› Flat Chat Strata Forum › NCAT – the NSW Tribunal › Current Page
- This topic has 11 replies, 3 voices, and was last updated 11 years, 1 month ago by .
-
CreatorTopic
-
15/02/2014 at 8:43 pm #9356
We are in the process of responding to an adjudicator order. Does anyone know whether an adjudicator can & does request additional written information in order to make a sound decision? Once again, I have not been able to find an answer to this question elsewhere.
-
CreatorTopic
-
AuthorReplies
-
15/02/2014 at 11:24 pm #20960
No, they don’t. They rely entirely on the written submissions.
I don’t think making a sound decision is a priority for some of them.
16/02/2014 at 9:24 am #20961@scotlandx said:
No, they don’t. They rely entirely on the written submissions. I don’t think making a sound decision is a priority for some of them.Scotty is right. The adjudicators look only at the material they are given, meaning your claim is often a test of whether or not you have done your homework properly, rather than if you have a valid case.
There is some talk of NCAT providing claimant “advocates” to make sure that everyone has provided all the documents they need. They are alos supposed to start preselecting cases that will probably go to tribunal anyway, because the losing party is almost certain to appeal, thereby cutting out an unnecessary step.
I am yet to encounter any evidence that any of this is actually happening but it would have to be better than the box-ticking process that occurs at present.
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.
16/02/2014 at 9:54 am #20963Our adjudicator found “some evidence of irregularities in the past”, referring to regular S71 breaches to cover admin fund shortfalls, which also create a small surplus every time. However, he/she then went on to say “the finances are managed relatively well”.
16/02/2014 at 10:43 am #20965To add to my last posting, we are a smallish SP of between 25 & 30 houses, a little over 20 years old. Our sinking fund holds less than $50,000, leaving far less than $2,000 per lot for maintenance works. Well managed?
16/02/2014 at 2:46 pm #20967It isn’t possible to say Daphne, you have to take into account a wide range of factors including the age of the building/s, maintenance that has been done in the past, projected maintenance needs, whether anything needs urgent attention now, size of the common property vs what is lot property,
That is what a sinking fund plan is for – and they are required under the Strata Schemes Management Act. My experience from those plans is that they are often wrong, but they are a start. A sinking fund plan will tell you what will need to be done over a period of time and how much money you should put aside to meet those projected costs.
In our case we got a detailed engineer’s report which gave us a much better idea of what needed to be done. We have put the strata levies up over time to build up funds to meet expenses we know we are going to incur, as that is the way we prefer to do it.
Does your scheme have a sinking fund report?
Going back to your original question – the state of the sinking fund is only one factor in considering whether a scheme is well managed. There are a number of elements you have to take into account.
16/02/2014 at 4:00 pm #20968Thank you scotlandx. Now, I have another question for the knowledgeable ones among you. Our SM told the OFT when questioned about the regularity of S71 breaches that it is industry practice. My information is otherwise. What say you?
16/02/2014 at 4:11 pm #20969Yet another question. Our agreement with the SM was signed nearly 15 years ago, for a term of 36 months. There has been no other contract signed since. The way I see it, we don’t have a valid contract & haven’t had one for many years. This was also raised in our submission to the adjudicator, but was not touched at all in the reasons given for the subsequent decision. Any opinions?
16/02/2014 at 5:37 pm #20970Section 71 – the SM sounds like a bit of a nong. Section 71 is clear, you don’t mix the sinking and admin funds. It is not industry practice.
You could say to a magistrate oh well I know I was driving over the limit, but lots of people do it, so it must be ok.
If a scheme is regularly breaching section 71 it would be a factor you could raise in any application regarding failure to manage a scheme. One consideration is it indicates the scheme is failing to budget properly. Admin costs are fairly static so it is a simple exercise to estimate required funds for a year.
Agency agreement – usually agreements will have a rollover clause which provides something along the lines of it continuing unless the OC terminates it once the initial term has expired. There are a number of ways it can continue, e.g. for another term of three years, then successive three year periods. Have you checked the specific terms of the original agreement?
16/02/2014 at 6:28 pm #20971Thank you again scotlandx. Yes, I have checked the agreement & it does provide for 3 year roll overs. However, the new term was supposed to begin at the 2013 AGM & it was never mentioned at all, although the proposed budget was passed without amendment (we abstained), which includes their fees for the coming year. As for the shortfalls in the admin fund, when I objected to the proposed budget at the 2012 AGM because it wasn’t allowing enough money ($500) & that the sinking fund would have to be raided again, the other owners stopped just short of booing & hissing. Lo & behold, it did happen & the insurance went up by nearly $4,000, which of course came out of the sinking fund. So, we just abstained at the 2013 AGM, as I said earlier. Once again the SM allowed only a few hundred dollars, with nary a comment from anyone. By the way, we are preparing for large scale document discovery, but that will take some time. To be honest, the whole strata scene appears to be a war zone & I’m personally not sure whether I want to spend my remaining years on a battleground. As far as I can see, the main intention of the Act is to NOT supervise it. The proposed reductions in red tape to benefit strata dwellers sound too much like the annual letters I get from my health insurer saying “we’ve got good news for you, your premiums are going up”. Struggler was right. He went & bought himself a small island in the form of a detached house.
17/02/2014 at 1:15 pm #20973A couple of things:
– the strata manager isn’t going to bring up renewal of the agreement if it automatically rolls over. It is up to the OC to be vigilant and take steps to change the manager if they want to, which would require some work a few months before expiry.
– I am not sure why you abstained on the motion in relation to the budget. If I were in that position I would have voted against and requested that the reasons for my objection be specifically noted in the minutes – that way you have it on record. An abstention is a waste of your vote in those circumstances.
Strata can be difficult – for the first five or six years I was in my present place I was abused, insulted and at certain points almost reduced to tears. Amongst other things I have gotten rid of 4 incompetent strata managers. I won’t go into the details of all the other dramas we have had, but believe me it has been very stressful at times. But I have no intention of going anywhere. Ultimately it is your choice.
17/02/2014 at 1:30 pm #20975He put my written request for amendment of the 2012 minutes (I had made him fess up to the percentage of his insurance commission during the AGM, but it never made it to the minutes) to a vote & won hands down. As it turns out, I found out he had understated the percentage anyway. He won’t include anything in the minutes he doesn’t want to. He is a crook with his acolytes on the EC & will be dismissed in due course, if that’s the last thing I ever do. I resent him holding our sole form of wealth in his hands. There is no point in selling up & moving away, because we do not intend to saddle some other poor sucker with the same situation. Wouldn’t be cricket, eh what?
-
AuthorReplies
- You must be logged in to reply to this topic.
› Flat Chat Strata Forum › NCAT – the NSW Tribunal › Current Page