Question: We changed strata managers. The previous strata manager provided electronic records to the new manager, but they were incompatible and never accessed. Does this gap in records impose any legal liability on our Owners Corporation?
Three years after the start of our strata, we changed strata managers. The previous strata manager provided complete records to the new manager on data file disks, but they were never incorporated with the new strata manager’s records. The excuse given was that the computer systems were incompatible.
There is a three-year gap in the strata records, including details of the important decisions taken in the original days of the strata. Does this impose any legal liability on our Owners Corporation or its strata committee? What steps should be taken to rectify this problem?
Answer: Unless the 7 year period has expired, you should take steps to attempt to reconstruct the events of that 3 year period where possible.
Under Section 180 of the Strata Schemes Management Act 2015, the books and records (including minutes, accounts etc) are required to be kept for 7 years. So, in time (if not already), those records lost will have less significance. The risk is conceivably, that if a new owner bought into the scheme and suffered loss or damage as a result of the incomplete records, the Owners Corporation would be exposed.
Unless the 7 year period has expired, you should take steps to attempt to reconstruct the events of that 3 year period where possible.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
We went from XXX to XXXX. New Strata informed the committee that minutes for caretaking appointment were lost We haven’t been paid for 12 Month’s now. We are seeking legal advice now (letter of demand)
Outgoing strata manager provided an incomplete handover. Extensive amount of record are missing. How to reconstruct the records when the new strata manager is reluctant to do so?
It is unclear why your new strata management company would be unwilling to assist with the reconstruction of the books and records, however it may be because they would need details, information and knowledge for events prior to their appointment. The Owners Corporation should consider action against the outgoing strata manager for failure to provide full handover and potentially report them to NSW Fair Trading, the REINSW and SCA as they should be held accountable in particular where they were paid a management fee to properly maintain the books and records of the owners corporation and as such should provide a full handover of the records.