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Hi, can I ask a slightly different question (and if this should be a separate post feel free to amend).
We (a small complex in inner west, Sydney with 6 units / owners) had appointed a strata manager in 2009, but turned out to be a disaster, tried for 4 years to remove them (turns out each time they found a technical fault with our paperwork, and refused to be removed), we finally got rid of them in 2013. However, the new strata manager we wanted to appoint wouldn’t act without the paperwork from the previous, which they refused to hand over.
So we ended up having no strata manager for 2013-2016.
The last AGM held in 2012 set the strata levies from Mid 2012 to mid 2013 only.
Then the owners, as a group effort and all agreeing, applied to NCAT for a compulsory manager. NCAT initially refused but I sent them some additional paperwork and got the new SM appointed by NCAT.
The new SM then tried to say that levies are due for 2013 – 2016, at the rate levied for the specified period at the 2012 AGM. They say they can do that as the as the compulsory SM appointed by NCAT, despite the law being very specific that only owners, at a duely called meeting, can approve strata fees. The SM’s argument was that the powers of the owners corporation reside in them. I point out that the law is clear that the owners corporation doesn’t have the power to appoint strata levies, all the owners corporation can do is set a meeting of the owners, where such fees can be voted on and determined. They deny that.
Subsequently, realising they don’t have a leg to stand on in respect of fees for 2013-16, they then attempt to cancel those levies (you can’t cancel something that never existed) and raise a special levy for the same amount. Same issue, the levy, whether special or otherwise, needs to be determined at a meeting of owners only, and the owners corporation (whether that be the committee, of the complusory SM) don’t have the ability to set levies outside of a meeting of owners whereby levies were agreed.
There are also fees owed for 2010 – 2013, I say they are $9k, the new SM says its $10k. I ask them for their detailed calculations of how they get to that amount. They say “its the closing balance from the previous SM (the one we kicked out for being a crook, see above) account” and refuse to give me any more information on how it is calculated.
I note all strata levies from 2017 onwards have been paid (they were approved at an AGM, eventually called by the compulsory SM 12 months after their NCAT appointment).
But the SM (who is no longer compulsory appointed, having been subsequently agreed at an AGM to be the SM) is refusing to budge, or even discuss, the 2010-13 small disagreement, or the 2013-16 (or what they now say is a special levy). What are my choices in dealing with this?
To make matters more complicated I am an ex-pat, currently working overseas in the Amercias. SM refuses to supply any information, and tells me to attend their office to view the records (knowing I can’t do that, but when I was in Sydney in 2016, refused to respond to my calls and emails to make a time to do just that).
Should I just make an application to NCAT and have the hearing by video-link / Skype? It’s been 2.5 years with current SM and they are just not engaging, but saying the costs are far more than what they are in reality, charging interest, etc.
sorry for the long post – If I had to summarise, “can a compulsory SM decide the make up their own levies, or as the law states levies can only be set at a meeting of the owners”.
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