Question: In Western Australia under the amended Strata Titles Act of 1985 how much can a strata manager spend on maintenance per lot without the strata company’s approval?
Answer: The strata manager can only spend what the strata council have approved for payment.
The question raised is an interesting one because some strata companies do authorise the strata manager to make payments on various or all expenditure items. Such conditions would need to be written up in the Management Contract.
Otherwise, you are allowing someone “Carte Blanche” spending on the Admin and Reserve Accounts.
My standard answer would be that the strata manager can only spend what the strata council have approved for payment and within the approved budget amounts for each line item of expenditure.
Many strata management companies don’t want the liability of approving any expenditure that comes along.
So the big take on this is – be sure you know what services you are signing for in the Management Contract.
Shane White
Strata Title Consult
E: shane.white@stratatitleconsult.com.au
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