Are developer decisions at the first AGM and a 25-year caretaker contract legal?

By admin,

During the first AGM, a director of the developer was appointed as the original owner's representative. This person nominated and accepted themselves for all statutory positions (chair, secretary and treasurer). They determined they had a quorum and declared that the meeting decisions were not restricted items under the BCCM and, therefore, did not require a secret ballot. They executed agreements with a caretaker who is a subsidiary of the company for which they are a director. The agreement is a 25-year contract that no owners reviewed or considered.

Is it a conflict of interest if a builder owns lots and sits on the committee?

By admin,

Of the 67 units in our two year old body corporate, the builder kept 37 units and is a body corporate committee member.

Is this a conflict of interest? There have been a few relatively minor issues the builder refuses to fix even though they are defects. Can we do anything to limit the builder's power?

Should developers pay construction-phase water and cleaning costs?

By admin,

Our strata committee was formed in October 2024 at the Annual General Meeting for our new building. Strata was set up in July 2024 by the developer when he held an extra ordinary general meeting. As treasurer, I noticed we've been charged over $3000 for water from June to September. This would have been during the construction phase. We have also been billed $1000 for Pre-settlement cleaning of common areas. Should these charges be the responsibility of the developer?

Is a by-law granting a developer unrestricted work rights enforceable?

By admin,

Our strata settled in December 2023, and 45 of the 47 apartments were purchased. The first AGM was held in September 2023, and the developer representative held the chairperson, treasurer, and secretary roles.

The AGM was held in March 2024. The representative stepped down, and a new corporate committee was elected from the 45 owners, including a chairperson, treasurer, secretary, and four committee members.

Do commercial lots have separate responsibilities in a NSW mixed-use strata scheme?

By admin,

I cannot understand how a profit making commercial lot, though paying a little more in levies, can make claims on the strata.

We have the added cost of outside lights left on from dusk till dawn, constant use of our common area toilet, removal of their excess rubbish along with our own. Sure a 60 seat restaurant should pay for their own facilities.

Windows got broken in commercial lots and they made a claim on our insurance. Surely commercial premises should have their own insurance?

Who pays the costs of changing unit entitlements in NSW strata?

By admin,

We are holding a special meeting this week and some of the lot owners have requested a motion that the lot entitlements be updated. I have informed our strata manager that I will want to move a motion amending the motion that has been put forward to the effect that all costs incurred for the amending of the entitlements be payable by the owners requesting the amendments.

I have been informed that if the motion is approved by special resolution by the correct majority, the Owners Corporation are liable to pay for the costs. Is this correct?

Can you split a mixed townhouse and apartment strata scheme in NSW?

By admin,

We own a townhouse in a strata plan in NSW. The Strata Plan includes 3 blocks of 6 townhouses and one block of 9 apartments. I am a member of the strata committee and we are finding that the needs and expenses of the townhouses are very different to those of the apartment block.

Is it possible to split the strata plan into two i.e. the 3 townhouse blocks in one and the apartment block in another? The buildings are all quite separate but share some common services and property although there are clear boundaries between each of the buildings.

Do garage (utility) lots count for voting and committee nominations in NSW strata?

By admin,

Our block has 4 units. Lots 1 - 4 have a unit entitlement of 20. Lots 1 and 3 also own garages that form lots 5 and 6, each with a unit entitlement of 2.

Lot 3 was unfinancial at the time of the AGM for the garage lot (5) but financial for lot 3. Are lots 5 and 6 included for the purpose of voting and nomination of a committee member? In this example, is lot 3 financial or not?