Paying BC fees

[yadreamin]

Hi All
A query about BC fees. Hope someone can help as it seems that BC issues are a very grey area in WA.
The set up is.
8 existing units.
12 more units have now been built on the same land title.These units are near completion, 7 have been sold.
When do these new owners have to start paying BC fees?
When does the builder/developer have to start paying BC fees on the unsold units?
The builder/developer had agreed to pay all water usage during the contstruction period, we now know he hasnt paid the water acc and its well over due. What can we do?
We also know the builder/developer has run into financil difficulty due to not selling the remaing 5 units.

The BC is self managed by the owners.
If it is payable on completition then the builder could drag this out for months.As "completition" can be interpreted in many different ways.
Look forward to getting some clarification on this
cheers yadreamin

 

[dave99]

Hi yadreamin,

My understanding is that BC contributions are due from when the initial BC AGM is held. This is shortly after the new plan of subdivision is lodged with council. Since your plan of subdivision is being changed, a "new" BC will be formed once it is lodged.

That said, it is common for developers to not pay the BC fees and to rely on the BC not to chase. Similar with promises to pay the water - if it comes to taking them to court, chances are the legal costs would be too much for the existing owners to bear.

It is not a good situation to be in and the rules around developers and BCs will shortly be tightened up in NSW because of problems like this happening again and again.

- Dave99

 

[Rixter]

Yada,

I'd suggest phoning around 2 or 3 strata managers to get written quotes to have the complex professionally managed. Then call a extraordinary special meeting of the owners to decide which strata manager to commission to act on your behalf in looking after the complex.

For the sake of around $1000 (shared amongst the lot owners) you can get a competant professional strata manager who to is well up to date with all the strata act rule and regulations to take care of all the necessaries in managing a BC.

IMHO money well spent.

Hope this helps.

 

[yadreamin]

Rixter l want to do exactly as you have posted but l dont get any support at the meetings, unfortunatley the current manager has some good scare tactics in place as far as the fees BC/strata managers can charge. We have now got a couple of quotes to present to the owners.
There is another meeting next week and l hope to have a win this time around as l have gained a bit more support now.


dave99, l have been told the same , but in the next breath l also get the comment "It really is a bit of a grey area" each case seems to be treated differently.

cheers yadreamin