#13636
Jimmy-T
Keymaster

    My understanding is that the sinking fund is there precisely for that purpose – to maintain and repair common property.  Strange as it may seem, there are some SPs where the sinking fund is held on to tightly as some sort of disaster relief emergency measure which doesn't make any sense at all, considerinmg you are probably also paying insurance premiums.

    In fact, I know buildings where the sinking fund has been used to upgrade the building way beyond basic repairs.  Is that wrong?  Perhaps, in a strict interpretation of the Act.  Is it bad? I'd say not, unless the work was frivolous and the money spent was needed elsewhere.

    Sounds like your EC office bearers would benefit from some of the strata management courses which, I think, most if not all of this website's sponsors provide in some form.

    Meanwhile, the money 'missing' from the admin fund to legitimately pay for repairs could be a considered a loan to the sinking fund which it can now repay. Creative accountancy is a wonderful thing.

    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.