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04/02/2019 at 3:51 pm #35531newlsieFlatchatter
Hello, We recently applied for a compulsory strata manager. The strata committee did not tell the owners of this application. In fact they did not even have a committee meeting. The secretary just told NCAT at the directions hearing that the owners were “neutral” and the compulsory SM application went through. Is that legal? thanks
05/02/2019 at 1:57 pm #35560
I don’t think it’s illegal. The Strata Committee is usually empowered to act on behalf of the owners corporation (with specific exclusions). Application for a statutory appointment can be made by individual owners – even the Tribunal Member can just do it off their own bat if they think an owners corp is dysfunctional enough.
Individual owners can also challenge the appointment, but it would have to be on the grounds that it was unnecessary or that the original applicants were seeking some kind of material gain. Arguing that it was invalid because of an arcane point of law will get you nowhere.
Also, the Tribunal Member must have had good reason for allowing the appointment – they don’t just hand them out like lollies.05/02/2019 at 3:52 pm #35563newlsieFlatchatterChat-starter
Thanks Jimmy, The interesting twist in our case is that the Secretary, Treasurer and Strata Manager went to the Directions Hearing on behalf of the SP however the secretary told the Member that they were happy with a compulsory SM – they just didn’t want the Strata Manager who was standing beside them. They stuck the knife in and twisted it! The owners were never told there was an application against their SP so they had no voice in the matter. The SC did not have a meeting to discuss what their approach would be and I know some members did not agree to this approach.
Then weeks after the due date for the submission from these people to NCAT they lodged more paperwork. A bunch of notes with the owners names and unit numbers redacted. I do not believe for one minute there was any truth in these redacted papers however here we are in the ‘house of rules’ – NCAT – the member listened! How can this happen! Rules are not rules?
My main gripe is that all the trouble we are having is because the SC don’t know the rules and are not accountable for their actions. They should know them and be accountable. Things must change. thanks05/02/2019 at 6:05 pm #35564BONNIE LFlatchatter
Hi, If I’ve read this ‘right,’ Mr JT’s advice is right. Way I see it is, like, nothing is going to happen unless you get more involved? When you say the owners were never told, how many owners are you referring to. Plus, if you are an owner, that carries a natural entitlement, as it does with any owner. Could you perhaps ask a strata lawyer to be of assistance and help to clarify the issues, then you can call for a change in committee members, with yourself in charge of the accountability you are calling for?06/02/2019 at 7:48 am #35587
My understanding is that a compulsory strata manager replaces the OC and SC – that is, takes on all functions. So yes, they can determine levies. But only for the period appointed. At the end of that period a general meeting is called and functions return to OC/SC.06/02/2019 at 7:49 am #35588
Although I will add, that at the time of appointment the ‘functions’ appointed to the compulsory strata manager may be limited to a degree. You should find it all in the original NCAT ruling.06/02/2019 at 9:54 am #35590phill74Flatchatter
Hi g-g – what is SC ?
The law is clear that while the SM appointed by NCAT takes on the role of the OC, it says nothing about the OC (and, by extension, any SM compulsory appointed) having any ability to set levies. Only the owners can agree to that.
If your understanding is different, can you say what that understanding is based on?06/02/2019 at 11:12 am #35592AndyFlatchatter
Hi Newlsie is this the “secret” SM appointment which you discuss in another post?
Compulsory SM and Strata Committees06/02/2019 at 12:13 pm #35593ShackletonFlatchatter
Oh dear this has been labelled a coup, or as one owner always calls it, a coo.
The OP forgot to mention that they were the one who made the application to NCAT and included 2 deceased persons as supporting the application. The OP also forgot to mention they provided one version of the application to NCAT and another version to the owners. Unlike what the OP writes, the secretary never said the owners were neutral, it was NCAT which stated the Owners Corporation would be neutral. NCAT actually encouraged individual owners to participate in the matter if they wanted to.
The OP should really get their ducts in a row.06/02/2019 at 6:53 pm #35602
SC stands for Strata committee.
My information came from discussions with 3 strata managers and a laywer when I was enquiring about compulsory strata managers.
It was made clear that the ALL functions of the owners corporation MAY (and usually are) transferred to the compulsory SM.
My recollection is that the SSMA 2015 has a reference as well – which I do not have access to at the moment.
Good luck06/02/2019 at 11:31 pm #35610
This is very irritating, arguing the same case across two topics.
And it’s ducks, not ducts.07/02/2019 at 4:27 pm #35627ShackletonFlatchatter
“This is very irritating, arguing the same case across two topics.” Sorry.
“And it’s ducks, not ducts.” Actually in this case it really is “ducts”. The owner is refusing access to a row of ducts adjacent to their apartment despite the need for urgent inspection and repairs to common property plumbing.10/02/2019 at 7:26 am #35678newlsieFlatchatterChat-starter
‘Shackleton’ you are wrong on a number of points. The topic is about a compulsory SM not ducks and ducts which you are also wrong about. You are wrong about NCAT stating the owners are ‘neutral’. On behalf of all the owners and without consultation with anyone the secretary told the Senior Member the owners were neutral – whatever that means. I will drop her letter into your letterbox. This is my beef – how can any member of the SC make such a sweeping claim without asking the owners? This SC NEVER told the owners that an application had been lodged against them. I know that they don’t have to but it is my opinion that they should have. Strata Committees should be more accountable and there should be consequences for bad / illegal decisions made by vexatious SC’s. The very reason we lodged an application was because the SC of the last 18 months were terrible, in our opinion. NCAT obviously agreed because they granted our application.10/02/2019 at 10:32 am #35682
OK, I’m shutting this down. You folks (Shackelton and Newlsie) need to accept whatever has been decided at NCAT, switch off your inner bush lawyer and maybe sit down and agree to disagree. Public bickering doesn’t do this Forum any good and I’m guessing it’s not helpful for your community, either.11/02/2019 at 6:57 am #35705phill74Flatchatter
I agree that the function of the owners corporation (or strata committee) were transferred to the compulsory SM, however, based on my reading, the OC doesn’t have the power to set levies (they can call a meeting for owners to set them, which didn’t happen), and therefore by extension, neither does the compulsory SM.
Would you be willing to give me the lawyer details you discussed this with, would be great to get advice and get this sorted (paid if I’m wrong, application to fair trading if I’m right).
Cheers, Phil11/02/2019 at 9:43 am #35716
the OC doesn’t have the power to set levies (they can call a meeting for owners to set them, which didn’t happen), and therefore by extension, neither does the compulsory SM.
This is simply not the case. Under normal circumstances it is the OC (Owners Corporation) that sets the levies. The OC is all the owners acting as as a group.
Also you shouldn’t be using one set of circumstances to apply to completely different ones – strata doesn’t work like that. The idea that a compulsorily appointed strata manager can’t set the levies is ludicrous. How else are they going to fix things in an dysfunctional building if they can’t set proper levies?
It depends on the specific terms of the appointment, but in most cases that defaults to the SM taking over all functions of the OC. Just to be clear, compulsory strata managers aren’t appointed to take over from the Strata Committee (SC) alone – they take over from the Owners Corporation of which the SC is (or should be) merely an adjunct.
This is what the Act says:
The Tribunal may, on its own motion or on application, make an order appointing a person as a strata managing agent or requiring an owners corporation to appoint a person as a strata managing agent:
(a) to exercise all the functions of an owners corporation, or
(b) to exercise specified functions of an owners corporation, or
(c) to exercise all the functions other than specified functions of an owners corporation.
I have left all the hyperlinks in there so you can better understand what all those terms mean.
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