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The debit is against the lot so even if they sell the lot on the quiet the debt (overdue fees and 10% interest) passes to the new owner.
BUT
The collection costs are against the owner. Do a search on ‘Strata debt collection”
To recover the collections cost you need a court order but it’s a formality and the owner will get hit for ALL the costs.
I agree don’t go the bankruptcy route as if he is not paying strata fees he most likely is not paying other fees as well so let someone else do this.
You should go the route of if he dosn’t pay get your lawyer to seize and sell the property (that should get his attention) for whatever they can get and he is liable for all costs.
@Paul H said:
I have a question though. At the last postal vote, the EC members that did vote gave their proxies to the meeting chairman who was our SM. How do I make sure that I am the chairman for the next postal vote? Is it as simple as just telling the SM?
NO the SM is NOT the chairman. You said in your first post that you were the Chairman, Treasurer and Sec so you chair the meeting.
The SM can stand in for any of these positions if the meeting votes for him to do so, but any decisions he takes must be acceptable to the real chairman (YOU).
@Paul H said:
Our Strata Manager says that it is not correct that no vote means a vote against the motion. What is the basis for that claim?
See 10 (c) of Scotlandx reply which I assume is from the act itself. It doesn’t say a majority of the returned vote BUT the majority of the EC.
The reason you need a majority of the total EC is so that if only 1 or 2 reply in the affirmative (out of 9 say) it stops unreasonable decisions by an active few that can affect all. Also the Sec might not send to all EC members if they want to influence the result or loose votes against. It keeps the EC honest.
So in my example (9 EC) you meed 5 to vote in favor to pass (or 4 if you get 2 returns that abstain).
Same rule applies in QLD.
@JimmyT said:
“Where a meeting is to be done in writing a notice and agenda must also be given to each executive committee member,” according to Fair Trading’s Strata Living booklet.
Paul H this seems to be your solution, if members cannot make a meeting get them to vote by returning a voting slip.
Thing to bear in mind is that the result is only passed if a majority of those eligible to vote, vote in favor (as a no response is taken as a vote against the motion). A returned vote of ABSTAIN would reduce the total eligible vote by 1 as an abstain is neither for or against.
We do this all the time in our Strata in QLD as trying to organize a EC meeting is just about hopeless.
I would be of the opinion that this is a decision beyond the limits of the EC and it requires a decision of the OC to authorize a color change. This is something that is going to affect everyone so all should have a say.
In fact some people argue that it is an improvement (or alteration) and requires a SR to be approved for a color change.
I consider it should be mandatory for EVERY Strata in NSW should have a bylaw similar to what Jimmy suggest.
Anyone who alters common property with or without Owners Corp permission will be liable for its repair and maintenance, as will any subsequent owners of the lot.
Bear in mind the EC can authorize alterations by the owner with a simple majority and if they don’t make it conditional on a subsequent bylaw that change becomes the responsibility of the OC to maintain.
Maybe it’s in the Strata interest to cover the cost of this general bylaw (approx $150) to avoid any future liability for any changes that get approved.
Who’s paying the bill???
If EC then it’s an improvement and it would require a Special Resolution (75% in favour).
If owner it would require a simple majority to approve the work AND a bylaw (75% in favor) stating the lot owner will accept responsibility for the ongoing maintenance of the improvement.
If no bylaw is passed but owner is given permission for the work the OC becomes liable for the the ongoing maintenance.
Get the EC to TELL the SM (he works for the owners) to send a copy to all owners (residents). Not sure if a vote would be required.
Ask the SM for a copy (hard or emailed).
Submit a motion to next GM that copy of new bylaws be sent to all residents of the strata (better the residents receive a copy then the offsite owners who won’t be interested).
I’m staggered that voting by post is not allowed in NSW because we can vote at GM in QLD just by completing the agenda, (or voting paper if different) signing it and sending it to SM (Sec).
Voting by casting a written vote
A voter may submit a written vote by completing the voting papers and giving them to the secretary before the start of the general meeting. A written vote:- can be given by hand, by post or by facsimile
- may be withdrawn by the voter at any time before the result of the motion is declared
- cannot be withdrawn by a proxy.
This is such a universal thing I assumed it would apply throughout Oz.
In fact if we don’t have a quorum at a QLD AGM,(or GM) I was told we would continue the meeting as though a quorum was their, the SM would record all the votes and schedule a new meeting for 7 days time when any owner present at the first meeting would not be required as the SM had a valid record of their voting intentions.
You cannot do this in NSW, so you have to reschedule the meeting and however many present at the second meeting they are considered a quorum. This seems a very risky method to me and wide open to abuse.
@Minty said:
Hello JimmyThe Strata Manager has said that, depending on this owner’s financial situation, we may eventually have to write off this debt, which seems incredible and grossly unfair?
This SM dosn’t even know the rules of his own business, the debit is not against the owner it is against the lot, and unless he pays the debit, penalties that have accumulated (10% interest per year), the cost of the debt collection agency you can as a last resort seize and sell the lot to recover ALL your money.
The longer it goes on the larger the debit the lot OWNER HAS to pay eventually. (shame it’s not in QLD as their the penalty rate is 30% so it’s a great little earner for the Strata).
To the best of my knowledge postal voting is not accepted in NSW.
Only Sec or SM can call official meeting and an agenda (with motions) must be supplied to everyone 3 days before the EC meeting.
Going around collecting signature on a bit of paper is meaningless.
Those not available to attend can return the Agenda suitably completed to record their votes at the meeting (a sort of postal vote) and increase the number considered attending (a proxy vote count as attending) for a quorum.
@JimmyT said:
I pity the poor neighbours who have to put up with all this work when there are no restrictions over working hours, noise , mess etc. Fotr instance, in our block permission to do this kind of work comes with controlled times for things like hammer drilling, so that it can all be dealt with in one or two spells, not be a constant that goes on intermiitently for weeks.The default QLD bylaws like those in NSW don’t allow residents to cause a noise nuisance or make a mess on the common property (or even lot property if it’s visible from the common property). Also how often do residents refurbish kitchens or bathrooms (not exactly an annual process).
Also our owners don’t have to register a bylaw every time they make changes as the onus falls on the owner to prove that the Strata accepted responsibility (simple motion passed by OC or EC would be sufficient (but EC or OC would have to be pretty thick to vote to accept this)) for any alteration done but most owners don’t even try to get the strata to accept this responsibility for something that benefits only 1 owner.
@Whale said:
are you saying that in Queensland an owner could undertake renovations of the types you mentioned to common areas within their Lot without first seeking and obtaining the consent of the Owners Corporation (O/C)?Yes I am. It’s called building Format
In QLD the boundary of the lot is the mid point of the common wall, so ripping out a fitted kitchen, bathroom is allowed without Body Corporate (Strata) approval. So attaching shelves, hammering in nails is all legal so long as it doesn’t go beyond the mid point of the common wall.
Removing an internal load bearing wall would be a different matter, but general refurbishment is allowed.
We even have Strata that is effectively a freehold property within the strata complex and the owner is responsible for ALL maintenance (only possible with townhouses and villas) of the property it’s called Standard Format.
See here
Must admit I don’t see a problem with the bylaw as it transfers responsibility to the lot owner and gives him permission to make alterations within his lot without the hassle of getting a SR approved for renovating a kitchen, bathroom, etc.
In the case of a leaking pipe it would be strata insurance that would cover the repair and the bylaw would make no change to that.
Why should strata be involved when you want to retile your kitchen or bathroom, or lay new floor times (so long as it doesn’t affect other residents).
This is how the rules apply in QLD (except the utility service has to actually enter the property before it becomes the lot owners responsibility) and I think those in NSW are far too restrictive on what a lot owner can do.
Bear in mind Chak that the SM is more accurately referred to as a Strata Administrator because they can make no independent decisions and they take instructions from the EC and OC.
If you can get 25% (by entitlement) to sign a letter demanding an EGM then the SM has to organize one.
Make sure you submit motions that:
1) removed the power of the EC to authorize any spending above $xxx
2) No more spending by the SM or EC except what was approved by the budget at the AGM
3) to pursue any individual who has authorized Strata funds to be spent without a property authorized vote having occurred, and to pursue the said individual to recover from them said expenditure.
If you have the numbers calling an EGM is the quickest way to stop the spending as CTTT can take months to get any action, and the result of the EGM vote would strengthen your application at CTTT (it might also put the fear of god into these spenders if they think they might be personally liable for the spending)