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ACT: Q&A Reporting Unethical Behaviour by the Strata Manager

Unethical Behaviour by Strata Manager

This article is about how to report unethical behaviour by a Strata Managers in ACT.

Table of Contents:

Question: Our strata manager has repeatedly failed to register our house rules. Can I serve the strata manager with a contract breach notice?

Our strata manager failed to register our house rules after our AGM. We brought them forward to the following AGM with some additions, and they were passed by the owners corporation again.

It has been approximately three months since our AGM and the rules have not been registered. We’ve served the strata manager notice that their tenure will not be extended after contract expiry.

As chair, can I serve the strata manager with a contract breach notice before the end of the contract?

Answer: Each contract varies slightly, so we strongly recommend the EC seek legal advice.

The executive committee (EC) is certainly able to issue a contract breach notice on the current manager of the complex, provided there has been a clear violation of the provisions of the contract in place, making sure that said contract is valid and signed.

Each contract varies slightly, so we strongly recommend the EC seek legal advice on this issue. If you decide to proceed with issuing a contract breach notice, this should be the subject of a motion at an EC meeting. Ensure the decision to proceed with issuing this notice is recorded in the minutes of the meeting.

Without knowing the intricacies of your current contract, I would not be able to point you in the direction of a certain clause that they would be in contravention of. Make sure the contract notes that this task is an additional duty of the manager allowed for in said contract.

Jan Browne & Steve Wiebe Bridge Strata E: jan@bridgestrata.com.au P: 02 6109 7700

This post appears in Strata News #690.

Question: Where can a lot owner report unethical behaviour by a strata manager?

What recourse does an owner have when the strata manager acts in the independent interests of a majority owner/company, without the Executive Committee’s knowledge or agreement and not in the interests of the remaining lot owners.

Where do owners go to report unethical behaviour or the failure to follow proper administrative procedures by a strata manager?

Answer: The overseeing entities are ACAT, the ACT Office of Regulatory Services and the SCA, respectively.

Strata managers must comply with the Manager Code of Conduct under the Unit Titles (Management) Act 2011 as well as the rules of conduct under the Agents Regulation 2003. If the strata manager is a member of the SCA, the strata manager is also bound by the SCA Code of Ethics.

The entities overseeing the above are ACAT, the ACT Office of Regulatory Services and the SCA, respectively.

Christopher Kerin Kerin Benson Lawyers E: enquiries@kerinbensonlawyers.com.au P: 02 8706 7060

This is general information and should not be considered to be legal advice. If you are affected you should obtain legal advice specific to your individual situation.

This post appears in Strata News #508.

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