#26024
Jimmy-T
Keymaster

    We took this issue up with Innovation and Better Regulation (inc. Fair Trading) Minister Victor Dominello’s office.

    You can read the entire response below but the significant point is that any dodgy decisions made by a self-interested developer (or ‘original owner’ to give them their Sunday name) can be challenged and overturned by application to NCAT for Section 232 orders.

    So now it’s a question of going to the developer and asking them if they want to do this the easy way (accept defeat and behave) or the hard way (pay legal fees, then accept defeat and behave).

    Here’s the latest response from Minister Dominello’s office:

    1. It appears that the original owner of the strata scheme, during the period prior to the end of the initial period (when at least one third of the unit entitlements have been sold), may be attempting to levy new lot owners for costs, including for unmetered water, associated with the lots that haven’t yet been sold.

    [Flat Chat’s] advice to the complainants is essentially correct.  Section 83 of the Strata Schemes Management Act 2015 provides that contributions levied by an owners corporation must be levied in respect of each lot and are payable (subject to this section and section 82) by the owners in shares proportional to the unit entitlements of their respective lots. Therefore, lot owners cannot be required to pay for unmetered water.

    It also appears that the original owner has engaged the services of a caretaker. The Act is very clear in that any contract that engages a caretaker or strata managing agent can only be enforced until the first annual general meeting, when it expires. It is then the responsibility of the owners’ corporation at that meeting to engage a caretaker or strata managing agent for the strata scheme if it wishes to do so.

    Whilst the advice that [Flat Chat] has provided to the complainant relates to the previous Strata Schemes Management Act 1996, the advice is still largely relevant.

    However, the complainant should be made aware of the provisions of s.232 of the new Act, and the associated wider powers of the NSW Civil & Administrative Tribunal (NCAT) to be able to address complaints. NCAT has powers to be able to disallow resolutions made at general meeting, remove members of a strata committee, including its officers, and to appoint a strata managing agent, amongst other powers. Lot owners have a right to apply to NCAT to exercise these powers.

    Complaints

    NSW Fair Trading has received a complaint regarding water charges in this strata scheme.       

    The complainant was provided with information on the application of strata laws and lodging an application for mediation.  If mediation is unsuccessful an application may be lodged with the NSW Civil and Administrative Tribunal.   

    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.