Flat Chat Strata Forum Strata Committees Current Page

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  • #64244
    newb
    Flatchatter

      Hi. I’ve mentioned my situation before.

      Where I’m at now.

      SM contract is due for renewal at end of September.

      I asked for strata roll and records (as a committee member). After delay and obfuscation the provided strata roll has only property managers email for quite a few owners and in one case this is the only info – no residential or postal address. Are they required to provide more information?

      Records – after delay and obfuscation I was provided some things. This revealed that our SM collects GST on our levies under their ABN. Our Owner’s corp is not registered for GST, nor needs to be. I instructed the SM to use our ABN, not charge GST, and refund the GST that has been collected. I’ve had no reply.

      I instructed that capital works money be returned to capital works fund. This has been ignored. Our fund remains at less than $2000, when last year it was over $27,000.

      Bank statement also showed –

      – charges (amounting to several thousand) for cleaning from 3 years ago and Numerous double charging on the same day or within days of each other for the same thing, and Roof repair costs split into $300 amounts.

      They continue to charge for fixing bath, shower and laundry leaks for which we receive no quotes or information until after the works are complete when I ask for receipts to find out where money went. They continue to do this even after I gave written instruction that it is major work that requires voting on. Obvious external building work is not being done. I’ve started getting quotes for these.

      I ccd the committee on all emails. I emailed the committee showing how our fund is rapidly decreasing and attached bank statement showing double up manager fee charges and double up cleaning fee charges amounting to thousands extra.

      I have asked for a committee meeting to discuss these things and to elect office bearers. I offered a solution where we can self manage, have a transparent bank account with co signatories and transaction notification, and legally pay committee members through s46. We have no meetings at all except AGM. Committee continue to not reply and run away/ not discuss anything when I see them. One committee member is “aged and frail” and unable to be stressed with all this so I’ve tried communicating with her family. More obfuscation. Other committee member told me he has cancer. Neither will resign from committee.

      I told SM I’d spoken to the ATO. I told my committee that if they don’t reply I will start the court process. I sent a clear list of what I want – at least one meeting a year, elect office bearers, oversee spending, maintain our building. Still no reply to agree on a date for a meeting.

      There is a new owner. I asked her to join the committee and help me look after our building. She said she will. Does she need to wait for AGM to be nominated? I haven’t said anything to her yet about all this, just that I want a portal, transparency, building painted and driveway fixed (she wants driveway fixed) and that we can work together. I don’t want to scare her off.

      Should I write to all owners and tell them what’s going on? Is it safe to do it via the property managers? Should I start the court process? Should I ring ATO again and tell them what I’ve discovered?

      I fixed the bins situation which one committee member was upset about. He doesn’t seem pleased. Their attitude is no one else wants to be involved or help (so we deserve to rip investor owners off???)

      It is a horrible situation where I have no idea who to trust. It’s very stressful. I rapidly lost about 10kg. I can’t afford a lawyer.

      Advice please

      • This topic was modified 2 years, 3 months ago by .
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    • #64246
      Jimmy-T
      Keymaster

        There are four things I would do if I were in this situation (although these solutions may not work for you).

        1. Identify a strata manager you can trust to do the right thing. We have been associated with our sponsors Strata Choice for years and have no hesitation in recommending them. Mention Flat Chat if and when you contact them
        2. Apply directly to NCAT for the appointment of that strata manager as an statutory appointment for one year, including a provision that they pursue the missing funds.
        3. At the same time, take action at Fair Trading against the current strata manager for disciplinary action and the return of the misspent funds. You can do that by going to this Fair Trading page and scrolling down to the Real Estate, Property management and Strata section.
        4. If the current Strata Manager is a member of Strata Community Association, raise a complaint with them HERE.  But remember that the SCA is primarily a strata managers’ professional group, so don’t expect them to send in the cavalry.

        None of the above actions require a lawyer (initially, at least).  I don’t usually recommend a statutory appointment of a strata manager as that can be tricky for all concerned, but you need a clear-out of the moribund committee members ASAP.

        As for inducting the new owner on to the committee, you need to hold a committee meeting to be able to do that, and it has to be to fill a vacancy.

        As for the money owed through double spends and unidentified spending, assuming you are on the committee,  itemise it and then get your treasurer to send a bill to the strata manager requesting a refund within 30 days, after which the scheme will seek legal remedies.

         

        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.
        #64250
        newb
        Flatchatter
        Chat-starter

          Ok. I will do those things.

          This stranglehold needs to be broken.

          Thank you so much.

          #64882
          newb
          Flatchatter
          Chat-starter

            Woo! I think we’ve done it, and avoided court or compulsory management. It has been a lot of work and will be more work still. I’m fine with that.

            We just had a well attended extraordinary general meeting, doubled our committee size, elected office bearers (I am now the Chair) and resolved to not renew our current strata managers contract, and to self manage using Our Body Corp, with review in one year and proviso to move to another strata manager (we found at least one good transparent one near to us with a range of offered service levels) if we need to.

            I spoke to Strata Choice and they are fantastic, however their office was a bit far away, and we are on a strict budget now after our current manager depleted our fund and owners are not willing to increase levies and any spare money needs to go to building maintenance.

            I did it by laying low, reading and re reading and re reading the strata schemes management act and regulations end to end, plus a bit of case law, numerous tips from this site about nifty parts of the SSMA, researching all possible options, ongoing discussion with the committee, obtaining the strata roll and whatever records I could get hold of, going through all these, making a list of breaches with accompanying attachment of evidence, sending this to all owners, holding a committee meeting and obtaining a resolution to increase the committee size, calling an EGM, using electronic voting as well,  doing everything by the book and just keeping on moving forward one step at a time.

            It was so nice to meet more owners all together this evening, and feel a positive sense of ownership of our building and cooperation together.

            Still a few more things to do.

            I think we’re going to be ok.

            #64937
            tina
            Flatchatter

              Excellent work!  I am impressed that you could achieve so much in the space of one month.  Good luck with self management.   You have taken the time to study the SSMA and regulations.  It is very satisfying to take back ownership of these responsibilities.

              I found it invaluable to use a spreadsheet for preparing the financial statements.  I used OurBodyCorp [software] for the first year.  I had the most basic product.  The software was really good for issuing levy notices and keeping track of transactions and invoices.  I needed to use a spreadsheet for preparing Key Financial Information statements.

              • This reply was modified 2 years, 2 months ago by .
              #64950
              newb
              Flatchatter
              Chat-starter

                @tina months of work and preparation went in before this last month. When I finally got all my ducks in a row, I took that to all the owners.

                I used Excel to work out where we were losing money, what are fixed costs, where we can save and to work out a realistic budget. We will use the most basic Our Body Corp package, as it has the nifty financial reports and levy notices linked to accounts.

                Going to open our bank account this morning, then send the notice to our strata manager. In a fortnight to month’s time we should be fully independent and running smoothly, provided the strata manager cooperates in handing over funds.

                (I did have to tell the existing committee that I was serious about seeking compulsory management, to finally get some cooperation).

                #64971
                StrataChair
                Flatchatter
                (from NSW)

                  @newb, just wanted to give a few words of support from another self-manager.

                  We had a similarly disastrous strata manager (a large firm that had taken over our previously-good small firm), and initially went self-managed as a trial.

                  It’s now been three years and everyone’s happy with the arrangement.

                  All the best with it.

                   

                  #64975
                  newb
                  Flatchatter
                  Chat-starter

                    @tina we’re still not quite there. Right now I have the issue that cosignatory for the bank account has pulled out and we are under a wee bit of time pressure.

                    Breathe, reassess, do the steps.

                    Will get there 🙂

                     

                    #64983
                    newb
                    Flatchatter
                    Chat-starter

                      @StrataChair, thank you, that is very encouraging to know

                      #65107
                      newb
                      Flatchatter
                      Chat-starter

                        I notified the strata manager and sent EGM minutes showing results of voting that office bearers have been elected and that I am completing our strata hub registration.

                        Our strata manager who previously had not mentioned strata hub to our scheme, on the day of our scheduled EGM, emailed every owner advising that a strata committee meeting was being held to elect office bearers and delegate the SM to register us on strata hub (for a fee).

                        I advised the next day after our EGM that we have office bearers and I’m doing the registration and to cancel the meeting.

                        Yesterday the SM sent email advising that the meeting had been postponed.

                        Today I found a hand delivered letter in my letter box (my registered notification means is email) from the SM advising a strata meeting for the 7th september to elect office bearers and register for strata hub.

                        Our “contract” says all powers are delegated to strata manager. They are still trying to make out there is a 3 year contract.

                        I am concerned they are trying to hold a sneaky strata meeting with their supporters and re establish their strangle hold.

                        They are acting without instruction and ignoring my (Chair) instructions.

                        I completed the strata hub registration (earlier than I wanted to) and forwarded the registration confirmation to the SM and committee, once again saying we didn’t ask for, and don’t need this meeting.

                        We’ve authorised a strata insurance broker to urgently take over our insurance brokerage.

                        Anything else I can do? Can I get urgent orders to stop them in their tracks? They’re hanging on for grim death!

                         

                        #65121
                        Jimmy-T
                        Keymaster

                          Under section 52 of the Act, if the functions of the owners corporation were delegated at a general meeting (and there should be an AGM minute of that having occurred, if that’s the case) then they can only be revoked at a general meeting.  So hold a general meeting and revoke them.

                          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.
                          #65123
                          newb
                          Flatchatter
                          Chat-starter

                            There was no specific motion at the AGM to delegate powers. It was a clause in the contract. A copy of the contract was provided as an attachment for pre meeting electronic voting and there was a motion to renew the contract.

                            We only just had a general meeting and that took some effort!

                            Our diplomatic Secretary is going to drop by their office and see what they can achieve.

                            Maybe we can hold the general meeting by purely electronic vote for the one motion to revoke the delegation. I know the current regulation amendment for electronic voting  is in place till end of September. I’ll check and try that. No guarantee that SM will respect the revocation. Worth a try though. Thank you Jimmy.

                            I’ll know for if next time I’m in this situation to include a Revocation motion at the EGM.

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