The definitions in our CMS differ from the wording in our bylaws — which takes precedence?

By admin,

We are under the accommodation module/Building Format plan. When our CMS was submitted there was a list of definitions. The wording in the definitions is different to the wording in the by-laws. For example; the definitions state "a vehicle" whereas the by-laws state "a registered vehicle".

Without going into the problems this has caused the committee with differing opinions/interpretations, does the definition override the by-laws? Or do we have to go down the path of reviewing the by-laws with a general meeting to approve the proposed changes, new CMS etc.

Can a non-lot-owning volunteer strata manager be removed for bullying and abusive behaviour?

By admin,

As a new lot owner in a ten-lot over 55s strata, I've witnessed a non-lot-owning volunteer strata manager (VSM) consistently bullying and controlling elderly residents during meetings.

The VSM also sent me an abusive letter regarding my concerns about the state of the common property. Does this pattern of bullying and abusive behaviour provide sufficient grounds to remove the VSM?

What accounting resources are available for body corporates and how should asset purchases be treated?

By admin,

I have just been appointed treasurer of an 80-lot scheme. The financial reporting provided by our body corporate managers is poor. They have a budget that nobody can explain at the line-item level, no forecast of expenditure, and they compare expenses only against the annual budget.

Is there an accounting resource for body corporate communities that shows expected average costs per unit for a similar 80-lot scheme?

One lot takes up 40% of our complex but only pays 14% of the insurance — can the premium be apportioned fairly?

By admin,

Our CTS says that the lot entitlements are equal and based on market value. I have an issue with the unit that used to be owned by the developer. It has two kitchens and three bathrooms, is two separate buildings and is rented to two households. It takes up 40% of the 7-unit complex, but only pays 14% of the body corporate costs and insurance premiums.

What are the tax implications if unused common property is converted into a unit and sold?

By admin,

Our 51 unit complex is in Airlie Beach. In addition to the units, there is a Garden Room of about 18m x 4.5m. This space is for the use of all lot owners. It has hardly been used over the past 14 years, so the committee has suggested the common property asset be repurposed by converting the space into a one-bedroom unit to be sold. Quotes and costings indicate that it would be sold for a substantial profit.

What are the tax implications, if any, for the owners and if there are tax considerations how would they be distributed?

CCTV Cameras and Privacy in Strata

By admin,
  1. Can a lot owner install surveillance cameras that record the comings and goings within the scheme? We feel we are constantly monitored. What can we do about this other than speak with the neighbour?
  2. Our Owners Corporation has no CCTV Policy, Commonwealth Acts and ACT Legislation being applicable.

Our Managing Agent & the Executive committee have elected to exclude any reference to CCTV Policy development and implementation from this year's AGM Agenda.

A unit only occupied a few weeks a year had a water leak — should the strata manager hold a key?

By admin,

One unit in our strata complex of 17 units is only occupied for a fortnight a year. No one has a key for access in case of emergency. As a result, we received a massive water bill due to a leak in the unit. The plumber could not enter the unit, so they turned off the outside valve.

An OC borrowed $1.2M to buy a unit — with a deficit in the capital works fund, how will it pay for major works?

By admin,

We are looking to buy into a NSW strata scheme compromised of 309 lots. This is a relatively new building where the first AGM was held almost a year ago.

The strata report shows that the owners corporation has agreed to undertake a loan to purchase a unit within the complex. The approximate cost of $1.2M is to be initially utilised as an onsite manager's office and could be repurposed for commercial usage.

How are levy defaults handled when funding major building repairs?

By admin,

Our building has significant concrete cancer. Some owners can afford the repairs, but others cannot.

What happens if we cannot get enough votes to approve the spending because the cost is too high? Given the new responsibility to maintain the building, but with insufficient funds to do the work, where would that leave owners?

What happens if we do approve the works, but several owners then default on their levies?

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