Question: To be able to perform their role satisfactorily, should the strata manager attend the scheme? Should the strata manager oversee works to ensure the job has been completed?
To gain a full understanding of our scheme, is our strata manager required to visit the property to be able to manage it, or can their role be done remotely via email, etc?
Our strata is undergoing major repairs/maintenance to the roof. The strata manager organised quotes and specifications for the work, and we are finally getting underway. They have informed me that the strata owner is not responsible for ensuring the work is carried out as per the quote, etc. Is this correct, or should the strata manager ensure the work has been completed satisfactorily as per the quote?
Answer: The strata manager’s role is best described as administrative and can, therefore, be done via email, subject to the general obligations imposed on strata managers in the Act.
There is no requirement in the Act or Regulations for a strata manager to visit a property they manage. Rather, their role is best described as administrative in nature and can, therefore, be done via email, subject to the general obligations imposed on strata managers in the Act. The contract between the strata manager and the strata company may impose additional obligations on a strata manager, but it is not usual for those to include an obligation to visit the property.
For the same reasons as noted above, a strata manager is not required to make sure that the work has been completed satisfactorily, unless that is something specifically required in the contract between the strata company and the strata manager.
Carolyn Meighan
Bugden Allen
E: carolyn@bagl.com.au
P: 08 9254 6304
This post appears in Strata News #693.
If the Strata have presented a colour scheme at the AGM, but there are slight variations to that colour scheme, does the Strata need to have a Circular resolution sent out by the Strata manager to get residents approval? Or is there a quicker, easier way to get residents approval i.e – email to all residents?
If a Strata Manager fails to provide information in the required time when requested by an owner and is subsequently fined $3,000, is the strata liable for this amount or is it the Strata Manager’s company that is liable?
Hi Maria
The following response has been provided by Rick Blampey SVN Strata Management:
Depending on the information being sought, as this may influence my response?
Without first reviewing the management contract between the Strata and the Manager, the fine would be applicable to the Strata directly. However, we would expect that the Strata Manager would be liable for the fine, provided that they are managing this information on behalf of the Strata and have failed to meet their obligations to provide it.
If the requested information is being requested under section 107, then there are certain time frames of which the information is to be provided and the fine may be applicable if this is not met. Please note that an application under section 107 is not considered to be made to a strata company until the fee (if any) charged by the strata company for the application has been paid.
Section 108: A request to provide the name and address of servicer for a Council member or officer of the Strata Company. Period of 14 days to provide.
Section 109: Inspection of material
(1) The Strata company needs to make the information available for inspection by the applicant at a place and time —
(a) agreed between the strata company and the person; or
(b) if agreement is not reached within 3 days after the strata company is given the application, specified in a written notice given by the strata company to the person.
(2) The time specified in a notice under subsection (1)(b) must be between 9am and 5pm on a day not more than 10 days after the strata company is given the application.
Section 110: An application under section 110 or a request to provide a certificate under section 110. Period of 14 days to provide.
In Western Australia under the amended Strata Titles Act of 1985 how much can a strata manager spend on maintenance per unit without the strata companies approval?
Hi Bess
Shane White, STRATA TITLE CONSULT PTY LTD has responded to your comment in the article above.
Given the council bears ultimate responsibility for the performance of the strata company and the SM can always assert “we work as instructed”, it would be rare for the Trubunal to be able to hold a SM accountable for anything especially when the SM controls access to strata records and refuse to accept that they include all communications.
Thank you Anthony for taking the time to reply. Your responses to my questions are clear and helpful.
Thanks Danny. We have another article from Anthony in the pipeline discussing this topic in even more detail. Stand by….. We should have it up on the site sometime next week.
Update: the article has been published and can be accessed here – WA: Q&A What are the Strata Manager’s Duties and Do We Really Need One?
It’s very welcoming and about time strata managers are held more accountable. I imagine that under the reform strata managers will change their attitude, conduct and standard of service to strata companies very quickly, particularly to owners who are not on the council committee. The reform should also apply heavy fines on strata managers not doing the right thing and for being bias in strata company business.
Do the Council of Owners also have a responsibility to fulfil their responsibility as office bearers? For example, responding in good time to give strata manager directions when a matter arises that require their approval? what sort options under the new Act do strata managers have in a situation where a council who insists on spending money where it is not budgeted for or act in contravention of the Act? Can a strata manager take the strata company to SAT under the new Strata Titles Amendment Act?
Check out this article on the Council of Owners duties that may be of interest.
https://www.lookupstrata.com.au/wa-strata-reforms-strata-council-member-duties/
Hi Danny
We have received the following reply back from Anthony Quahe, Civic Legal:
Thank you for your questions, which I will address in three parts below.
Do the Council of Owners also have a responsibility to fulfil their responsibility as office bearers? For example, responding in good time to give strata manager directions when a matter arises that require their approval?
Previously, there were no formal requirements for a strata council to act in the best interests of the strata company. However the legislative amendments create new standards of accountability for council members’ conduct.
Section 137 of the Strata Titles Amendment Act 2018 (the Act) provides that council members, including office bearers, must at all times act honestly, with loyalty, and in good faith.
In performing their functions, council members must also at all times, exercise the degree of care and diligence that a reasonable person in their position would be reasonably expected to exercise. They must also not make improper use of their position to directly or indirectly gain an advantage or cause detriment to the strata company, and must declare any conflicting interests to other members of the council.
In short, the answer is yes. Responding in good time would appear to be an example of how to exercise the degree of care and diligence that should be expected of a reasonable council member.
What sort options under the new Act do strata managers have in a situation where a council who insists on spending money where it is not budgeted for or act in contravention of the Act?
Strata managers would be in a difficult position. Councils make decisions and bear the responsibility that goes with that role. Strata managers merely carry out those decisions under instructions from their council.
However, section 146 of the Act now imposes duties such as having to exercise a reasonable degree of skill, care and diligence in the performance of their functions. So if they identify that the council’s insistence amounts to contravening the Act, they could warn the council against doing so. By checking if a contravention has occurred (e.g. by taking legal advice), and then giving the warning, the strata manager would show that they exercised such care and diligence.
If the council does not heed the strata manager’s warning, the strata manager could terminate their contract with the strata company, depending on the wording of their contract. The strata manager could say that they would not be acting in compliance with their (new) duty under section 146 to act honestly and good faith toward the strata company if they knew they had to carry out the instructions of a council that was exposing itself to risk by the contravention.
Can a strata manager take the strata company to SAT under the new Strata Titles Amendment Act?
Yes, but not for the kind of situation you have described.
Strata managers provide services to the strata company. It is not their role to enforce the law on erring strata companies in the SAT.
I hope these responses help.
Regards,
Anthony Quahe
Managing Principal, Civic Legal
Disclaimer: This comment contains references to and general summaries of the relevant law and does not constitute legal advice. The law may change and circumstances may differ from reader to reader. Therefore, you should seek legal advice for your specific circumstances.