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The OC decided to impose a limit on the Strata Committee of amounts up to $10,000, insurances excluded.
At the Strata Committee meeting the Strata Manager withdrew the motions for the renewal of insurances. Reason was that the motions were posted at the time of the existing SC members who were restricted to matters up to the value of $3000. Bit strange as the new committee did not have this restriction and the meeting was held immediately after the AGM .
We now have a Strata Committee meeting next Wednesday 26 Feb to decide on insurances . I note an interesting article by Tyrone Shandiman Strata Broker who has been so professional and prompt in providing me with a competitive quote and also substantial savings on our current policies.
We promptly took your advice and asked for Orders stating what you proposed Jimmy but it was to no avail. The application was granted but the Principal brought the substantive hearing date forward from 29 Nov to 10 Nov when the Interim Order will be heard concurrently. Bewildered as the order was to stop payment of the Levy due Nov 1 as stated in the Order and the ensuing interest I called NCAT asking if anyone had actually read it? She said Why should we cancel someone else’s for you? WHAT ???
I then called back and was dealt with by the Team Leader and after an anguishing 20 min she said she would ask for a Temporary Stay on the payment until the Interim can be heard…. Happy with that but then received an email tday from the Team Leader stating the Interim will be heard on 10 Nov with the Substantive and the ancilliary order for the waiving of interest will be considered..
On Nov 1 the interest is negligible but the Owners will be in arrears. What is the point of having Interim Orders if they are NOT IN THE INTERIM???
Can I appeal this to anyone?
I have read correspondence from the tenants lawyers to our Strata Manager and they state ‘The Lessees,…..,are responsible for payment of Levies”…Their agreement under the 99 year lease states they shall pay all Levies and costs… so from the advice you have given it would appear that a Special Levy may not be their responsibility.. Legal interpretation on the terms of the contract may be required.
I have just received an email from the manager of the liquidators stating they have signed the Proxy over to the Strata Manager as they are the legal owners and entitled to do so… This of course is correct as owners under the Strata Law they can take this action, however, they have given a Proxy to the other lessee in her name. I think if they have signed and agreement to pay all levies and costs they should at least be able to vote at meetings especially when at those meetings increases in levies will directly impact them financially.
The Strata Manager wants their Proxy as he is trying to push through a motion to have a Special Levy imposed of $174,000 on 12 Units for cosmetic work (as per SPMA engineers.) Of course this also means registering for GST and this will cost the lessees more on top of their levies…(read Strataman article on GST). I also know he wrote all three motions on the Agenda pertaining to the GST and Special Levies.
In a Lot of 12 in NSW can the Strata manager who is the Chairperson have a Proxy?
Hi Again
Well an EGM is scheduled for 16 August. In the meantime a couple of owners have sought another quote. This is a large national company who has carried out remedial work on several well known Strata Companies. The report based on the same ‘scope of works’ clearly states none of the work is structural and could be done in stages. Cost is $67,000 inc GST ie a fixed cost. This compares to $178,000 from the company the OC has accepted.
I ‘required’ a rescission motion be included on the Agenda and another motion to accept the quote for the less costly option. The Strata Manager has placed these motions last. Motion 2 is for our strata to Register for GST and Motion 3 is to raise a Special Levy of $178,000. Of course once this is passed there is no point in even considering the alternate quote as it will become irrelevant.
I will request the last motion be considered before Motion 2 re GST as the cost of $68,000 + Levies of $65,000 for 12 Residents is less than the $150,000 required to register for GST. This would also avoid GST on all Levies Even though we would be able to claim the GST on the cheaper works we still need to discuss the option and this cannot occur if we don’t even consider my motion.
The Strata Manager has manipulated the Agenda so our motion will become redundant. Another resident has given his proxy to another large remedial expert who will attend the meeting however he may not even get the opportunity to support our motion. We will seek mediation if all fails.
The Special Levy has to be paid along with the ordinary Levy this quarter.
This is very stressful…
Well I tried but there was an outcry by our Chairperson that we really need to get this done asap because the quotes won’t hold for much longer and we’ve taken too long already. I printed out my request very respectfully and had in hand the written tender from the remedial company I called that day. It was very professional and while slightly cheaper the argument from our secretary was that unless it was a lot cheaper there was no point in looking at it even though they recommended different approaches and types of paint on various surfaces compared to the company on the agenda.
The Secretary also declared out loud they had plenty of time to get the quote in and hadn’t. The information day was on the 12 April and I said the Principal would not return until a week later then I expect he would look at the Scope of works and make visit to our complex afterwards which would mean realistically the first week of May. The Strata Manager who chaired the EGM gave Notice of the EGM on 4 May. He also led the information day meeting. There was no way I could have presented the OC with the alternate company in time. Hence the company listed on the agenda was accepted. The motion was to accept the quote for company XXX to undertake the remedial work and …..”furthermore the Strata Committee will consider the contract” not the OC. I wrote and amendment because the committee is restricted to forming resolutions for amounts of $3000 or less.Also under the resolution regarding restrictions for the SC there is an additional paragraph which states …..”Furthermore a resolution authorising works at an estimated or quoted cost also authorises the resultant cost(invoice)” Hence the Strata Manager stated the SC could resolve to accept the contract. I argued the word “consider’ means just that and cannot have any other outcome than a resolution that the contract was considered. My amendment passed as I also argued there is a higher law governing the rights of consumers who are entitled to have full disclosure of all of the financial facts available so the OC by right should also consider the contract.
The numbers were against the few who are struggling to meet the levy. Of the 12 Units 2 are under a 99 year lease. One of these leaseholders never pays his levy on time and is the original property developer. He was in arrears at the EGM so his vote wasn’t counted leaving 11 votes.
The other leaseholder was in hospital and I had her proxy which directed me to vote NO on the remedial works going ahead. One owner was overseas and two others not in attendance but all gave proxies. There were 3 SC members in attendance but with the proxies given to the Strata Manager they had 5 votes.Two of the SC wives held the other two proxies so the numbers were in their favour which they used to push through everything they wanted. I find the attitude of those who chose not to attend and did not direct on their proxy how they wished to vote on each motion is appalling. Also they do not hear the amendments I proposed so the proxy holders who support the SC especially the wives voted down my amendment to delay the $65,000 rendering work until a later date because they argued it will cost us more . I had a quote from a rendering company which I gave to the Secretary for $39,000. He ridiculed it at the EGM. All of these works are cosmetic.
What happens now? Do we have to call a meeting to impose a levy? This will pass as they will have the numbers again. If I receive a Levy notice for $15,000 can I refuse to pay it as I don’t have it. I have 2 possibly 3 others who will be in a similar situation so that will be $45,000 short. Can the OC enter into a contract if the money is “not in the bank” What are the ramifications here? Is there anything else we can try?
Awesome…. Give it a try at least I will have tried.
thanks for the response.
Our Strata Manager informed us all at a general revision of the various remedial specialists that the sponsor i assume you refer to has gone “belly up” I contacted Lannock and have received an immediate response however our Strata Manager will have his own lender in mind and the Strata Committee will accept whomever he suggests. I have emailed all owners info on Magnatex but it was totally ignored Over 95% of owners are over 80 so doing the job themselves is out of the question even though they are all retired.
Can I apply to NCAT for orders to delay the rendering alone as this poses undue financial stress for purely cosmetic works . My concern is that the cost will blow out and $65,000 is an obscene amount of money for a small wallwhich could be repaired over the next 5 years.
What happens at an AGM when the chairperson is present but the Strata Manager takes over and chairs the meeting thus having the best position to sway argument on various topics to the companies advantage e.g. to take out a loan for defect works that are not structural.
Hi
Well the answers are very convoluted. Upon further research I have found:
1: In order for a relative of a deceased lot owner to participate and vote at a general meeting of owners, the relative would need to be a registered proprietor of the lot or hold the proxy for the executor or executrix pursuant to a Will, where that Will had been proven by virtue of probate.
Probate has not been granted, there has been no transfer of property in title.
2:This article about proxy entitlements regarding a deceased estate has been provided by Michael Pobi from Pobi Lawyers.
I have recently been asked about whether a proxy can attend a general meeting of an owners corporation and vote on motions on behalf of the estate of a deceased lot owner.
In our view a proxy could vote on behalf of the estate of a deceased lot owner in the following circumstances:
- If the estate of the deceased lot owner has obtained a grant of probate of a Will which gives the executor of the deceased lot owner’s estate the authority to act on behalf of the deceased lot owner’s estate and the executor gives a proxy to the proxy holder;
- A member of the family of the deceased lot owner or a relative becomes the registered proprietor of the deceased owner’s lot and gives a proxy to the proxy holder.
My “business” regarding the renter is limited to the Owners Corporation responsibilities under the SSMA 1996 as it is always about compliance to the ACT.
Cheers
Just went through the exact same circumstances with our Strata complex. I just received Orders from NCAT “not to approve the appointment of a compulsory Strata Manager” but NCAT did NOT issue one order for multiple breaches of the Act which were clearly evidenced by attached documentation. Don’t even think they read the submission . It was unbelievable… so the EC of 5 now continue to breach the ACT. I can’t do a thing because they know now they can get away with blue murder.
@Whale said:
Because it’s a “key”, just like the one that you’re responsible for to the entry door of your Lot – that’s also Common Property.If the Remote is a “key” then the new owner should be given a “key” that works in the first instance. After that it should be the owner’s responsibility. Two issues, Initial occupancy and continuing occupancy.
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