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Note that if the OC has to reinstate common property because of unauthorised work by an owner (or just simple damage by an owner), the cost is a simple debt, it doesn’t form part of the levies. The owner can ignore that debt unless you take enforcement action through the courts. Not paying will not prevent you from voting etc.
You’re right, I couldn’t have put it better!
The simple answer is yes, if an owner does renovations/work that changes common property, then firstly they need to seek permission to do it. The OC may then require as a condition of approval the passing of an exclusive use by-law to make it clear that the owner is responsible for that work going forward. This is because the OC hasn’t done that work, the owner has.
I think it is a bit extreme to say at the outset that anyone wanting to do renovations will have to take out a by-law, because there will be a number of circumstances where it won’t be necessary. Not all renovations will require changes to common property. So, to have a blanket rule like that will put people off even telling the OC, and that is counterproductive.
Yes, works to a kitchen may not affect common property, unless you change the plumbing. But putting an air conditioner on an external wall does affect common property.
The problem is that you don’t know what you don’t know, so the best approach is to require owners to notify the OC of any intended works. At the very least they should be telling the OC. because the workmen have to gain access through the common property. If it is major works then the owner should provide detailed plans. If it is evident from the plans that common property is affected then a by-law will probably be necessary. But that is in an ideal world and the real world doesn’t work like that.
I got up this morning to find that the new owner of a unit here was hacking up common property to install a gas line, they didn’t ask us or tell us. And there is now a pile of bricks dumped in the front garden. I am getting so tired of being abused and feeling like the bad guy, I don’t think it is unreasonable to expect some courtesy and co-operation. Otherwise go and live in a house.
If it’s her stuff, perhaps Sarah should consider moving it and approaching her landlord about a reduction in rent to take account of the costs and the fact that she won’t be able to use the balcony while the repairs are being effected.
Anything that isn’t hers I wouldn’t be moving, get whomever owns it to move it.
If the builder is responsible under the contract for rectification, that will be factored into the cost of the contract, i.e. the OC will effectively be paying for it.
In some circumstances the OC and owners may agree for each to meet their own rectification costs, e.g. a friend of mine lives in a block where each owner was responsible for the cost of rectification to their apartments subsequent to installation of fire sprinklers. They figured that as the owners were the OC, they might as well each meet the costs themselves and do some other work if they wanted to at the same time.
A while ago in our building an owner sought permission to renovate their kitchen and bathroom, which included new tiles around the windows, while knowing that we would be replacing the windows. We granted permission subject to them agreeing that they would bear the cost of reinstating those tiles, because they had the option of putting the tiles up later.
I don’t know what your rules are about use of swipe cards etc., and I am not an expert on privacy, but just a couple of observations.
– if the EC is managing the security system and has access to the system and information re use of swipe cards, then the EC should have in place clear guidelines regarding EC members’ use of the system and the information.
– you say that the EC member issued a notice to comply, a notice to comply with what, do you mean a by-law relating to the use of swipe cards? Do you have a by-law that says that only owners can use them?
– a single EC member can’t issue a notice to comply, a notice to comply can only be issued by resolution of the EC. That is, you would have to have a meeting where facts were presented, the EC considered those facts, and then determined whether they believed a by-law had been breached.
From what you have said it sounds like the EC member unilaterally issued a notice to comply. That wouldn’t have any force, and that EC member should be told to pull their head in.
Oh yuk no, that is awful. They shouldn’t be doing that. The EC member needs to be told in no uncertain terms that that is inappropriate and they mustn’t do it.
Has anyone asked the person why they are doing it, and how did you find out?
I forgot to say, in terms of legal costs, you need to do a cost/benefit analysis. We had a similar problem with a strata manager last year who didn’t want to terminate. We worked out that paying out the manager was going to cost considerably more than the legal fees, i.e. the legal fees were about $1500 and to pay out the manager would have been more than $6000.
Yes – you need to go to a lawyer, show them the agreement and tell them what the manager has said. The lawyer will tell you what your position is and what you can do. The first consultation is usually free.
Ok – so according to them, the agreement has three terms:
1. at will, to be terminated with three months notice by either party
2. nominally one year, expiring at AGM
3. three years (with option for another three years etc.)
I don’t see how you can have an agreement that has three different terms, it doesn’t make any sense. An agreement can only have one term, you can’t have a number of options, and they can’t be taken cumulatively which is what the manager is suggesting.
In respect of the penalty, on my reading that is not correct because Clause 15 refers to “the term (if any)”. And you can’t say that all three term options apply at the same time. That is, for example if you terminated under option 2, then option 3 doesn’t apply.
I am not sure what you would be applying for mediation for, I suggest your next step is calling the Department of Fair Trading and telling them what the strata manager is saying and ask them what your options are. Ideally you should consult a lawyer, it would probably not cost you that much to get a letter sent to the strata manager which is likely to make them pull their head in. Bear in mind the strata manager is not a lawyer (so far as I know), and they don’t seem to know how agreements work.
Willie has said that they had their sinking fund money in a long term deposit account, which is most likely to be with a bank, because banks are authorised deposit taking institutions. They instructed the strata manager to move it to a shorter term deposit, and he didn’t do it so now they will incur a penalty. A similar thing happened to us a few years ago, we instructed the strata manager to invest the money and he didn’t, so we lost out on the interest. I don’t think Willie is suggesting the money is gone, just that it is still in a long term deposit and they are going to incur a penalty for breaking the term. The penalty is usually not that high, depending on how much is in the deposit, it is usually $150 or so.
Strata managers don’t get commissions from banks for putting money in term deposit accounts. Strata managers don’t have free rein to invest money wherever they like, unless they are given free rein (which would be very stupid), it is up to the EC and/or OC to decide if and how money is invested. As a matter of course you would instruct the manager to provide regular reports.
Strata Managers are bound by the Property Stock and Business Agents Act 2002. Part 7 deals with trust accounts in detail.
There are two things Willie/the EC could do:
1. write to the strata manager and say because you didn’t follow our instructions we have incurred the break fee and we expect you to pay that break fee.
2. if the strata manager doesn’t play ball, tell them you will make a complaint to Fair Trading. But query whether you want to do that over a few hundred dollars.
Oh yes – do as I say, not as I do. We have one owner who has been here a long time and she has very definite ideas about what people can and can’t do, none of it applying to her. Woe betide anyone who parks their car in front of their garage (fronting the street) momentarily, but she does it all the time, and tells her visitors to do the same, blocking everyone else.
Don’t get me started on her collection of half-dead plants that until recently littered the back stairs. They were moved because of building works but I am sure they will be back……
Rant over.
We don’t know anything about the building but it seems the matter is being progressed. The noise was noticed a month ago and reported some time after that. Making a CTTT application will have at least one effect – bad blood between people in the same building! where it is likely it will be resolved anyway. Mattb’s advice is sensible.
CTTT applications cost money and time, and not just to the parties, we are also paying for it through our taxes – use that avenue when it is really necessary.Good luck!
He will probably try to stonewall you but just be insistent. If he really mucks you around perhaps mention Fair Trading.
If you are looking at changing strata managers do you have another one lined up, they are often very helpful in the transition stage.
Oh blimey, sorry if that came across the wrong way but in my experience there are people who do a lot of complaining and not much else. That is what I was saying, here you have an owner who on the one hand is demanding a number of things and on the other hand is protesting what she says are high levies.
Maybe the complex is a cesspit but from the information given it seems unlikely. Leaves do fall from trees and you can’t stop rubbish coming in from the street. The only thing I would suggest is that the bin guy be asked to wash out the bins, however the basis of the gripe is likely to be that the bins are near that owner’s door.
If you live in a house you will find that leaves blow on to your path and front doorstep and if that bothers you, then you either sweep them up or get someone to do it for you. In the latter case that will cost you money. That is the problem I have found with living in a strata scheme, people abdicate all responsibility. I have had one owner demand that we get a contractor to sweep up some leaves, which would have cost about $200. I got the broom and swept them up myself, there was no way she was doing it. The same owner thought she shouldn’t pay a special levy for some building works because she didn’t use that part of the common property. Go figure.
That is what I meant – I am not suggesting that certain standards shouldn’t be maintained.
If you look at the section 62 cases, and there are plenty of them, they deal with issues relating to the structure and infrastructure of the building. This generally encompasses items such as painting, roof repairs, lifts, carpet replacement, fences, brickwork, concrete spalling, electrical and plumbing upgrades/repairs etc. etc.
How you deal with the rubbish bins, how often you sweep up leaves and the extent to which you weed the garden are not generally section 62 matters. Each OC will deal with that differently.
There is an obligation under the Act to have a sinking fund. This is for items that generally fall under section 62 matters, i.e. to finance major repairs and maintenance. You don’t pay the cleaners and gardeners (if you have them) out of the sinking fund, that comes out of the admin fund.
In this case, the owner seems to enjoy complaining. Some people do. At our next AGM we will be tabling a list of everything that has been done over the last period and how much each of those cost. Sometimes you need to demonstrate a link between the levies and the costs of running and maintaining the building.