Question: Our strata is made up of both residential apartments and a resort. Every decision is squashed by the majority vote of 80% in the resort by one company.
Our strata is made up of both residential apartments and a resort. My unit is in the residential part with a resort that backs onto it.
The resort units are owned by individuals but 80% is owned by the company who purchased the resort.
The residential units are all owned individually.
The problem is the very high strata fees the residential owners pay. Each time we want to discuss having these fees reduced, the majority vote of 80% in the resort by one company, overrides all residential votes.
No matter what we want, if it doesn’t suit the majority owner – this is voted out.
This is so frustrating, as it is as though the residential owners have no say whatsoever unless it agrees with the majority owner’s vote.
Is there anything we can do to balance this out where the residential owners have a voice that counts?
Answer: With the introduction of the Community Titles Act later this year (2021), hopefully better management plans can be put in place to avoid these conflicts.
These conflicting uses within schemes always generate conflict. With the introduction of the Community Titles Act later this year (2021), hopefully better management plans can be put in place to avoid these conflicts.
Around this particular matter, in the end section 137 details general duties and conflicts of interest regarding a council member. At all times, they have to act honestly and in good faith, take due care and diligence and must not make improper use of their position to benefit. It’s a very tight line that has to be walked around the management of this scheme. Ultimately, if they are one owner, they can only hold one position on the council. So what it really comes down to is working with the residents around the election of the Council of Owners and trying to get good representation on the Council of Owners to be able to have better informative discussion around the management of the scheme. That’s probably all you can really do there.
When you buy into the scheme, you’re presented with the bylaws and you’re presented with the budget. There is an expectation that you do your due diligence when you buy in. In these types of schemes, you do find that the levies are quite high, but they need to be equitable and they need to be apportioned appropriately.
The only advice I can give here is that the reader should try to get better representation on the Council of Owners.
This post appears in Strata News #501.
Scott Bellerby
B Strata
E: scott.bellerby@bstratawa.com.au
P: 08 9382 7700
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