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?
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.
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Leanne is leading the conversation in strata and community management across Australia. With a distinguished career spanning over 25 years and holding credentials as a licensed Strata and Community Manager and Real Estate Managing Agent, Leanne has masterfully redefined the essence of premium strata service. Her approach, honed through years in senior roles within top-tier agencies, is unwaveringly client-focused, ensuring that expectations are not only met but consistently exceeded.
As a pivotal member of the Strata Community Association (SCA) and the CEO of the award-winning Premium Strata, Leanne, together with her team of seasoned strata managers, embodies a commitment to unparalleled service excellence. Beyond steering Premium Strata and Premium Building Management, her influence extends across the property industry as a leading voice. Leanne's insights on legislative updates and industry shifts are invaluable, offering guidance to lot owners on intricate strata matters and fostering effective and informed strata management practices.
Leanne is a regular contributor to Lookupstrata.
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