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?

How can a strata corporation recover unpaid levies from a unit owner who refuses to contribute?

By admin,

We are a group of six units. One unit refuses to pay for gardening maintenance or any work done over this past year to ensure the upkeep and functioning of the common areas, e.g. lighting, landscape, etc.

What are our options for dealing with this difficult owner? How do we enforce the strata rules? I have communicated the strata rules a few times. What do I do if they continue to refuse? All other owners have paid in full and have no issues.

A resident's large 4WD overhangs their car space onto common property — what can the body corporate do?

By admin,

I am the chairperson of our units. A new resident's large 4WD ute does not fit within the lot car space and hangs over onto common property. Our by-laws do not address this. What can the body corporate do? The resident who uses the car space next to this one is unable to park without damaging the garden.

No one wants to be on the committee because of one challenging owner — what can the body corporate do?

By admin,

My SMSF owns one lot in a six lot strata scheme in North Queensland. The other five lots are owner occupied. We have two executive committee members and four ordinary committee members. I am not an executive committee member, although I have been.

One lot owner has managed to get on the wrong side of everyone in the complex, as well as the current body corporate manager and previous managers. Nobody is willing to work with this person or be associated with them because of constant name calling, negative criticisms, and insulting and disparaging comments.