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Billen Ben, I don't think this agent is “on crack” literally or figuratively. The one sensible thing you have written is to ask the strata manger why they think the owner asking for the special resolutions should pay.
The situation is much more complicated than a simple reading of strata law (as so often is the case). Clause 31 of schedule 2 only says that the EC is required to convene an Extraordinary General Meeting if requested by 25 percent of the owners. It says absolutely nothing about who pays for what.
The OC might well pay for the EGM under normal circumstances but the cost of preparing special resolutions etc can often fall to individual owners if the process is mainly for their benefit (like an exclusive use by-law, for instance, allowing them permanent and exclusive use of common property).
We don't know if that's the case here but it's certainly a possible scenario and it's a common courtesy in many buildings for the person who benefits from a process to pay for it.
For example, an owner may have the support of 25 percent of owners (in this case, the owner and a neighbour would be all it took) for an EGM to be called to give the owner(s) exclusive use of a store cupboard.
The agent in a situation like this might quite correctly feel that those who benefit from the special resolution should pay for it. Why would the OC pay for something that only benefits one or two people? You would assume that the other owners would agree with this.
I'm not sure about asking for payment upfront but the agent is in a position to advise all owners that they shouldn't approve the special resolution unless all costs are borne by those who are going to benefit. Owners would be “on crack” to do anything other than agree.
So perhaps the agent is right to short-circuit this possibility (and thereby increase the likelihood of the people who have called the EGM getting what they want.) In many cases, other owners will say that if the owner who benefits isn't going to pay for it, then they are going to vote against it – and quite right too. Doin't forget, it only thatkes the same numbers – 25 percent – to block an exclusive use by-law as it does to call an EGM.
There are many other cases where the strata manager might appear to overstep their authority for very good reason. I have also know cases where serial pests in a building have enough clout to keep calling EGMs where they know they have no chance of success but just want to exercise their strata muscle becasue they aren't getting their way on other issues. They simply want to make all the other owners jump through the hoops for their own amusement – the strata manager is doing his or her jobe by making sure the OC isn't out of pocket for these irritations.
Just to be clear, I'm not saying that's the situation here and I have no reason to think it is.
But we don't know the facts of this case so it's a bit early to be telling people that their strata manager has lost the plot.
If this is an EGM to correct anomolies in a building that are going to benefit the majority of people in the building, then, yes, you would want the OC to pay.
But even if this is a legitimate request by an owner to get an exclusive use by-law that benefits only them or a minoity of owners, then the strata manager is perfectly entitled to find a way of letting them know that there is no “free lunch” in this regard.
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Maybe your problem isn't your Insurer, it's your strata manager. Good strata managers get good insurance deals with good companies. I'm not pushing the barrow for strata managers here … it's just my experience that you can get reduced rates if the right people are talking to the right people.
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For what it's worth, years ago our EC raised the subject of strata managers getting “kickbacks” and, as a result was able to get a better rate from a better insurance company and the strata manager still got their commission.
How does that work? I think it's because good strata managers will recommend low-risk clients to low-cost, high coverage insurers. It's one of those very rare win-win-win situations and it certainly worked for us.
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OK, Chris, where are you? In Sydney? Where? Do you have a strata manager? Can you call them?
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The CTTT appoints strata managers when they feel there has been serious mismanagenment of a strata plan (and that means someone in your strata plan has complained and convinced them that this was the case).
The 'dictatorial powers' have been granted becasue your strata scheme has been deemed not to be able to properly manage itself.
What you now have to do is convince the CTTT that you have enough people who are diligent and reliable who can resume control of your building. To do that, you need to look at why a manager was appointed and show that this problem will not happen again
You can't 'require' the CTTT to do anything. All you can do is try to convince them that whatever problem there was no longer existsand is unlikely to return and ask to have control of your building again.
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You can delegate those powers to the strata manager. Otherwise, this is what the Act says.
Part 3, Section 19: What happens if chairperson, secretary and treasurer are not appointed?
(1) An Adjudicator may, on application, make an order appointing a person nominated by the applicant (and who has consented to that nomination) to convene a meeting of the executive committee of the owners corporation if there is not a chairperson, secretary and treasurer of the executive committee of the owners corporation after the first meeting of the executive committee has been held.
(2) The meeting is to be convened and held within such time as is specified in the order.
(3) A meeting held under this section is taken to have been held by the executive committee of the owners corporation.
(4) An order made under this section may include such ancillary or consequential provisions as the Adjudicator thinks fit.
(5) If an order made under this section so provides, notice of the meeting may be given in the manner specified in the order.
(6) An application under this section may be made only by an owner, mortgagee or covenant chargee of a lot in the relevant strata scheme.
What does that mean? I have no idea … but in most cases if nobody wants to be an office-bearer, then it gets delegated to the strata manager. If you don't have a strata manager, then you trundle along in anarchic fashion until something goes wrong and/or someone complains.
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And this is what it says in the NSW Strata Act:
Part 1 Responsibilities of owners, occupiers and other persons relating to lots
116 Owners, occupiers and other persons not to interfere with structure of lot or services to lot
(1) An owner, mortgagee or covenant chargee in possession (whether in person or not), lessee or occupier of a lot must not do anything or permit anything to be done on or in relation to that lot so that:
(a) any support or shelter provided by that lot for another lot or common property is interfered with, or
(b) the passage or provision of water, sewage, drainage, gas, electricity, garbage, artificially heated or cooled air, heating oil and other services (including telephone, radio and television services) through or by means of any pipes, wires, cables or ducts for the time being in the lot is interfered with.
(2) The owner of a lot must not alter the structure of the lot without giving to the owners corporation, not later than 14 days before commencement of the alteration, a written notice describing the proposed alteration.
NB: There’s no requirement for written permission, just 14 days notice.
In the Schedule 1 By-laws (which are only operative if adopted by the Owners or by default if the Owners have not adopted any by-laws):
5 Damage to common property
(1) An owner or occupier of a lot must not mark, paint, drive nails or screws or the like into, or otherwise damage or deface, any structure that forms part of the common property without the approval in writing of the owners corporation.
they go on to say …
(3) This by-law does not prevent an owner or person authorised by an owner from installing:
(a) any locking or other safety device for protection of the owner’s lot against intruders, or
(b) any screen or other device to prevent entry of animals or insects on the lot, or
(c) any structure or device to prevent harm to children.
In the NSW Model by-laws for residential strata schemes in the 2010 Regulations (which are also not in force unless adopted by the Owners Corporation), there’s an additional sub-clause that allows some work:
(d) any device used to affix decorative items to the internal surfaces of walls in the owner’s lot, unless the device is likely to affect the operation of fire safety devices in the lot or to reduce the level of safety in the lots or common property.
And then, of course, there are the individual by-laws for each strata plan which can cover things like how and when you can do noisy work, how to get materials in and rubble out and, as we never tire of telling you all, differ from building to building.
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At your next AGM there will be a standard motion intructing the EC not to discuss matters that the Owners Corporation don't want to have discussed. This would be an opportunity to shut down the EC's option to decide not to follow the instructions of the OC. But it does seem like your EC is making up the rules as they go along and, yet again, the CTTT decides to enforce neither strata law nor the strata plan's by-laws.
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By 'biting the bullet” I meant get on with it and take action against defaulters – and deal with the pain that arises from that. Had someone done that in your complex all those years ago, you wouldn't be looking at time limits at all.
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It's one of those weird things … every new apartment I've ever seen has a dryer installed, to the point where I wonder if it's a planning requirement. Even so, the dryer seems to be the lot owner's responsibility.
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First of all, the Owners Corporation has an absolute legal obligation to maintain and repair common property. If the building was falling down and the Owners were reluctant to raise the money to fix it, all it would take would be one owner to go to the CTTT and ask for the appointment of a statutory manager who would then make these decisions for the owners, whether they liked it or not.
Secondly, unpaid levies attract interest of 10 percent per annum and the costs associated with recovery of levies debts are sheeted back to the owners who are in default.
However, there are circumstances where people simply aren't able to pay special levies and for some the increased equity in their homes is meaningless since they have no intention of selling or refinancing.
If that's the case for a lot of owners, an Owners Corporation would be well advised to look at a specialised strata loan from a company like Lannock (who sponsor this website) which means they can get the work done without having to impose special levies (although this would result in increased levies to pay off the loan).
In the case of the “can't pay, won't pay” owners, you have to just bite the bullet. At least when they are in arrears, owners can't vote at a general meeting – and that means they can't block decisions to get tough with non-payers.
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We get a lot of pleas like this and it seems that you have to treat efforts to find a home as if they were job applications.
Put together a portfolio with little biographies of who you are and what you do (with pictures, if you can) and attach testimonials from employers, colleagues and previous landlords and agents (if you can get them).
Make it look as professional as you can, and generic so that you can print it out whenever you need to and attach it to the next application.
Also turn up for the inspections looking like you mean business – again, think job interview – not like you've just rolled out of bed on your way to brunch.
Don't forget that British backpackers have a terrible reputation in the rental industry, mainly for turning flats into de facto hostels, so you have to overcome that largely unfair stain on all young Brits' characters.
It's a very crowded market out there so you are competing with people who may look better than you on the basic forms (and you don't know what exaggerated claims they are making).
So you have to stand out. Attach your “pitch” document so, at the very least, the agents and landlords notice you.
Other tactics are to offer a bit more on top of the asking price or several months rent in advance. Be careful with the latter, though, as there are no clear-cut mechanisms for getting it back if it all goes pear-shaped.
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Well, you've got our attention, now what's your problem?
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Yeah … but this issue is in Victoria … different planet when it comes to strata.
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Everything I've read suggests the pipe between the plug hole and the floor is your responsibility – unless there's something in your by-laws or strata plan that says otherwise.
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