#35755
spmanager
Flatchatter

    Hi Lawoftheland

    Not knowing the exact details of the claims histories I will give a general overview.

    If there is damage to an insured part of the property then a claim can be put in. The SM really doesn’t have to tell other owners. If its a claim they have no choice but must lodge it, they can’t say that they will not lodge a claim. Its the insurance company that will seek all the information regarding the claim. They may also have carried out rectification works directly.

    The flex hose is the owners but damage to the building is the Owners Corporations responsibility. This can lead to the situation here.

    As to the shortfall in the Admin funds, remember the manager does not set the levies. The owners do at each AGM.

    So look at how much you spend in the Admin fund each year, what is the deficit in it, how much of a safety buffer you want in it and then set that as your admin levy. As for the Capital fund always review the current amount in it, the Capital Funds Report recommended levels and future works.

    I can not say it enough, if your funds are too low then raise them its up to the owners not the manager.

    As to removing the manager either

    1. Let it run for the year and then change. (this is the simplest)

    2. Terminate the contract by paying them out there management fee etc for the contract term. (you would need the other owners to agree and have a new manager lined up to take over)

    3. Go to NCAT and have a compulsory manager put in. (this is hardest, as you must prove that the Owners Corporation is Dysfunctional and needs someone to make ALL decisions for them, including setting the levies)