strata managers conduct

@mikobrand96 said:
Can someone please explain how a strata manager and owners corp can get away with the fact the at several meetings owners were not financial but according to strata records they were?  

Strata law requires people voting at general meetings to be “financial” but you have to apply to NCAT for orders to have any votes taken at the meeting overturned.  

If you feel the strata manager has acted illegally, you need to raise the issue with Fair Trading.  

To answer the question of “how can they get away with it?”, it’s because no one has challenged the behaviour through the correct channels

can someone explain to me how when 1 owner’s cheques bounced and states this fact in bank statements but not in other financial records?

If you are saying that cheque bounced but the non-payment of levies (presumably) was not recorded, then there is a fault in your strata manager’s accounting system. If the levies were overdue as a result, a mandatory penalty interest should have  been imposed.

 Can someone tell me how a person allegedly has a proxy but no proof of this can sign a agency agreement?  

If the proxy holder lied, this is a potentially fraudulent act and the agreement could be challenged in court or at NCAT. 

How about the fact that when you send to dept of fair trading a complaint to investigate further, you are told there is nothing wrong as they can see.

Fair Trading will not investigate problems on your behalf; they have neither the resources not the inclination to do so.  However, if you have a legitimate grievance covered by the strata Act (or other relevant laws) there are procedures you can follow.  Don’t just make a complaint, fill in the forms and demand a hearing.

Fair Trading and NCAT are more interested in whether someone – an owner or tenant – has suffered in some way than they are in finding fault with someone on principle.

Who suffered in this case and by how much? If it’s just a case of your EC and strata managers playing fast and loose with the rules, then join the club. You’d be hard pressed to find any strata scheme in Australia that’s 100 percent compliant with the laws.  

If, however, someone has acted fraudulently and someone has benefitted significantly to someone else’s detriment, than that is another matter entirely.

You need to decide what it is that you are complaining about.  Is it the strata manager acting unprofessionally?  Strata managers come under the Stock, Property and Managers Regulations, and your starting point for action against them would be THIS PAGE.  However, if you simply want the situation resolved, you have to pursue mediation against the owners corporation (see below).

Regarding the other issues, do you want the Tribunal (NCAT) to order the Owners Corporation or Executive Committee to do something that it has failed to do which is part of its responsibilities? In that case you can seek orders under Section 138 (see below).

Do you want NCAT to order the Owners Corporation to take action on the unapproved renovations? In that case you can seek orders under Section 140 (see below).

Do you want NCAT to order the Owners Corporation to provide documents that you are entitled to view? In that case you can seek orders under Section 156 (see below).

However your first step in all of these approaches to NCAT would be the mandatory mediation at Fair Trading where the committee and the strata manager would have the opportunity to discuss the issues in the hope of removing the need for orders.  You can read all about mediation on THIS PAGE. You would apply for mediation using THIS FORM.

If mediation fails to resolve any or all of the issues, you can then (and only then) apply for NCAT orders using THIS FORM.

Generally speaking, however, if you present a clear set of requests to your committee and make it clear that you intend to take it further if they don’t comply – and that you know how to do so – they usually will start providing answers and getting their house in order.  It currently costs $81 to apply for mediation and $97 for an individual to apply for NCAT orders (but, in both cases, only $5 if you hold a valid concessions card). 

138   General power of Adjudicator to make orders to settle disputes or rectify complaints

(1)  An Adjudicator may make an order to settle a dispute or complaint about:

(a)  an exercise of, or a failure to exercise, a function conferred or imposed by or under this Act or the by-laws in relation to a strata scheme, or

(b)  the operation, administration or management of a strata scheme under this Act.

(2)  For the purposes of subsection (1), an owners corporation or building management committee is taken to have failed to exercise a function if:

(a)  it decides not to exercise the function, or

(b)  application is made to it to exercise the function and it fails for 2 months after the making of the application to exercise the function in accordance with the application or to inform the applicant that it has decided not to exercise the function in accordance with the application.

(3)  An Adjudicator may not make an order under subsection (1) for the settlement of a dispute or complaint:

(a)  dealt with in another section of this Chapter, or

(b)  referred to the Tribunal or only within the jurisdiction of the Tribunal, or

(c)  relating to the exercise, or the failure to exercise, a function conferred on an owners corporation by this Act or the by-laws if that function may be exercised only in accordance with a unanimous resolution or a special resolution (other than a special resolution under section 62 (3), 65A or 65B), or

(d)  that includes the payment by a person to another person of damages.

(4)  If a dispute or complaint arises from or relates to the operation or application of a provision of a lease of a lot, or of the common property, in a leasehold strata scheme, the lessor of the strata scheme must not:

(a)  commence other proceedings in connection with the settlement of the dispute or complaint after having made an application under this section for the settlement of the dispute or complaint, or

(b)  make an application under this section for the settlement of the dispute or complaint after having commenced other proceedings in connection with the settlement of the dispute or complaint.

(5)  An application for an order under this section may be made only by an interested person.

140   Order relating to alterations and repairs to common property and other property

(1)  An Adjudicator may order an owners corporation to consent to work proposed to be carried out by an owner if the Adjudicator considers that the owners corporation has unreasonably refused its consent and the work relates to any of the following:

(a)  alterations to common property directly affecting the owner’s lot,

(b)  carrying out repairs to common property or any other property of the owners corporation directly affecting the owner’s lot.

(2)  An Adjudicator may make an order approving of alterations or repairs already made by an owner to common property or any other property of an owners corporation directly affecting the owner’s lot if the Adjudicator considers that the owners corporation unreasonably refused its consent to the alteration or repairs.

(3)  An order under subsection (2) is taken to be the consent of the owners corporation to the alterations or repairs concerned and may be expressed as having effect from a day specified in the order that occurred before the order was made.

(4)  An Adjudicator may specify in an order under this section whether the owners corporation or the owner of the lot concerned has the ongoing responsibility for the repair and maintenance of any additional property arising out of an alteration or repair to common property approved under the order.

(5)  If an order makes provision for the owner of a lot to have the ongoing responsibility for the repair and maintenance of any such additional property, the order also has effect in relation to any subsequent owner of the lot.

(6)  In deciding whether to grant an order under subsection (2) or to provide for the order to have effect from a day that occurred before the date of the order, an Adjudicator may take into account the conduct of the parties in the proceedings, for example, if an owner did not first seek the consent of the owners corporation before carrying out the alterations or repairs.

(7)  An application for an order under this section may be made only by a lessor of a leasehold strata scheme or an owner

156   Order to supply information or documents

(1)  An Adjudicator may order an owners corporation, strata managing agent or office holder of an executive committee to supply to the applicant for the order information that the Adjudicator considers that the owners corporation, strata managing agent or office holder has wrongfully withheld from the applicant and to which the applicant is entitled under this Act.

(2)  An Adjudicator may order an owners corporation, strata managing agent or office holder of an executive committee to supply or make available to the applicant for the order a record or document if:

(a)  the Adjudicator considers that the owners corporation, strata managing agent or office holder has wrongfully failed to make the record or document available for inspection by the applicant or the applicant’s agent, and

(b)  the applicant is entitled under this Act to inspect the record or document.