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  • Whale
    Flatchatter
    Chat-starter

      Kanga – As you may have gathered I’m a “black or white” person, and therefore in my opinion the SCMA and other Legislation sets out how certain issues must be handled; that is strictly in accordance with the procedures shown.

      If there were other options available then they’d be shown in the applicable provisions, although I agree it would be better if ambiguity could be avoided so that matters don’t go pear-shaped when people innocently interpret.

      Probably enough on this topic for now, so again many thanks to everyone!

      Whale
      Flatchatter
      Chat-starter

        You know how it feels when you think that you’ve got it right even though one of the biggest strata managers in NSW has taken a different (incorrect) approach; thanks everyone!

        (by the way JGOWI, you’re right but I’m talking about a transfer of the surplus in one fund to another fund, not a distribution of that surplus to proprietors).

        Whale
        Flatchatter
        Chat-starter

          THANK YOU SCOTTY!!!

          Your post just landed ahead of mine but …..

          Thanks Peter and Kanga – I’m coming from an angle based on my interpretation of the S76(4), whereby a Special Levy is to be raised (only) in circumstances where an expense arises, the payment of which “cannot at once be met from either fund”.

          Again based on my interpretation, an amount to be raised in order to recoup a distribution from one fund to another is not an expense of the type to which a Special Levy may be applied.

          In my opinion, what should happen is for the administrative fund levies to be set at an amount sufficient to meet the expected expenses of that fund PLUS an amount sufficient to recoup the past distributions from the sinking fund.

          As Peter said that would produce a “reserve”, which would in the case of my friend’s Plan be transferred to the sinking fund to recoup those past distributions, and depending upon how his O/C resolved to “determine” under S71(3), that could be a once-off recoup or comprise several such recoups over a number of years in order to ease the pain.

          Am I up the wrong tree of what?

          in reply to: Strata Managers Fees – How to evaluate #18789
          Whale
          Flatchatter

            I’d conclude that $300 / Lot / year is closest to the mark, but don’t forget all those “disbursements” that add substantially to the Management Fee.

            Back in the day when our Plan engaged the services of a Strata Manager, their additional fees for things like making and receiving telephone calls/faxes/e-mails, word processing, debt recovery (letters only), arranging quotes, issuing work orders, liaising with tradespeople, attending meetings, advice by more senior managers, archive storage, and a range of other “services” almost doubled their management fee.

            To be fair though, I believe that some Strata Managers are now including some of the above (services) in their management package, but I’ll lay odds they’re still keeping some extras in their back pockets! 

            in reply to: When is the authorisation of OC required? #18787
            Whale
            Flatchatter

              Willie – there’s been a lot of discussion lately about the consequences of owners not seeking the Owners Corporation’s consent prior to renovating their Lots; see HEREHERE and HERE [hint: read the original (bottom) post first].

              In answer to your question, both types of works that you mention in your post almost always involve something that’s classified as a change or addition to Common Property, and even if your proposed works do not, your Owners Corporation (O/C) still needs to know who will be working at the Plan and what if any impacts that may have – of which parking, loading / unloading, and noise are but a few.

              The applicable reference is Cl 65A of the NSW Strata Schemes Management Act (1996) and for more general information you could peruse THIS publication of the NSW Office of Fair Trading.

              My advice is to err on the side of caution; advise your Owners Corporation of precisely what renovations you propose, and let it decide what it needs to consent, and what comprises works for which you’re entirely responsible – albeit with some reasonable requirements to address any consequent impacts  such as those shown (above).

              in reply to: Tiles on Balconies #18780
              Whale
              Flatchatter

                The situation as I understand it is that there’s currently no waterproof membrane in place, and who’s to say that if the Owners who tiled their balconies had properly sought the O/C’s consent beforehand, that one of its conditions may have been the installation of such a membrane, thereby avoiding the current problem altogether?

                My advice was with regard to how I see the legal position, not the one that waverton’s O/C may expediently need to take in an effort to please the majority of Owners, simply because some of those were unaware of, or simply chose not to follow the rules!

                Fortunately for those Owners, it’s not my call! 

                in reply to: Tiles on Balconies #18772
                Whale
                Flatchatter

                  I assume by your alias that you’re in NSW, in which case KP’s absolutely correct.

                  If there IS a Special By-Law (SBL) in place covering the installation of tiles by Owners, then it will almost certainly contain something about who’s responsible for on-going maintenance, replacement, and repairs of those; usually the individual Lot Owners.

                  IF on the other hand there’s no SBL in place, then all that your Owners Corporation is legally required to do is make the repairs to the surface of the balconies and to return those to their original state; that is without tiles.

                  I imagine that will likely cause some angst amongst those Owners whose balconies are tiled and please those whose balconies aren’t, but when the dust settles, your O/C needs to make a decision about how it pleases the majority.

                  Whatever the decision, before any further tiling is done at whoever’s expense your O/C needs to place an Item on the Agenda for its next General Meeting to “Specially Resolve” (where ≥75% of those in attendance need to vote in favour) to create a Register a SBL to enable Owners to, at their discretion, tile their balconies.

                  That SBL should include a statement about who’s then responsible for the on-going maintenance etc, and in my opinion conditions about tile materials (e.g. non-slip), consistency of colour/s, and size etc – particularly if balconies are visible from the streetscape or from other units.

                  Whale
                  Flatchatter
                  Chat-starter

                    KP – the problem with making Owners responsible by default for any changes or additions that they may make to common areas within (or  on the outside of) their respective Lots is that some (not all) use un-licensed, un-qualified, and un-insured persons to do half-baked jobs, or worse still do those works themselves.

                    Some may say “that’s OK, it’s their property”; but it’s not, it’s common property where shoddy work impacts on the Owners Corporation (O/C) as a whole (i.e. all owners).

                    I can give you one example that occurred in our Plan, where an Owner replaced a 300mm dia. bathroom exhaust fan by fitting a 200mm dia. unit to the grille of the original, and omitted to purchase the ducting to take the moisture-laden air outside through the existing fitting in the (cavity brick) wall.

                    Result?

                    Apart from the aesthetics of what could only been seen from inside the bathroom, most of the steam and moisture-laden air emerged in the bathroom of the Lot directly above, and the remainder finished up in the roof void!

                    Whilst our O/C leaves the maintenance and repair of “fixtures and fittings” within Lots to the respective Owners, it’s “nanny” enough to require them to advise (but not seek consent for) what’s proposed where any impact is likely to affect common property (consequently). The O/C then reserves the right to arrange the works itself based upon whichever complying quotation the Owner chooses to accept (and pay for).

                    Again, extra work for the hard-working Secretary, but believe me, very much worth it when the prospect of retrospective fixes and mediating disputes between affected Owners is taken into consideration.

                    Whale
                    Flatchatter

                      Here’s that Special By-Law as Registered in 2010:

                      “The following are the requirements of the Owners Corporation of Strata Plan ♦♦♦♦ further to the provisions of Chapter 3, Part 2, Clause 65(a) of the NSW Strata Schemes Management Act (1996) and/or any subsequent or complementary Act/s that may at any time in the future apply (“the Act/s”).

                      Any and all changes and/or additions to the Common Property of the Plan that have been undertaken by the Owners Corporation, and those that have been requested to be undertaken by Owners and which have been properly consented to by the Owners Corporation (O/C) under the provisions of the Act/s will be shown in a Register of Changes and Additions to the Common Property of the Plan (the Register) that will at least include the details of the Owners / Proponents, the date that the O/C’s written consent was properly given, the full details of the consented works and/or activities, and any conditions that form part of those consents.

                      The Register must be kept in an up to date form by the Secretary of the Executive Committee.

                      Any and all changes and/or additions to the Common Property of the Plan that are not shown in the Register on and after the date of Registration of this Special By-Law will under no circumstances whatsoever comprise or be considered a change or addition to or form any part of the Common Property of the Plan, and any and all maintenance, repairs, and replacements of, and insurances for changed or added items not shown in the Register that may be required from time to time is the absolute responsibility of the Owner/s from time to time of the Lot/s where the changes and additions were undertaken or completed.”

                      Whale
                      Flatchatter

                        Zijerfex said …. I like the idea of your Common Property Register and would love to see the text of your special by-law relating to alterations to common property.  

                        Happy to do that as soon as I can work out how to cut and paste to this page from a pdf document. I’ll have to get a License so that I can charge for all the Special By-Laws that I’ve written; I’d make a fortune.

                        Wink                                          

                         

                        Whale
                        Flatchatter

                          KP – I agree, not just because of my SBL, but because in dech’s example (and in others that I’ve read on FlatChat) it was the Executive Committee (E/C) that gave consent to the changes (albeit possibly well-intentioned), when that is the role of the Owners Corporation (O/C) by way of a Special Resolution (≥75% voting in favour) taken at a General Meeting.

                          In answer to dech’s questions – yes, in the circumstances you describe the O/C would be held responsible for the maintenance of the air-conditioning system, and yes, it could require a Lot Owner to remove it and to restore the Common Property.

                          As I’ve stated in other posts, a problem often arises when the well-intentioned nature of the parties involved changes after property settlement (sale of the Lot) and/or after changes to the membership of the E/C.

                          It seems to me that both the current Lot Owners (who at least sought consent) and the current E/C would have the goodwill to remedy this situation, so your O/C needs to place an item on the Agenda of its General Meeting and Specially Resolve to grant retrospective consent to the Lot Owner’s air-conditioning system.

                          In order to enforce conditions such as one to make current and future Owners of the Lot responsible for all on-going maintenance, repairs, and replacements of the air-condition system, your O/C will need to Register a complementary Special By-Law; that would then apply to all Lot Owners who in future seek the O/C’s consent for air-conditioner installations.

                          in reply to: Broken Kitchen Tiles #18737
                          Whale
                          Flatchatter

                            SlapShot – Forget about possible insurance coverage for the moment.

                            If the floor tiles are the ones originally fitted by the Developer/Builder when the Lot was first sold, then repairs are the responsibility of the Owners Corporation (O/C), and if they’ve been fitted since, then repairs are the Lot Owner’s responsibility.

                            But …. if there’s movement in the floor and that’s damaged the tiles, then the O/C is responsible for the necessary repairs to the floor and to whatever tiles are damaged as a consequence of that movement and of those repairs.

                            Now that responsibility has been established, it’s up to those involved to contact their respective insurers in order to establish whether the damage caused is due to an “event” as defined in their policies; I think not, but in any case insurance cover or otherwise, responsibility for the necessary repairs doesn’t change!

                            A point of clarification though, your original post about the broken gate indicated that you were an owner, and yet subsequent posts on that topic and this one mentions that you contacted your “Agent” and refer to “the owner” (third person). Are we talking about a different property?

                            in reply to: Exclusive right to park on common property #18730
                            Whale
                            Flatchatter

                              @waverton said:
                              Is this a reasonable request when other owners have paid a premium on the purchase of their unit with car parking, and

                              Can the EC give them this right without a Special Resolution going to an GM or AGM?

                              NO on both counts!

                              Whale
                              Flatchatter

                                oystercove – you’re hearing correctly!

                                The way around this anomaly is to do what I did for my Plan, by obtaining Owners’ consent (by special resolution) to create and register a Special By-Law (SBL) stating that the maintenance, repair, and replacement of any changes, additions, or alterations to the Common Property that are not shown in the Plan’s Register of Changes to Common Property are entirely the responsibility of the Owner/s from time-to-time of the Lot/s concerned.

                                We resolved to advise all Owners of the upcoming SBL and to give them three (3) months to advise the Owners Corporation (O/C) of anything that it may not otherwise be aware of (and some did), the Chairman and me then inspected those and placed their relevant details with others in the Register, on the 91st day I ruled a line under the last entry, and went ahead with Registration with NSW Land & Property Information.

                                Now, whenever the O/C makes a change (recently, an additional clothesline) I record that in the Register, and when an owner applies to do so and they receive a written consent from the O/C with conditions (where appropriate), I similarly record the details in the Register; agreed it’s a bit more work for the hard-working Secretary but it’s very well worth the effort in my opinion.

                                in reply to: Deceased Estate – Voting Rights at General Meeting #18725
                                Whale
                                Flatchatter
                                Chat-starter

                                  You know when you’re fairly sure about something, but you need some confirmation? Well I did better than that, so thanks everyone!

                                  Whilst I don’t want to deny this owner an opportunity to discuss her issues, I just want to do that rationally, and I believe that right now the best way to do that is, if possible, by denying her an audience; legally.

                                  Slightly off topic, but the reason I need to take this approach is because many of the repairs that this new owner wants the Owners Corporation to address within her five (5) newly acquired rental properties have arisen from long-ignored faults and unauthorised works on Common Property by numerous past tenants.

                                  On the basis of what I’ve inspected so far (and there’s more to come), repairs relate to three (3) showers that have been leaking for so long that water has damaged the kick-boards of kitchen cupboards in one (1) unit and lifted paint on adjoining (common) walls in two (2) units, “peep-holes” drilled through entry doors (3) from the inside that have splintered the outside surfaces, bent window frames in another unit that been caused by long-term impacts with lengths of dowel placed in the sliding tracks to overcome broken latches, and badly damaged render on internal (common) walls of two (2) units after the removal of flat-screen TVs and the metal clips used to fasten cabling / power leads to those walls.

                                  It will be an interesting discussion, because whilst the majority of the damage is to Common Property, it has been caused by the malicious acts (or naïve intent) of various tenants, and the extent and cost of the works now necessary to make repairs is much more extensive than would have been the case if Property Managers had properly inspected the properties on a regular basis, and promptly reported those very obvious faults.

                                Viewing 15 replies - 1,006 through 1,020 (of 1,536 total)