Question: Our sinking fund has run out of money and we need a lot of repairs and maintenance done to common property. the window paint has all peeled off and in some cases starting to rot, lintels are rusting, there is a very large common area window that needs to be replaced (totally rusted)…
Question: Does the Owners Corporation have to pay sufficient money from levies into the Capital Works Fund? I have just discovered no money has been paid into the Capital Works Fund where I live for the last 3 years. Around 240 people live in the building. Answer: Yes, the Owners Corporation must pay funds…
Question: Can an EGM be called to reverse the decision of a majority at an AGM? The owners corporation by a majority vote accepted the proposed strata levies at our AGM. Levies supported by appropriate budgets, explanations and Capital Works Funding Plan. A group of dissatisfied owners (just enough to make the 25% required for…
Question: Our Strata Manager refuses to show lot owners the trust fund. Are they obligated to show us? We suspect the Strata Manager of mishandling the finances. Our strata manager has been with us less than 1 year and we found out that the management agreement contract is signed for 3 years by 2…
Question: Is there a formula for setting strata levies to cover scheduled capital works and avoid a shortfall? We have identified a situation where projected levies will result in a shortfall. Answer: There is no accepted ratio for the determination of funds to be raised. There is no set “prudent” amount or accepted ratio…
A LookUpStrata reader, who recently moved into a unit, wanted to know how he could get an entrenched and highly resistant executive committee to acknowledge their obligations under the new legislation, to have a 10 year plan, have it professionally costed and take immediate steps to raise the required funds to support it as well…
We provided another response to a LookUpStrata readers question. The reader recently moved into a strata building, and wanted to know how to go about organising a roof repair with limited funds available in the sinking fund. In summary, the roof is common property and as such a repair should be requested by the Executive Committee and…
We have just published a new article in which we provide some more details around strata levies (or strata fees) and strata management fees. There are a number of ways in which a building can be ‘creative’ in reducing the levies it needs to raise. This article highlights the need to do your homework before…