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Hello
This one astounds me!
My son has owned a villa in a small, self-managed strata plan of 5 lots for approximately 4 years.
During that time, things have been managed in a haphazard and largely undocumented way. He has stopped going to AGMs because they only make him cross.
The last AGM was in December 2010. Apparently at the AGM (no minutes issued to owners following the meeting) it was decided to (finally) paint the exterior of the development.
My son found out about this when one of the other occupants sent him an email requesting an immediate contirbution of $1600.00 for the works, which were to commence the next day.
I have advised him to seek the following:
1 Notice of the AGM and the agenda. (with the appropriate notice period)
2 A copy of the resolutions and minutes resulting from the AGM.
3 A copy of all quotes for the painting.
It seems to me that the owners' corporation, (if you could call it that!) are grossly in breach of the act, although as a property manager, I am not that familiar with the act relating to strata schemes.
Am I right? What would you suggest?
My son is in the early stages of selling his villa, and it would be to his advantage for the development as a whole to look better, but it seems a bit rich to demand money with no warning and without the correct processes preceding the request.
Thankyou for any advice offered.
Ros.
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Tha Strata Act clearly sets out all the required procedures foir AGMs and other meetings, including agendas and minutes. It's therefore possible to challenge any desicisions that were taken at a meeting that wasn't properly constituted.
In your son's case, given that he is selling up anayway, I'd be demanding to see the quotes for painting, as you have suggested, to reassure himself nothing untowrds (apart from casual incompetence) is happening.
The more serious issue is that a savvy purchaser might start looking for minutes of meetings etc and be scared off when they can't find any. This is a problem with some self-managed buildings, many of which have trundled along for years with “garden fence” meetings. Now that older owners are moving out, the easygoing approach doesn't work – especially since strata law has changed a lot since the buildings first went up.
Your son needs to get involved and demand that they either provide the paperwork demanded by the Act or appoint a strata manager to do it for them. Alternatively, as a compromise, they could subscribe to a self-manage strata online service like StratamanageIT.
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.
Thankyou, Jimmy T
I appreciate your advice!
Ros
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