Body Corporate nightmare

Discussion in 'Property Management' started by yadeh, 17th Oct, 2017.

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  1. yadeh

    yadeh Member

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    I have this 2BD unit out of 4 units building. When I got this unit three years ago, the BC fee was $400 quarterly. in 2016, they suddenly increased it $800. I asked the reason. They said because the other three units do not pay their fees. I stopped paying the fee last year the BC does nothing for the building and it is all a dump. I complained to VCAT and when I attended the hearing their lawyer talked all legal jargon and the VCAT judge told me you have no legal case and ordered me to pay all the fees, late payment and interest and $500 for their lawyer.
    Now, I pay this $800 fee every quarter. They absolutely do nothing for the building and there is no one to complain. Has anyone got a similar experience with BC? Is there any way out of it? I appreciate any insight.

    Yadeh
     
  2. Pumpkin

    Pumpkin Well-Known Member

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    I’d suggest you take a look at the last five yeats financial statements and budgets. Hopefully you’d find a trend in the spending.
    Also have a look at the SinkIng Fund Forecast if available.
    But most importantly, avail yourself to the Committee and read all the previous minutes of meeting.
     
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  3. luckyone

    luckyone Well-Known Member

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    Well if they aren't doing anything, take it to the next meeting to change the body corporate. Of course you'll have to get a quorum or at least enough proxy votes to do so.
     
  4. bunkai

    bunkai Well-Known Member

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    Dude - you are an owner and you are responsible for the fees. Join the strata committee and get your s$%^ together.

    $800 a quarter doesn't buy you much btw.
     
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  5. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    Agreed - get in touch with the other owners and vote the body corp managers out. Naturally you would need to have a replacement in mind...
     
  6. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    I had similar last year, had a IP in a villa of 6 up on the NSW Central zcoast Strata managed by a company in St Marys , Sydney !!!!

    The place needed painting etc , when i rang up the Strata manager in St Marys 2.5 hours away , he couldn't even prounounce the name of the Suburb the Villa was in.

    He thought i would go away !:rolleyes:

    But i didnt .. i kept emailing, kept ringing , kept posting in their Facebook , and one morning he rang me , " please no more calls everything will be fixed on your list "!!!!

    Those of you who say attend the strata meetings... this was a IP on the Central Coast and the strata meetings were in Sydney !!!

    All the 6 owners were investors, no one attended the St Marys Strata meetungs except i did once !

    When i wanted to sell i went up there To the CC ... bought paints etc and done the cleaning and some painting myself and sent this ******* in St Marys the receipts which ... were paid by this strata company when i said i wanted to sell to move ...otherwise i will stay :). They paid the receipts:D
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    @yadeh - you are 1/4 of the body corporate or the owner's committee. Do to have a strata manager?

    What is on the minutes of the committee meetings regarding the admin and sinking funds?

    Why don't you know what's going on?

    So you know the other owners? C'mon there's 3 others.
     
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  8. Fargo

    Fargo Well-Known Member

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    I would be more interested to know why you would pay some-one to take yourself to court. Your are asking us, to tell you why you don't do anything for the building ?
     
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  9. qak

    qak Well-Known Member

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    Do the other units pay their fees now too?

    If you look at the financial statements they will tell you where the money goes. I would guess the biggest expenses will be insurance & the strata management.

    If you think you can do a better job you may be able to attend the AGM and be appointed onto the committee.

    To get out of it you can sell the unit.
     
  10. bunkai

    bunkai Well-Known Member

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    If the others aren't paying their fees - it may be very easy to achieve a quorum and sufficient voting numbers.
     
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  11. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    One other person may own all 3. Did you check strate before purchase?
     
  12. yadeh

    yadeh Member

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    Hi guys

    Thank you so much for your time and advice on this. It seems that although I am not new in IPs but naive when it comes to body corporate thing.
    I attended the AGM twice and I was the only one in there. According to the BC manager, none of the others still pay and he says they have taken action against them.
    I will try to attend the nest AGM, but as qak advised, it would be better for me:To get out of it you can sell the unit.

    Thanks to all.
     
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  13. yadeh

    yadeh Member

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    Yes, I have checked it. They are 3 different people.
     
  14. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    There is one forum member who called me once - she was bankrupted because she refused to pay the strata fees (over a dispute).
     
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  15. melbournian

    melbournian Well-Known Member

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    i have heard a similar story before where the person who didn't pay passed away and the son occupied the property while not paying as well. this isn't in brunswick?
     
  16. Natascha

    Natascha Active Member

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    With our last unit, owners couldn’t vote at the AGM if they hadn’t paid in a while. I don’t know whether there is a minimum percentage of owners who must decide on resolutions but have a look at your paperwork and find that out. You might be in a perfect position to change bylaws change the strata agent etc....,
     
  17. The Y-man

    The Y-man Moderator Staff Member

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    Generally, you need a majority - however, they often word votes in a way that after posting out the resolution to all owners, and if no objection is received within 28 days, it will be ratified.

    Owners cannot sell their units while in arrears/owing penalties etc in Vic, as the OC needs to issue an OC certificate (which they will not do until the accounts are in order). So not paying your share of the costs in time can be a very expensive loan at big penalty rates.

    The Y-man
     
  18. yadeh

    yadeh Member

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    I believe this. I did not pay while I was waiting for VCAT process and it took me about $1000.
     
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  19. yadeh

    yadeh Member

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    Thanks Y-man. I do not know any of the others. They did not show up in the last two AGM I went.
     
  20. Hetty

    Hetty Well-Known Member

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    They can't vote if they're not financial (paying their fees). At least, this is the way in NSW. You should be able to change strata managers, normally you would need more votes but if you're the only one paying you shouldn't. I'm surprised they've been allowed to get away with not paying.