What can we do if the majority owners refuse to fund or implement the required 10-year sinking fund plan?
We own a strata apartment in Queensland in a small block of three. The same family owns the other two apartments, and they outvote us on every decision. They refuse to spend money on maintenance, won’t increase the sinking fund, and have left the fund almost empty. They appointed a quantity surveyor to prepare a 10-year sinking fund plan, as required by law, but claim they don’t have to implement it and have no intention of doing so. What rights do we have in this situation to ensure the building is compliant?
You have rights as an owner to have things done correctly.
Two and three-lot schemes can often have requirements that are quite different to other, larger-sized schemes. It would largely depend on which Regulation Module applies. You can find that out by referring to your Community Management Statement.
After that, if the body corporate is not following the provisions of the Module and other legislation, you have rights as an owner to dispute that and to have things done correctly (such as maintaining sinking funds and works being done). If you are a minority owner, it will always be that much more challenging, unfortunately.
We’d always recommend trying to communicate and engage, rather than embarking on formal processes, and especially in a small scheme. That said, if you find you can’t get any further with the other two owners, we’d recommend having a chat with the Commissioner’s Office and taking it from there. Or you can come back to us, and we can see if we can help further.
This is general information only and not legal advice.
Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898
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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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