Contravention of the Strata laws and Arrears - Help needed

[Corsa]

Hi All

Just a quick note to see if anyone has any ideas or experience on how to deal with a situation that I am currently encountering with a block of units where I own 1 unit.

The background is:

1. units are located in SA
2. 24 units in total
   
3. 1 unit is in arrears $2200 in body corporation fees & legal fees
4. Solicitors have been involved on both sides (ie Strata bringing action against Arrears unit and Arrears unit bringing action against us)
   
5. The Arrears unit claim is that he shouldnt have to pay for a Balistrades upgrade project which was approved between the time he bought the place and settlement - the amount in question was 4 payments of $150 = $600 for each unit
   
6. The Solicitors have most recently advised the Body Corporate Manager that the Arrears unit has refinanced his unit to withdraw $12,000 in order to pay for the corporation arrears of $2,200 but he still hasnt paid yet has he claims he has been in an accident and broken his leg and his mum has to drive him everywhere.
   
7. The Body Corporate Manager did not enforce the original court order for $1,000 in the hope that the Arrears unit would pay the full amount outstanding of $2,200. The difference being the amount he has amassed since the original action. The Body Corporate Manager is suggesting that if the origingal court order was pursued and the Sherriff turned up at the Arrears units door, all he would have had to pay is $1,000.00 and we have to take him back to court for the balance.
   
8. Some of these issues have come about due to non payment of body corporation fees and others because the Arrears unit maintains "a lounge room" on the balcony which technically is a fire hazzard and makes the place look like a slum.
   
9. We had the AGM in July where I was trying to get everyone to change to a new Body Corporate Manager as I felt that this manager was not doing the job adequately (even with faced with extreme issues I realise). This motion got outvoted and the Body Corporate Manager has been appointed for another 12 months. It was initially sought to engage them for 3 months however the Body Corporate Manager said this was not allowable that we had to go with 12 months or nothing. Now, if we want to terminate this agreement, what is involved?

The Committee members are seeking to understand what is involved with investigating the possibility of taking out an [highlight]injunction[/highlight] against anyone misusing the common areas in contravention of the strata laws (which would cover parking vehicles illegally, objects placed on balconies, items restricting pathways or creating a general hazard). Once reported, this would give the police the power to remove such items. But we are unsure of the cost and legal enforcability of taking this action
The Body Corporate Manager is extremely reluctant to pursue this issue with the Arrears unit (ie kick him out) as the Arrears unit has personally threatened the Body Corporation Manager

Long winded story I know, however I really need some assistance in dealing with some of these issues at least in the fact gathering stage. The Corporation will probably seek legal action over the next few weeks but I want to gather some information in the first instance so I know what I am dealing with.

The main issues are:

1. what is involved with seeking an injunction for contravention of the strata laws
2. what is involved with seeking the $2,200 outstanding from the Arrears unit in the quickest, easiest way
3. what is involved with terminating the current Body Corporation manager agreement only 2 months into the next term of 12 months ending July 2005

Can anyone assist with this?


Thanks so much in advance

Corsa

 

[JoannaK]

Hi Corsa,

sounds like fun! these are my thoughts (but remember that my experience is in NSW)

Your injunction idea is a good one, but i doubt do-able (police don't get involved in these sorts of things, and the sherrif would need the proper paperwork from the tribunal before he could/would do anything). The only thing I can think of is to apply to the strata titles board (or similar in SA) and present your case where they will make a ruling. Same goes for the other 2 points.

The strata titles board/tribunal is there to deal with exactly these sorts of issues. Call the local Department of Fair Trading to find out who your strata titles board/tribunal is and how to contact them. The depart. of fair trading will also be able to provide you with publications outlining rights and responsibilities involved in strata living.

i hope this helps

 

[duncan_m]

[*]We had the AGM in July where I was trying to get everyone to change to a new Body Corporate Manager as I felt that this manager was not doing the job adequately

Nasty situation.. Without wishing to divert this thread too much I'm curious if the Body Corporate Manager involved is the one located on Portrush Road.. they manage the strata corporate for two complexes I have an ownership in and they do a terrible job. The organisation seems like a front to channel work into their insurance broking and maintenance arms.

Good luck with the resolution!

 

[paulie]

Hi Corsa

Ahh the memories this brings back!

My first property ownership was a unit in a complex of 36, got involved with the strata body, changed strata managers and had some unruly tennants & owners removed. It took me 2 years and hundreds of hours of my time.

It is like politics in a massive way as you really need to talk to and pursuade the owners of the units well before you raise an issue at the AGM and vote on it. Alot of grunt work on your behalf, but if you really want the outcome you gotta sell it to all the owners (or at the very least a 51% voting block of owners).

As to kicking out the current strata manager prior to their term finishing - I wouldn't do it as I imagine you will be hit with full year fees as an early termination clause. Instead I would find some options - ie other "good" managers and present them and their contracts to the voting block of owners prior to the next AGM.

As to the in arrears owner, I'd drop a caveat for the body corporate fees on his/her unit. No real method of enforcing payment of body corporate fees, and in my experiences the legal processes to recoup monies not paid are lengthy and ultimately toothless. The caveat would stop the owner being able to sell the property or even refinancing it, hence some real motivation on the owners behalf to lift the caveat by paying out their obligations to the strata body.

As to the lobby in the stairwell - find a couple of big burly owners and remove offending materials on council pick up day.

Good luck.

paulie

 

[Corsa]

Thanks Joannak, Duncan, and Paulie for responding.

I know this post involved particularly challenging issues so I appreciate the fact that you provided assistance.

The issues are still on-going, we may be reaching a point next week where a Warrant of Sale is enforced on this guys unit. Not the best outcome but it has been over 18 months since this started.

Duncan, the Management company is Whittles.

Kind regards

Corsa

 

[duncan_m]

Thanks Joannak, Duncan, and Paulie for responding.
we may be reaching a point next week where a Warrant of Sale is enforced on this guys unit. Not the best outcome but it has been over 18 months since this started.

Is it worth you approaching the owner now and making a purchase offer?