An owner in our small strata scheme is so challenging to work with that no one wants to be on the committee.
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.
Four members (2 executive and 2 ordinary) are like minded and often vote the same but we struggle to keep a committee together because of the abusive emails each of us have received from this one owner as well as the constant demands and interference with maintenance orders (telling tradespeople how to do their job). I don't live in the complex, so I am somewhat removed from the situation, but other owners report they always avoid this owner.
The executive committee are leaving or resigning. Nobody will take up an executive position due to the stress of dealing with the disruptive owner. Our body corporate manager, who used to help enormously, said they will only accept/read emails from the chair. Members support the body corporate manager's position.
- What if we cannot form a committee?
- Who appoints an administrator?
- Can the administrator also be the body corporate manager?
- Can we dissolve the body corporate? If so, what are the pros and cons?
While strata should be about methodical decision-making and businesslike behaviour, emotions can quickly supplant objectivity when it comes to people's homes.
Firstly, we are sympathetic to your situation. Unfortunately, it is a situation we hear about a fair bit. In other words, you are not alone. That, arguably, is because while strata should be about methodical decision-making and businesslike behaviour, emotions can quickly supplant objectivity when it comes to people's homes.
We address your specific queries below, and then offer a more general observation:
- You must form a committee – it's a legislated requirement – and if you can't form a committee, that is when an administrator might need to be considered. There is also an option of a 'Part 5' arrangement involving your body corporate manager, although, given what you have said, it would be unlikely your manager would offer that.
- An adjudicator in the Commissioner's Office appoints an administrator on application by an owner. Administrator appointments are historically very rare.
- Yes, they can. An administrator can also be someone like an accountant, a lawyer or indeed, ourselves.
- It is highly unlikely you would qualify to be able to terminate (dissolve) your body corporate at this point. New legislation enables termination with 75% of owners, but that is under 'economic reasons', and you haven't outlined economic circumstances here.
The general observation we’d make is this: as challenging as it may be to deal with this individual, it is in your and the other owners’ interests to find a way to do so, because the alternatives are time-consuming, stressful and incredibly costly (administrator fees are not small, to say the least). Moreover, your property values are at risk from the continuing conflict.
It might be time to consider stepping back a bit and considering alternative dispute resolution, mediation or approaches which do not involve formal proceedings. You do not have to like this person – you simply have to be able to have a business relationship with them. Strata Solve does a lot of work in this space – you might like to reach out to us to see if we could assist.
This is general information only and not legal advice.
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Chris is a strata unicorn: he is not a strata lawyer, manager or caretaker. He was Queensland’s Commissioner for Body Corporate and Community Management for over 5 years. That is the only role of its type in the world. Chris is also an owner in one strata scheme, and a tenant in another.
As Director of Strata Solve, Chris focuses on communications and strategic advice, rather than legal action, to solving strata problems. Strata Solve works with owners, committees, strata managers and caretakers to tailor practical solutions to stressful strata situations. Chris holds an Honours degree in Communications and is a nationally accredited mediator.
Chris is a regular contributor to LookUpStrata.
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