It’s a common myth that the body corporate manager is in charge of a body corporate, so much so that it often comes as a surprise for those new to strata schemes that it’s actually a Committee who have the power and responsibility; well the Committee along with all the lot owners.
One of the offshoots of that belief is the idea that the scheme is being professionally managed. But that is not the case at all. Committee’s are made up of lay people who do the best they can with the knowledge and resources they have.
And for the most part they do a good job. After all no one has as much invested as the lot owners.
There are a few common issues that come up though that may hamstring management and eventually impact all the lot owners. This article is a discussion of those problems.
1. There is no Body Corporate Committee
It’s common to have a Committee that’s made up of only two or three people. It’s even reasonably common to see one person shouldering all the responsibility, but it’s very rare to see a scheme where absolutely no one will act as Committee.
It’s rare because having no Committee is a nightmare for body corporate managers. Consequently they usually make plenty of effort to convince some lot owner, any lot owner, to get involved.
Imagine running a business where there is no one to report to, no one to get instruction from and you actually have no power to make any decisions. But yeah, go ahead and keep the business going, deal with any problems and answer any questions. Sounds like a nightmare to me.
A body corporate can actually appoint a body corporate manager to be their Committee, but again it’s not something that happens very often.
That’s because, if there is no Committee is usually because no one has bothered to nominate, no one turned up for the AGM and in some cases no one even bothered to vote. If no one votes a Committee won’t be elected and neither will the manager be appointed to act.
This problem actually has much greater implications for lot owners than the frustration of the Manager.
If no one votes levy cannot be issued, and if no levies are issued no funds will accumulate.
That results in no works getting done.
It doesn’t take long for buildings to start to decay, particularly buildings with common areas that no person is specifically responsible for.
First the scheme will becomes dirty. The dirtier it gets the less care residents will take and if no repairs are undertaken the building quickly becomes run down. Eventually, if no one does anything the building may become derelict.
And yes, this cycle really does happen.
As the common property deteriorates the value of the lots becomes less and less. Even at a cheaper price the lots will become very difficult to sell. Not many people are prepared to take on someone else’s mess.
What to do if no lot owner wants to be on the Committee?
Turning a blind eye and ignoring things is not a good way to sustain your investment.
If you can offer even some time then volunteer for the Committee.
If the scheme genuinely cannot find anyone to be on the Committee then appoint a body corporate manager. It will involve a general meeting motion (where owners will need to vote) a separate agreement and a substantial increase in costs.
It can be very expensive to recover from an extended period of neglect. The best way to combat is not to let it happen in the first place.
2. The Body Corporate Committee are pursuing their own agenda
It’s important to remember that body corporates are closed systems, meaning they may do whatever they choose to do so long as it’s consistent with legislation and case law and isn’t illegal.
And the Committee is in charge of this system.
Their role is to enact the motions the combined lot owners have resolved.
Any lot owner can propose a motion and, if the motion is supported with the correct documentation, has a good chance of getting that motion passed.
Despite that, in most cases the Committee is driving what does or doesn’t get done around the scheme and that’s largely because they’re the people who’re being briefed on everything.
That is their purpose, to be the “brain” of the scheme, the people who’re collectively seeing and hearing all, the decision makers.
In some cases though those decisions may not be in the best interests of all the lot owners, or even the majority of lot owners.
For instance, the Committee may be more invested in keeping levies low than undertaking needed repairs and upgrades.
Or conversely, endlessly upgrading and driving levies higher and higher.
And there are many, many cases where works have been prioritised to suit a Committee member rather than necessity.
These are simple examples of things that happen often but the only limitations on this stuff is the willingness of any Committee to push the envelope.
What to do if the Committee is pursuing its own agenda?
The only policing provided for body corporates is that provided by the lot owners themselves.
So police already.
Read the Committee meeting minutes. Make written complaints about repair and maintenance issues and look for that correspondence to be discussed in the minutes. Talk to the Committee and / or the Manager if you have questions.
Vote on motions at general meetings yourself rather than appointing a proxy and take the time to understand the implications of what you’re voting on.
Get to know your fellow lot owners and discuss what’s happening with them. It’s likely if you have queries then so will they.
3. The Body Corporate Committee is at war with itself
You cannot please all of the people all of the time.
That’s actually one of the fundamentals of body corporates and why there is such a plethora of legislation and case law on the subject. Struggles for supremacy, or the right to do it my way, are a way of life in strata schemes.
It’s also the basis for voting. Quite simply the majority rules. It’s a confrontational system that actually works quite well most of the time.
The only problem with a confrontational system is that in most cases there will be a winner and a loser. And people being people and not machines, well let’s just say tensions can result.
In day to day life in the scheme that’s not necessarily a problem.
When it spills over onto the Committee it’s much more problematic and you get the kind of power struggle we’re seeing at the moment in Australian politics. Each side blames and criticises the other and far more time and attention is spent on knocking down the opponent than actually getting on with the business of running things.
Disputes between Committee members lead to additional running costs and higher levies for body corporates.
If one faction is in power the other faction will try and sabotage their resolutions.
If the balance of power in the Committee changes there’s the chance that decisions implemented by one faction will be reversed.
If the disputes become too acrimonious then applications can be made for adjudication, which in itself is not costly, however each application, each around 50 pages long, must be forwarded to every lot owners in the scheme, which soon adds to the bottom line.
Some competition and debate is healthy, even useful, however in these situations it’s not uncommon to see verbal and written name calling, slander accusations and even physical confrontations.
Essentially wars between different factions waste everyone’s time, energy and money.
What to do when the Committee is at war with itself?
This is a difficult situation. How do you get involved without seeming to take one side or another and inadvertently fuelling the arguments?
This is not my area of expertise and I’ve never actually seen a body corporate that’s managed to successfully deal with this situation quickly. Usually one side or the other will gain power as lot owners come and go and the Committee moves forward slowly and acrimoniously.
I’d love to hear from anyone who has dealt with this issue. Please let me know.
Conclusion
The above are common examples of issues derailing Committees and strata schemes all over Australia.
It’s tempting for lot owners to just roll their eyes, tut and say “why can’t they just get it together”. Unfortunately that’s ignoring the fact that you are one of the “they” and have a responsibility here as well. Perhaps it’s worth investing some time along with your money.
But for many lot owners the idea that someone else is taking care of things is worth any downside, although that attitude might be a little short sighted.
Unless stated otherwise all the information on this website relates to Queensland legislation.
Dear Lisa
I live in a three lot townhouse complex. I have nominated myself for treasurer but the current secretary has nominated herself for both treasurer and secretary. She then has initiated a motion to pay a BCM to perform the duties associated with the two roles with the payment to the BCM to come from body corporate funds.
The other owner will agree to anything the secretary wishes.
If I took this to adjudication do you think the adjudicator would rule that the BC has acted unreasonably? That is, denying me a position on the executive committee??
Hi Lesley
If there are only three lots in the scheme I don’t think one person can take both committee positions (I’m assuming a small schemes regulation module here) and at the same time keep another owner from being part of the committee. Yes that does sound unreasonable. I would think it is to be embraced if other owners want to have a say.
The appointment of a body corporate manager should be an ordinary resolution at general meeting. The committee does not have the power to appoint or authorise payment to a BCM.
That said, if the other two lot owners vote to do that there isn’t a lot you can do about it. If you objection is to the BCM then it sounds like you might be overruled. Perhaps, if you have time, you could propose an alternative suggestion?
Thanks Lisa. It is the standard module. I asked in the past for records and for some gardening work to be done the rear of the complex which was met with a defiant attitude from the then acting Treasurer (who was not a lot owner by the way) and the Secretary. I took the BC to conciliation and it was agreed that a non lot owner could not be on the committee. The non lot owner treasurer has now resigned. However the situation is as above, I have nominated myself for treasurer but one owner (current secretary) has nominated herself for both secretary and treasurer, the other owner for chairperson. It is an obvious attempt to keep me off the committee. I cannot find anything in the legislation that does not permit this. It seems so silly to nominate for two voluntary positions then engage a BCM to do the job for you?? Especially when I will perform the treasurer’s role voluntarily. Is there something in the standard module which precludes one owner being on the committee in two positions I cannot seem to find anything.
Hi Lesley
In a scheme with only 3 lots then can’t keep you off the committee. You might not be on the executive committee, as in Treasurer, Secretary or Chairperson but then you would be an ordinary member and you vote still counts equally. The scheme must have 3 voting members. One person may hold multiple positions but you’d still be a member.
It seems bloodymindedness to me that they would try and hold two executive positions when there are 3 willing members. Please see the regulations below.
From the standard module regulations:
9 Composition of committee
(1) The committee consists of—
(a) the persons chosen to be the executive members of the
committee; and
(b) if ordinary members are chosen for the committee—the
ordinary members; and
(c) each person who is a non-voting member of the
committee.
(2) The one person may hold the positions of chairperson,
secretary and treasurer, or any 2 of the positions, in
conjunction.
(3) Subject to subsection (4), the committee must consist of the
required number of voting members for the committee.
(4) Subsection (3) does not apply to a committee mentioned in
section 13(4) or (5).
(5) There must be a chairperson, secretary and treasurer, whether
or not there is a body corporate manager who has been
authorised by the body corporate under the Act, section 119 to
exercise some or all of the powers of an executive member of
the committee.
Can a non-owner with a proxy be the Chairperson of a Body Corporate?
Hi Alex
From Nominations and Eligibility page of government website:
Hi Lisa
I am desperate for some guidance please. The current committee of our scheme is very objectionable and unreasonable. For example, the caretakers had not taken care of an area of common property for many years and when a new caretakers came along, they cleared the eye-sore – the only problem is that the area is now a dirt pit and is the view from my unit (end unit alongside the common property). I asked if they would replant and they said no it’s not in the budget until 2018. I asked if I could provide some plants to the caretaker at no cost to bc and they said only if I accept, without limitation, liability for any and all damage that may occur as a result of the planting and/or growth. The colour of the weatherboard is icky green and very faded so I have been asking about whether they plan to stick with this colour or change (being that I will work with what they have if that’s the plan and it’s strata-standard format plan so not budgeted for in the sinking fund) but they said any changes I would like to make will be considered to detract from the aesthetic (I doubt it) of the property and won’t be supported but the property is in need of maintenance so even if I repaint the same colour, they could decide to go a different direction in the next year or two and I will forced to re-paint. They have also taken up replacing the timber fencing with cream colorbond fencing (which is such a contrast and ugly at best) and fully fencing in all the complex front yards (it’s so bad and looks so ugly) so I asked if there were other options as I did not want full privacy or steel fencing, they said no other options and they intend to continue. With all of this going on, I wrote to the committee and asked for their Masterplan – I said that the committee seem to have some very definite parameters that we need to work within so there must be an overall plan that they are working towards and can they please share it with me so I can understand their vision for the complex and work within that. They told me no further correspondence will be entered in to and the matters can be discussed at the next AGM (which is in March-April because I just bought the unit in April after their AGM).
I have tried to call around to a few BC lawyers but no one will take on a lot owner as an individual. I have read as much as possible about the legislation etc but when it comes to committees it seems they can do what they want. How can I be heard outside of an AGM – once per year isn’t enough. No doubt I will get to the AGM next year and they will defer to the following year. I’m not sure why they behave this way.
Any advice on how to navigate the committee. I have been left in tears every time I get stonewalled on what I feel is very reasonable questions.
Thank you in advance.
PS. finding this website has been the best thing to come out of all of this. It has provided me with so much information. Thank you
Hi Heather
Thanks for your comment. Its unfortunately the process with body corporates that the committee “rule the roost” and lot owners are left in a position of asking for things to be completed and then only, as the say if it’s in the budget.
You have two options here: submit motions for the AGM and / or nominate for Committee yourself. So long as your levies are paid in full you are eligible to do both.
Getting onto the committee will put you in the thick of things and you’ll be part of the decision making process. You might still get stonewalled, depending on different factions, but it is the best way to influence a scheme. If you decide to go this way discuss matters with your fellow owners. I wouldn’t run down the present committee, merely share your ideas about how to improve.
If there’s anything you specifically want done or decision made, such as a definitive idea about colour, put forward a motion at the AGM and see how other owners feel about it. Be aware your motion will be submitted as you write it so be clear, make sure it’s a question that can be answered yes or no and is in accordance with the act (sticky one that). If funds spent are necessary then obtain two or three quotes (depending on how much it costs) to submit with the motion and make it a motion with alternatives: ie motion to do something (yes or no) and if yes, pick which alternative.
That’s my best advice. I hope it helps.
Heather, i am very surprised that you say a BC lawyer is not willing to take on an individual lot owner. As a lot owner i have been represented by a BC lawyer on two occasions. Cost me a lot of money but well worth it. Committees cannot do what they like and I have questioned our committee several times due to incorrect procedures. Yes, I have read, attended seminars etc for years and am quite confident of my knowledge and not afraid to question any action that I beleive is not within the legislation.
Hi HelenR
I have been reading your comments with much interest. We have a deplorable Committee situation with a Chairperson/Treasure who is a bully! She has 2 friends on side on the committee. As there are only 6 committee members we get reaching stalemates as, if she votes NO – then her mates vote NO. She only keeps half of her committee informed on matters, on occasionally gets committee approval to spend money and/or pay invoices. She has made some pretty disparaging remarks about the other committee members as well.
Her focus is to keep everyone divided – our gardens look terrible, a lot is not getting done and we are at screaming point. I would love to chat with you sometime on your experiences and the wins you have had with Committees. Please let me know if you would like to chat sometime.
Many thanks
Viv
Hi Viv i hear you loud and clear this problem seems to be quite common where certain committee members act like dictators get other committee members to go along with their bogus schemes and the rest of us are left powerless just wished the BCCM had more powers to intervene and apparently its up to the rest of the body corporate members to toss out current committee however if body comp members don’t really get involved that’s near impossible so the dictators can pretty much continue on their merry way.
Can you provide the name of a good BC lawyer please?
Hi Denise
Hynes Legal, Mahoneys Lawyers, Peevy Lawyers, Short Punch & Greatorix.
Also check out the strata services directory on Lookupstrata.com.au
Many thanks. Our Bodycorp has multiple, serious issues. Cheers
Hi again. Do you know of any Body Corp “experts” we could go to for advice in N.Z to give us a heads up of what to do before we return to Australia please?
Cheers
Hi Denise
I don’t know any NZ body corporate experts. If you’re asking about Australian property then, if in QLD this website is a good source, if in other states try Lookupstrata.com.au or the Flat Chat Forum.
Thanks for your time Lisa. I guess even though the first AGM is almost 10months away I can take my time learning everything I need to know about committees, agendas etc.
I might also petition policywriters to review how committees are run. I think at minimum, they should have to record all of their minutes and decisions outside of the AGM because almost all of the issues I have are decisions that were made outside AGM and as such there is no actual formally recorded minutes to support their decisions (including allocating themselves additional car parks!!). I wonder how this works with having a decision overturned because I think the law says that any decision overturned needs to be overturned in the same method as the decision was originally made which means until a different committee is on board then no other decisions could be challenged.
Thank you again for your time and great bogs.
Ah…Heather, the Committee should be recording and distributing minutes of all meetings. If they are not then they are breaching the act.
Also…a committee cannot allocate themselves carspaces! That is a decision for all owners by resolution without dissent.
You can make an Adjudication application now to overturn those decisions.
Hi Lisa,
I am the resident manager (Caretaker) of a standard module . The building in the past year had its three lifts refurbished/upgraded. The key switches currently installed in all three lifts are:
· Stop/Run Key Switch
· Independent Key Switch
· Fire Service Key switch
· Lights/fan key switch
The B.C. Committee has a service contract with the lift company for the fixing of lift faults. Since the upgrade and prior there have been many call-outs to fix lift faults. Recently a lift displayed a fault and the lift technician was to called in to rectify. Apparently according to the lift technician he advised that the lift in question was not in fault but someone had used the stop/run key switch and left the lift in the stop mode. The lift company sent the B.C. Committee an $800 account for the call-out because it concluded that such a call out involving the Stop/Run key switch was not part of the service contract and technically the lift was not faulty. The B.C. Committee has advised me that I am responsible for the account because it must have been me who put the lift into stop mode. For the record I cannot recall calling the lift technician for this service. In addition, I have never used the Stop/Run key switch. I always use the Independent Key Switch.
Anyway, my question is – Can the B.C. committee insist that I pay for the call-out even though I acted in good faith. Please bear in mind that the B.C. and or lift company has never instructed Management on the use of all new Lift Keys including the stop/run keys and the implications of using these keys.
Thank you
Hi Barry
Thanks for your question. I must say that it’s a bit of a coin toss for me. I can see your point of view and that of the committee.
In my opinion there has been no legislation breach by either you or the body corporate. It comes down to a “he said / they said” decision. If you don’t want to pay it and believe you are not responsible you can dispute the decision by seeking conciliation or adjudication to resolve.
Hi Lisa
This question emerged from a recent contract of sale issued for a property in Victoria: What happens in a body corporate of only two lots where there are no levies, no budget, no sinking fund, when the two lot owners don’t agree on maintenance and repairs?
The only relationship between the two lot owners seems to be that they share the insurance premiums for the buildings, yet as one lot is on top of the other, there is clearly common property and potentially some issues.
The property is still under 10 years old, but repairs and maintenance must become a problem if the lot owners don’t agree; for instance, if there is old guttering leaking into one lot owner’s property and the other is unaffected. I could foresee a situation where the unaffected lot owner won’t pay half of the cost of repair, or if the outside paint starts peeling off – one lot owner wants to repaint and the other says no. What happens?
Hi Lynne
The lot owner who wanted to proceed would need to seek an Adjudicators Order that the works proceed. Just because you don’t want to contribute doesn’t excuse you from contributing. The body corporate has responsibilities that must be fulfilled and maintenance of common property is one of them. If the works are required to stop some form of loss, like damage to a lot, then the Adjudicator would likely order the body corporate to proceed with the works.
If the body corporate has permission then the owner who wants the works done may proceed then instigate proceedings in the magistrates court on behalf of the body corporate against the other lot owner for either 1) non compliance with an Adjudicators order and / or 2) non payment of a contribution.
Thank you very much!
Hello
I have a town house in Morningside Qld. Over the last 4 years i have seen a trend from the body corporate where around xmas they claim to have sent a levies notice out to my email address. I have not receieved the email and as such i have gone into arrears. The levies compound and turn into thousands. I have made requests in the past for them to send an email with a read receipt. They refuse to do this. They cannot even provide me the sent email or date. They now tell me they cannot locate my last payment. I have had enough of this body corporate. What are my options?. Can i request for a different body corporate? Is there an ombudsman who i canngo to?
Hi Sashi
Unfortunately there is no ombudsman to call. A body corporate is not a business, its a group of owners maintaining a property.
The body corporate manager has specific outlines of how they are to issue and collect levies. There isn’t a lot of leeway to deviate.
As an owner you may certainly put forward a motion at general meeting to appoint a new manager, assuming the current contact has expired. There are specific ways that must be done, including quotes from at least two, maybe three other providers, depending on the cost.
Hi
I have recently moved into a property in a gated community where bc fees where around $300 a quarter for gate and driveway maintenance. After 18 years, the bc now wants to replace the driveway and has increased the fees to over $1000 a quarter. The driveway is not in disrepair though the paint has deteriorated. I cannot afford this increase as I am on a pension and there was no indication of this issue when I bought my property. What can I do? There are others in a similar situation to mine.
Thanks
Hi Chris
Oh dear. Bad news I’m afraid. It sounds like your scheme might be having a levy correction. What that means is the body corporate has not increased the levies often enough over time to be able to accumulate enough to pay for capital works when they need to happen.
It means owners before you have had a grace period for which you are now find yourself in a position of having to fund.
Its the most common problem I sight in records, and, short of challenging the levies via Adjudication, there isn’t anything you can do.
Hi Lisa
It has just come to light that the caretaker’s 3 lots have had no to little charges.for the electricity since he has been there (3 Years) The amounts have been from zero to $50 per lot per quarter compared to approx. $400 per lot for other owners. I suspect that his lots have the electricity wired in to the common area electricity.
The caretaker reads the meters for every lot so would be familiar with how much every other owner is consuming but he has not made the committee or the BC manager aware of this anomaly. The BC manager also had not picked up on it. An owner had requested to see the electricity accounts spread sheet and made the committee and the BC manager aware.
I believe that the caretaker’s conduct is fraudulent or at the very least dishonest as all of the other owners (through the BC fees) are picking up his bills. The committee who are very pro-caretaker are looking to overlook this and just get the wiring (if that is the case) reassigned correctly. I do not see that this is appropriate and goes to the character of the onsite caretaker. What is your opinion?
Hi John
I think it is possible that the Caretaker was fraudulent. At the least it stretches credulity that they didn’t notice since they read the meters. It’s possible they did know but since it was for their benefit then did nothing. Its also possibly that it’s just a score for them.
The problem is can you prove intention? Can you prove deceit? Without that taking any sort of action is not possible. Even recouping the amounts underpaid would be a mission of research and estimation.
I know it seems dismissive but pragmatically I understand the need to sort it out and move on. What other choice does the committee have? They shouldn’t commit joint funds to a (probably) lost cause.
I’d certainly be keeping in mind what sort of person the Caretaker is though and examining other issues more closely.
Thanks Lisa
To muddy the waters the onsite manager is requesting a large remuneration increase plus an extra 5 years on his term and exclusive use of the storage areas at the resort for his letting business. The AGM is in March 2017
While this review of the electricity charging is ongoing can his request still be tabled at the AGM?
I thought I read somewhere that if there is a breach being tabled that this cannot occur until remedied, but of course I can’t find it now.
Cheers
John
Hi John
If the Caretaker is a lot owner then so long as their levies are paid up to date they may submit a motion to be voted on.
If they are not a lot owner then the committee or another owner may submit for them.
Hi Lisa
Three questions.
The cut off date for motions to be submitted is Jan 31st in our scheme. Can a motion be submitted if it was not received until 17th Feb?
Can the caretaker vote on his own motion for a remuneration increase?
The committee has known of the remuneration increase since May 2016 but has not advised the owners until forced to by another owner last week. There has only been 1 minuted meeting since March 2016 and that was in early May. Is this reasonable committee behavior.
cheers
John
Hi John
1) if the motion was submitted by an owner prior to end of financial year it can be included. If after the cut off date it should wait for the next general meeting. The committee motions for the upcoming AGM will be decided at the Budget Committee Meeting.
2) if the Caretaker is a lot owner then yes they have a right to vote. If not then no, nor can they submit a motion.
3) arguing reasonable or not is always a challenge. In many schemes the committee does not meet. If they have a ton of business and nothing is moving forward then yes, you could argue that’s unreasonable. What good it would do you though? Its not overturning a decision. Its poor communication. Unless you’re prepared to be on the committee yourself there’s little can be done to make your committee more effective.
If the motion is late being submitted by the owner it should be excluded. Otherwise owners have the opportunity to vote on the issue at the general meeting.
Our Over 50s freehold title estate has a residents committee that in general does a good job. I’m on it! However the committee is becoming increasingly “cliquey” and resistant to new ideas, with some members being on it for many years and I understand the frustrations of newer and younger residents who feel their needs are being ignored by an ageing committee that fears change yet is very hard to dislodge. I’d like to move that we adopt a policy limiting committee service to a set period – say three years. So everyone gets a go. Is this possible – and enforceable?
Hi Julie
Limiting the committee service period is not provided for in the act.
Essentially a committee is elected for one year. At the next AGM the committee is disbanded.
Every eligible lot owner must be given the opportunity to run for and be part of the committee. You cannot discriminate between lot owners.
Hi Lisa
Can you suggest a definition for what constitutes a “Significant alteration” to common property? Can it include new furniture added by individual lot owners to common property or a change in aesthetic to a common reception area? Our Committee are voting to permit themselves to add their chattels to common areas – does this require special resolution?
Hi Tim
I’m not sure what you mean by “significant alteration”. An improvement on common property for which the lot owner will be responsible would be something like installation of a shade sail or building a deck. Have a read here about improvements.
The test with anything on common property is whether it will cause a problem for other persons. So if furniture is left on common property will it be a tripping hazard or block access or otherwise cause a problem. If yes then the scheme should not allow as it will impact on their duty of care.
Hi Lisa
My father lives independently at 90 years old in a 6 unit low set unit block. He is the only active committee member and one of only 3 owner occupiers. No one other than him is willing to vote on anything and even the most simple repairs are not being performed. They have a BCM but they have never been successful in getting any owners engaged. He has a damaged retaining wall in the rear of his unit that is getting to a dangerous stage and is worrying him to the point of sickness. How does he move forward as the unit is now not in a saleable state until this wall is replaced even if he wanted to, which he doesn’t as he is more worried about moving. This is starting to affect his ability to remain independent
Thanks Julie
Hi Julie
The first thing to do is establish if the retaining wall is body corporate responsibility or part of the lot. It could be either. If it’s part of your lot then your father is responsible and he should go ahead and do the works.
If it’s part of common property and the body corporate is responsible then the best thing to do is obtain two quotes for rectification. Submit those quotes as a motion with alternatives to the body corporate at the next general meeting. Depending on how much funds the scheme has thought may need to be given to how the works are going to be paid for.
If your father is the only person who votes, and he votes yes, then the works can proceed. If the other owners vote NO then the works cannot proceed. All is not lost though as if the area is common property the body corporate does need to fix it. If the other owners do not agree an application may be made for Adjudication seeking an order the wall is rectified.
I know that seems like a big deal but take it one step at a time. Speak with the manager about whether the matter is lot owner or body corporate responsibility. That’s the best starting point. Or, either way just get some quotes to have it fixed. Taking small steps is the place to start.
It is difficult when owners are apathetic and this is going to be an ongoing problem for your father, especially as he gets older. It sounds like the BCM is not the greatest. If there isn’t a valid committee a motion to appoint the BCM to act as committee under a part V appointment needs to be done. It will cost the owners more but the works will get done. Ask him to check if that motion is coming up. If it is, maybe it’s time to support the motion. Just a thought.
Thanks Lisa,
We have the quotes and with your information we have spoken to the BCM and she is pushing a bit harder. Very frustrating but looking a lot more positive now.
Thanks again for you advice it gave us the incentive we needed to stand up and not accept no as an answer.
Julie
My Body Corp committee is starting to implode and I need quidance on how to proceed. The AGM has just happened and although I did not attend it was apparently acrimonious. People threatened to report each other to the Commissioner. The Manager threatened to take over. The Manager visted the Chairwoman and demanded she resign before the AGM! IS that not “unconscionable conduct”?
The person now voted in as Treasurer lives interstate and does not attend meetings but is the main source of allegations. Another person who resigned from the committee had allegedly used her position to get her retired husband jobs around the site for small amounts of money. This person helped to get the new Treasurer voted in.
Despite all this the committe had been very functional up until the AGM achieving a lot of building upgrades, wresting control back from the BCM and reducing fees. Now I fear they will just fight amongst themselves.
How as a lot owner do I protect myself from a dysfunctional committee?
Thanks
Hi Peter
Excellent question. As an owner I’m afraid your only recourse is to keep a watch on what’s happening. Arguments do not necessarily mean the committee won’t remain high functioning: there’s nothing wrong with robust discussion on what to do, so long as once the decision is made everyone gets behind the outcome.
If problems do arise then owner’s are in a position to band together and replace the committee. 25% of owners can request an EGM be called by submitting signed documentation and motions. I attended a meeting last week where the committee voted in at AGM were summarily dismissed and replaced at EGM. Its an option if things get out of control.
The manager getting involved is not a great sign. Your manager is not in a position to take over: unless appointed by the owners to do so. And threatening the Chair is as you say, unconscionable conduct. It is worrying, but, it will take both the committee and owners working together to replace them.
To reiterate: keep an eye on what’s happening. Some people thrive on drama and if they manage to keep having success then maybe their process works for them. If not, well, its possible that a trip to the Commissioner’s Office for conciliation might be helpful for your committee.
I am part of a committee of three. A few months ago we were asked to vote on several motions – on checking, most of the jobs had already been done before the vote. One of the motions was for a resident to keep chickens (this is a communal over 50’s village) with garden units. The vote was 3-2 against. However the chickens are here and had been here all along living in the owner’s unit in the bathroom waiting for the vote. They are now in a coop outside the owner’s unit near the fence line and have been there for some time now. The owner also happens to be the Treasurer! How can this happen? I think they will attract rodents and snakes, not to mention the smell in summer. I actually went to look at the area where the chickens were to be kept before making my vote and found that it was too small an area and not suitable at all and felt it would be a nuisance to nearby residents. Why has this gone ahead when the vote was no.
Another elderly resident has had her dear friend banned from visiting her because when walking her dog for her because she was ill, he did not pick up the doggy doo. However there is another resident here who allows his dog out each morning on its own to run around the village and do its business on footpaths, gardens, and even residents’ door steps…. and residents don’t want to tell the manager for fear of reprisal, ie not having lease renewed due to complaining (most people here are renting with only a few owner/occupiers).
What can I do as a member of the committee. I want to make a complaint in writing to the manager regarding all of the above. He is the type of guy that many feel you must bite your tongue and stay on his right side.
Hi Jennifer
This situation is everything I hate about bodies corporate – by-laws are applied inconsistently, committee members getting special dispensation and a manager who is unapproachable.
As a committee member you need to escalate the chicken thing. The vote was NO. The chickens are there. The person is in breach of by-laws. A breach notice should be issued. Hopefully the other members of the committee who voted NO will support you. Keep a note of your interactions between other committee members and the manager because if the matter ends up in Adjudication you’ll be able to confidently say when and what was said.
Its the same with the dog roaming. The dog owner needs to be breached.
This is a challenging situation. Tread carefully and mindfully but do stand up for what you believe in. Find support where you can.
Hi Lisa,
I have just come onto the committee of management (in Victoria). There are no minutes from the past year’s meetings, most ‘meetings’ and decisions appear to be made by email, and a decision to accept a paint job to paint most of the exterior has been made, with levies raised to cover the works. A special resolution was not needed as the total amount is less than what is raised annually. I am concerned that this committee has not exercised due diligence – the accepted quote is for a ‘repaint’ but most of the building has never been painted – there is minimal preparation work planned prior to painting, and parts of the building are falling into disrepair. Research I have undertaken indicates that even cleaning the building without attending to broken mortar joints could damage the structural integrity of the building. When I proposed that sinking funds be used to repair spalling concrete, water leaks etc to common property, I was advised by the chairman that the painting is just phase 1 and other work will happen after phase 1. There is no maintenance plan so I don’t know what phase 2 could be. And there will be no money left after the painting occurs. I know that the chairman has undertaken major work to his unit without applying to the OC for permission, eg having a gas service connected to his unit on common property, and ripping out and replacing all the windows and doors. There are now dislodged blocks on the walls of his unit. I get the feeling he is looking out for himself only, and painting the building will cover up his shoddy work. I have spoken to 3 architects and all say that painting the building is a waste of money and not needed. How can I stop this mindless paint works from happening? From reading through the OC Act 2006, if a deteriorated part of the common property is hazardous, can I request the sinking funds be used for an ‘urgent matter’ for repairs to ensure safety? This would then use up the funds being collected for painting and improve the safety of residents. The committee is in breach of the Act, as there are no meeting minutes. Can the committee’s decisions therefore be questioned / made null and void? All of the lot owners are in the dark about what the committee are planning (even I am, and I’m on it!).
Hi Karen
An email record of decisions is not the greatest but is still enough to record what’s happening.
I’m not sure what the process is in Victoria but here in Queensland if you object to works being undertaken by the body corporate because they are unnecessary you could raise a dispute through the Office Commissioner Body Corporate. In NSW it would be NCAT so I’m assuming there is some sort of tribunal or system for disputes.
If the works are unnecessary, and you can prove that, you have a shot at stopping the implementation of the motion but you must move fast.
The same goes with the dislodged blocks in the Chairperson’s wall.
Be aware, to take legal action you need to have first tried to self-resolve. That will mean making your objections clear to the committee and Chairperson. Try to discuss the matter with them.
Hi Lisa,
When does the term of a body corporate committee expire. Is it to the start of the AGM ? or is it up until a new committee is elected, say a committee is elected at Motion 8 of an AGM. Does this mean the old committee is still active up until Motion 8 ?
Thanks
Terry.
Hi Terry
Election of committee is not a motion, its done at the end of the AGM. The previous committee is dismissed when voting commences.
In effect the Chairperson elected at the last AGM chairs the meeting to completion. The announcement of committee is the last task.
Thanks Lisa,
We had a question on why the Body Corporate Manager (BCM) always chairs the AGM. From what I read in the Act the BCM can only chair the meeting if the chairperson is not present.
Cheers Terry.
Hi Terry
Correct.
Some BCMs just can’t help themselves though and act like they own the place.
We need to dimiss our committee. We know that we need 25% of owners to support the dismissal
and to call an EGM to action. Please advise what the procedure is and the documentation required to action this
Hi Jen
Refer to this page. There’s a specific form you need to use.
Most important are the motions to be considered. Write them separately and attach to the form – ie where it says motions write “refer to Annexure A”.
Make sure the motions can be answered with a YES / NO vote. If they involve expenditure make sure there are quotes.
Be aware, if any motion is ruled out of order by the Chairperson at the meeting you may take a vote, by the owners there, to overturn the Chairpersons ruling. If that vote passes, you may then vote on the motion.
Hi Lisa,
Thank you for this website, it has been a very informative read. I am hoping you can help me too. I recently bought an apartment where the Body Corp is run by a Body Corp Manager who is also an owner. She makes all the decisions about the property and spends money from the sinking fund without consulting any owners. When I have questioned her about this she says that is the role of the Body Corp Manager. We are having the property painted and our communal outdoor space re-laid which will no doubt come at a considerable cost and she has not informed us (in writing) of any works. I am just wondering if she is acting within her rights and if there is anything I can do about ‘having a say’ as an owner?
Thanking you in advance,
Nessa
Hi Nessa
That does not sound good. And your manager is incorrect. The BCM does NOT make decisions for the body corporate. They may be authorised to carry out some tasks, usually collection of outstanding contributions, but then a very specific process of what they may or may not do is decided.
The elected committee runs the body corporate and instructs the body corporate manager. In most cases, unless the scheme is very small, the committee is made up of a minimum of 3 people and maximum of 7. They should decide business together.
Something like painting should be decided by all the lot owners at general meeting.
Are you having regular general meetings? Are you being given the opportunity to nominate for committee? Does she have a formal agreement? Was the motion to paint carried by ordinary resolution at general meeting?
If none of these things are happening then you may make an application for conciliation or Adjudication via the Office of Commissioner Body Corporate.
There are very specific processes that need to be followed managing a body corporate. One person deciding all matters is not possible.
Hi Lisa,
Thank you so much for your detailed reply. I really appreciate your advise. I only purchased the property in February (one of eight) and there were no notes in the contract of sale about any AGM’s. I have asked for this information but the BCM seems to be ignoring my request. I also asked for the contact details for the other owners but she is also withholding this information so I am going to contact Consumer Affairs (Vic) tomorrow and lodge a complaint. I assume she cannot withhold this information from me?
Thanks again,
Nessa
Hi Nessa
Here in QLD they may not. It is public information.
Hi Lisa,
My name is Bill and I and my mother own a unit in a block of 6 units. One of the owners decided we needed a body corp situation and hired a body corp as nobody else in the units wanted the responsibility. My complaint is that we are paying far too much for services we do not receive. Each unit pays $1211.62 every six months.. So far all we have seen is a letterbox fixed, the lawn on the nature strip mowed sometimes. Some painting ws done after 10 years. The units are brick. The tip of the brick work and the gutters need painting. Also garage doors and front doors. The body corp pays the insurance. How much that is I don’t know and the front light outside. I do not see how this could possibly validate the amount they collect from us. Also if we are late in paying we are charged 30% of total amount which believe it or not came to $400. Seems a bit heavy. My mother is 91 years old and finds all this too difficult. I spend most of my time staying elsewhere. They have us pay $300 for admin which I also find extraordinary. What do you think of this. Should I take legal action and have them investigated. I personally believe we should all take care of our own insurance and split the light bill outside and the lawn also.
Hi Bill
What you’ve described sounds perfectly normal and there is no hint of any impropriety to me. The costs seem reasonable, particularly if you consider that you’re paying funds into your sinking fund, which you are required to do.
You cannot split your insurance if the lots are joint – legislation does not allow.
$300 for administration sounds reasonable. Someone is making sure the scheme is doing the things that it needs to do.
Everything sounds reasonable to me, including the 30% for late payment. If you’re late paying then you should pay extra for having the other owners covering your share of the costs while you arrange payment.
It is possible to self-manage for cheaper levies, however, then someone needs to take on the responsibility.
I live in a small Body Corporate of 7 units in Queensland which for the past seven years has been flagged by pest control experts at extremely high risk of termite infestation and that termite shields are generally inadequate yet at last years AGM the majority (4 owners) of the Body Corporate voted to cancel any ongoing pest inspection or prevention program and have constantly refused to attend to shrubs blocking building weep holes. They have also continually ignored a Category One, High Risk warning issued in 2013 about electrical safety switches in the main switchboard. I have worn myself out trying to warn the body corporate about this recklessness. I am getting too old and do not have the funds to fight them. Is there any other way of extracting accountability from a Body Corporate that treats concerns with utter disdain and contempt.
Hi John
Oh dear, this is a difficult situation. It sounds like you’ve done as much as you can to bring their attention to their statutory requirements.
I think from here you have two choices: either seek an Adjudicators Order that the body corporate do what they’re required to do, or, let the matter drop.
An Adjudicators Order is really the only way to force a committee to reverse a decision they’ve made. It would be time consuming and though not hugely expensive there is no guarantee it will be successful. Its unfortunate but majority rules.
Thank you for the advice. I did neglect to mention that there is an Adjudication Order in place at the property relating to another matter but it has been openly defied for a number of years. Having already been through the stress of BCCM etc referring Adjudication breaches to the Magistrates Court is even more stressful. For my own sanity I will have to let the matter drop and accept the Property is a genuine basket case where Rafferty’s rules prevail. Sadly, there must be other bodies corporate out there who like mine are getting away with blue murder simply because majority and self interest rules often driven by false economy and total disrespect for the rules. Seeking another Adjudication Order would seem an exercise in futility.
You’re quite correct John, there are hundreds of schemes where owners are deliberately flouting rules. The only policing comes from other owners and as you’ve learnt sometimes its a exercise in futility. It can be frustrating and at times deeply distressing. There is no controlling other people’s behaviour and ‘the crowd’ tends to take the path of least resistance. Its the chief reason that I own a house and not a unit!
Good morning Lisa,
I have asked you previously if the committee can request the caretakers to leave a committee meeting to talk more freely about certain issues and your answer was yes absolutely you can ask them to leave.
Our BC manager says they are part of the committee and are entitled to stay. Are Caretakers part of a committee?
Hi Jan
Yes the Caretaker is part of the committee, and so is the body corporate manager. Both are non-voting members. If you are discussing issues that relate to either party it is perfectly OK to ask them to leave. Committees are encouraged to discuss things openly and that is not always possible when the reason for discussion is there.
The same is true of motions where a committee member has an interest, say for instance an associate is recommended for a contract. As long as it’s disclosed, that’s fine, but the member should not take a part in the conversation and should not vote on the motion.
Hi Lisa
What a great site this is, very helpful.
I own a unit in a 60 lot building in QLD. The building has both owner occupiers and others are holiday let.
I have had issues with the onsite manager for many years and have finally decided after 11 years of his management of my unit, to place the letting of my unit with an external agent.
I want to change the door locks due to my lack of trust of the existing manager, but he insists that I must give him a key to my unit (in case of fire etc) which would defeat my purpose. There are other owners in the same situation and they feel intimidated by the current manager. What are our rights as owners? Thank you in advance.
Hi Mary
Access to the units is a tricky one. Firstly check your by-laws. There may be a requirement to allow the body corporate to have a key to the unit. I say that because I have seen an Adjudicator’s Order that the owner could change their locks and did not need to give the body corporate the key. I think the order revolved around the wording of the by-law.
There are numerous owners who have changed the locks on their units and not give access keys. What is means is if the body corporate does need to access, for valid emergency reasons, then they will have to get a locksmith in and the cost will be charged to the owner.
If you’re really concerned I suggest you change the lock and don’t give an access key. If the body corporate starts the dispute resolution process then seek legal advice.
Hi Lisa, what a wonderful site this is. Thank you. I am a Manager of a 24 unit complex but have a question of interest regarding Committee member responsibilities. We have a Committee member who just does not respond to requests to place his vote, even when emailed by our absent Chairperson to do so. Consequently, the committee constantly get stuck in stalemates. Our chairperson asked my advice this morning on this, but I can’t find anything specific as to what might be done. This member seems to have totally ‘switched off’ since nominating himself a seat at the last AGM, and though he is in residence, he has apparently ignored urgent emails for a response from both the Chairwoman, and the Treasurer on her behalf. Both Chairwoman and Treasurer are asking me what to do. I have told both they should be asking the BC (but that is another story). In the meantime, can you offer any advice?
Hi Jacque
If a committee member misses two committee meetings, without permission of the balance of committee, their position on the committee becomes vacant. Its called a causal vacancy and the balance committee can then appoint someone to fill the position.
Extra members cannot be appointed. So for instance, at the AGM 5 members were appointed to committee, then the total number of committee members for the year will always be 5. Its only when a vacancy comes up that a committee can appoint a replacement.
I don’t know if the same applies if a committee member misses two VOC’s. Potentially it could. It makes sense. But you would need to check. I suggest asking the question of Office Commissioner Body Corporate helpline.
If you do, let me know what they say. I’d be interested.
Hi Lisa, our Body Corporate committee has recently given approval for a prospective purchaser to keep a large dog on their lot (Standard Module in Qld). Our By-Laws permit pets if approved by the Committee. In over 30 years of operation approvals have never been given for dogs and only for a couple of cats. A long term (15 years) occupant in this complex has an intellectual disability and is afraid of dogs having been bitten when younger and suffers anxiety around dogs (this can be supported by his doctor). The committee did not even consider this when they made their decision prefering to give more consideration to a prospective purchaser rather than to an existing occupier. The owner selling this Unit was a former Chair of the Committee and is a current committee member and she sought the approval on behalf of a prospective purchaser (don’t know if before or after the contract of sale was signed). Should the committee have given more consideration to the needs of this occupier with a fear of dogs? and what do you think the outcome would be if taken to adjudication? I couldn’t find any similar cases where the Committee has approved a pet dog to reside in the complex but an owner/occupier objects on the basis that the committee’s decision was unreasonable because it did not take into account the genuine fear and resulting anxiety that is likely to be experienced by a vulnerable member of our community. Thank you.
Hi Alice
Like you, I have never seen a case where a lot owner has objected to a committee decision regarding pets. Which is not to suggest it couldn’t happen, though it would need to happen fast, if you’re planning on doing it.
There was a recent order where the Adjudicator denied the pet because the Caretaker is violently allergic to animal dander. The findings were the Caretaker would be all over the complex so would be likely to come into contact with the dander, hence the pet was not allowed. Check it out here.
Thank you for your prompt response. I will check out this case.
Hi Lisa, We have just recently bought a unit in a block of four where one owner owns two lots and myself and another own 1 lot each. It is a self managed fund but one of the owners wants to hire a BCM for 12 months . I believe it is straight forward and as a committee ( with the help of websites such as yours ) we should easily be able to stay independent. Is it majority rules when making these decisions? His attitude seems to be one of I want it managed so it will be.
Hi Amanda
The motion to appoint a BCM has to be an ordinary resolution at general meeting. Presumably voting will be 2 for and 2 against. In that case there is no clear majority so the motion is lost.
That doesn’t necessarily mean the end of it, but the owner would then need to seek Adjudication that the resistance was unreasonable and that might not be true.
Hi Lisa , is it legal for 1 person to record a body Corp meeting without anyone’s knowledge?
Hi Amanda
Every meeting of the committee or owners must be accompanied by a Notice of Meeting with appropriate details and time frames. So, no, owners need to be notified that a meeting is to be held.
Sorry I meant he recorded it on his phone without anyone’s knowledge.
Another question for you. It appears the aerial socket in our unit is not connected to a common aerial. We are looking to install our own and as there is no roof cavity it seems that would have to go out through a wall and up the side of a common wall . Is this allowed if one owner says no. I would think everyone has the right to get Tv reception.
Hi Amanda
Yes that does sound unreasonable for one owner (committee member?) to object. The body corporate must act reasonably in its dealings. Its seems reasonable to me for you to install an aerial. But then so does connecting to the common aerial.
Perhaps you could discuss with the person who objected and find out what their objection is? It could be something simple to solve.
Hi Lisa
Do I need to get permission from the OC Committee to clean a brick pathway that has moss gorwning on the top with a Kacher – high pressure water.?
Thank you
Elida
Hi Elida
If the area is common property then yes, you should not do anything to it without first discussed and receiving permission from the committee. Owners should not do anything to common property, or really the lot as well, without discussing first with committee.
Hi Lisa,
When are body corporate members required to advise that their property has been sold. We have a situation that the Chair headed up a Budget meeting and his property was sold on the same day. Is he allowed to make decisions on budget and spending considering he is going?
Hi Sophie
Technically it would depend on when his property settled. The BCCM Act is so technical that it makes provision for the fact that people are going to be breaching its requirements all the time. Unless the breach is or has a significant impact it doesn’t matter.
You’d think though, knowing you were leaving, you’d have the good grace to bow out before such an important meeting as the budget meeting. On the other hand, I suppose its possible the thinking was … one last service.
Hi Lisa
Can an owner tape or record General Meetings without permission?
Ray
Hi Ray
That’s a privacy issue, rather than a body corporate one. The rules about taping people will apply to BC meetings as anywhere else.
Sorry … don’t know the rules.
Hello Sophie
I’m part of strata title with 9 units, but the body corporate was disbanded over 10 years ago. We have been using this unit as a rental and really never heard any issues. But lately I notice allot of the common areas are deteriorating as you can imagine after a decade of neglect. I tried discussing about reinstating the body corporate but 5 of the building owners are overseas. Even the real estate agents are unable to contact them, is there a way we can establish a new body corporate without obtaining 50% of the parties. Since its compulsory in Victoria to have a Body corporate when there is 9 units involved? Your advice will be extremely helpful.
Hi Wai
I am based in QLD so I can only talk about the legislation here. Its likely similar in Victoria but there will be some differences.
In QLD a body corporate can be extinguished, by agreement of the owners. In that case the building is usually pulled down, say for instance when the lot is being re-developed. A body corporate cannot be extinguished whilst the lots are still in use. Extinguishing the body corporate also extinguishes the individual titles; the two cannot exist without each other.
It sounds like in your scheme owners have simply stopped fulfilling the body corporate responsibilities. Its counter to the legislation so reinstating is not going to be a big problem. Here in QLD you’d seek an order via the Office Commissioner Body Corporate that an administrator be appointed, and, as I said there’d be no problem achieving that. An AGM would be held, levies raised and, hopefully, rectification works can get started. Victoria will have a dispute resolution body you can access as well.
The fact that the scheme hasn’t been fulfilling its responsibilities is going to cause a significant amount of grief. You owners have missed the opportunity to save for the works over a period of time. Now you’re at the pointy end of things and rectification works stand to be expensive. Do take action though because the building can end up derelict, and quicker than you might imagine, opening you up to liability if there are any issues, and, owners will still be liable for costs to put it right.
A good place to start is to have someone come and quote for major rectification works. Get a feel for costs before you do anything. It might be worth selling rather than trying to sort it out. Its one of those things that once you start, it will snowball, meaning once your begin the administrative process you’ll need to continue until the building is safe and well kept again.
Dear Lisa, our committee members resigned recently so there is no committee at present, however the AGM is in 6 weeks. I am worried that not enough owners will nominate. If no committee is voted in then and we have to appoint our body corp managers to undertake committee duties as well, do you know how much extra this could cost the owners?
Hi Jenny
Each body corporate manager charges different rates for the work. Refer to the documentation if its included in the AGM. Otherwise an EGM will be called to vote on the appointment. Either way the manager must circulate documents first.
Even if an EGM ends up being called that doesn’t mean owners will necessarily appoint the strata manager under a section 5 agreement. It is possible to vote NO to the offer of appointment and then muddle along without a valid committee.
Hello I’m taking over a 3 units as no one has been managing our strata. There are a number of issues, Unit 1 (front unit) and 2 (which I own and have proof of ownership) have been paying for common areas for maintenance as the person in unit 3 has no money. The unit is not in his name but his mother who passed away years ago. He is always strapped for money and pays nothing towards maintenance. Does he have a voting right? Also, can we claim for all expenses paid for maintenance against the dead property owner?
There is no formal strata and no sinking fund etc, we seem just to do our own unit’s. I desperate for a starting point.
thanks
Hi Savvy
This is a huge challenge for you.
The owner in lot 3 is getting a free ride from the owners lot 1 and 2. This is not allowable. If he cannot afford to pay then he cannot afford to live there and should sell. You need to start charging a regular strata levy and, if lot 3 doesn’t pay, pursue legal action.
If a lot owner is behind in contributions then no, they are considered unfinancial and cannot vote on matters.
You’ll need to get a hold of your scheme Community Management Statement. It tells you your contribution lot entitlements and by-laws.
Start by preparing a budget and having an AGM. Work out how much it costs each year to take care of common property including insurance premiums and maintenance. Then divide by contribution lot entitlements. Each lot pays so much. Collect the funds, over several periods if you need to, and pay for the works. Do it again 1 year later.
If that’s going to be too hard you can make an application for Adjudication that a professional manager be appointed to run the AGM. It will cost a bit but they can set it up for you and likely run for a year. Once you get a feel for it you can take over when the agreement runs out, if that’s what the other owners also want.
This is complex stuff. If you have more questions please ask away. You might also check out Strataman. Its NSW based however many of principles are similar.
we have 4 units, 10 years ago they decided to self manage, , one sold and handed manager to me, i said id do it for free as noone wanted to do anything, running smoothly till 6 years ago and front fence the previous owner changed to accommate her garden falling down, 2 new owners later noone fixes as asked many time for new owners to fix as its not body corporate but previous owners and they didnt repair the side fence which was taken down to landscape and just sat in dirt not cemmented in, we keep asking but they wont do anything as we dont have meeting, we do but only with wach other to discuss what needs doing as this unit is called a vexatious person , she wants everything done but does nothing , she installs air con on body corporate walls and gardens without asking, all we want from them is fix the fence as it been a long enough and all are worried the value will go down withvthis mess
Hi Dino
If your lot is in QLD the dispute resolution procedure is set out in the legislation. The body corporate must direct the owner to fix … a email or letter will be sufficient.
If they do not fix then the body corporate must issue a breach notice. This is a formal document which outlines the by-law breached and gives a time frame for rectification.
If they still do not rectify the body corporate may seek an Adjudicators Order they be court ordered to fix.
Hi Lisa,
Our Committee has recently introduced a new pet bylaw placing additional restrictions on the three Unit holders dogs which we pet owners feel are unreasonable as over the past three years their have been no complaints. How do we apply to overturn these new by laws as there are only 4 owners in the building (out of 12) and on the Committee who introduced this change . The other owners are happy with the previous pet bylaws.
Hi Terry
By-laws can only be amended by special resolution of general meeting. If the by-law was voted on at the last general meeting, the motion passed, and the new CMS registered then the change is legal. If the by-laws are then enforced against you with negative consequences you can still object via conciliation or Adjudication. You will have an option then to make your case for the by-laws being unreasonable, and the committee make their case. An Adjudicator can overturn an unreasonable by-law.
If the committee just bought the changes into play then they are not binding and cannot be enforced.
Hi Lisa, we believe that a long standing committee member & secretary (20 years) is profiteering from kick backs given to her by contractors that repeatedly get jobs approved to them by committee. It seems this is conflict of interest and may be in breach of the code of conduct for committee members and the Act. Could you confirm if this may be the case and what could we do as lot owners to stop this. Could we demand a forensic audit be done to reveal any kick backs or commissions paid to this and any other committee members?
Hi Jarod
The chances of finding any incriminating evidence in the financials of the body corporate are slim. Its not like they record kickbacks as a line item in the budget. The invoices, and if applicable kickbacks, would be coming directly from the contractor. To prove what you’re suggesting you’d need to get evidence of payments made from the contractor to the committee member and its highly unlikely you would.
Most people shop at the same shops and use the same contractors over and over. There is nothing suspicious in the body corporate using the same contractors in and of itself. If you think the body corporate could be getting a better deal then by all means submit alternative quotations for works. Join the committee even if you’d like to be involved in the decision making. That will put you more in a position to know what they’re doing and why.
You may be correct about impropriety, however its extremely difficult to prove. I also caution you against making defamatory statements particularly in writing. Action against someone who’s said something about a committee member is rife in the body corporate world.
Hi Lisa, thanks for that information if a forensic audit did find kick back payments were made would the committee member have to resign from the committee for misconduct.
Also our committee has closed our complex tennis court in response to the COVID-19 pandemic even though social sporting based activities limited to 2 people with social distancing observed is allowed under the public health directive. One would think that this directive would include two residents playing tennis on the complex tennis court. In deed many high rise complexes around us have kept their tennis courts open for resident use as a form of exercise. It is frustrating to see neighbours playing tennis and we cannot. Is there any thing we could do to have committee reopen our tennis court.
HI Jarrod
Yes if impropriety was discovered the committee member could be removed though owners may need to vote in general meeting on the matter.
You should bring up your concerns with the tennis court. I understand from committee’s perspective that its best to be safe then sorry. I also agree with your assessment that its not breaching social distancing if two people use the tennis court. Maybe discuss with the committee to find out their perspective.
Hi Lisa
Then perhaps we should get that forensic audit done hopefully it will reveal the impropriety and the committee member can be removed. We just can’t sit by and let impropriety continue.
With the tennis court we have brought our concerns with the committee and urged them to reopen it but all we got was this response “Re facilities, the committee are not required to obtain input from owners. Instead, we obtained advice from government health departments and body corporate experts. The decision is final and no more communication on the matter will be accepted”. We find this response autocratic and self serving especially that committee is not required to obtain input from owners in making such important decisions as this. Are they correct? Also that the decision is final and no more communication on the matter will be accepted would be in brach of the code of conduct for not acting in the best interest of the body corporate (lot owners) as the majority if not all owners would like to see the tennis court reopen. What can we do as an owner.
Hi Jarrod
Dispute resolution procedures are clear under the legislation: you must first try to self resolve, then you may seek conciliation or Adjudication. Discuss your concerns with the Office of Commissioner Body Corporate with a view to seeking an order to reopen the tennis court.
The chairman of our committee forbids committee members talking to owners about issues that come up. I thought transparency was a key to good body corporate relations.
HI John
I’m just as confused as you. Any meeting of the committee should be minuted and minutes sent to all owners, per legislation. Its there investment too. Some matters may be kept private whilst ongoing, such as legal matters, though again broad strokes should be minuted for all owners.
Hi Lisa,
My question regards a committee who will not share details of a contract they have entered into for improvements that are being paid for via the sinking fund. It is within their budget to spend, however there are concerns the work is being carried out for the benefit of a few members of the body corporate. Are lot owners entitled to see the quote and/or contract for the work being undertaken, and if so, how do we do that if the committee won’t share the information? Ideally, we would like to know which units will need to be accessed during the work as these will be the ones to benefit. We have an external Body Corporate Manager.
Hi Darang
Yes, absolutely you’re allowed to see the contract. It forms part of the body corporate records. As a lot owner you are allowed to access the records for a small fee – currently $18.60 I believe, or there abouts. Contact your external strata manager and note that you would like to do a search of records. You can even note that you’re specifically looking for the contract for works. Then it will be a question of turning up on the day of the search and looking through the records.
Alternatively you can engage a search agent to do the search for you.
Hi We are in a block of 5 with 3 owners trying to rule over everyone else, their main objective is to get rid of the pool. We are trying to maintain the pool where to contractors have advised the pool needs a new pool filter. These 3 have refused to do anything. We are all committee member. Can the minority call a VOC to get a vote to replace the pool filter?
cheers
Mary
Hi Mary
You can circulate a VOC for sure, though I would certainly make sure it went to all parties. If the other owners vote against the motion then there is little you can do, but it should at least go to a vote.
Hi Lisa
We have an onsite manager that has been there for over 10 years and has quite a BIG say on what happens and influences committee votes for R&M’s and improvements. He makes sure he is a part of all committee meetings and debating emails and has his say and strongly objects if someone offers a different suggestion and then most committee members vote to what he wants. To what extent should an onsite manager be involved in committee meetings and general emails leading up to the meeting. I know AGMs are different but how can such strong involvement be stopped when some committee members think he should be involved?
Hi Matlida
The Caretaker is a non-voting committee member. Its appropriate for him to be involved in both obtaining quotes, suggesting works to be done and implementing said works when decisions are made. That’s what they’re paid to do. They don’t have any choice.
They do not have a vote on actions taken. That is up to the balance of committee members.
Hi Lisa,
Our Owner’s Corporation AGM is imminent, and a fellow owner rang me to remind me, as there is always a concern about getting a quorum. It is a block of 12 units, in Victoria.
The thing that makes me anxious here is that I do not want to go on the committee (I was on the committee for the first 11 years I lived here, and I’ve been off it now for 7 years). The reasons I had for resigning – largely personal – haven’t changed. When it comes to the item about formation of a committee, I have kept quiet, and every year this person directly asks me if “I’d like to be on it”, as if I don’t know my own mind (it’s not like I don’t venture opinions about various actions at the AGM).
It bothers me for other reasons. Other committee members are essentially absentee owners – they don’t have to live near anyone being difficult.
Secondly, the long standing chair of the committee, who has told me they’re moving (I’ll believe it when it happens), is not someone I want to have more dealings with – since they don’t understand or respect boundaries. This person now lives elsewhere, but has never let their flat (suspected hoarder). It’s possible they will resign from the committee, which would alleviate that concern, but the very idea of being asked is giving me a knot in my stomach.
If I can’t even handle a request from another owner to be on the committee, how could I possibly deal with neighbours who are being unreasonable if I volunteered?). It is also more likely that there won’t be 3 people to form a committee, unless I am on it.
Another person told me, that she was chair of her OC committee for 12 years and one year she wrote to all owners and said someone else basically needed to step up, as she wasn’t doing it again. I think if I have to (reluctantly) join this committee, I would at the very least, want to do something similar. The costs for not having a committee and the managing agents having to do more, might be a motivator, although I don’t ever recall having a complete list of contact details for other owners to write to them anyway.
As much as I love my flat, and appreciate that it is my investment, I wish I could put up with fewer conveniences or otherwise had the money to buy a house nearby! I hate being stuck with this system.
Hi Kaz
You should brace yourself because I’m certain they’re going to ask you to be on committee again. Say NO. You don’t need to justify or give a reason. The answer is simply NO.
It is frustrating system when you’re not interested in taking part in the committee. Stick to your guns though and don’t get involved. It sounds like it would stress you out.
Hi Lisa,
I have a rental unit in a small block of 4 units (in QLD). Three of the 4 are rented to long term tenants, and the other one the owner lives in. This onsite owner is always complaining to the body corporate and other owners about the various tenants.
While I have received these complaints over time for my unit, and the agent always follows up, there is never anything that can be done without infringing up on the tenants rights. This resident owner has at times taken the matter into their own hands by doing the following:
• Wilful destruction of tenants personal property
• Interference with use and enjoyment of the rental property
• Trespassing intentionally into another unit, with the sole purpose of taking photos without consent to send to body corporate.
This is not a complete list, however with all of these things that have occurred in the past few years, I see no way forward, and no way out of this groundhog day cycle with this resident owner.
Any advise that you can share would be greatly appreciate. Thanks in advance.
Hi John
This is a complex problem. The owner is obviously behaving poorly. Unfortunately there is little the body corporate can do to curb their behaviour. What you’ve described above is criminal behaviour and should be reported to the police. They are best placed to warn the person off.
The dispute resolution process for bodies corporate is clear: The body corporate must issue a breach notice to the owner clearing outlining the contravention of specific by-law, or continuing future contravention of said by-law giving them a certain timeframe within which to rectify their behaviour. If the breach continues then the body corporate can seek conciliation or Adjudicators Order the behaviour cease. There is no capacity for the scheme to deviate from that process.
I’d suggest picking one thing and following that through the breach process to a conclusion. In the meantime document every complaint, action and reaction. It will form evidence if the matter does eventually end up in Adjudication.
You also always have a tort response in common law: ie this persons behaviour is impacting my rental returns, but you’d need to speak with a lawyer about that.
Hi Lisa
My question is our complex has an A.G.M and vote for the termination from our current Strata management. I cannot attend the meeting and signed a proxy to authorize someone to attend on my behalf. After the A.G.M was held, the committee held an E.G.M immediately to discuss and vote for a new strata management. But I didn’t know about this beforehand as it was not indicated in the motion of the agenda, that was due to the face that the committee didn’t provide information for every units. In this case, will the proxy’s vote still be effective for the voting a new strata management?
Hi Yuet
A couple of things here.
1) there is no proxy voting for appointment of a strata manager. You either cast a vote yourself or it doesn’t count. I’m not sure but that might also be true of terminations. You can cast a vote by way of completing a voting paper, or electronic voting if the scheme allows.
2) to hold an EGM, which is needed to appoint a strata manager, all lot owners must be given a Notice of General Meeting at least 21 days prior to the meeting. If not the meeting and any motions passed are invalid. So if you didn’t receive a Notice then I suggest the motions could be challenged by you via adjudication, assuming voting didn’t go how you wanted.
Hi Lisa,
I’m in a similar situation where there is an upcoming AGM and the current BCM term is ending later in the year and I would like to submit a motion to engage a new BCM given current issues around maintenance and communication.
Given your note, is an AGM fine to submit this motion (i.e. you don’t need an EGM?) and do you need to submit a motion to not extend the current BCM’s term? Seems a bit awkward to hold the AGM and tell them to move on?
We’re also in this strange position where all the committee members have left and the BCM is on their own. I’m wondering if it’s worth being a committee member to help straighten things out, even if I’m not living there?
BTW this blog is a gem – thanks for sharing your knowledge!
Hi S
No you don’t need an EGM to appoint a new BCM.
You will need to have submitted a motion prior to end of financial year to have it included in this year’s AGM. And potentially, if the agreement is up for renewal, then the strata manager will include a motion to renew their agreement.
If there is no committee left try and get on the committee now. Assuming you’ve not submitted a motion prior to cutoff as part of the committee you might then have leverage to get other strata management agencies included in a same group of motions.
I have written to the body corporate committee on numerous occasions outlining concerns regarding safety, maintenance and improvement of common property. The committee has steadfastly refused to respond to any of my long-standing concerns particularly my criticism of their curious common property policy which has allowed a resident free for all and is demonstrably in breach of the Act and an Adjudication Order. I am reluctant to lodge a formal complaint given the often acrimonious outbursts that follow when accountability is demanded and ask if there is a soft option to remind committee they are accountable and have a responsibility to respond to owners’ questions and concerns. From exposed form, committee believe they are not obliged to do so and can ignore any issue they do not wish to deal with. This has been the pattern for over ten years by a committee that has changed little in this period.
Hi John
What a difficult situation. Unfortunately, no, there is no soft option, other than the broken record technique to address issues with committee performance. You need to be careful there as well because too much correspondence can get you blacklisted. The regulations allow those determined “nuisance” owners to be ignored. I suggest you pick your battles carefully and pursue those issues that you find most galling.
It sounds like your committee is in dire need of some new blood. Have you considered nominating yourself? The best way to enact change is going to be from within.
Hi , our BC committees are stopping us the caretaker to send conversation records or cc strata manager for record related to common area . I spoken to commissioner that the judicator legistration requires all conversation including private to be recorded.
I can’t seems to find the legistration say that … are you able to help please.
Hi Wendy
Recording of conversations is a privacy issue.
If you’re talking about email correspondence between committee however then yes, they should be included in the body corporate records. In some cases this is how decisions are recorded. Refer to section 205 BCCM Act and the relevant regulation moodule.
Hey Lisa,
The chairperson of the committee was someone I filed a complaint about, I could see there is a conflict of interest.
I submitted documents to request to install a power charger in my allocated parking space, she kept rejecting it even the documents provided included the exact information as a lot owner who just got his application approved.
The chairperson has been very difficult, she even asked me to buy a certain brand of cars so she can approve the application.
I am wondering what I should do to have her aware I know my rights and she couldn’t tell me what brand of cars I need to get and couldn’t unreasonable documents over and over?
Best wishes,
Michelle
Hi Michelle
How odd that the Chairperson would try and tell you what type of car to buy. I agree with you that is overreaching her authority.
The type of car, or rather the draw from the body corporate power supply on body corporate electrical grid, may be relevant, however don’t take my word for it. I am certainly not an expert on electric cars or their supply. I’m basing that on a conversation I had with a supplier who was discussing the challenges bodies corporate may have in future with multiple charges drawing on the body corporate grid.
To find out details of an already approved application you could search the records of the body corporate.
If you have made an application but that has been rejected by the committee you should endeavor to find out the reason for the rejection. There may be a valid reason. The body corporate is expected to act “reasonably”. If you disagree about the reason given, if one is given, then you can explore the option of pursuing a dispute through Office Commissioner Body Corporate.
Hi Lisa,
We have just had our AGM. I would like to know are the BC Committee able to pay for our villages insurance of $120,000 when the amount exceeds the approved spending limit of $90,000.00 prior to it being approved at the AGM. The policy started on 1st August our AGM was on 14th September. It appears we are asked to approve a motion that has already been decided. Also, is there a requirement for the BC Committee to obtain and present at least two quotes to the meeting?
Thanks, Bob
Hi Bob
Yes, your body corporate committee should obtain at least two quotes for insurance renewal. Unless there are issues with your schemes renewal then it is highly likely that there were three or more quotes provided by the broker. That is standard practice. Presenting the quotes at AGM is pointless, because as you say, its already renewed by then.
You need to check the wording of the insurance motion and other motions at the last AGM. Some strata managers will specifically pass a motion that the committee spending limit be increased (to for instance $120,000 in your case) for the sole purpose of renewing insurance premiums. Other managers will include in the motion itself approval for committee to renew the insurance when required.
If your scheme hasn’t done any of that then maybe you will have an option to object to the motion. If that’s the case, discuss with the office commissioner body corporate. One of the key issues will be what do you gain by objecting.
Hi Lisa,
We have a management committee of two, a chairman and a treasurer, from five townhouses. The committee has overspent every year from 2018-2021 and levy fees have been increased by 10% each year.
This year they have overspent by more than $987.88 and requested an admin levy increase of 33.46%. It appears that the treasurer was not aware of this expenditure and not asked to approve it. It was my understanding when I was chairperson that I was expected to keep spending within the allocated 2021-2022 budget (voted on in the 2021 AGM). I was also told that expense items had to be approved by both members of the management committee. Is this correct ? Can a chairperson spend money without notifying the treasurer or seeking their vote on the matter?
HI Darryl
Any monies spent should be discussed with the full committee and be within budget. This is the legislative position. Sometimes the budgets are exceeded and that additional money should be paid back immediately which is why the sharp increase.
In practice it will depend on what is being spent on. If its ongoing matters like insurance, gardening, pool treatment etc, then it can be hard to control these expenses. They are what they are and need to be paid. The budget is only a guess based on last year. Plus there is no way of knowing what is going to need fixing and when. But, equally, as you suggest its possible that the Chairperson is disregarding budget and simply forging ahead.
Either way, I would expect this to be discussed in committee, either by email between the persons or via Vote Outside Committee or committee meeting.
Hi Lisa,
1. Can be postponed by the committee member (who called the meeting) a committee meeting for a personal reason of one of the committee member? I have not find any section in the Accommodation Module related to the meeting can be postponed. There is just a section, when the chair does not attend the committee meeting, other committee members agrees to choose another committee member who will chair the meeting.
I suppose, when the meeting has been called, it must be held including discuss of the proposed agenda attached to the notice. Is it correct?
2.The committee meeting has to be called by the secretary, or by the chair if there is absence of the secretary, or any other committee member. However, the chair gives instruction to the BC to issue notices with the agenda to owners. (the secretary and the chair is the same person)
I suppose, the secretary, who has called the meeting, despite of she is the chair as well, can not instruct the BC Manager. Is it correct?
I recently purchased a top floor unit in Brisbane, Qld. The Lounge Room and main bedrooms have air conditioning units on the balcony, but the second bedroom doesn’t have a/c as it’s on the other side of the building. I approached the Committee to install a new a/c on the exterior of the building. They responded saying I could install the motor compressor on the roof (2storey unit block) with a/c di ting directly into my 2nd bedroom. They advised they don’t want exterior mounted units on the main entry side of the building and over the walkways. If they approve mine then it will open up to everyone else being able to do the same meaning multiple a/c will look unsightly and devalue the property. Currently there are no other exterior wall mounted a/c units in the complex (only on balconies). I have suggested I can cover it with an a/c aluminium slat cover box but they will still not approve. Roof mounted will probably cost more to install and ongoing maintenance. Is there anything else I can do to convince Committee to change their minds.
Hi Linda
If you have made application to the committee and they have refused there is little you can do. You do have the option to dispute the decision based on it being “unreasonable” if you feel that is the case. Talk to the Office Commissioner Body Corporate about raising a dispute.
Be aware however, this is legal action, and your decisions will also be judged on whether or not they are reasonable. What is your reason for wanting to put it on the front wall? If its simply because its cheaper for you, consider if that a reasonable choice. Balanced against committee reasons which likely relate to retaining curbside appeal for all owners. Maybe not. But that’s just my opinion. You would need to be able to sway an Adjudicator.
Hi Lisa,
We have recently had our AGM in which a new treasurer was voted in. The current chairperson who was previously both chairperson and treasurer is refusing to provide the information and documentation that the new treasurer requires to fulfil their role. The new treasurer has requested this information via email and has sent it to both the committee and the body corporate manager. The body corporate manager is refusing to do anything as they say it’s up to the chairperson whether or not this information is forwarded on. Does the new treasurer have any options in regard to this situation?
Hi Annemieke
Sometime what people do just boggles my mind.
The Treasurer should not have any information that would not be available to all owners in the body corporate records. They may have documents they created themselves, in which case those documents will be theirs and they don’t have to share.
So in short, it depends on what documents you’re talking about. If the Treasurer say has invoices or reports that form part of the records then these must absolutely be placed on body corporate records. You could possibly argue this would extend to correspondence between the Treasurer and someone else on behalf of the body corporate but that’s harder to prove that the matter relates to the body corporate and is therefore a body corporate record. If they don’t hand over body corporate records then discuss with the Office Commissioner Body Corporate about how to compel them to do so. I’d imagine an Adjudicators Order may be sought if required.
If the document you’re talking about is some form of spreadsheet of notes they’ve created then that is a lot harder to argue its a body corporate record. Unless the document is crucial I’d look at other ways of proceeding and let the whole thing go as a sour grapes. It will hurt them more to be ignored as irrelevant than to try and force the issue.
If you’re talking about Certificate of Currency or loan documents, then yeah, start the dispute resolution process.
We have the time frame for nominating for committee positions ending on Oct 31st
The Chairman last year nominate for both Chairman and Secretary positions and there was no opposition.
If another owner nominates for Secretary this year and he nominates for both again would there be a ballot for Secretary or can be told don’t be greedy!
Hi John
Yes, if two persons nominate for Secretary then a ballot will be held. The Chair can nominate for as many positions as they want if they please. They may also withdraw if there is additional interest.