Strata manager pushing us to sell to developer

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  • 29/10/2023 at 8:43 pm #70958
    reddant
    Flatchatter

      Our Strata Manager emailed us on a Sunday10:00 am. Despite me complaining to his firm’s complaints line the first time he forwarded us an expression of interest from a developer, the Strata Manager now forwarded another one where the same developer chimed matter of factly that many owners had responded “very positively”, and the developer was now giving the balance of owners a last opportunity.

      The Strata Manager has not stated in whose interests he is acting in when he forwards this developer’s commercial solicitation. Does he receive a commission? Is his strata company hoping to win a contract? Has the dominant owner (61 or more percent) solicited the developer and the strata manager is acting in the majority owner’s interests?

       

       

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    • 29/10/2023 at 9:01 pm #70965
      Jimmy-T
      Keymaster

        I refer you to my previous post HERE. It outlines (roughly) the process that must be followed legally for a collective sale to go through where there isn’t unanimity among owners. Failure to follow every step would undermine the collective sale by a majority (not all owners) as the final sale has to be approved by the Land and Environment Court.

        Have a look at this document, then get legal advice from an experienced strata lawyer. And don’t forget that if you object to the sale, the owners corporation has to pay your legal fees.

        Finally, take a look at this section of the Strata Schemes Development Act  and ask your neighbours and strata manager why they and the developer are not following ithe procedures laid out here.  Is it because they want to work around the protections offered to you and your fellow owners by the law.

        Any of your neighbours who have accepted an option pre-payment should be aware that if the sale doesn’t go through, they will have to pay the money back. In other words, they will have to pay for your objections, then could end up with nothing if proper procedure has not been followed.

         

         

        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.
        • This reply was modified 10 months, 3 weeks ago by .
        30/10/2023 at 1:38 pm #70984
        reddant
        Flatchatter
        Chat-starter

          Cheers. Yes I had read your post, and am aware of the due process.

          For an employee Strata Manager of a large firm to send this on a Sunday has gotta mean the Strata Management firm stands to gain! No employee is that diligent they’re just doing routine work on a Sunday.

          It’s harassment.

          30/10/2023 at 1:41 pm #70988
          Jimmy-T
          Keymaster

            Fight fire with fire and email with email.  let the other owners know that the correct process is not being followed and they could end up with expensive egg on their faces if they don’t do the right thing, as per this story in the SMH.

            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.
            02/12/2023 at 11:38 am #71700
            reddant
            Flatchatter
            Chat-starter

              Here is reply from complaint to Fair Trading:

              ”Thank you for your correspondence regardingyour strata managing providing information about commercial development.

              The role of NSW Fair Trading is to provide information about strata legislation, regulate the conduct of strata managing agents and offer a mediation service to assist in resolving disputes.

              Strata managing agents act on behalf of the owners corporation that has appointed them under an Agency Agreement, they can offer advice and direction however the owners corporation always retains the ultimate responsibility for a strata scheme’s management and operations.

              The strata managing agent must provide information to lot owners regarding their strata scheme, such as information that may relate to a developer interest in a collective sale.

              Further information regarding the collective sale and renewal of a strata scheme can be found at (copy and paste the link to your browser):

              https://www.registrargeneral.nsw.gov.au/property-and-conveyancing/strata-schemes/renewal-process

              As providing advice (other than information about strata legislation) is outside Fair Trading’s jurisdiction, you may choose to contact the Information and Privacy Commission on 1800 472 679 who may provide information relating to privacy concerns.

              Yours sincerely

              NSW Fair Trading | Department of Customer Service“

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