#12603
Jimmy-T
Keymaster

    Some developers are real charmers, aren't they – unable to come to terms with the idea that once that have sold a property, it doesn't belong to them any more.

     

    There's a section of the strata Act that I think might be relevant to you.  It says:

    (7AA)  An original owner or a person connected with the original owner
    may not cast a vote by means of a proxy or power of attorney given by another
    owner of a lot in the strata scheme concerned if the proxy or power of
    attorney was given pursuant to a term of the sale contract for the lot or
    pursuant to another contract or arrangement that is ancillary to the sale
    contract.

    (7AB)  Any contract or arrangement referred to in subclause (7AA) is
    unenforceable to the extent that it requires the giving of any such proxy or
    power of attorney.

    So what you should be telling your neighbours is that there's no point in voting for this because it's illegal anyway. And as for suing for breach of contract – it's more likely that you'll collectively be able to sue for the return of Common Property to its rightful owners.

    Moreover, there's a possibility that the new Federal laws on unconscionable contracts may apply here too.

    Get together with a couple of other owners and hire a specialist strata lawyer to look at the details of the case.  Then get them to send a letter to your developer explaining how the law forbids this kind of blackmail by contract.  Also, have a motion to resume the common property added to the general meeting with the advice for the strata lawyer added as an annex to the motion so that everyone can see it.

    Your developer needs to learn that they can't bully and blackmail owners with empty threats of legal action when they, more than likely, are the ones on the wrong side of the law.  And your neighbours need to learn to stand up for their legal rights.

    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.