Forum: What’s the deal with new SCA contracts?

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How can a cotract be fair if you can'yt change any part of it?

We’re back! It was just too hard to pull together a Forum last week, not least because we were travelling through Poland (and in fact. as I write, we have just crossed the border into the Czech republic, en route for Prague).

That means, however that we have a small backlog of your questions, one of which is a blast from the past – at least, it’s territory we have covered many times over the years.

The question relates to the fact that there has been much talk about a new standard strata management contract, re-written by Strata Community Association (SCA-NSW), in light of increased scrutiny following the Netstrata scandal and the inclusion of strata contracts in consumer protection laws.

There are also rumours that Fair Trading is working on its own Strata Management contract, maybe even to be mandatory, like the residential tenancies agreement.

But until such times as these documents become commonly available, it seems strata schemes are facing the same take it or leave it demands from some strata managers as they ever have.

Contracts are supposed to be an agreement between two parties who concur on the matters they agree on and compromise on those that they don’t.

That, of course, can’t work if one side says the other has no choice but agree to the deal exactly as it is, with reasons ranging from the strata manager is bound by their membership of SCA, to the contract is copyright and can’t be changed.

So what do you do if your strata manager says you must sign a contract that you both know is out of date? That’s HERE.

Elsewhere on the Forum

  • What is a reasonable cost for insurance? That’s HERE.
  • Could a Notice to Comply that accuses an owner of wrongdoing lead to legal action for defamation? That’s HERE.
  • Why are we being charged for “taxation management”? That’s HERE.
  • When is it decided that owners can’t vote because they are unfinancial? That’s HERE.
  • Why should financially diligent owners subsidise others who can’t or won’t pay their levies? That’s HERE.
  • How can an external wall be classified as internal in a pre ’74 building? That’s HERE.

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    Topic
  • #80353
    Jimmy-T
    Keymaster

      Forum: Should you sign a new deal on an old SCA contract, taxation management fees, subsidising unpaid levies

      [See the full post at: Forum: What’s the deal with new SCA contracts?]

      If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
    Viewing 5 replies - 1 through 5 (of 5 total)
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    • #80385
      optusJo
      Flatchatter

        No to an old SCA Contract
        Subsidising unpaid levies – maybe … a loan against the property?
        Taxation managment fees – maybe if there is a note against them explainind why from the SM or Chair

        #80399
        Jimmy-T
        Keymaster
        Chat-starter

          Subsidising unpaid levies – maybe … a loan against the property?

          We’re talking about people who are struggling to meet their current financial commitments. Another high interest loan probably isn’t going to help much.

          If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
          #80401
          optusJo
          Flatchatter

            I was just thinking of the levies only and assumed there is no primary loan. Not to be able to afford the levies would be awful even at a home rate loan.

             

            #80475
            VicRes
            Flatchatter

              When an owner doesn’t pay their fees then it has the potential to adversely affect other owners.

              The expenses continue and need to be paid. Even if there is extra money being put away (aside from the sinking fund) unforeseen expenses soon consume this money.

              So, if one owner is behind on their levies then the other owners have to pay additional levies to keep the OC financial leading to even more unpaid levies.

              A vicious circle. I’m not sure of the answer but being proactive in recovering overdue fees is essential. And the OC isn’t a financial advisor, nor is it a lending facility, e.g. a bank, therefore it behoves the late paying owner to seek independent advice about getting financial.

              And for recalcitrant owners who simply refuse to either pay, or engage with the OC, the surely xCAT should have the power to sell the place to recover money?

              #80478
              Jimmy-T
              Keymaster
              Chat-starter

                I am closing this thread because none of the above should be here. Someone jumped on the automatic posting of the Forum Roundup befoere I got round to deleting it and responded to three different question in the one place. Clever, huh?  My fault for not deleting the topic quickly enough but, hey, when do we ever ask or answer three questions in the one place?

                If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
              Viewing 5 replies - 1 through 5 (of 5 total)
              • The topic ‘Forum: What’s the deal with new SCA contracts?’ is closed to new replies.

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