Owners Corp- no funds to pay insurance

[savoys]

Hi, I am looking for some advice please. Today i recieved a letter from the owners corp stating :

"the insurance was due for payment on Dec 31 and we have no funds to pay the premium" The insurer has agreed to extend the cover to Feb 29, to allow them to collect the funds , "but if the funds are not recieved by Feb 24 the policy will be cancelled without further notice"

This is terrible in my opinion, - my payments are up to date but I am very concerned about the short notice and the consequences that can happen if some of the other owners are unable to pay.

there are 9 units in this block, can you please advise on this?

Thanks

 

[Scott No Mates]

I am going to ask a few hard questions here:

Why are there insufficient funds in the accounts?
Do you self manage the building? If not, what does the strata manager have to say about it? The BC must ensure that there are adequate funds to run the building, obviously you are breaching the act if you cannot raise sufficient funds to pay for ongoing essential costs.
Have the levies been paid up to date? Why not?
Where has the money gone?
Are the levies sufficient?
Maybe it is time for an audit!!! and a new Strata Manager

 

[Macca]

Someone has been rather slack !

What Scott said, find out the answers and crack down on anybody not doing there job properly.

It is a legal obligation to keep all of this sort of stuff in order, it is not optional

 

[Propertunity]

Maybe it is time for an audit!!! and a new Strata Manager

^^ that, plus time for a special levy, to pay the policy now.

 

[The Y-man]

I can understand this - we have a simlar case in a bock of 4 where one owner refuses to chip in their share of OC costs (hence 25% of the funds).

The 3 other units have essentialy had to contribute more to cover for the shortfall for insurance etc.

Can't wait for them to sell - then the OC cert will be subject to all amounts owed plus interest.


The Y-man

 

[savoys]

I am going to ask a few hard questions here:

Why are there insufficient funds in the accounts?
Do you self manage the building? If not, what does the strata manager have to say about it? The BC must ensure that there are adequate funds to run the building, obviously you are breaching the act if you cannot raise sufficient funds to pay for ongoing essential costs.
Have the levies been paid up to date? Why not?
Where has the money gone?
Are the levies sufficient?
Maybe it is time for an audit!!! and a new Strata Manager

Thanks Scott. Good question why there is no money, the company is an owners corporation services company and is a member of the owners corporation victoria association. I haven't spoken to them yet as i opened the letter when I got home from work this evening. I knew they were short of funds but can't believe they would leave it this late to inform us

 

[savoys]

Someone has been rather slack !

What Scott said, find out the answers and crack down on anybody not doing there job properly.

It is a legal obligation to keep all of this sort of stuff in order, it is not optional

Exactly, slack is quite right, I am concerned that if the others don't pay there will be no insurance cover , omg

 

[savoys]

^^ that, plus time for a special levy, to pay the policy now.

yes, attached to the letter is a special levy notice. This must be paid by Feb 24, which only gives 3 days notice. I will pay mine however I'm not sure about the other owners as they always vote against spending any sort of money. Some are oo's and maybe on a pension.