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I’m in a similar predicament.
Upcoming AGM with a dodgy motion.
Preliminary email to SM returned the reply that the motion was in order, which didn’t actually answer the objection I made.
Next will be a more detailed email with reasons why the motion is defective. Which I am sure will get the same reply.
This is an experienced SM who is just trying to gaslight me and others.
Like you my arguments will be well supported by reference to the act.
if the motion is not withdrawn at the agm I intend to get mediation and then go to NCAT.
Is it really such a challenge?
As mentioned in the article , payment plans can be refused if it leaves the finances of the OC in the red. The state of the finances is readily established from the balance sheet of the OC.
Secondly, payment plans (IMHO) can’t be a forever situation. Each quarter , for most buildings, a new levy notice is sent and requires payment. The owner would need to propose a payment plan where they “catch up” to regular levies after some time. Its similar to having a loan of any sort. The lender wants the debt paid off at some (agreed) time.
If the lot owner is continually unable to meet their obligations in paying levies, then they would need to consider whether continued ownership is possible.
I understand that the legislation still allows an OC to put the recalcitrant lot owner into bankruptcy (though thats probably the last resort)
When you bought your lot, you acquired the living space, which comprises the space between your walls, and a designated parking space, the dimensions of which are onthestrata plan.
It’s unfortunate thT our cars have got larger, but you are only entitled to what is on the strata plan. The owners corporation, can’t do anything about that.
One avenue would be to buy some of the common property adjacent to your parking space and have a larger space.
Remember that apart from the purchase price, you would be responsible for surveyors fees, lawyers fees, valuers fees, to revalue lot entitlements, and then have to get a special resolution passed.
Good luck
Our building, up to 2 years ago, used to pay commissions to the strata manager
We have a very good and responsible insurance broker, who also was not comfortable with paying a commission. We negotiated a brokerage fee with the broker that excluded any commission to the strata manager.
As we all know, commissions are used to disguise low strata management fees. Discussion between the committee and the strata manager ensued (as we were otherwise satisfied with the services we were getting) and in return for the strata manager not taking any commissions they got an uplift in their management fee at the last renewal.
I think all around this was a very satisfactory result (the strata manager is not a member of SCA BTW)
I am also associated with two other building (being properties owned by my daughters) and these strata managers do not take any commissions , and have never done so.
As a contrast, one of these buildings was managed by a large strata management group (whom I cannot name but are well known) and of course they were taking commissions. That was until their contract was not renewed.
I think your SM is correct
Schedule 2 section 10 says voting can be by any means specified in the notice.
There are no other requirements specified.
Also a special , or any other, resolution can be carried on a zhow of hands or majority of votes carries the motion. Only if a poll note is called fo unit entitlements come into play. The SM will calculate these at the meeting.
The SM can insist that the voting paper sent is the only one accepted. However I would say that as long as the voter is jdentifiable and their owing intentions are clear, their vote should count.
Start with a property lawyer. You’re going to need one in the end to do all the legals. They will advise you what needs to be done.
A bid hurdle will be getting approval of the local council. The land will needto be subdivided, and it needs to meet certain requirements resize amongst other things.
Also both lots will need to agree to the separation and to pay the other small costs.
Another solution would be to engage a strata manager. As an impartial observerthey xcould structure the existing strata to be functional.
Now that the act has changed, the strata manager cannot get a commission if the owners get their own insurance.
Our strata manager used to collect a commission . But even before the act changed we negotiated a no commission contract.
As well we negotiated with the insurance broker a flat fee for their service, so they did not receive a commission from the insurance company.
So then everyone is not incentivised to get the product that provides the highest commissions.
Now that the act has changed, the strata manager cannot get a commission if the owners get their own insurance.
Our strata manager used to collect a commission . But even before the act changed we negotiated a no commission contract.
As well we negotiated with the insurance broker a flat fee for their service, so they did not receive a commission from the insurance company.
So then everyone is not incentivised to get the product that provides the highest commissions.
There is no definitive answer to this.
Each building is assessed by each insurer as to risk.
And each insurer asseses risk differently.
Age, condition, fire services, number of previous claims, excess etc all play into assessing the risk.
For one of my buildings we found the best value was to engage agood broker to do the leg work. We made sure that the risk assessment document was accurate, and even provided information to the insurers to show we were low risk
Ive had this argument with strata managers in the past
The situation is that even if you do not pay tax, a nil tax return needs to be filed. Somene has to do it, and if the strata manager arranges a tax accountant to do it, and the management agreement states its one of the charges they can make, then you have to pay up.
Once you are on the tax merry go round, its very difficult, but not impossible to get off. Dont expect the strata manager or accountant to assist.
There needs to be more education for unit purchasers at the time of buying on their obligations in strata
Why dont the lawyers and conveyancers educate their clients about what they are getting into.
On the other hand, with stand alone houses being so expensive, property ownership via a unit purchase is the only option for many people. They borrow to the hilt and have no wiggle room left when an unexpectedly high levy comes up.
The strata manager may be correct.
You need to look at the strata plan. The thick line probably goes around the boundary of the courtyard. Anything inside the thick line is considered lot property.
The centreline rule applies only to outer walls.
However approval may still be required where you have a bylaw in respect of additions which alter the look of the lot.
Where are you at?
In a whole world of pain.
Since the original extensions were not documented and bylaws passed, a lot of this has passed to OC responsibility.
I can go on about the various omissions.
I think the strata is in this situation because they tried to do the legals on the cheap and not consult lawyers.
I would suggest to get a lawyer to look at the history and paperwork to determine who is responsible for what.
You need an impartial arbitrator, as I can see that it’s going to be a standoff between owners.
And unfortunately all owners will be paying for the past sins.
The tribunal has set the precedent that its an absolute responsibility of the OC to repair and maintain common property.
In the poster’s case they have no option but to carry out the repairs.
$200k per lot seems an extremely high repair bill.
As a start the committee needs to get involved and get some other quotes. There are project consultants out there that can write a scope and get quotes. If that’s a help.
The ne t step, after you get quotes, is to figure out how to pay for this. I suggest a loan considering the high amount.
As a last option, you may consider selling the whole building for redevelopment. Right now your equity is about $350k. A developer may pay you more than that .
A formal letter means nothing in the context of strata.
The only notice that is enforceable is a Notice to Comply. It can only be issued for breach of a bylaw or the act.
It requires the approval of the committee to issue one. In the formal Notice to comply it is required to state time and date of the breach, as well as the bylaw or part of the act concerned.
So things like ” he is always noisy” are very non specific and would otherwise warrant a NTC.
It’s also up to the chairperson to control committee meetings. That can mean adjourning meetings if they get too rowdy, and 9ntrolling the amount of time each member speaks. Remember it’s not a shouting match, it’s a debate. It’s the majority one that carries the motion, not the volume of the arguments.