Question: Owners recently raised a $30,000 special levy for specific repairs. After the handover to our new strata management agency, we discovered the previous manager used the funds for general expenses without owner approval. Is there any recourse for these actions?
Answer: Has the owners corporation suffered any detriment?
The answer depends on several factors. For example, has there been any detriment suffered by the owners corporation? Further, there does not appear to have been a misappropriation of funds but rather an application of funds for a different purpose. The re-direction of funds may have been caused by poor budgeting or the need to address urgent/emergency repairs, including items that could not be forecast. For example, it may have been caused by an unforeseen increase in insurance premiums.
Once the reason for the re-direction of funds is determined, you may, depending on the circumstances, have recourse to report the matter to NSW Fair Trading and/or Strata Community Australia if you can prove any misconduct or mismanagement of the Strata Manager.
This post appears in Strata News #707.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
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