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  • #11831
    Silly Cow
    Flatchatter

      What happens after NCAT makes orders for a compulsory manager?  Can the Strata Plan be wound up?  I doubt it but I suppose it then makes further orders upon receipt of the manager’s report and it could say that each owner in the plan has to contribute a further million dollars or something to keep the SP liquid and get it out of trouble.  Is that the case?

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    • #30218
      Jimmy-T
      Keymaster

        I’ve never heard of a strata plan being wound up by a compulsorily appointed strata manager (although I’m sure some have occasionally wished they could).

        The manager replaces the owners corporation in terms of managing the strata scheme.  He or she doesn’t replace the strata scheme as its owners and only owners can wind up a strata plan.

        The scenario of imposing punitively high special levies that force everyone to sell could be dealt with by an application to NCAT. However, if those levies were essential to keep the scheme above water, presumably because of years of neglect of both the building and its sinking fund, then they could and would be applied. 

        That’s when the owners might ask the strata manager if they could sell the block to a friendly developer.

        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.
        #30223
        Silly Cow
        Flatchatter
        Chat-starter

          Thank you.  The special levy would be to fix the building and pay debts owed by the scheme e.g. judgment debts.  Could very well be high.  Yes, I thought of selling the whole joint to a developer as well.

          #30224
          Silly Cow
          Flatchatter
          Chat-starter

            Surely a judgment debtor can wind up the scheme?

            #30225
            Jimmy-T
            Keymaster

              @Silly Cow said:
              Surely a judgment debtor can wind up the scheme?  

              If only there was a lawyer reading this who could give a definitive answer!

              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.
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