#26114
Jimmy-T
Keymaster

    The pre-sale of caretaker-manager contracts in Queensland is institutionalised corruption which is illegal in NSW and Victoria (and possibly elsewhere).

    All it does is put more money into developers’ pockets – money which is added to the fees paid by unit owners for no other reason than to pay back the initial investment. There is no evidence that this money benefits apartment purchasers in any way.

    In exchange, the manager gets to choose the terms of the contract and pass them on to the next incumbent for whatever profit they can make, and so the cycle continues.

    This has more than a whiff of “white shoe” about it and is an ugly stain on the face of Queensland strata.  Even uglier are the professional groups who should know better but support and sustain this fundamentally corrupt institution for no better reason that knowing on what side their bread is buttered.

    Some day a Queensland government with a streak of integrity will shut this cash cow down.  I’m sure there are many caretakers in Queensland who do a good job for a reasonable fee but there is a Murphy’s law in business – if the law is bent out of shape so people can be exploited, then they will be.

    By the way, I have spoken at many Queensland conferences on this and I have yet to find anyone who can up with a convincing argument as to why Queensland needs this law and the rest of the country doesn’t. 

    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.