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I’m writing this for a friend that doesn’t use computers. He lives alone in a villa lot of seven and is a quiet worker approaching retirement age who keeps to himself, and just doesn’t know what to do about a self-managing strata SM that seems out of control with how dodgy and off-the-books it is being run. And I don’t either. The strata is self managed. The SM is one owner and it seems there is one other on EC, but its hard to tell.
Problems– Cash only accepted for strata fees. He once paid with a cheque and it was rejected by SM who demanded at least that the cheque is made out to cash.– No receipts. When questioned/requested a hand written very unofficial piece of paper was provided.– No minutes. Despite requests no meeting minutes have ever been provided.– Not providing details of where money is spent. He has asked for details, including insurance, he has not received or been able to see one single piece of paper that shows if or who the building insurance is with, or for that matter where any of the money has been spent.– Ostracism. I think this is because he asks questions. This man doesn’t get told about meetings, or is told 1-2 days before. When questioned about why he wasn’t informed of a meeting the response offered was “We didn’t see your car.” (He has a LUG)– Ignorance of maintenance. He has had to pay himself for fixes (lighting outside his villa as an example).– Allowing private development in common areas. This is a good one.. As I understand it, one owner is extending a ground floor balcony area out across common lawn, which I see as a land grab. When this was questioned, the SM told him that its allowed and there is nothing he can do about it because he was outvoted. I believe a bylaw can allow this, but no meetings were organised where my friend was provided with a meeting date or agenda with this on it, or minutes stating voting outcomes etc.– Change of use in villas. One garage has been converted into a living area, and these people now park in visitors parking and on lawn which has slowly been ruined. When questioned SM says its allowed.Action to takeHe called Fair Trading today, and was just confused by everything he was told, like its another language. He was referred to the website for simple questions answered, but he just can’t do internet.I had trouble on FT site too. There is a lot of info on how to act as a group against a managing agent etc, but not in this type of situation that I can see. Does one go to Fair Trading? It seems almost like a police matter.My initial thought was to withhold any strata fees until some evidence of there being any actual meetings occur, with minutes provided etc, and also evidence of where cash was spent. With cash and no receipts its always going to be one persons word against another whether they were paid or not anyway! And if it got to a point where a complaint was made, maybe it would be easy to bring Fair Trading in on it.But he’s worried about others making his life hell, and acting negatively (by withholding fees), and having that come back at him. Part of me also thinks it might be better to say in a letter something like “I appreciate that you try to self manage but it just seems a bit hard, maybe we could look at getting an agent?” Which the group won’t like because it would probably mean fees go up as they are only collecting $400/qtr each, which seems very little, and why nothing gets done and fixed. (Often he is told that there is no money for maintenance).Looking through the forum, I notice that s138 might be useful? (Even in the absence of any real meetings)I feel something has to happen to force a change because the current situation is not fair.TL;DROut of control dictator SM.. HELP!!
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What a mess!!
It sounds to me like your friend needs to apply for the compulsory appointment of a “real” Strata Manager, and even though he could do that “first-up”, in the first instance I think it’s better for him to carefully package-up all the evidentiary information that he has about his Strata Plan being improperly managed, and to then follow the defined and well-trodden path to resolving that by as a first step, applying for Mediation (for the princely sum of $81), of what really is a dispute with his Owners Corporation over it not following the procedures required in the NSW Strata Schemes Management Act, including with regard to it not properly maintaining its common property, not enforcing its by-laws, and with not conducting and reporting its finances and meetings procedures.
Your friend can take you along for support, and you can both read a summary of that pathway HERE.
No problem – I’m not sure what you mean by a “strata search report”, but if you mean your friend paying for and authorising (under Sect 108 of the Act) a professional to do a search of the Owners Corporation’s records, that may not be a bad idea as it would keep him at arms-length and provide evidence for provision at mediation.
I was remiss by not mentioning this in my last post, but Fair Trading has produced THIS excellent publication about matters strata, and I think that hardcopies would be available at those newly established Service NSW Centres.
Finally, you /your friend shouldn’t refer to the person who looks after his Strata Plan as being a “strata manager” – because he is actually a Member of the Executive Committee, and the use of any other “title” will only serve to confuse the issue particularly if your friend proceeds to mediation.
Sect 108 doesn’t require that the Owners Corporation (O/C) supplies records as your friend’s letter requires, but rather only that the O/C makes these available for inspection by your friend or by somebody else (such as under a strata inspection) with your friends prior written authorisation, and only then after the pre-payment of the prescribed fee ($31 for the first hour) to the O/C.
I know that sounds like a whole lot of bureaucracy, but I’m afraid that when dealing with one such as the NSW Civil and Administrative Tribunal (NCAT), what amounts to a slightly miss-worded request and some contrived confusion about about payment can derail the entire process.
So ask your friend to send a short letter of clarification to the Secretary of the Executive Committee pointing out that they wish to inspect the records of the O/C and specifically the items listed in the original letter, that they will bring with them a cheque in the amount of the prescribed payment to the O/C, and that given their previous correspondence, if a date/time for the inspection is not notified within say 7 days of the date of the letter, then a Application for Orders requiring the requested documents to be made available will be imediately sought under Sect 156 of the NSW Strata Schemes Management Act (1996).
Given what you’ve previously advised regarding the (non) management of your friend’s Plan, I’d suggest they concurrently make an Application for Mediation of what amounts to a dispute, at this stage over the non-provision of documents and records of the O/C.
A later stage may well involve a further Application for the compulsory appointment of Strata Manager (not as you again mention a “managing agent”) that by the way does not require prior Mediation, but albeit necessary that’s a big step to initiate because as you’ll read HERE, a Strata Manager that’s appointed by a NCAT Adjudicator is charged (and charge$ the O/C) to act absolutely in accordance with the terms of that appointment, which in some respects may not be in the broader interests of the individual members of the O/C (i.e. your friend and the other Owners).
I would think at least the threat of compulsory appointment of a strata manager would shake things up. With land grabs, illegal parking (because of use of garage as living space) no records of meetings and improper accounting and banking procedures, I would put money on NCAT making this happen.
The good news is that any such application must include the approval of a strata manager who is prepared to take on the job. That means your friend can go to a strata manager, tell them what he is planning to do and they should help with formulating the application.
I wouldn’t worry about being ostracised. These incompetents are clearly running the show for their own selfish benefit and I wouldn’t want them as friends anyway.
Oh, and a quiet word to the council about the illegal conversion of a garage to living quarters and the extension of private property into common property should stir things up a bit too.
You friend sounds like they need someone to speak for them in negotiations with the other owners. The proposed strata manager may do this but it might mean a visit to an experienced strata lawyer.
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.
Have you had any success in getting the information from the EC as you asked? If you have received some not all of what you asked for, please advise what papers have been withheld.
I am inquiring because I have approached NCAT for a compulsory strata management having experienced a less than honest EC.
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