Owners corporation for 3 subdivided units in victoria

Discussion in 'Legal Issues' started by raj_27, 4th Jan, 2021.

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  1. raj_27

    raj_27 Well-Known Member

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    What are the rules for 3 subdivided units in victoria? Do we need to have active owner’s corporation? A registered Manger etc? If it is inactive is there way to activate it?


    I have moved into unit few years ago. First time into owners corp. Its 3 sub-divided unit in inner city Melbourne. I live in the front one and there is common driveway. One of the unit owners is looking after the gardening and insurance. She is nice old lady, but very picky about the garden. She hires the top of the range gardener who charges her $220 every time for hedging and trimming 3-4 times a year.


    I tried to talk her out of this gardener, but she is pretty adamant that she spends that amount of money and we divide amount us.


    What choice do I have to force her to change? According to me even if we spend half of it should suffice. I think the other owner thinks same as well and she refuses to pay anything more than $50 at time. I just like to work out what is best for all 3 us rather than she doing what she likes and asks us to pay up.
     
  2. The Y-man

    The Y-man Moderator Staff Member

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  3. Stoffo

    Stoffo Well-Known Member

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    Yep, no one wants to pay the gardener a reasonable rate, yet pay a plumber or electrician a $100+ call out fee and $80 per 30 min and don't bat an eye.....

    Going thru strata you would pay near $100 per visit with 12-20 visits per year totalling $1,200- $2k......

    If the old dear in unit 2 is maintaining everything in between visits and it is costing under $900 per annum then it might be easier to let it go !

    *how long does the gardener spend there per visit ?
     
  4. raj_27

    raj_27 Well-Known Member

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    They charge $220 every time they visit. All they do is hedges nothing done in between the visits. Its just a common driveway not really a huge garden. The point is she wants to spend this amount on gardening where the other two doesnot. Its common area so everyone should agree to spend. At present it is now i want this done and then split it into 3.
     
  5. Stoffo

    Stoffo Well-Known Member

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    Then in writting (email/certified mail) formally notify the old dear that you do not approve this spending on common property, throw in a quote from Jim's mowing while you are at it .......

    Get the neighbor to do the same !

    Then just don't pay.

    If you are contributing monies to the insurance then you are basically being a silent lot owner.
    Currently the old dear is acting as the body corporate, and until there is an AGM with a quorum and voting then it's unlikely you can change anything !

    Thanks for not answering my question*
     
  6. raj_27

    raj_27 Well-Known Member

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    I have no idea how long the gardener/s spend. I can do the job myself in less than an hour to a home owner DIY quality. Appearently their minimum charge is $180.

    I actually did that. I told her that I agree to only pay $150 per year.
     
  7. raj_27

    raj_27 Well-Known Member

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  8. The Y-man

    The Y-man Moderator Staff Member

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    No.... until someone needs to sell AFAIK.

    On selling, you need an OC certificate (saying all bills are paid, etc etc) to be attached to S32 - which can only be issued by an active OC.

    When did you buy it? I thought the requirement for an OC Cert has been around for 15 years~ish?

    The Y-man
     
  9. raj_27

    raj_27 Well-Known Member

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    We bought in June 2019. There is a OC certificate which was just a template download and signed by the lady, which mentions nothing but the insurance. it doesn't even look like a legal document.
     
  10. The Y-man

    The Y-man Moderator Staff Member

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    Did it contain all the required items as per Records – owners corporations

    Was a seal affixed?
    What did your conveyancing lawyer say (please tell me you used a lawyer!)

    The Y-man


    What an owners corporation certificate must include
    The certificate must include:

    • current quarterly or annual fees for the lot
    • the date to which fees have been paid
    • total unpaid fees or charges for the lot
    • the date that special fees or levies were approved and the due date for payment
    • details of repairs, maintenance or other work that may incur extra charges to those already budgeted or approved
    • details of insurance cover
    • whether the owners corporation has resolved that members may arrange their own insurance and the date of this decision
    • a total of funds held by the owners corporation
    • whether the owners corporation has any other liabilities in addition to those listed above, and the details of those liabilities
    • details of any contracts, leases, licences or agreements affecting the common property
    • details of any agreements to provide services to lot owners, occupiers or the public
    • details of any outstanding notices or orders served on the owners corporation in the past 12 months
    • details of any legal proceedings involving the owners corporation and any circumstances likely to lead to proceedings
    • whether the owners corporation has appointed or has resolved to appoint a manager and, if so, the name and address of the manager
    • whether an administrator has been proposed or appointed for the owners corporation.
    The following documents must be attached to the certificate:

    An owners corporation should have all of this information in its records or set out on the plan of subdivision.

    It is very important that the information contained in the owners corporation certificate is accurate.

    Affixing the seal to an owners corporation certificate
    The owners corporation seal must be affixed to the certificate by:

    • two members of the owners corporation, or
    • the registered manager, or
    • the chairperson.
    They should write, next to the seal, ‘witnessed by’, with their full name, address, and the capacity in which they affixed the seal. It is a good idea to include the date.
     
  11. raj_27

    raj_27 Well-Known Member

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    The certificate which was part of section 32 was pure rubbish. It was a sample cerificate downloaded of the website some details filled in. Last page has unit 2 ladys name and sign and seal. I thnk that is dogy certificate. The lady din't remember such document.

    My Lawyer pointed out that vendors conveyancer is horrible and using this and rates notce in the section 32.I asked if I should refrain from bidding auction she said hell no. As they were not claiming no money for the owners corporation she said no issues.

    If its not law to have active owners corporation for 3 subdevided property, than shouldnot there be excemption from having certificate attched for section 32?
     
  12. The Y-man

    The Y-man Moderator Staff Member

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    At the end of the day, it sounds to me like you have these choices:
    • grit it and accept the current situation/costs
    • as per @Stoffo, recruit the other owner to move a motion to change gardeners at the next AGM
    • go the legal route (and possible can of worms) via consumer vic. On the link I posted, the first would be to request to see the OC register. There is no cost (as long as you do not ask for a copy). If there is no response, probably grounds to escalate.
    The Y-man
     
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  13. raj_27

    raj_27 Well-Known Member

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    Thanks Y man.
    My main concern is that we dont have a Owners Corporation. for now I am and I can live with few hundred dollers extra expense per year,but if some issues arise where we need to deside we have no meetings or formal procedure to comeup with resolution.

    I have mentioned this to lady looking after Insurance and gadening to reactivate our owners corporation so that we have someting in place. She is not intersted.

    Looking at the link you sent me about OC register we must have one.I dont think she keeps a copy. I will ask her, if she has one before i talk to her about activating the owners corporation.
     
  14. The Y-man

    The Y-man Moderator Staff Member

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    AFAIK you can not "deactivate" an OC.

    So it's either never been activated (in which case you can activate it and call an AGM), or if it IS active, then there's probably some serious compliance issues.

    The Y-man
     
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  15. Stoffo

    Stoffo Well-Known Member

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    Then why are you persisting in dealing with her ?

    Just go through the steps of the link provided by @The Y-man

    Apply to register the address, if it already has already been registered then they will give you the strata number.

    Then you can follow the steps to notify the other owners as per regulation to call an AGM, with topics to be discussed and voted on (gardening, other maintenance issue's, sinking fund for capital works and quarterly levy for future expenses, quarterly maintenance contribution levy).
     
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  16. raj_27

    raj_27 Well-Known Member

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    It's been definitely activated I have search report in section 32. I will have to reactivate it and call AGM. I will go through links and so what is required.I don't think other two are interested, but looks like they have no choice. I sort of knew I had to do that, but was thinking I was overreacting.

    Thanks again @Stoffo and @The Y-man
     

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