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VIC: Can a lot owner ask VCAT to remove a dysfunctional committee and appoint an administrator?

VIC Strata Information

Question: Our committee seems to live by its own rules. Can a lot owner ask VCAT to remove this committee of three and put in an administrator?

Our committee seems to live by its own rules. I took them to VCAT about ten years ago for not making repairs and not responding to complaints about their and the manager’s lack of response. They didn’t respond to the VCAT application.

One observation by the VCAT member was that there were competency issues with the committee. Things have not changed since they repeatedly refused to discuss the VCAT findings and continued to breach model rules. The other owners do not seem interested. The cost to attend the VCAT from the UK was very high. Am I able to claim costs retrospectively? I held back previously with the thought that things would improve.

Can a lot owner ask VCAT to remove this committee of three and put in an administrator? The committee is reappointed each year due to a lack of interest from owners.

Answer: It will require substantial noncompliance with the obligations under the Owners Corporations Act for an administrator to be appointed.

An application for costs can be made after final orders are obtained unless the Tribunal made an order specifically about costs.

There is a general presumption that each party bear their own costs, so obtaining a costs order against an owners corporation is not a guarantee even if wholly successful in the proceeding. The Tribunal must decide whether it is fair to make an order.

As for administrator actions, it is difficult to obtain an order in circumstances where AGMs are being held and where there is an elected committee and appointed owners corporation manager. Just because a lot owner cannot get their way does not mean VCAT will interfere. It will require substantial noncompliance with the obligations under the Owners Corporations Act for an administrator to be appointed.

Your best strategy is to work on PR and get lot owners wanting to be involved and nominate for the committee. If you have a view that is not the majority view, it is up to you to get the majority on your side. Otherwise, you have to submit to the majority decisions or decide that owning a lot in an owners corporation is not for you.

VCAT should be used as a last resort due to the delays and costs of VCAT.

Phillip Leaman Tisher Liner FC Law E: ocenquiry@tlfc.com.au P: 03 8600 9370

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