Strata manager booked and paid for services without authorization

hi all,

So I just received this month’s rec report and there was a bill for an insurance valuation that we never requested and was in fact voted against at our last AGM. Insurance isn’t due for another 6 months either.

In my opinion this cost should be reimbursed by the strata manager but I would like to know what sort of legal issues there are around the agent Issuing the work order in the first place and if they are obliged to refund us.

The issue is complicated by the fact we have already given them termination notice to move to another management company so they won’t exactly be bending over backwards to keep the relationship amicable.

Any advice or experiences would be appreciated

 

Exactly the same thing happened to me and they owned up to it and fixed it. So I would just nicely ask them, we were still friends with our outgoing strata manager - they were just hopeless.

 

breach of their powers as agent for you

 

It's an oversight on their part and they have no choice but to reimburse you. Sounds like someone didn't read the minutes from your last AGM and went ahead and organised it SIX MONTHS IN ADVANCE??? I can see why you are moving to another provider.

 

I agree - ask them to refund.

Also just on the above post - in many jurisdictions (including Queensland), the requirement to have an insurance valuation conducted is totally independent from the due date of the insurance policy.

Matt

 

Our last valuation was 2 and a half years ago, well within the 5 year statutory requirement to have another.

Refund has been requested, waiting impatiently for them to respond

 

Having similar problems
Lift & Fire quotes provided 6 months in advance
But with weeks to go on current insurance policy we have had to remind them !
We approved 4 pictues to be installed, the contractor ordered 3, none have been installed, yet they were paid for the job months ago
They pay themselves, and have even charged us for late payment
We have requested refunds also, not holding our breath
Some are clearly in the wrong line of work

 

@Stoffo , If the Work Order was issued to the contractor, and the contractor issued an invoice, whom on the Committee issued an approval to pay when the work wasn't done?

Assuming the amount was not small, that someone should probably get the boot from the Committee, unless it was a genuine mistake, in which case it needs to be addressed by that someone, and promptly.

Or, if the amount was not small, and no approval to pay was issued by the relevant Committee member, and the amount was paid, then the rest of the Committee should investigate how that occurred, and take appropriate steps to make sure that this doesn't occur again...

 

@Zepth, if you are in NSW, maybe consider convening a Committee meeting requesting in writing to the Strata Manager that they refund the the cost within 7 days of the request date, and that should said refund not occur within the stated period, then a complaint will be made to Strata Communities Australia and Fair Trading regarding the conduct of the Strata Manager.

 

@Ted Varrick thanks for the input
I am the chairman, the position of Secretary and Treasurer were never taken up, even though there was 9 committee members, this often happens in larger complexes (77).
Since discovering several irregularities I have been acting in all the roles.
Some refunds have occurred and our point of contact sacked.
We requested that all invoices need to be approved by a committee member, but the strata management still pay their management fee, additional management fee, other costs incurred by them and some accounts they deem to be "too close to due"
The committee agreed that they need to go, but then started on about lawyers, being able to sue for compensation, having to pay out the existing agreement and fear of being personally liable ........
Love to be able to name & shame all I can say is it is all 4 Show (old english terms)
So nothing has changed

 

Forgot to add
Went to Fair Trading NSW
They refered us straight to NCAT
Now I am sitting on my hands as the committee wants to obtain legal advice

 

Update for our issue. Refund has been processed without too much drama thankfully

 

@Stoffo , PM'ed you.