Our strata committee has spent thousands on repeated waterproofing repairs with no formal meeting minutes, no quotes on record, and decisions made by text and email. Is this legal?
Is it legal for a strata committee to make decisions about a waterproof membrane and ensuite leaking without holding formal meetings that owners corporation members can observe? The committee can only provide some email trails and private text messages to the strata managing agent. There's no documentation of the trades chosen or an explanation for spending thousands of dollars on multiple repairs that still haven't solved the leak. Is this legal?
The strata committee is generally permitted to make decisions between formal meetings including by email, but transparency, record keeping and documentation requirements must still be met.
In NSW strata schemes, the strata committee is generally permitted to make decisions between formal meetings, including by email, if the committee has delegated authority from the owners corporation and the decision-making process complies with the Strata Schemes Management Act 2015 (the Act) and the scheme's by-laws.
However, there are important requirements around transparency, record keeping and spending of owners corporation funds.
The strata committee should normally document their decisions in meeting minutes or written resolutions, and records relating to expenditure, quotations, invoices, reports and correspondence should form part of the owners corporation records.
If substantial amounts of money have been spent on multiple unsuccessful repairs, owners are generally entitled to inspect the books and records of the owners corporation, which may include:
- meeting minutes,
- resolutions,
- contractor quotations,
- invoices,
- waterproofing reports,
- expert reports,
- work orders, and
- correspondence held by the strata managing agent on behalf of the owners corporation.
The fact that decisions were discussed via email or text messages does not, in itself, render them invalid.
In relation to waterproof membrane and leaking issues specifically, the owners corporation also has a statutory duty to properly maintain and repair common property under section 106 of the Act. If repairs are repeatedly failing, owners may reasonably request further explanation, independent expert reports or evidence supporting the repair strategy adopted.
An owner may wish to:
- request access to the owners corporation records under section 182 of the Act,
- request copies of quotes and reports relied upon by the committee,
- raise the matter formally with the strata committee,
- request inclusion of a motion for the next general meeting of the owners corporation,
- seek an independent building or waterproofing report, or
- apply for mediation through NSW Fair Trading if concerns remain unresolved.
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Jana is the Operations Manager at Strata Life and a senior member of the team, bringing more than eight years of experience in the strata industry specialising in building and maintaining client relationships with complex requirements. She has wide-ranging experience with the management of all types of strata schemes and remedial projects. Strata Life is based on Sydney’s Upper North Shore and Northern Beaches and is recognised as an industry leader in delivering exceptional service to its clients. Jana’s Linkedin Profile.
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