Question: How do I approach our strata management company when they have been putting through maintenance costs without approval from the Council of Owners?
Answer: You may have uncovered a one-off instance, or it may be part of a larger problem amounting to misappropriation of funds.
My first thoughts about this question are to ask more questions?
What is the nature of the strata management contract that should be in place?
Has there been any given consent for the strata manager to take on any additional duties of the strata council?
Were any of the maintenance costs that have been expended the subject of immediate action to make the building safe? Were the repairs done to a Lot or the common property?
If any of the above questions answered the problem then that is good. If not, then a search of the financial records should be made and ascertain the limits and proportions of the various items of expenditure month by month or request that a full audit of the financials be requested at a general meeting.
You would need to ascertain what expenses have been put through and have the appropriate paperwork or inspections to back it up.
The answer to the question may be that you need to seek legal advice on how to proceed if you can demonstrate that maintenance costs have been paid with proper authority.
You may have uncovered a one-off instance, or it may be part of a larger problem amounting to misappropriation of funds.
This post appears in Strata News #515.
Shane White Strata Title Consult E: shane.white@stratatitleconsult.com.au