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Topic
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We have a serious problem with our caretakers.
It is not just a matter which concerns our own strata scheme since the implications are cause for concern by strata schemes everywhere and warrants official intervention.
Our ludicrously expensive Caretaker Agreement – which includes exclusive rights to operate an estate agency – foisted on us by the developer has, after the exercise of the usual free options, an existing 25 year term expiring in 2025. The current caretakers, acting as unit holders, have demanded that a motion be put directly to a general meeting extending the contract period to 2030 making it a 30 year contract. They do not propose paying any consideration in return and give as the reason for their proposal that they are “seeking long term security of tenure, as is their financier”. Outrageous and implausible as the proposal and the reasons given for it are, it is clear that the caretakers are confident they can rely on the usual owner apathy as well as solicited proxies to get the motion passed.
Given that as always owner-apathy does exist, what legal measures open to us do you suggest we take to stop these avaricious contractors in their flagrant attempt to gain a significant financial benefit (which would be reflected in the immediate enhancement of the sale value of an Agreement which has already changed hands several times) at no cost to themselves to the extreme detriment of present and future unit holders?
No Fool
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Replies
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Hi SOS,
I would love help you with problem. I am not a legal expert but work in building, contracts and procurement professions and may be able to help. However, I expect that it may require legal input at some stage to bring about the change.
Would it be possible to provide a little more information? If you are not comfortable with providing the answers for anonymity reasons, I’ll understand:
- Approximately how many units in the strata scheme;
- Is the caretaker company also the strata manager;
- What % of the unit entitlements does the caretaker company hold;
- are you a member of the executive committee and do the other (non-caretaker) members share your views;
- are you unhappy with the caretakers performance on the existing contract (aside from the extension issue)
Rob T
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