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  • #56936
    Dogsowner
    Flatchatter

      Hi,

      I’ve been a forum reader for many years and most existing discussions have helped me over the years, but now I am need of help.

      Our money is gone and our SM is not responding.

      NSW

      We are a small townhouse complex of 5.

      Another owner and myself took roles on the committee to ensure the Owners Corp was run effectively and efficiently after years of self interest or no interest by previous committees/owners  There was a 3rd on the committee until recently, but they are non financial so is left to the two of us.

      The past 5yrs we have set good budgets, and managed to have a reasonable capital works funds accumulate for planned or future requirements.

      We also raised Special levies to fund the painting of the complex, replace front doors and any remediation work we planned to commence in Spring this year. Or so we thought.

      The problem is we are facing challenges with the SM responding to us for actions they have or have not done:

      1. Funds of almost $40k transferred to a trades person. Work not done nor was there any notification of the payment or error in payment or return of funds (this was picked up on the Monthly Cash Management account by me last week. The funds were remit early in the month).

      2. An owner is in arrears by 2years (including the Special levy) and no payment plan, or debt recovery process commenced. This despite my follow-up and it being an existing Motion for the SM to commence steps.(the Treasurer was getting the Cash Management account, not myself. I was unaware of the arrears until Aug last year when it was 12mths I have been following up the SM since)

      3. AGM has been cancelled at least 3 times by the SM for various reasons, but only when I’ve called to remind them they have agenda items missing or incomplete (Illness, not avail)

      4. Request for quotes for trades people not done (we are also preparing for Roof Reseal which we wanted provided in the budget or noted when in the generalbusiness minutes the intent to commence etc)

      The Treasurer and my self have made calls, put our “please explain & please get out money back” in writing, with a time frame to respond and have been ignored.

      Other than harassing them, is there somewhere we can go to help us get our money back and how we can find another Strata Manager while this is such a mess.

      The Treasurer and myself have experience in our own professions that moved money of this amount, without explanation or evidence of trying to rectify and not responding to calls/emails is alarming.

      (We are in no way making an accusation of an individual or company but we do question how the controls did not pick this up or the recipient did not arrange the return of said monies)

      Any help is greatly appreciated.

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    • #56948
      scotlandx
      Strataguru

        I don’t want to be too alarmist but do you have the strata accounts, because from what you have set out it sounds somewhat like fraud, or at the least unauthorised payment.

        I suggest you contact the Department of Fair Trading urgently, as the strata manager are not doing their job and may be in breach of the law.

        #56999
        Dogsowner
        Flatchatter
        Chat-starter

          Thank you for your reply @scotlandx

          I have lodged a complaint with the Dept of Fair Trading, but now we have wait for them to respond.

          Since my first post we have been calling and emailing every day and requesting a response from the Licencee.

          The receptionist sent us a copy of “their record”, which was just a email (non-business style) in the form of a quote from “the painter”.

          We never saw that email or the quote for that amount (interestingly the cost of our original indicative quote for raising of levies 2yrs ago has gone up from $29k to $39k)

          Obviously I fired back it was not provided to us, authorised by us, it’s not a tax invoice and there was no works agreement entered into. Respond to our email, and get our money back.

          Yesterday afternoon, the Licencee sent a rather abrubt email, claiming he made an honest error, $20k will be returned Mon/Tues. But the $18k will have to wait until “painter” gets new work to start paying us back. But Licencee said, “if we need the money, until then, he’ll spot us”.

          So not only do we have a problem with the actions of the SM, we are effectively propping up the cash flow of a 3rd party, he has no right to have the funds in the first place.

           

          I am looking at having our SM agreement terminated early to get us out of there. I have previous minutes of actions not done, emails of follow ups (that also confirm verbal coversations held), and I have reviewed the agreement to the best of my ability. We have a year to go. I have emailed all the owners what the Treasurer have identified, actions taken and next steps. I know they will support the move in heartbeat, just not do the work to do it.

          Any additional actions I should take or be wary of I would be grateful

          Thank you

           

           

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