The WA Strata Magazine | August 2022

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The WA STRATA MAGAZINE Cost-saving measures can cost more in the end Page 16 | Civic Legal Managing repaymentsincreasingtocoverthe10yearplan Page 30 | EYEON Property Inspections Restricting access to improve safety of residents Page 10 | Realmark AUGUST 2022

Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at the LookUpStrata Directory, flip to the end of this magazine.

About Us

Meet the team Liza Jovicic Sales and Content Manager

Nikki shares her time between three companies, including Tower Body Corporate in SEQ, and is currently in her third term on the SCA (WA) Education and Professional Development Committee now known as the Industry Understanding Committee. More recently Nikki has become known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.

Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013. With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians.

Learn more here → https://www.lookupstrata.com.au/about-us/ You can contact us here → administration@lookupstrata.com.au

LookUpStrata is Australia’s Top Property Blog Dedicated to Strata Living. The site has been providing reliable strata information to lot owners, strata managers and other strata professionals since 2013.

As well as publishing legislative articles to keep their audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month.

Liza came on board in early 2020 to bring some structure to LookUpStrata. She has a passion for processes, growth and education. This quickly resulted in the creation of The Strata Magazine released monthly in New South Wales and Queensland, and bi-monthly in Western Australia and Victoria. As of 2021, LookUpStrata now produce 33 state based online magazines a year. Among other daily tasks, Liza is involved in scheduling and liaising with upcoming webinar presenters, sourcing responses to audience questions and assisting strata service professionals who are interested in growing their business.

4 Capital works / maintenance plans: getting it right Sedgwick 6 MIMOR helps residents do things by the book MIMOR 8 Landlord Insurance vs Strata Insurance: What’s the difference? Tyrone Shandiman, Strata Insurance Solutions 10 Restricting access to improve safety of residents Luke Downie, Realmark 12 Making a statement in Strata ManagementRealmark 14 Abstaining from voting on a resolution without dissent Jamie Horner, Empire Estate Agents 16 Strata Titles (WA): cost-saving measures can cost more in the end Civic Legal 18 Is approval required before spending a budgeted amount? Scott Bellerby, B Strata 20 Collecting all payments on time for the strata insurance renewal Shelley Fitzgerald, Emerson Raine Thanks to our sponsors Contents 22 Cars speeding on common property QIA Group 24 Can a small lot scheme be exempt from taking minutes? Marietta Metzger, magixstrata 26 Thermographic Inspections: Learn how they can reduce the risk of building fires Metrowest Services 28 Can the Council quorum be achieved with proxy votes? Andrew Chambers, Chambers Franklyn Strata Management 30 Managing increasing repayments to cover the 10 year plan Michael Ferrier, EYEON Property Inspections 32 How does the new Community Title Legislation impact existing buildings? Shane White, Strata Title Consult 34 Council run by majority owners ESM Strata Management 36 The power of community: CHU SCA (WA) 2022 convention SCA (WA) 38 The WA LookUpStrata Directory

• Increase physical damage to the asset

The cost of repairs and replacement is dependent on the location, type and access restrictions. Current building defects and delays in undertaking capital works can potentially:

CAPITAL WORKS / PLANS: getting it right

MAINTENANCE

Requirements for an in-depth sinking fund is vital in the overall works, maintenance and longevity of strata assets.

• Decrease the longevity on various building elements

• And result to an increase in costs and raising of additional funds.

require the implementation of a 10 year capital works/ maintenance plan for strata complexes to ensure upkeep, ongoing maintenance and overall longevity of strata assets in all states of Australia.

An ongoing challenge in the residential and commercial property industry is the inadequate allowances in existing capital works budgets to address the replacement of critical services in buildings.

PROACTIVE MAINTENANCE, SERVICING AND MANAGEMENT of the physical building and mechanics of its assets is vital to ensure the building will function well into the future. Often failure to schedule regular maintenance and repairs may deteriorate the asset sooner. Initial upfront investment is important in ensuring the property and value of the asset is maintained.

There are a number of considerations for implementing a 10 year capital works/maintenance plan:

NATIONAL CHANGES TO STRATA LEGISLATION/REGULATIONS

ACCUR AC Y IN C APTURING DATA ON ASSETS old school traditional desktop maintenance plans have limitations in collecting data on assets and their condition. Basing long term plans on old, historical and outdated information can often result in failure to identify all assets and adequately financially plan for the future.

RISK OF ADDITIONAL FINANCIAL BURDENS shortfalls in generating appropriate funds for potential large and more complex programs can be avoided without the need for raising special levies or acquiring strata loans.

• New

required to disclose large defect issues, maintenance items etc. This may impact policy terms or in some cases if insurance can be obtained. You may be required to provide an accurate 10 year maintenance plan/sinking fund to your insurer in the future.

Sedgwick is experienced in strata and suggests owners work with a trusted partner to establish and regularly review plans, complete maintenance, repairs and capital works programs in line with the 10 year maintenance plan. This will ensure your strata plan meets current requirements and is a valuable reference resource for the longevity of your strata asset.

NEXT STEPS

Reducing physical risk, financial risk and liability for owners will ensure: Build assets are sustained Finances are kept in check The risk to health and safety of all those living on and/or attending site will be kept to a minimum Minimising the flow on impacts on insurance and property valuations.

APPROPRIATE COVER In recent years obtaining strata insurance as a regulatory requirement has become more difficult. Owners are Avoid special levies to be raised for unforeseen works. Long term reduction in maintained cost by addressing defects and maintenance related to works. Reduced lability from injury. Realistic risk assessment for insurers. owners can purchase with more confidence increase in property value from maintaining the level of quality and function in aging buildings. The owner has a realistic overview of future costs. Capital works can be planned, packaged, and tendered to reduced costs. annoyance with daily operation of the buildings. OF 10 YEAR MAINTENANCE

• Potentially

COMPLEXITY IN BUDGETING AND FORECASTING In large and complex strata plans and Building Management Committee’s (e.g. mixed use commercial, retail and/or residential lots) budgeting and forecasting the individual elements of the building requirements, shared facilities and/or special features of an asset can often be overlooked or incorrectly accounted for.

IMPLEMENTATION AND EXECUTION OF PL ANS focus is often put into planning and preparation, but execution is fundamental when generating funds for future repairs and maintenance. Often taking a reactive approach can result in larger and more complex programs of work which in turn will cost significantly more.

MITIGATING RISK

IN-DEPTH

PLANS/SINKING FUNDS For more information on our services, contact: E. sales@au.sedgwick.com Edwina Feilen, Manager, Business Solutions P. 0424 750 900 E. edwina.feilen@au.sedgwick.com

BENEFITS

• Reduced

MIMOR helps residents do things by the book

COMMON AREA BOOKING SYSTEM

Anyone who has lived in an apartment complex knows only too well the disappointment of arriving at the gym or pool only to discover every other resident has had the exact same thought at the exact same time. It’s a scenario that helped to inspire Australian entrepreneur Jake Sharp to create the MIMOR digital platform, an information and booking hub designed to overcome strata-living sticking points and create a more harmonious living environment.

Strata apartment living brings with it many advantages: less maintenance, lower running costs and added security. But higher density living can also have its downsides when it comes to sharing common amenities.

And for residents working from home and needing a quiet space and professional backdrop to impress for that important client presentation, the booking system can also be used for conference room facilities.

“Good neighbourly relations are always important, but even more so when you are living in close proximity and sharing the space with dozens or even hundreds of people,” Sharp said. “An independent booking system provides opportunity for all and certainty for residents and their guests, knowing they can turn up and enjoy use of the barbeque at their chosen time.”

MIMOR subscriptions are scalable, from three apartments to more than 500. The platform is being translated into 10 languages, with a mobile app version to launch soon.

For more information, go to mimor.com.au

MIMOR (Move In Move Out Register) is a one-stop shop acting as a central digital system for residents and building managers and service providers, comprising vital building information, moving processes, parcel management procedures, general announcements and real-time communications via email and SMS alerts.

info@mimor.com.au mimor.com.au

MIMOR’s common area booking feature allows residents to choose the facility and time they wish to book, with the confirmation email outlining any rules that need to be complied with. The booking feature can even be tailored to ensure compliance with health advice, with building managers able to nominate time intervals and the maximum number of people allowed to use the facility for the allocated time. Time and number limitations can also be reset to reflect revised state or local government restrictions.

“The latest data shows almost 10 per cent of the Australian population live in strata schemes. I created MIMOR to be inclusive of as many of those residents and owner corporations as possible,” Sharp said.

difference?What'sInsurance:vsInsuranceLandlordStratathe

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Should a strata lot owner who rents out their lot have landlord insurance? I live in a 3 lot complex. The other 2 lots are rentals.

Landlord lot owners in our small scheme make claims for damage caused by their tenants on our strata insurance. This has increased our premium. Shouldn’t they have landlord insurance?

The landlord lot owners make claims for damage caused by their tenants on our strata insurance. This has increased our strata insurance premium. This isn’t fair. They are collecting rent on their lots and should have seperate landlord insurance to cover damage caused by their tenants. It doesn’t seem reasonable that I should bear the increase in insurance premiums for their tenant’s damage.

Strata it is not possible to get a separate not possible a separate

Insurance covers all items defined as building –

landlords policy to cover building items that the strata policy covers. Strata Insurance covers all items defined as building – it is

landlord policy to cover building items that the strata policy covers, hence the reason legislation requires the strata corporation to have cover. The basic principle is that if you pick the unit up and shake it, anything that falls out is lot owners’ contents/landlords + temporary flooring such as carpet, blinds & curtains, appliances that are not permanently attached. Other permanent fixtures including but not limited to kitchen and bathroom cabinetry are covered by strata insurance subject to the policy terms, conditions & exclusions. When you purchase in strata, you buy into the claims history of the complex – unfortunately the only way to avoid a shared claims history is not to own in strata at all. Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au READ MORE HERE

to get

Due to a recent break-in, access via a fire door has been aainconvenience.causingrestricted,residentsCanCOOimposesuchrestriction?

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Based on the information at hand, I will exclude the idea of restricting access to common property and assume there is access to common property but the exclusion of the use of this door provides inconvenience as appose to restricting access.

Section 91 (1)(b) requires that the Strata Company controls and manages the common property for the benefit of all the owners of lots. Building security is a risk for consideration for any Strata Company and its council of owners.

Recently, we had a break-in into our underground garage. It looks like they gained access through the fire escape door on the street level and descended down the steps into the garage. They stole a number of items over 2 hours. The door on the street is accessible by key. The lock on this door has been changed and the strata council have denied new keys to owners. This is inconvenient as the access is next to the bin room so you would normally put your rubbish in the bin and then use the access door to descend into the garage. Now residents have to walk down the street and go in through the front door to the lift or open the garage gates to get to your vehicle. Can a COO impose such a restriction? It is reasonable for the council of owners to take steps to improve the security and safety of those in the building. Your question mentions that the door in question is a fire door. I will assume that the mechanism for the opening of the door from the inside has not changed from a fire safety perspective. All lot owners are equally entitled to the use and enjoyment of common property unless the strata company by-laws provide otherwise (including an exclusive use by-law).

Section 91 of the STA1985 provides for the general duty of a Strata Company. Part of the reasonability of your council of owners is to ensure the Strata Company meets its obligations under section 91.

ofimproveaccessRestrictingtosafetyresidents

READ MORE HERE Luke Downie | Realmark ldownie@realmark.com.au

Often councils must make tough decisions in order to do what they can to protect the security of those in the building. Given the circumstances provided, my opinion is that it would be a reasonable step for the council of owners to take in restricting who has external access to the door in question if they believe doing so would improve the security and safety of those in the building, provided that by doing so they are not restricting lot owner access to any area of common property that is not subject to by-law restriction in relation to use.

It’s about creating a better result for the prosperity of strata owners.

Thetimes.major industry reform in 2020 had huge ramifications, not only for strata managers but for developers, owners and industry bodies, many of which are still being felt two years later. Like many strata managers, Luke started his strata career as a Council of Owners member when he purchased his own strata property. A desire to do more and contribute to his strata community led him to discover what course options were available to formally take on a role as Strata Manager.

During Luke’s tenure he has witnessed enormous change and evolution in the industry.

“The two areas I’ve seen change the most are communication and technology”, Luke said. “A decade ago, Strata Managers were only attending to emails a couple of hours per week – now, it is the bulk of their role and takes up a huge amount of time.”

Realmark has been engaged in Strata since it’s inception 33 years ago, however under the stewardship of Luke Downie and support of COO Justin Baker, the division has been reimaging during challenging

Luke brings over 25 years’ experience to his role, and in partnership with the leadership team has embraced change and technology across the organisation, whilst maintaining the elements of human connection and a highly personalised experience.

“At the time there was very little available other than a module within the Property Management course at TAFE,” Luke said. “With higher expectations on strata owners and Council Members, more education options have become available and I foresee an increase in the professionalisation of Strata Management, alongside greater education options.”

Luke also sees portfolio structure as being critical to a Strata Manager’s ability to maintain a high level of service to “Alongsideclients.theincreasing communication demands, WA’s strata management fees have remained quite low compared to the east coast, and therefore strata managers have large portfolios to ensure profitability can be maintained,” Luke said. These changing demands coupled with the industry reform have resulted in Strata Managers needing to be far more skilled across a number of critical areas, such as financial proficiency, project management and legal understanding to name a few.

Realmark Strata at the annual Professional Development Team Conference, 2022. “Strata managers now need to be all-rounders,” Luke adds. “A decade or two ago they were akin to administration managers – now the stakes are far higher, and education and strong relationships with subject matter experts is critical.”

Connect With Realmark Strata on social

“We anticipate this segment of the real estate profession will continue to grow and thrive in WA as urban infill leads to more apartment living, so it is important we recognise and celebrate those leading the way in this specialty.”

REIWA Chief Executive Officer Cath Hart recently mentioned that strata is an important component of the WA real estate industry and the Institute is delighted to be able to formally recognise its importance at the Awards for Excellence.

Contact: Luke Downie, Realmark Strata Phone: 0479 095 889 or 9328 0999 Email: ldownie@realmark.com.au Website: https://www.realmark.com.au/strata-management

Luke Downie and Justin Baker following Luke winning REIWA’s 2022 Strata Manager of the Year Award.

“Our strata network has over 140 members who do vital community work to ensure strata properties are well managed and run smoothly,” Ms Hart said.

“Iyears.predict the utilisation of technology will continue to increase, for managers to streamline processes and communication, and increase service levels.”

In reflection of this, REIWA have thrown their considerable industry weight behind the reform and have chosen to recognise strata for the first time this year, with their Excellence Award.

So what’s next, after such a dynamic period? Looking to the future, Luke foresees two major changes coming to the industry over the next 5

Realmark Strata is the proud recipient of this inaugural award. For Luke and all the Team at Realmark, this award recognised the Team’s willingness to adapt and embrace the transitional nature of Strata Management that continues to emerge and evolve.

“We’re currently bringing in talent from the east coast to ensure we can continue to provide outstanding service for our clients, which gives us the opportunity to utilise their experience in legislative change to prepare for likely future change in WA,” Luke said.

About Realmark Strata Realmark’s clear commitment to managing strata properties is well beyond the everyday practicalities and compliance of property management.With our years of local in-depth experience with both commer cial and residential complexes, we’re also well sought-after by developers and owners for our insights into the future requirements of their project after the registration of their strata plans. Luke Downie is an astute and experienced commentator on the property market and strata management. Featured in many publications, Luke regularly contributes property opinion pieces and advice.

QA www.lookupstrata.com.au14

Can an owner abstain from voting on an issue listed on the AGM Agenda as requiring ‘Resolution without Dissent’? How is this done? Can an owner just be absent from the meeting? An Owner can choose to abstain on an Annual General Meeting agenda item or not attend the meeting. Yes, an owner can choose to abstain on an Annual General Meeting agenda item or not attend the meeting. It means they are choosing to not vote on the proposed item. The options for an owner are a yes, no or abstain vote.

Section 120 also notes that in regards to voting periods, for a resolution without dissent there is an additional period of voting that must be taken into account. The period for voting must be in writing within 28 days after the meeting (unless the regulations specify otherwise), this means that an Owner in the scheme can also choose to cast a vote 28 days after the meeting.

Jamie Horner | Empire Estate Agents

If an owner chooses to be absent or abstains from a Resolution without dissent vote it can still pass as a Resolution without dissent, however, the motion will not pass if a ‘no vote’ is cast. Section 123 notes that it will pass provided a minimum of 14 days’ notice is provided of the proposed resolution before voting, and no vote is cast against the resolution. Therefore a abstain vote has no impact on a resolution without dissent.

withoutonfromAbstainingvotingaresolutiondissent

JHorner@empireestateagents.com

August 2022 Image: hidesy/Shutterstock

If by-laws are not sufficiently clear, this can lead to conflict.

Here are a couple of examples of by-laws that illustrate this point:

It might seem like a good way to save money to have the council of owners manage the strata company themselves. The strata complex is then managed by a volunteer lot owner whose best qualification for the job might be that they have more free time than the others! However, we have seen disputes escalate in the hands of volunteer strata managers. Such escalation can arise because of a lack of skill on the part of the volunteer. They can give rise to opinions that there is a lack of skill, or a bias on the part of the Differencesvolunteer.ofopinion can get entrenched. That can prolong a dispute and of course, the longer the dispute, the more cost is involved.

© Civic Legal 2022 www.civiclegal.com.au

Strata disputes can arise for a number of reasons. This article looks at how an over-emphasis on cost saving can lead to increased costs and sources of conflict down the line.

It may be tempting to select the cheapest option. The cheapest option of all is of course to not appoint a professional strata manager.

Example one: ‘No owner or occupier will store any items on private balconies above the height of the balcony wall.’ Example two: ‘Every owner occupier or visitor shall ensure that doors and windows are closed quietly and not slam them shut.’

Example one is open to a dispute over a lamp or flowerpot stand that stands on the floor of the balcony but is visible above the balcony wall.

One example we have seen is where the volunteer strata manager had weak communication skills. That resulted in misunderstandings that then entrenched the differences between the parties. That dispute ultimately needed lawyers to intervene and help with resolution.

Saving costs on strata managers

Strata Titles (WA): cost-saving measures can cost more in the end

By-laws drafted subjectively are by-laws drafted with less thought or expertise behind them. Those in turn are likely to be the result of less professional time and are probably cheaper to obtain. The deficiencies of poorly drafted bylaws may not be detected till years later when they are Thechallenged.costofresolving the consequent dispute is invariably going to be much higher than the cost of investing in welldrafted by-laws in the first place.

Example two is open to a dispute as to what amounts to ‘quietly’

Another area to consider is in the engagement of strata managers.

Saving costs on by-laws

Disclaimer: This publication contains references to and general summaries of the relevant law and does not constitute legal advice. The law may change and circumstances may differ from reader to reader. Therefore, you should seek legal advice for your specific circumstances. The law referred to in this publication is understood by Civic Legal as of publication date.

| Managing Principal T 08 9200 4900 E aquahe@civiclegal.com.au

© Civic Legal 2022 www.civiclegal.com.au

The budget can also be a source of tension where different lot owners have different priorities. For example, lot owners who are absent landlords may prefer to save on maintenance costs, in order to achieve a better return on their investment. However, lot owners living in the same complex may prefer to spend a bit more because they want to make the common property look nicer.

Budgeting

‘Make sure that cost saving is not the main or only motivator.’

Conclusion When making decisions for the strata complex, councils of owners should exercise due diligence and make sure that cost saving is not the main or only motivator.

The same story applies here. An absent landlord may think that they are benefitting from cost-saving measures. However, the problem with saving costs on maintenance plans is that in the long run, this can have a negative impact on the value of the investment.

One example we have seen involved a roof plumber who was engaged to deliver a limited service on the gutters. This resulted in a couple of the lots suffering water damage from overflowing gutters. The consequence was substantial cost to rectify the damage and to manage the dispute between the lot owners and the strata company.

AnthonyContactQuahe

Some councils of owners seek the lowest cost options when making decisions that result in the budget. Yet, as with anything in private and working lives, the cheapest option can often not be the best quality option.

www.lookupstrata.com.au18 Is approval required before spending a budgeted amount?

Also, does approval for spending within this budget need to be approved by all Council of Owner members or can the Treasurer approve any expenditure within the budget?

This is the target spend that the Council needs to try and stay within. The Council can then approve items to be repaired.

The Treasurer does not have authority, to approve repairs in isolation from the rest of the Councillors.

If the approved budget has a line item for building repairs and maintenance of $10,000, can the Council of Owners spend the $10,000 on any building repairs that they agree are required? Does this decision need to be specifically approved by the Strata Company?

If the approved budget has a line item for building repairs and maintenance of $10,000, can the COO spend this amount on any building repairs without specifically seeking approval from the Strata Company?

Scott Bellerby B Strata | scott.bellerby@bstratawa.com.au

If the strata company approves a budget line item of $10k for repairs and maintenance, then this is the target spend that the Council needs to try and stay within. The Council, by simple majority, can then approve items to be repaired.

READ MORE HERE

The insurers will not normally accept partial payments – they will insure to the limit that the funds will allow and this may leave the Strata Company under insured.

Shelley Fitzgerald Emerson Raine | shelley@emersonraine.com.au HERE

Some insurers, especially if you have a history with them, will allow a 28 day extension on the policy. If the due date is an issue, this may provide you with the confidence that the policy will be paid regardless and takes the onus off you as a volunteer to ensure the funds are received on time. It would be worth asking your insurers if they would allow this. Even 14 days would take the pressure off. This information does not need to be advised to all owners as this is an extension and is only there if required.

READ MORE

In relation to dealing with the other owners, it may be worth advising them that, in future, all payments will be required 2 days prior to the expiry date. On the day prior to the insurance renewal date, you will be providing the insurer with the instructions to place the policy to ensure it is in place prior to expiry. This will hopefully ensure the owners have their money to you in advance.

www.lookupstrata.com.au20

The Strata Company (all owners) have an obligation under the legislation to insure for full replacement value of the complex. As a voluntary manager you are only trying to ensure the Strata Company meets it’s obligations.

In our small strata scheme, every year when the strata insurance premium is due, we have difficulty collecting payment from all owners. Do you have any tips on how to do this? Will the insurance company take part payment?

I’m the voluntary strata manager for a small unit complex in Perth. I’ve been in this role for 15 years and dislike it immensely, but I am the only one who will take on the role.

renewalinsurancetheonallCollectingpaymentstimeforstrata

Every year when the strata insurance premium is due, I have immense difficulty securing payment of their portion from two of the owners. We always end up OK by the due date, but I hate the anxiety associated with chasing up the money.

Is there an easier way? I’ve played the “I’ll quit if you don’t make your payment on time” card a couple of times. Do strata insurance companies accept partial payments if some unit owners are tardy in meeting their obligation? Advise all owners that, in future, all payments will be required 2 days prior to the policy expiry date.

21 When you finance your strata project with Lannock, you are dealing with the industry experts. Having operated for nearly 20 years, our friendly team have the knowledge and experience to deliver the funds you require. We finance capital works for owner corporations and body corporates around Australia including repairs, renovations, cladding rectification, defect rectification, strata asset renewal, professional services, litigation and re-development.

What is the council of owner’s duty of care with respect to ensuring the physical safety of owners on common property? I’m concerned about lot owners and their visitors speeding on our common driveway, past private driveways which have very limited visibility in either direction and which put those owners at high risk of serious, if not fatal, motor vehicle accidents. We have a speed limit on the common driveway and have installed speed humps, but many drivers ignore the speed limit, thus endangering other lot owners. Is this a WHS issue? What can I, as a lot owner, do about this issue and what should the council of owners be doing to mitigate the risk?

If you introduce speed humps and signage, or a combination of both, you’re doing as much as you possibly can. In addition, if you have a notice board, or if your counsel is quite active, you can put bulletins out every now and again asking residents to ‘Please do slow down. This is a shared access way’.

Unfortunately, what they say in safety is that there’s no legislating for stupidity. You just can’t stop people doing things, and particularly in a strata company where there’s no hierarchy. So if you’re in a standard business, there will be a person that’s the boss, and then they have subordinates, and there’s a chain of command. You can say to an employee of yours, ‘Do this, don’t do that’. This doesn’t work in strata company, unfortunately. Tenants are dealt with via the property manager. The council writes to the property manager to ask the tenant, who lives right next door, to do something, because people might get offended if you talk directly to the tenant. So it becomes quite difficult that way. Do everything you can to mitigate the risks that are associated with the situation. Unfortunately, there’s nothing under the Work Health Safety Act that will help in this situation. Unfortunately, you can’t go to WorkSafe WA and say ‘Fine these people’.

QIA Group info@qiagroup.com.au

In safety there’s no legislating for stupidity.

Very broadly, if you’re a residential strata company you are not generally going to fall under the WHS legislation. This situation is very common and one of the solutions we commonly suggest is to put up traffic mirrors to try and help mitigate the risks so people can see others coming.

Q Cars speeding on common property

A READ MORE HERE

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What is the council of owner’s duty of care with respect to ensuring the physical safety of owners on common property –particularly with cars speeding on common property?

Marietta Metzger | magixstrata marietta@magixstrata.com.au

QA READ MORE HERE

If the strata scheme of this 4 lots scheme has a bylaw registered under the former Act which exempts the strata company not to keep minutes of meetings (and most likely the standard bylaws in relation to General Meetings have been repealed at the same time – if not, then they have been deleted by the amended Strata Titles Act ), it really now only exempts it from keeping minutes as Section 127 requires a Strata Company to hold an Annual General Obviously,Meeting. in order to provide evidence that the Strata Company has complied with Section 127 of the Strata Titles Act 1985 as amended 2018, we do recommend that minutes are being kept of those Annual General Meetings, even if the minutes in short state the date, time, who attended and the business transacted or any other form of evidence that the legal requirements have been met. We recommend that the Strata Company seeks further legal advice in having their bylaws consolidated which would eradicate any doubt about the bylaws and the requirements under the Strata Titles Act in relation to conducting meetings and keeping minutes.

Sectionarethatwefunction,acompanyexemptlotforSchemehaveareconsideringminuteswerequiredtoanAGM?bylawsa3,4or5schememaythestratafromdesignatedhowever,dorecommendAGMminutesbeingkept.140

We have a bylaw from several years ago stating minutes do not have to be taken at meetings. In our havescheme,stratawe4strata title units. Is it legal to take no

(2) of the Strata Titles Act 1985 as amended states that scheme bylaws for a 3, 4 or 5 lot scheme may exempt the strata company from a designated function.

Can a small lot scheme be exempt from taking minutes?

www.lookupstrata.com.au24

Section 140 (4) of the Strata Titles Act 1985 as amended then stipulates what a designated function is and it goes on to say that –apart from other functions – the keeping of Minutes of meetings can be exempt. The former version of the Strata Titles Act did also allow a 3, 4 or 5 lot scheme to be exempted from certain provisions under the Act including the keeping of minutes of meetings and books of accounts. However, the previous Standard Bylaws 11 to 15 in relation to General Meetings, Proceedings at general meetings, moving motions and voting procedure have all been deleted by the amended Strata Titles Act and provisions have been included now into the Strata Titles Act 1985 as amended 2018.

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issues Fraser MacDougall Asset Maintenance Manager Metrowest Services What makes an effective Thermographic Inspection? •Recommended:Category1-technicians carrying out inspections • Category 2 - overseeing supervisor * Check your individual insurance requirements A KNOWLEDGEABLE THERMOGRAPHER • Knowledge and familiarity of the systems and equipment • Site conditions • Understanding the physics behind infrared radiation and thermography KNOWLEDGE OF ELECTRICAL SYSTEMS The better-quality the camera, the easier it is to identify fault situations when in the hands of a knowledgeable thermographer. ENSURING QUALITY EQUIPMENT INSPECTION FREQUENCY Recommended Annually

• Vibration • Thermal

In this share insights on how thermographic scanning can detect early problems and through preventative maintenance, prevent catastrophic events. show you the relevance and how these concepts can be applied in real life, am going to run through an actual case study of a fault identified through a thermographic inspection which prevented a potential fire and critical power failure. enjoy reading this article and if have any questions hesitate to contact

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These temperatures are well beyond the safe operating temperature of the cable and equipment and posed a potential fire risk.

Thermal representation of the switchboards on the left & right respectively. These images look similar, with almost identical maximum temperatures in both cases at 46 and 48 degrees respectively, which is within normal operating temperatures for all components shown.

CONTACT US Office Phone : 08 9416 0666 Email : info@metrowest.com.au

The fuse holder had begun to melt and become brittle, and was likely to completely fail and potentially combust at any moment.

Case

Why Metrowest Services? + Metrowest technicians are registered electricians, and TCAT 1 and TCAT2 certified to meet insurance and compliance requirements for thermographic inspections. Thermal imaging is not simply a matter of pointing an infrared camera at an object and displaying the resulting images in a report.

Read the case study showing the application of technologies and principles to prevent a potential fire.

Investigation of client’s electrical system after a fire alarm

Thermographers look for temperature differences and patterns that tell them a story about the performance of the equipment We can see that at two different spots, over a short distance of the cable, there is an approximate 8-degree temperature difference. Potential issues at the connection on the other end of the cable. Further inspection along the cable revealed extremely high temperatures in excess of 150°C

Study

Can you tell which switchboard is a fire waiting to happen? case study at metrowest.com.au/services/

Can quorumCouncilthe votes?withachievedbeproxy

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We have 7 members of council. At a recent AGM, only 3 members attended with proxies to make up quorum. I am concerned about the lack of governance with limited numbers making decisions. At our AGM, it was voted to have 7 members of council. My understanding is that we then need a quorum of 4. At the last council meeting, only three council members were present in person but they all had proxies of the other members to make up a quorum. Can they do this? My issue is that only 3 council members were present in person and making decisions. I am concerned about the lack of governance as we have a major project happening in our building.

The relevant sections of the Strata Titles Act 1985 that apply to this scenario are the rest of Schedule 1 By-law 4; and Schedule 1 By-law 8.

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Andrew ChambersChambersFranklyn Strata Management andrew@chambersfranklyn.com.au

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Quorum can be achieved by representation (in person or by proxy) of four members of their Council, even if only three members physically attend. Your correspondent is correct. Quorum can be achieved by representation (in person or by proxy) of four members of their Council, even if only three members physically attend, providing that at least one of the physical attendees holds a written proxy from another absent Council member. In relation to governance, it should be noted that any Council decisions are still subject to restrictions that may have been defined under the provisions of the Strata Titles Act 1985 Schedule 1 By-law 4 (1), as well as all other parts of the Act.

Chambers Franklyn STRATA MANAGEMENT

Managing increasing repayments to cover the 10 year plan

With the implementation of the 10 year maintenance plan, how can owners manage increasing repayments to manage both levy requirements? In WA, the 10 year plan has been introduced. Levies for the 10 year plan can be as much as $1,000 per unit per year in addition to the quarterly levies. Our quarterly levies need to be increased for CPI as they have not been increased since 2018. How can owners manage increasing repayments to make both levy requirements?

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In WA, where the 10 year plan is a newer requirement, it can seem that all of a sudden you’ve got to pay much higher costs on an ongoing basis for your apartment. Remember that those levies are part of a savings plan. Even though they are hitting your personal budget every quarter now, they are contributing to saving for major maintenance further down the line.

In the past, you may have been paying the odd special levy or an additional levy to pay for repairs and you haven’t really thought about that as much as when it’s coming out on a quarterly basis.

Even though the increase in levies is hitting your personal budget now, they are contributing to saving for major maintenance further down the line.

You’re much more conscious of it. It’s something you have to get used to over time. I know it can be difficult when it’s a big additional amount to factor into your personal budget, but it will make a big difference to the building over time if you have those funds available.

Michael Ferrier | Eyeon Property Inspections michael.ferrier@eyeon.com.au HERE

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Will existing multi use strata scheme buildings, with constant in-fighting over management/ common areas/cost allocations, etc. be able to adopt the community title format to try and offset some tension?

The Community Title Legislation will have no impact on any existing strata scheme as it is for new developments.

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a better way, under the existing strata legislation, to tackle these issues?

How does the new WA Community Title Legislation impact existing strata schemes? Most of the information coming out seems to be aimed at land developers.

Is the new WA Community Title Legislation applicable to existing strata schemes? Most of the information coming out seems to be aimed at land developers.

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I would imagine that dealing with everyone’s Mortgagee or any Caveats or Leases that may have been registered will increase the degree of difficulty Unfortunately,immensely.while the new CTS may offer what appears to be a greener pasture, there will always remain the problem of different opinions and egos, no matter which Act you are governed under.

The Community Title Legislation will have no impact on any existing strata scheme as it is for new developments.

If so, what consequences might be anticipated in doing so, and would this entail the winding up of the strata scheme to facilitate a community title Otherwisescheme?isthere

How does the new Community Title Legislation impact existing buildings?

Old strata schemes wanting to “swap over” to CTS would first need to Terminate their existing strata scheme. This poses a whole raft of unique problems as far as the existing encumbrances on each Title in the scheme.

Shane White | Strata Title Consult shane.white@stratatitleconsult.com.au

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We own a lot in a small strata of 9 units where 6 lots are owned by one family. They run the council and we get outvoted on every motion. They are in arrears, but have just voted against debt recovery. What do we do? We own a lot in a small strata of 9 units where 6 lots are owned by one family. We would happily go on the Council of Owners. Our strata council voted for only 3 members to be on the council – all members of the one family. We get outvoted on every motion and cannot get a place on the council as the family members vote against us every time. It is an extremely difficult situation as we are unable to do anything about the strata.

Section 132(2) of the Strata Titles Act 1985 states; a person is not entitled to move a motion at a general meeting or to nominate a candidate for election as a member of the council unless the person is entitled to vote on the motion or at the election.

Section 120(2) states; the owner of a lot is not entitled to cast the vote attached to the lot if there is an outstanding amount recoverable under this Act owed to the strata company by the owner of the lot. Therefore, if all but one owner of the 6 lots mentioned was financial at the meeting, they would be the only person able to nominate a candidate to be put up for election to the Council.

Firstly, determine if the process of appointing the Council of the Strata Company was valid. I’m wondering if you have a Strata Manager assisting with your scheme. They would be best placed to guide you in these matters. Firstly, we need to determine if the process of appointing the Council of the Strata Company was valid.

Council run by majority owners

There are several irregularities in the budget and expenditure which we cannot get access to as the council just passes the budget and council minutes each meeting. They are all in arrears on all units except one but have just voted against the motion regarding debt recovery. We feel as though we are paying all the money for the strata to run. What can we do?

Ultimately, further to the amendments to the Act, greater accountability has been placed on Councillors. Please refer to Section 137.

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ESM Strata Team | ESM Strata esm.support@esmstrata.com.au

a. must at all times act honestly, with loyalty and in good faith in the performance of functions as a member of the council or an officer of the strata company; and b. must at all times exercise the degree of care and diligence in the performance of those functions that a reasonable person in the person’s position and the circumstances of the strata company would reasonably be expected to exercise; and c. must not make improper use of the person’s position — i. to gain, directly or indirectly, an advantage for the person or any other person; or ii. to cause detriment to the strata company.

It sounds like the motion on notice was to have 3 members on the Council. There is the provision for an owner to make an amendment to the motion on notice to change this number – unless there’s a bylaw stating that there can only be 3. If more than 3 are nominated for Council, a ballot must be held. The 3 owners who received the most votes, would then form the Council. Here is an opportunity for the other 3 owners to gain a place on the Council.

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2. A person to whom this section applies —

If you feel that the Council has not carried out their duties for the benefit of all owners, it may be prudent to obtain independent legal advice. Should there be substantive evidence that the Council is not conducting themselves in accordance with the Act and Regulations, you then have the avenue to have the matter heard by the State Administrative Tribunal.

As an owner you are entitled to view the books and records of the Strata Company under a Section 107 application. Any questions you have about the budget and expenditure should be placed in writing to the Secretary of the Council, so they investigate and provide a response to you.

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