them.  It doesn’t take much to tell them they can organise themselves to do it at times that suit all the residents.

          By the way, I find it incredible that some buildings still allow noisy work to go on all day Saturday and on Sunday mornings.  Save us from the hobby renovators, please!  

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          in reply to: Driving on the wrong side #28534
          Jimmy-T
          Keymaster

            From the outside looking in, this is a complicated problem with a simple solution.  If you can raise enough signatures to call for an EGM that you may have enough support for a change to the rules governing access and egress.

            If you can’t you won’t.

            Depending on the size of your block, I’d recommend a mail-out of stamped addressed, pr-printed postcards that owners only need to sign and post.

            Just a simple statement on the card: “I request a general meeting be held to discuss the way we gain access to parking as the current situation is potentially dangerous.”

            If you don’t get enough back, you’re not going to get the votes to change anything at the general meeting.

            And, by the way, if there isn’t a by-law covering access to and egress from the the car park, you shouldn’t need one to change it.

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            Jimmy-T
            Keymaster

              This is a weird one because the law says that people who were eligible for election who later become ineligible, must vacate their seat on the committee.  However, it doesn’t say anything about committee members who were ineligible for nomination in the first place.

              But let’s assume that they were only ineligible because of the way they were nominated – e.g. they would have been OK if someone else had nominated them –  what’s going to happen?  

              My bet is that, if they are onside with the majority on the committee, they will resign and the committee will then co-opt them to fill the vacancy created by their resignation.

              Now, you might be able to make a point by challenging the nominations  and election – and you could probably take this to NCAT and get a result – but will you really achieve anything?

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              Jimmy-T
              Keymaster

                I’m not a lawyer but it would appear from Subsection 6 that it would have to be  votes of those present at the meeting in person or by virtue of a telephone or internet connection.

                The only variation on this that I can think is if the absent owners had nominated others to be their representatives on the committee but that would have to be voted on and accepted by the committee before their votes were counted so, on the face of it, unless one of the absent members was on the other end of the phone, the nominations don’t count as a vote.

                You might need a professional’s advice on this but I would think, on the face of it, that the votes were invalid and are certainly worth challenging (bearing in mind that the committee majority would only need to line up their absentee votes to re-elect the wrongly elected members).

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                in reply to: Does your sinking fund cost you money #28529
                Jimmy-T
                Keymaster
                Chat-starter

                  That seems sensible – but you never know how hard or easy it is for individuals to raise extra loans.

                  One thing I would say, at the risk of sounding biased, you should speak to Paul Morton at Lannock (or one of his people) so that you know exactly what your options are.

                  I know they were recently involved in lending a large sum to a building so that it could not only refurb but add a couple of units to sell and pay for the refurbishment. It doesn’t have to be all negative.

                  The main thing is, you won’t be able to make an informed assessment unless you have all the information.  The strata loan bogeyman could turn out to be a blessing in disguise and you won’t know until you ask.

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                  in reply to: Does your sinking fund cost you money #28526
                  Jimmy-T
                  Keymaster
                  Chat-starter

                    @Waratah said:
                    When you say:

                    I personally think strata loans are a more equitable form of raising finance and they are probably less likely to scare the horses.

                    do you mean fairer than, say, a special levy? Could you explain why you that is?

                    Well, it’s just my opinion but do you think it’s fair that some people might have to sell their home, and at a reduced price because of the special levy, while others who happen to have the money in the bank can ride out the storm?

                    This is particularly hard on people who have recently bought in and are only now realising that failure to have enough in the sinking fund – often because of the selfishness and neglect of previous owners – means they have to foot the bill.

                    Sure, there’s an element of bad luck involved but if there are ways of spreading the load, then why not take them.  

                    Investors, especially, are notorious for not pursuing defects when they have the chance, then scrimping on sinking fund payments to maximise their profits, then insisting on special levies to save a few extra dollars when they have been culpable in the work being needed and the money not being there to pay for it.

                    However, our esteemed “Better regulation” Minister could be looking at ways of allowing those who want to pay in one hit to do so, while those who can’t afford to pay a special levy can take out a strata loan.

                    Perhaps we should get Labor to suggest it then the government will adopt it as their policy, as they’ve done with ‘no fault’ evictions for renters.

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                    Jimmy-T
                    Keymaster

                      Looks like this is OK, according to Section 11 of the strata regulations (below) except that subsection 4 may apply – that the chair or secretary should have included the prior nominations in the notice of the meeting.  If they did, that’s fine; even if they didn’t … I don’t think it’s grounds for a new election.

                      11 NOMINATIONS FOR OFFICERS OF STRATA COMMITTEE 

                      (1) The written notice of the first meeting of a strata committee after the appointment of the committee is to include a call for nominations for chairperson, secretary and treasurer of the committee.

                      (2) Any person who is a member of the strata committee may nominate another member for election as any or all of chairperson, secretary or treasurer of the committee.

                      (3) The nomination is to be made by written notice given to the person convening the meeting that states the name of:

                      (a) the person nominated, and

                      (b) the person making the nomination and that the person nominated consents to the nomination.

                      (4) The person convening the meeting must include any prior nominations in the notice of the meeting at which the election is to take place. Notice of any subsequent nomination is to be given by the convenor at the meeting.

                      (5) A nomination may be made at any time before the election is held and may be made at the meeting.

                      (6) If a ballot for the election of a person as chairperson, secretary or treasurer of the committee is required, the election is to be conducted by a show of hands of persons at the meeting.

                      (7) Subclause (6) is subject to a resolution referred to in clause 14 (1) (a).

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                      in reply to: Does your sinking fund cost you money #28521
                      Jimmy-T
                      Keymaster
                      Chat-starter

                        Yes.  I will amend to make it clearer.

                        If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
                        in reply to: Does your sinking fund cost you money #19476
                        Jimmy-T
                        Keymaster
                        Chat-starter

                          @Waratah said:
                          Could someone explain why a strata loan causes more concern to a prospective purchaser than a large special levy?  

                          I think that falls under speculation and opinion rather than fact.

                          Consider this,  assuming the amount hasn’t already been paid, the prospective purchaser will take a look at the proposed special levy and deduct it from the value they place on the property.  In a cooling market, that is a very real scenario.

                          However, if they are informed that major works are proposed and there will be a strata loan taken out, meaning an amount will be added to their levies for the next however long, that is not going to be a case of simple subtraction. Whether or not that puts them off buying is another matter entirely

                          Some people abhor loans in any form, others live off their credit cards, accumulating debts as they go.  Some have the money lay out on large one-off payments.  Others would have to sell their property if they were hit by a huge bill (although if they have any equity in their property they could probably get a second mortgage).

                          Paul Morton of Lannock talks about the hidden cost of levies – the opportunity cost of spending money that then can’t be invested or ends up attracting 20 percent interest on your credit card.

                          I personally think strata loans are a more equitable form of raising finance and they are probably less likely to scare the horses.

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                          in reply to: Testing No Pet by-law with NCAT #28519
                          Jimmy-T
                          Keymaster

                            “The Strata” has no meaning (except in your mind) unless you put another word after it.  A lot of people coming to this forum are first-timers looking for advice in a confusing world.  Many of them don’t know the difference between strata committee, strata manager, strata scheme, strata plan, owners corporation, building manager or rental agent.

                            It is therefore incumbent upon us regulars to be clear in our intentions. 

                            And as for the poster who recently took the trouble to write “the strata (sorry Jimmy)”, requiring more keystrokes than just writing “manager”, I am speechless.

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                            Jimmy-T
                            Keymaster

                              Propose at your next committee meeting that, in order to ensure that all the requirements of the Act are satisfied, the committee adds  a line for the name and lot number of the proposer to the bottom of the nomination form. 

                              Plus you want a note added at the bottom of the form that says something like:

                              In the interest of ensuring all members are validly elected and to avoid disputes in the future, under Section 31 and 32 of the Strata Schemes Management Act 2015, the following may not be elected to the committee:

                              1. An owner who was not financial at the time the meeting was announced who has not paid their levies in full before the start of the meeting. Cheques presented at the meeting are not acceptable.

                              2. A rental agent or building manager who operates in the strata scheme and who is not an owner.

                              3. A person connected by business or related to the developer unless they declare this to the meeting before the election.

                              4. More than one co-owner of a lot

                              Furthermore, the following restrictions on nominations apply:

                              a. A lot owner may not nominate more than one person, unless they are the owner of more than one lot.

                              b. The co-owner of a lot may not nominate themselves and must be nominated by another lot owner or by a co-owner who is not standing for election.

                              c. Subject to the restrictions above, a non-owner may be nominated provided the proposer is not standing for election.

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                              in reply to: NSW Common Property Memorandum – Downsides? #28515
                              Jimmy-T
                              Keymaster

                                The “Who’s responsible” memorandum has come up fairly often in this forum (but I don’t recall many if any problems). 

                                But here’s a way to do a quick check for previous mentions of this and any other specific issues.

                                1. Scroll to the top and type “Who’s responsible” in the search box.

                                2. Click on “advanced search”

                                3. Check the box marked “All forums”

                                4. Check the box marked “Match phrase”

                                5. Click on search.

                                That will take you to a list of every topic in which that phrase has been used.

                                If you don’t do the advanced search routine, the search will only be in the forum you are in and it will list every post that has either of the words “who’s” or “responsible” in them, resulting in too many irrelevant posts from too narrow a search.

                                Obviously you can use this for any word or phrase but try to be specific so as to filter out irrelevant results.  Searching for the word “problem” will give you half of the entire 20,000 posts in the forum.

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                                in reply to: Testing No Pet by-law with NCAT #28514
                                Jimmy-T
                                Keymaster

                                  @Cosmo said:
                                  If the strata is hesitant to go to NCAT  …

                                  The strata? Committee? Manager? Sphere? Caster?

                                  Come on Cosmo, you have been posting here for a long time.  You are better than this!

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                                Viewing 15 replies - 4,351 through 4,365 (of 7,906 total)