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There are a number of issues here. In the last 3-4 years strata insurance premiums have gone up a lot (more than inflation)
From my experience, where there is commercial activity involved, the insurers see a higher risk and hence higher premiums.
That you are having to go to overseas insurers indicates that the risk , as perceived by the insurers, is quite high (So double whammy)
Unlike the residential strata insurance marker, the commercial strata insurance marker (meaning companies that will carry that insurance is small) the competition is less so the premiums are higher.
Insurers can apply all sorts of conditions before they insure you. Since you done have a lot of insurers to turn to, you just have to comply
(In my commercial block the insurance company wanted us to erect a direction sign outside of a fire exit. Luckily that was cheap but had we not done it we would not have got insurance)
Also I know from my experience that insurance companies are sending out inspectors to commercial buildings and checking general condition and fire services. I’ve never heard of such in a purely residential building.
The legislation allows the OC to on-charge a [lot owner] a higher share of the premiums if the cause the insurance to go up because of the extra risk
But having spoken to an insurance broker (and one that is quite experienced in this type of insurance) I was never able to have explained to me how its determined the extra premium amount.
I think the landlord will have a hard time to claim this
In NSW a landlord can only pass on utility costs if they are metered.
For example on a water bill the landlord can pass on the water usage and waste water charges, but not the supply charge
I think the strata manager is also doing it wrong. For centralised amentities, the “bill” is paid thriough levies , that are paid by all lot owners. You cant just divide up a bill and separately pass on to lot owners. Thats what ythe administrative fund is for
Thirdly, is its not in your rental agreement, its not a charge that can be passed on by the landlord.
Push back. You wont have any argument from NCAT
What if the deposits and payments were put into escrow?
Its not something we use much in Australia
For the developer its a guarantee of money provided they complete the project including defects.
For the buyer it guarantees that their money does not disappear into a black hole where they never see their money again.
Remember that any decision of the committee must be made at z committee meeting. None of this voting by email.
And all committee meetings and agendas need to be sent to Owners prior to the meetings.
Thirdly owners always override the decision of a committee with sufficient numbers.
So if you can organise enough owners they can overule the committee.
Failing getting the decision thrown out at the committee meetings, if you get 25% of lot ownersto petition the secretary, you can call a general meeting where you out your motion to reverse the committee decision.
Firstly, for larger schemes, so that the strata manager can mange the paperwork, there is a cut off (often 24 hours) for submitting proxies before a meeting
Ask the strata manager to set an appropriate time , even if its say a few hours.
Secondly, the rule I understand is that its either the owner or the proxy that speaks at the meeting. Thats to stop the proxy and owner handing over control at short notice. Consider this, a heated discussion is going on. You ony want one person representing the lot speaking , not multiple people.
The owner always overrides the proxy notice. So the owner can fill in a proxy form and give it to the secretary. If the owner turns up, then the proxy form is either dead (the owner represents the lot) or the proxy stands, but the owner is considered to be an observer only .
YOu need to look at the strata management contract
It will say what is included in the fixed fee, and what is schedule B fees
But just because it is included in the fixed fee does not automatically make it a schedule B fee. Remember this is a contract signed by both parties ad is the entire agreement. If a party left something out, then the only way to have it included is to amend the contract with the AGREEMENT of both parties.
The strata manager (or the OC) cannot just at a whim move the goal posts.
I’m not sure of the issue
That you have done modifications that benefit your lot, would not be a reason to delay a sale.
The situation is that the sale document would show only your lot and the bylaws would show any agreed modifications.
A buyer would look at this and say that there is a risk for them in that they may be required to take down some modifications, or else put in time , effort and maybe money to have the modifications made legal.
It means you will get a discounted sale price (I’m not sure how you quantify that) as the buyer is taking a risk
However in a hot property market, many buyers will overlook such a defect if they consider it a good property
Whilst the insurance companies you mention are well known in car z house insurance, they are by no means big in strata insurance. I know GIO only deals in very small complexes.
You also need to consider how workers insurance and public liability insurances will be effected. These sorts of insurances are quite expensive compared to building insurance.
And you may face increases in premiums if a claim is made against common property and another owner does not have insurance.
Lots to unpack here.
The strata manger is correct in that at the agm a budget for the admin and capital works fund need to be presented. The owners then vote on the levies based on the budgets.
But no one said the budgets have to be reasonable.
A carefully prepared budget will be a good guide to the costs of running the building. Since you have previous years expenditures, it’s easy to make an estimate.
I say the aadmin costs will be what they are. You can hope and scrimp as much as you like but at then end of the day, the costs are generally fixed. If mid year you run low on admin fund money, they only action is to raise a special levy.
As for the strata manger charging to do research. Look at their contract. Usually they have charges for retrieving documents. Remember the strata manager has to make money, so tasks outside the norm are usually chargeable, especially if they have to go into the archives.
I also question why you are having so many informal meetings. Get them convened as committee meetings or general meetings. Then you have a formal record of the agenda and a record of the decisions . A meeting to decide a meeting is just a waste of everyone’s time.
If you do seek the appointment of a compulsory strata manager, these informal conversations will not carry much weight.
Show that you requested formal meetings , with the agenda items , that were rejected by the committee/ owners
I would be working with the strata manager. It seems that some owners are overruling the strata manager and breaching the act. I sense that your strata manger may actually know what they are doing, yet subsumed by some owners.
Also any owner can put a motion to a general meeting. It does not require the approval of anyone for an item to be placed on the agenda.
Having had recent experience in a new strata building, albeit a commercial property, I can say the initial budget , usually prepared by the anointed strata manager, is woefully under budget.
What has surprised me for new buildings is the amount of money that needs to be spent on certifying on an ongoing basis all sorts of building equipment ( afss, co sensors, height safety equipment, plumbing etc etc)
It’s taken about 4 years to identify and budget for all this.
Whilst the strata manager should have budgeted for these things, it’s also fair to say that every building is different, AND like you they are dealing with a non existent building till it’s finished.
You can appeal to logic
A well prepared budget will show where the money is going. That also needs a well prepared capital works plan.
However this is also any emotional issue. You should not try to convince 100% of the owners of the correctness of the above.
Remember you only need a majority of votes to pass a motion. When you feel you have the numbers , put it to the vote.
There is an Australian Standard for height safety systems.
It specifies things like access points, ladders, roof walkways and safety anchors.
When your building applied for its occupancy certificate, all these systems required by the standard would have been installed and certified.
Don’t expect the builder or developer to provide any more than the minimum required.
Rereading JTs other post I want to ad,
The DA only specifies the minimum requirements to meet all building codes. It’s not likely a builder or developer will do any more for run of the mill buildings
The process of buying off the plan , which is what I assume you did, is pretty imperfect . You commit to something 5hat does not exist, The only thing you are committing to is the lot you are interested in.
It’s not until the first agm does the legal entity of the Owners corporation exist, Bythen the building is complete, an occupancy certificate has been issued and you’ve settled. Even if you don’t like any aspect of the building up to the first Agm, you are committed to buy.
A few years ago I was looking to buy an industrial unit. After reading the contract I decided not to buy off the plan, because whilst the developer was reputable, I was not satisfied that certain aspects of the build would be delivered,.
As it was I found a lot in z different location from the same developer that was just completed. I was able to have a good look at the finished product and make an informed buying decision.
What’s a common property specification?
Common property is anything that is not lot owner property. That seems a trite statement, but on strata plans it’s easiest to determine lot owner property. Anything else is common property.If it’s a new building I would get the building manager or other person to take an inventory of things like lifts, gym equipment, furniture, carpets, as a record of what existed at inception. Pictures are a perfect record.
The developer is not obliged to do anything like this, nor are they obliged to provide what was in the glossy brochures that they used to sell you the building. You’ll find in the fine print that the brochures do not form part of the contract.
Regarding the fire brigade.
Is this a case of be careful what you wish for?
In a building with fire hydrants, the hydrants are required to flow a certain amount. It’s tested periodically by your fire inspector.
If the flow is below specifications, it’s up to the building to install pumps to bring it up to standard.
It becomes the building problem even if the supply authority can’t supply the right pressure.