Flat Chat Strata Forum Living in strata Current Page

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  • #68033
    Devil1
    Flatchatter
      I am looking for advice on what to do about a committee that refuses to address serious defects and complicit strata managers and lawyers who are enabling them.
      Briefly the issues are;
      • Strata Manager in place since developer.
      • We never receive a quorum for any meetings, where the Strata committee dominate the numbers and votes and a number of units are investor owned.
      • A failure from our Strata Manager to maintain common property in good repair over a 3 year period
      • A failure from Strata to employ a licensed contractor. The works are now defective and need remediation.
      • A failure to maintain accurate records by requesting SC members back date their votes on motions put forward.
      • A failure to brief lawyers to assist with moving forward on any legal recourse for the OC and a potential conflict of interest with the OC law firm.
      • A failure from the Strata Manager to provide any adequate advice to protect the OC from a professional standard view and basically receiving a monthly fee from the OC for little or very basic service.
      I have posted to the forum before about waterproofing, which is related to this problem.  Any advice about how to get things moving would be appreciated.
    Viewing 10 replies - 1 through 10 (of 10 total)
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    • #68036
      TrulEConcerned
      Flatchatter

        As someone who has taken on a do-nothing (or do for themselves only) committee, I can tell you what I learned which should inform your next steps. Two things come to mind:

        1. ACTION AGAINST THE OWNERS’ CORP

        Say you or like minded people want to join the committee, in order to get things done, but don’t have support. If you take the Owners’ Corp to NCAT – as you do not take the committee per se – you’ll learn:

        (a) That NCAT cannot put you on the committee in addition to the lazy so and sos on the current committee as it does not have that power;

        (b) Asking NCAT to remove those doing nothing on the committee from the committee is something NCAT can do if you ask; and

        (c) Making clear that the status quo (committee and agent) are not doing the owners any good, you could ask NCAT to – via s. 237 SSM Act – order a compulsory managing agent be appointed where he/she will attend to all issues he/she sees needs actioning e..g broken items, replacements needed etc. Note: when a compulsory agent is in place, nobody, not you or the current committee members can direct or instruct the agent as to what needs to be done. So it’s possible that not all of what you think needs doing will be done. And if it’s done, you’ll have no say in who does it. Appointing a compulsory agent means the existing committee is extinguished.

        2. ACTION AGAINST THE STRATA AGENT

        You could make a separate complaint against the agent alleging he/she is not performing his/her role

        according to the Property & Stock Agents Act via filling a form on the following page

        https://www.fairtrading.nsw.gov.au/help-centre/online-tools/make-a-complaint

        go to

        realestate, property management and strata

        and click on it

        This is separate from complaining about the Owners’ Corp, but it should help if your ducks are in a row,

        I complained recently about the agent not doing as she should and in fact as she promised. NSW Fair Trading looked into it and indicated that they “took action”. Under the law, you and I are not told what action was taken. But we can be told if according to NSW FT our complaints had merit.

        In any event, the agent  – who always did the committee’s bidding – suddenly quit being our agent.

        When you go to NCAT about the OC, it’ll help that you can show your complaint against the agent – which in your case you claim is “complicit”  – was supported by NSW FT.

        #68038
        Jimmy-T
        Keymaster

          There is another possible action – a Section 232 order compelling the strata committee to fulfill their duties.  This can be triggered by an official request from you which is either denied or ignored for two months.

          If they deny or ignore past the threshold, you commence proceedings asking for mediation at Fair Trading.  If you fail to get a written agreement to do the work within a certain time, then you proceed to NCAT.

          By the way, I would love to hear from anyone who has pursued a section 232, either successfully or otherwise.

          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 1 year, 6 months ago by .
          #68049
          TrulEConcerned
          Flatchatter

            Jimmy, serious work needs to be done by the incoming Minns Dynasty to make NCAT work better. S. 232 is but one of many aspects that needs to be reformed.

            Case in point: in March 2021 I asked an OC to rectify common property (s.106). They ignored my request. They subsequently attended mediation 6 mths later, which I applied for, and at mediation they agreed to fix the item within 2 months.

            Surprise, surprise, they did not.

            NCAT hearing the following March (2022), yes one year ago, required them (s. 232) to attend to the item within 2 months. It’s a year since that NCAT hearing and little has been done by the OC to fix the item. And what was done was not done as stipulated by NCAT.

            In order to bring the matter to a reasonable conclusion I had to re-apply to NCAT and pay again a filing fee. The matter is currently underfoot.

            From my neck of the woods there is nothing in the way of penalties or sanctions that NCAT can throw at lazy or useless committee members that would encourage them to do their job. No fine, no gaol sentence, no public shaming etc.

            Until strata schemes are put on a similar level as businesses when it comes to bad behaviour, dereliction of duties, misappropriation of funds etc, some committee members will do little other than give lip service to their legal obligations by simply attending mediation and NCAT hearings (and saying what they think the mediator or Tribunal Member wants to hear), safe in the knowledge that the worst of all worlds that could possibly befall them is to actually be forced to have to spend time and effort fulfilling their duties.

            Perhaps Flat-Chat could inform the incoming Minister for Fair Trading just what needs to be done. Flat-Chat could seek input from its readership as follows:

            (a) Solicit (from members) strata issues that members have come across that needs major overhaul in order to work better (in the interest of owners);

            (b) Call for suggestions as to upgrading the provisions of the SSM Act;

            (c) Request ideas to give mediators some teeth; and

            (d) Invite recommendations to improve how both the SSM Act and NCAT Act are applied by NCAT.

            #68055
            Jimmy-T
            Keymaster

              Perhaps Flat-Chat could inform the incoming Minister for Fair Trading just what needs to be done.

              Way ahead of you.  Have a listen (or read) of this week’s podcast.

              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.
              #68085
              kaindub
              Flatchatter

                The no action committee

                The act confers decision making power to elected members of the committee. In my experience, most owners do not want the burden of being on the committee. Too political; too time consuming: I don’t have time; Don’t want responsibility

                All excuses I hear.

                The committee then is often saddled with unqualified people or disinterested people (who just want a title).

                It’s no use sitting on the sideline and complaining if you yourself won’t get onto the committee . And I can tell you in most buildings its not that hard because there are less takers than positions.

                Once you’re on the inside you can see what’s happening and start to effect some changes. It takes time.

                I had an issue with my building that took 3 years to finally get resolved in my favour.

                And finally. To break the status quo, there needs to be an agent of change. That person does not need to be the chairman. If you are passionate and influential, you can persuade, over time, the majority of the committee to see your way.

                #68093
                TrulEConcerned
                Flatchatter

                  Jimmy, thanks for the link. I’ll have a listen to the podcast.

                  #68101
                  Devil1
                  Flatchatter
                  Chat-starter

                    I did join the committee for a year and nothing was achieved in that time. I did not reapply after the Strata Manager requested we back date our votes on motions. Regrettably, I am not going to participate in something that can be considered fraud. Thank you for the replies, I will continue to pursue a positive outcome for the OC and the building. Will let you know how the section 232 goes in NCAT.

                    #68111
                    TrulEConcerned
                    Flatchatter

                      You mention that the SM asked you to back date your votes. The SM did this in writing or verbally? If the former, then you’re on solid ground.

                      In my experience a SM is little more than the post box for or microphone of the OC. Before applying to NCAT against the OC you will need to apply for mediation with the OC (which they may or may not attend). It will take no less than 6 weeks from when you apply online for mediation until the matter is heard.

                      Be sure of what you want to get out of mediation.

                      If mediation fails, only then you can apply to NCAT. That’ll be heard no less than 8 weeks after you apply for it. As I mentioned earlier, complain separately about the SM and hopefully you, like me, will get a positive outcome against the agent which will fortify your case at NCAT.

                      Best of luck.

                      #69156
                      Devil1
                      Flatchatter
                      Chat-starter

                        The backdating request was in writing on no less than 2 occasions and the Strata Manager has supplied minutes to GMs outside of the required 14 days.

                        I have reported this to the SCA NSW and they have opened a case.

                        We have our next GM in 16 days and the Director of the Strata company has an agenda item to address the SCA NSW complaint with the OC. Do they have grounds to do so, when the complaint was made without requiring OC approval as the claim and supporting evidence is indicating serious or unprofessional conduct?

                        A footnote on the NCAT matter, a Statement of Claim has been raised in the Courts and at the above mentioned GM the agenda item is to serve the Claim on the contractor. These actions meant our legal advice was to discontinue the NCAT matter as it could be successfully defended.

                        Thank you all for any and all assistance, greatly appreciated.

                        #69828
                        CupOfTea
                        Flatchatter

                          Gosh, reading this I seriously though it might have been my building 🙂 Then I saw you’ve actually got something filed with NCAT… definitely not us, sadly.
                          I am following this topic with interest. It does seem like it is very hard to get the committee to do anything.

                          Kaindub said it perfectly ;

                          “In my experience, most owners do not want the burden of being on the committee. Too political; too time consuming: I don’t have time; Don’t want responsibility
                          All excuses I hear…”

                          Yep. Me too. Strata living is a doozy. Going to go buy myself a lottery ticket methinks.

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