All tapware must be a certain standard and star rating
Page 10 | Mahoneys
In our high-rise, we pay higher levies per level. Is this fair?
Page 14 | Hynes Legal
What happens to voting deadlines when the AGM is reconvened?
Page 26 | Tower Body Corporate
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.
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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.
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Nikki shares her time between three companies, including Tower Body Corporate, a body corporate company in SEQ.
Nikki is also known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.
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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.
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4 Cleaning the car park
William Marquand, Tower Body Corporate
6 Insights into Strata Finance
Lannock Strata Finance
8 Should the building manager report breaches of by-laws to the committee?
Chris Irons, Strata Solve
10 All tapware must be a certain standard and star rating
Todd Garsden, Mahoneys
12 Can the body corporate buy or lease a lot owner’s parking space for EV charging?
Altogether Group
14 In our high-rise, we pay higher levies per level. Is this fair?
Frank Higginson, Hynes Legal
16 Why it’s critical for OC’s to follow Capital Works Fund Report recommendations.
Asset Strata Valuers
18 Responsibility for cleanup costs after a burst fire hydrant
Tyrone Shandiman, Strata Insurance Solutions
20 BCCMA changes coming in 2024
Todd Garsden, Mahoneys
22 Can our executive committee force lot owners to de-sex pets?
Michael Kleinschmidt, Bugden Allen Graham Lawyers
24 Should all committee members be involved in decision making?
Chris Irons, Strata Solve
26 What happens to voting deadlines when the AGM is reconvened?
William Marquand, Tower Body Corporate
28 Conflict of interest? The builder owns half the lots and sits on the committee
Todd Garsden, Mahoneys
30 Can a letting pool manager own units and include them in the rental pool?
Frank Higginson, Hynes Legal
32 The SCAQ Difference SCAQ
34
Our car park spaces are exclusive use, and the rest is common property. Who is responsible for cleaning the car park?
The December 2023 edition of The QLD Strata Magazine includes an article by Will Marquand about cleaning garages. The Q&A indicates that the body corporate is responsible for the cleaning. In my present building, it’s assumed that since the parking spaces are assigned to units and numbered accordingly, they are part of the unit’s exclusive use area. As such, owners are responsible for cleaning their parking space, and the body corporate cleans the rest of the common area. Is this correct?
Schemes have committees to find a pathway through these issues.
Maintenance of exclusive use areas is generally the responsibility of the lot owner, so the interpretation here sounds correct.
For reference, see the below link for a handy guide on exclusive use responsibilities: Exclusive use - maintenance responsibilities.
However, you also have to consider the practicalities of building management.
We don’t know the set-up of your building. Still, if we considered an underground car park with common property and exclusive use spaces, it may be difficult to arrange an annual pressure clean where each owner was responsible for the costs of cleaning their own exclusive space. It’s hard to oblige owners to pay individually, and the benefits of the cleaning will be lessened if you choose to have your space cleaned, but your neighbours on either side don’t. In these circumstances, the body corporate might organise to clean the whole area, including the exclusive use spaces, and cover the costs.
You can argue about the technical correctness of this but provided you achieve a wider benefit and owners aren’t unfairly disadvantaged, this doesn’t seem like an unreasonable action. In other circumstances, an alternative system may be more appropriate. If you had a building where only half the lots had parking spaces or access to the car park, you might need to introduce a set-up that only applied the cost to the lot owners with spaces. Finding a pathway through these kinds of issues is what schemes have committees for, so if you have questions about your site, refer them to the committee and see what the response is.
William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au
Recently, we asked our Business Development Managers across Australia to share the most common misconceptions they hear about strata funding… and the answer was unanimous!
When discussing funding options with owners, they frequently hear, “Oh, a funding facility? That works just like a standard loan, right?”. This notion tends to surface even before we step into a general or committee meeting.
No fees or penalties for early repayment
Repayments are tied to the lot, not the owner
But here’s the reality - a funding facility isn’t the typical run-of-the-mill loan. It doesn’t come with the same upfront commitments or lock-in terms that are usually associated with a conventional loan.
This article highlights the key differences between a conventional loan and strata finance facility, to empower Strata Managers and Body Corporates to make informed decisions about their funding options. We’ve simplified this topic so it’s quick and easy to understand and share with your colleagues and clients.
Lannock facility Principal and Interest repayments are charged only on the funds drawn, as and when they are used. Approval equals access to funds, but not all the funds are deposited on day one. You simply draw down as needed.
You are not committed to utilising the entire amount approved.
When a lot changes hands, the new owner takes over the repayments and associated levies.
In strata, funding needs can be uncertain and fluid. The full scope of an issue often isn’t clear until professionals assess it and, in some cases, not until they commence work. And that is why a Strata Finance Facility with swift access to approved funds is an effective way for Body Corporates to navigate unpredictable situations and fluctuating costs.
Strata funding also provides a variety of flexible and simple products to cater for the specific requirements of each Body Corporate’s situation. Extendable drawdown periods, length of terms and up to 24-months of interestonly payments, and quick access to draw on funds as required.
Tailored for Strata Schemes
Unlike conventional loans, strata funding is extended to the Body Corporate, not an individual. Strata finance aligns perfectly with the strata scheme’s legal structure and purpose:
• It’s extended to the Body Corporate, not an individual
• Repayments can be incorporated into ongoing levies, spreading costs over time
• This approach reduces the immediate financial burden on owners by up to 90% in the first year.
• It eliminates waiting for the Capital Works Fund to accumulate the required capital
• Immediate access to funding allows prompt repairs or upgrades, enhancing property value and liveability
• Prompt remediation of building issues saves money
In the face of unexpected costs or urgent repairs, remember –strata finance is a facility, not just a loan! It’s a solution that has been specifically designed to help Body Corporates navigate financial challenges more effectively and with greater flexibility. Strata finance is about flexibility, not constraint. It’s about simplicity, not complexity and about having the freedom to adapt to the fluidity of changes. It’s about being prepared, not reactive.
So, next time you’re faced with a financial decision, remember, it’s a facility, not a loan!
Strata communities across Australia have faced numerous challenges recently, including changing legislation, COVID-related delays, defects, supply chain issues, inflation, and a shortage of contractors.
Our BDMs, who work closely with these communities, have shared some valuable insights. One BDM highlighted: “Addressing problems when first identified could have led to significant cost savings for my client who delayed works from 2018.” Another BDM added, “Delaying necessary works will inevitably cost you more money!”
Here’s why, as shared by our BDMs from their recent experiences:
• Inflation & Rising Costs
“I always inform my clients that delaying work often leads to paying more due to inflation and rising material costs,” shares one BDM.
• Expanding Scope of Work
Another BDM points out, “Over time, we’ve seen that issues can worsen, increasing the scope of repairs and costs.”
• Impact on Residents' Enjoyment and Asset Value
“Deteriorating assets can negatively affect resident enjoyment of amenities and the liveability of residences. This can then impact occupancy rates and property values,” recounts another Lannock BDM, echoing a conversation with a strata manager.
Interested in learning more about how Strata Finance can benefit your Owners Corporation?
Don’t hesitate to reach out to our team. We’re here to help you navigate your funding options and make the best decision for your strata community.
P
Should the building manager report breaches of by-laws to the committee?
Should the building manager report breaches of by-laws to the committee? In our building, there are members of the committee who commit breaches. How can we deal with those?
Your building manager should only do what their contract requires.
Your building manager (aka, caretaker, or onsite manager – the technical term is ‘caretaking service contractor’) should only do what their contract requires. There is no standard contract for caretaking duties in Queensland, so it can and does vary from building to building.
I know from experience it is commonplace for there to be arrangements about what the caretaking service contractor does in relation to by-laws . It really does depend on how this is represented in the contract: perhaps it is a requirement to ‘report’, or it could be to ‘work with the committee’, or it could be to ‘assist’. The bottom line, though, is this: none of those contractual arrangements changes the fact it is the committee’s responsibility to enforce by-laws and nor does it change the fact that an individual (which can mean an owner or an occupier, aka, tenant) can have by-laws enforced.
I think your best bet is to look at this excellent by-law enforcement flowchart: By-law enforcement applications, prepared by the Commissioner’s Office. It answers your
question about how by-laws can get enforced against committee members, as I assume from your query that the committee members are not enforcing by-laws when it is in relation to them.
This is general information only and not legal advice.
Chris Irons | Strata Solve chris@stratasolve.com.au
Can the committee introduce a by-law stating that all tapware in the lots must be a certain standard and star rating?
Our body corporate has shared water meters. Some units in our 8 lot scheme have been renovated since the build in 1970 and we’d like to arrange a plumbing audit on lots. Can the committee introduce a by-law stating that all tapware in the lots must be a certain standard and star rating?
The body corporate can inspect lots to assess whether the tapware is of good condition – but cannot require owners to upgrade or improve better tapware.
Maintenance obligations and standards are set out in the legislation and the by-laws cannot increase the standard imposed on owners. Any by-law that seeks to impose a higher standard would be contrary to section 180(1) of the BCCMA.
Relevantly, section 211(3) of the Standard Module provides:
The owner of a lot included in the scheme must maintain the lot in good condition.
Adjudicators have held that “good condition” does not mean current standards or a minimum star rating. It means that it is serving its purpose and not in disrepair.
The body corporate can inspect lots to assess whether the tapware is of good condition – but cannot require owners to upgrade or improve better tapware.
Todd Garsden | Mahoneys tgarsden@mahoneys.com.auREAD MORE HERE
Can the body corporate buy or lease a lot owner’s parking space for EV charging?
Can we place an EV charging station in a visitor car parking space? Alternatively, can the body corporate buy or lease a lot owner’s parking space for EV charging?
Decreasing visitor car spaces could potentially violate your development approval.
Visitor spaces are commonly designated as common property and are typically incorporated into your development consent, often with a minimum requirement. Decreasing these spaces could potentially violate your development approval (DA).
If contemplating adjustments to a lot owner’s parking space, engage in transparent communication to discuss the proposal, potentially negotiating lease terms or obtaining consent for installation. It’s important to note that altering the use of a private space to public may necessitate local government approvals.
Altogether Group eaustin@altogethergroup.com.au
READ MORE HERE
At Altogether, we’re a multi-utility service provider on a mission to make the world a brighter place.
We’re passionate about creating sustainable communities. Leaders in the utility industry, we continuously lobby the government on matters to help improve customer protections. With imminent legislation changes on the way, we’re also well positioned to help Strata Managers and Body Corporates navigate their way through the new obligations and rights.
That’s why we’re here to help with the Altogether Academy.
Altogether Academy is a program that will educate, empower, and support all strata managers, while covering education topics such as:
• Energy fundamentals
• Embedded networks
• Sustainable technology such as electric vehicle charging capability
• Utility data and metering
• Government reform and utility regulation
The program will give you the opportunity to learn from some of the energy industry’s most experienced voices, learn soft skills and take part in networking opportunities. Take control of your career, embrace Altogether Academy and talk to a Senior Energy Consultant today.
In our high-rise, we pay higher levies per level. Is this fair?
In our 10 level, 60 lot building, all lots are similar, but unit entitlements are not. Levies increase per level even though we all have equal access to facilities. Can unit entitlements be reviewed and adjusted?
Our 60 lot scheme with lots distributed evenly over 10 levels is about 20 years old. It is administered under the BCCM legislation as an Accommodation Module. All lots are similar but their lot entitlements for the admin fund and sinking fund are not. Each level pays about 2.5% more than the one below.
This year, for example, the level 10 lots are paying about $2,500 or 24% extra. We all have equal rights of access to the same facilities, e.g. lifts, pool, gym, boat pontoon, etc. Can the lot entitlements be reviewed so that each lot pays its fair share?
This is in the ‘too hard’ basket for government, and it has been since 2011.
This would appear to be a very clunky way to attribute a proportionate share of the body corporate costs. As it sits right now, the only way to change it is really by a resolution without dissent, meaning the lower level owners would have to agree to pay more as the upper level owners paid less. As you would expect, these types of motion rarely pass. This one is really in the ‘too hard’ basket for government at the moment, and it has been since 2011.
Frank Higginson | Hynes Legal frank.higginson@hyneslegal.com.au
With legislative reform on its way and the strata sector thriving, review your by-laws to ensure they remain relevant & enforceable.
Reasons to review your by-laws now
1. Prohibit smoking in common areas
2. Prepare for the wave of electric vehicles
3. Ensure pet applications are enforced
4. Effectively deal with nuisance
Get your obligation-free assessment on whether your by-laws are valid and enforceable.
hyneslegal.com.au/by-laws
The Capital Works Fund (CWF) report is a document that outlines the recommended capital works projects within a strata property and advises Owners Corporations (OC’s) to reserve funds to cover future maintenance and major expenses. Proactive OC’s who adhere to these recommendations not only help prevent major capital expenses in the future but also help to increase the market value of their properties.
The Capital Works Fund Forecast (CWFF) report is a document that outlines the recommended capital works projects within a strata property and advises Owners Corporations (OC’s) to reserve funds to cover future maintenance and major expenses. Proactive OC’s who adhere to these recommendations not only help prevent major capital expenses in the future but also help to increase the market value of their individual properties.
Neglecting the recommendations outlined in the Capital Works Fund Report is detrimental to OC’s for several reasons. The primary purpose of preparing the report is to minimize annual costs associated with critical building elements such as waterproofing, roof repairs, and Workplace Health and Safety (WHS) considerations through preventive maintenance, thus ensuring the well-being of residents and the longevity of the property.
Neglecting the recommendations outlined in the Capital Works Fund Report is detrimental to OC’s for several reasons. The primary purpose of preparing the report is to minimize annual costs associated with critical building elements such as waterproofing, roof repairs, and Workplace Health and Safety (WHS) considerations through preventive maintenance, thus ensuring the well-being of residents and the longevity of the property.
Numerous buildings along the eastern seaboard of Australia, some exceeding a century in age, face structural challenges like failing roof timber struts, collapsing retaining walls, and early signs of concrete cancer due to insufficient waterproofing. The consequences of not addressing these issues promptly can lead to more extensive problems over time, especially in regions experiencing higher rainfall.
Numerous buildings along the eastern seaboard of Australia, some exceeding a century in age, face structural challenges like failing roof timber struts, collapsing retaining walls, and early signs of concrete cancer due to insufficient waterproofing. The consequences of not addressing these issues promptly can lead to more extensive problems over time, especially in regions experiencing higher rainfall.
While legislation in Queensland and New South Wales emphasizes the importance of proactive preventive maintenance, it does not impose a mandatory obligation to act on the Capital Works Fund Report recommendations. Some OCs choose to ignore the suggested preventive measures, including essential actions like waterproofing, gutter and roof repairs, and ventilation system maintenance. This negligence can result in larger and costlier problems a decade later, particularly for aging buildings.
While legislation in Queensland and New South Wales emphasizes the importance of proactive preventive maintenance, it does not impose a mandatory obligation to act on the Capital Works Fund Report recommendations. Some OCs choose to ignore the suggested preventive measures, including essential actions like waterproofing, gutter and roof repairs, and ventilation system maintenance. This negligence can result in larger and costlier problems a decade later, particularly for aging buildings.
We would argue that the legislation falls short by not enforcing a minimum standard for setting aside funds for future needs.
We propose that a 30% target of the recommended annual budget be a mandatory allocation, believing it would serve as a prudent measure for OCs to allocate funds for unforeseen expenses annually.
We would argue that the legislation falls short by not enforcing a minimum standard for setting aside funds for future needs. We propose that a 30% target of the recommended annual budget be a mandatory allocation, believing it would serve as a prudent measure for OCs to allocate funds for unforeseen expenses annually.
Issues we typically identify in properties over 60 years old include sagging roofs, water penetration, mold buildup, cracked tiles, damaged concrete pathways, potholes, rusted gutters and pipes, flooding balconies, potential concrete cancer, rusted balustrades, and inadequate fire equipment. Proactive OCs not only prevent major repairs but also protect the property’s value by adhering to a minimum financial benchmark.
The Strata Role Inspection, a prerequisite for purchasing Strata Titled properties, gauges the proactive nature of the OC. This inspection influences the saleability of individual units and the overall appeal of the complex. Neglecting preventive maintenance not only impacts the complex’s financials but also diminishes its market value and increases insurance premiums over time.
It is imperative, especially for properties exceeding 100 years, to prioritise annual preventive maintenance to avert major repairs and maintain or improve their market value.
We, at Asset Strata Valuers, tailor our CWF reports specific to the subject property. Our reports are detailed and provide current and up to date costings and rates. We can include major repairs into the CWF budget avoiding special levies therefore making it compliant to the ATO rules that can be used as a tax deductions for some individuals.
James, Martyn, Bryan, Sam and Cameron from the Asset Strata Valuers team are qualified and ready to help!
A fire hydrant burst and caused water damage to apartments across multiple floors. Who is responsible for removing and replacing flooring and excessive electricity use from dehumidifiers and fans? Is temporary accommodation provided?
In our apartment building, a faulty fire hydrant burst and caused water damage to apartments across multiple floors. Apartments have a mix of hybrid flooring and carpet tiles. Our body corporate has arranged for specialists to remove moisture from the building structure. Dehumidifiers and fans are running 24 hrs around the building and within units.
Who is responsible for carpets and hybrid floor removal and replacement? Where fans are located in units, who is responsible for the excessive electricity use? Does the body corporate insurance provide temporary accommodation for the duration of the repairs?
Where the strata insurance does not respond to the damaged flooring, the costs and responsibility for removal and replacement fall to the lot owner and their contents/landlord’s insurance.
Carpets and other temporary flooring (such as floating floors) within an owners’ lot are considered contents items and are not covered by the strata insurance. The exception is floating floors. Some strata insurance policies include automatic or optional cover for floating floors. Where the strata insurance does not respond to the damaged flooring, the costs and responsibility for removal and replacement fall to the lot owner and their contents/ landlords insurance.
Excess electricity usage for drying equipment is generally claimable. You will need to substantiate the excess usage; potential ways to do this is either by showing the actual increased usage on the next bill compared to the previous year’s bill, or the contractor may be able to provide details of the electricity usage of their machines.
Temporary accommodation for owner occupiers is generally covered by strata insurance if the property is deemed uninhabitable due to damage to the building and/or during the repairs. This is an automatic cover for most strata insurance policies on the market. However, the strata insurance will not respond to temporary accommodation costs for tenants or if the unit is uninhabitable due to damage to contents, such as carpets and/ or uninsured temporary flooring. However, landlords can generally claim loss of rent for the period a tenanted lot is uninhabitable due to building damage and repairs.
It’s important to understand that strata insurance will not cover loss of rent or temporary accommodation if the property is uninhabitable solely due to damage to items not included in the policy, such as carpets. However, these costs may be covered by the property owner’s landlord insurance or contents insurance, particularly if there is an extension in the policy for loss of rent or temporary accommodation.
In this instance, we suggest the building speak with their broker for specific advice about their claim and circumstances.
Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.auREAD MORE HERE
Late last year the Queensland Government passed the Body Corporate and Community Management and Other Legislation Amendment Bill 2023. We currently expect the new laws to come into effect sometime in the first quarter of 2024.
• Allow an owner or occupier’s car to be towed if it is parked in contravention of the by-law without the need to firstly enforce the by-law through the contravention notice process and Commissioner’s Office.
• Allow a body corporate to ban smoking on the common property (not just substantially enclosed areas) or an outdoor area of a lot.
• Provide stronger pet approval mechanisms for occupiers seeking permission and to reduce the issues which the committee can take into account (such as type, number or size).
“Critically for bodies corporate, all by-laws will need to be updated to reflect these changes to ensure they can be enforced when the new rules come into effect.”
• Provide a new mechanism to terminate, and sell, a community title scheme if it is no longer economically viable for the scheme to continue to operate.
• Assist principal bodies corporate in enforcing by-laws against subsidiary owners and occupiers, providing better rights to body corporate records within a layered arrangement.
• Updating the codes of conduct for body corporate managers and caretaking service contractors.
• Allowing adjudicators to authorise lesser insurances for the scheme (rather than needing the Commissioner to approve such applications).
• Allowing bodies corporate to change their financial year by ordinary resolution once each 5 year period without the need for an adjudicator’s order to do so.
• Removing reference to the use of a body corporate seal.
Feel free to contact our dedicated body corporate team if you:
• have any questions about the amendments,
• need help implementing them for your scheme; or
• would like a free review of your by-laws. www.mahoneys.com.au
A “dot point” clause in our body corporate by-laws forces lot owners to de-sex all pets living in our eco-village. The eco-village is not high-density accommodation. Is this by-law enforceable?
In 2020, Adjudicator Sutherland had to decide whether a by-law that required all cats and dogs to be de-sexed before being permitted to stay within a community titles scheme was valid or not. The by-law was worded such that the committee could not give approval for the pet if it was a dog or cat and was not de-sexed.
Care should be taken when drafting a pet by-law or seeking to enforce one that requires the de-sexing of pets.
The learned Adjudicator found that the by-law granted the committee discretion on whether to approve a pet or not but locked down the committee’s discretion about giving approval too far. The restriction on the committee’s discretion meant that the by-law, as it was drafted, was not
reasonably proportionate and was contrary to the interests of lot owners and occupiers.
As for the requirement to de-sex cats and dogs, Adjudicator Sutherland referred to material published by the RSPCA on the benefits and considerations of de-sexing, including the earliest that the procedure could or should be carried out. The by-law was not flexible enough to enable the committee to make necessary exceptions for puppies or kittens that were too young to be de-sexed (generally), or for animals of valuable breed (specifically).
It’s important to note that the learned Adjudicator was considering a by-law under the Building Units and Group Titles Act 1980 and was, therefore, sitting as a Referee. While there are similar principles in the Body Corporate and Community Management Act 1997(BCCM Act), the Adjudicator’s reasoning does not perfectly translate. Accordingly, care should be taken when drafting a pet by-law or seeking to enforce one that requires the de-sexing of pets. See Marina Residences** [2020] QBCCMCmr 648**
When the new section 169B of the BCCM Act commences sometime this year, the position above will change. The new tests will include whether a requirement to de-sex is a reasonable and appropriate condition and whether the refusal to approve on the basis that an animal is not de-sexed is defensible under one of 8 specific defences; see section 169B(6) here Body Corporate and Community Management and Other Legislation Amendment Act 2023 - Queensland Legislation - Queensland Government.
If regulation of pets in your scheme is an issue, it’s important to take advice early about how the 2023 amending Act affects current pet by-laws.
Michael Kleinschmidt | Bugden Allen Graham Lawyers michael.kleinschmidt@bagl.com.au
READ MORE HERE
Can a committee consult only certain committee members, or should all committee members be involved in decision-making? I disagreed with the committee in the past and have now been excluded from conversations about what’s best for the community.
Committees exist to make decisions, and those decisions get made as a group.
Committees exist to make decisions, and those decisions get made as a group. That said, the method by which a committee gets to that decision-making point is less clear. Individual committee members might have specific knowledge and expertise, which makes it logical they would be consulted in certain situations and perhaps even to the exclusion of other committee members.
Or from a purely practical perspective, if a committee member is severely stretched for time at a given instant, it might make sense they not be consulted or not consulted as much.
In your situation, a disagreement should not be grounds for not consulting you. Disagreement is a part of life, and it is absolutely a part of strata committee functioning. It is unrealistic to think all members of a committee would agree on everything all the time. You should not be excluded simply on that basis, and you absolutely should not be excluded from a vote on the issue.
You’ve referenced ‘conversations’ in your query. That makes it seem there have been discussions amongst other committee members that haven’t included you rather than excluded you from voting. Those two things are different. To put it another way, while it is not ideal – far from it in fact – when individual committee members are not consulted on issues, what really matters is your participation in the vote.
If the vote in question is for an outcome that is unreasonable, that is a different issue altogether. If you think that is occurring, you need to make it clear to your committee colleagues that they have a legislated responsibility to not act unreasonably. Your query could be loosely termed an issue around governance. That’s relatively common, and committees can enhance their governance through training, education and coaching. You may want to consider if that’s relevant for your situation.
This is general information only and not legal advice.
Chris Irons | Strata Solve chris@stratasolve.com.auREAD MORE HERE
Strata Solve helps people untangle and resolve their strata issues. Sounds simple when you put it like that, doesn’t it?
Director Chris Irons (pictured, with his strata-approved greyhound Ernest) has an unrivalled strata perspective. As Queensland’s former Body Corporate Commissioner, Chris has seen and heard virtually every strata situation and nuance. He knows that while legislation provides a framework, there are many ambiguities to navigate through and in which pragmatism, commonsense and effective communication are vital.
As an independent strata consultant, Chris provides services which are all about empowering owners, committees, managers, caretakers, and others, to protect their strata interests. With a high-profile media and online presence, and as an accredited mediator, Chris is also able to carefully ‘read the room’ and craft the right narratives in even the most complex strata situation. Strata Solve is not a law firm. Chris instead thinks of steps you can take before you embark on lengthy, costly, and stressful legal proceedings. Regardless of the client, all people in strata have one thing in common: their substantial investment in the strata scheme. Strata Solve prioritises that investment in each tailored solution we provide. Get in touch to find out more.
email: chris@stratasolve.com.au
web: stratasolve.com.au
If an AGM fails to achieve a quorum and is reconvened, how does this affect the closing date for voting?
Our large body corporate’s AGM is soon. We have many overseas non-resident owners. We usually have around five per cent of eligible owners voting on motions and committee elections. The AGM fails to reach a quorum and is reconvened.
How does this affect the closing date for electronic, proxy and in-person voting?
The closing date for vote submissions is the same closing date as your AGM, plus seven days.
If there is no quorum at a general meeting of a body corporate, the meeting must be adjourned to be held at the same place, on the same day and at the same time, one week later. Voting is extended by the same period, so the closing date for vote submissions is the same closing date as your AGM, plus seven days.
People can vote in-person by attending the adjourned meeting. They also have the additional seven days to submit electronic or postal votes.
Unfortunately, it is a reality that some schemes rarely get a quorum – committee members and other owners familiar with these circumstances often determine to only show up to the adjourned meeting.
As a body corporate, you can vote to lower your quorum size to ten per cent. This motion needs to be passed at a general meeting. If you haven’t done so, we recommend you look at this change.
Still, you indicate you only get five per cent. You may need to look at alternatives if you want to increase numbers. Writing to owners throughout the year or before the meeting may be a good way to build engagement. Even if you are only pointing out that it costs the body corporate more to hold adjourned meetings, this may bring in some votes.
On a wider level, this may be an issue that legislators must consider. The 10 per cent
quorum was only introduced a couple of years ago, and as a manager, we see it has successfully reduced the number of adjourned AGMs. A better alternative may have been to adopt the NSW system whereby if a quorum is not achieved at the start of a meeting, one can be declared by the people present after waiting 30 minutes to see who turns up. This, at least, lets the meeting proceed with the people who want to be there. Having used both systems, I can say the NSW one is better.
William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.auREAD MORE HERE
In our 67 lot building, the builder owns half the lots and sits on the committee. Is this a conflict of interest?
Of the 67 units in our two year old body corporate, the builder kept 37 units and is a body corporate committee member.
Is this a conflict of interest? There have been a few relatively minor issues the builder refuses to fix even though they are defects. Can we do anything to limit the builder’s power?
If defects exist, the body corporate should ensure it obtains the appropriate evidence and directs the demand to the appropriate person.
Relevantly, there is sometimes an important distinction to be made between the developer (who owns the properties) and the builder
(who was engaged to construct the properties). On a rare occasion, the builder and the developer are the same.
In circumstances where the developer is separate from the builder, the body corporate does not really have any rights for defect rectification against the developer. Those rights are against the builder (and often, it is the body corporate relying on the developer’s rights to take action against the builder). If the entity is the same, the body corporate still has some rights to exercise, and the developer/builder cannot stop these from being interfered with.
The developer, as the owner of lots in the scheme, would have common interests in a number of ways with other owners and has statutory rights to be involved in the decision making of the body corporate. In relation to decisions made by the body corporate:
• At committee level – when a specific issue arises, members are prevented from voting when a conflict of interest arises; and
• At general meeting level - adjudicators have recognised there is no conflict of interest on owners casting a vote. However, the body corporate remains protected as decisions must be reasonable. In circumstances where a lot owner uses their voting power to force unreasonable decisions, other owners have rights to have the decision overturned.
If defects exist, the body corporate should ensure it obtains the appropriate evidence and directs the demand to the appropriate person. It may need to seek legal advice to identify who that person is.
Todd Garsden | Mahoneys tgarsden@mahoneys.com.auREAD MORE HERE
Is it fair for letting pool managers to own units in the scheme and include them in the rental pool?
In June 2023, Frank Higginson responded to an audience member’s question concerning a letting pool manager who rents units from owners and then sub-lets them. What about letting pool managers who own units in the scheme and include them in the rental pool?
Is this a fair arrangement? In particular, is this an arrangement the Office of Fair Trading would be interested in?
The legislation references disclosure of an ‘interest’ in the letting pool.
The legislation references disclosure of an ‘interest’ in the letting pool, so the obligation to disclose applies equally to ownership of units as well as the leasing back of them. I wouldn’t say the OFT is expressly interested in anything more than ensuring that the interest is disclosed.
Frank Higginson | Hynes Legal frank.higginson@hyneslegal.com.au
•
Your property is one of your biggest investments and it should be nurtured and managed so it increases in value. The value of your strata property depends on the effectiveness of the body corporate and its management. SCAQ members have you covered.
Engaging a professional strata manager who is a member of SCAQ is the key to maximising the value of your property.
SCAQ members are:
• Accountable to industry Professional Standards
• Deliver trusted, expert guidance
• Protect your investment
• Increase your strata knowledge
• Save you money
• Minimise your risk
• Safeguard your fees.
Professional strata manager is not a term regulated or protected by Government. The only professional strata managers who are endorsed or accredited in any meaningful way are those who have been through the SCAQ accreditation and training.
My strata manager is with SCAQ, is yours?
The SCAQ pathway for accreditation and ongoing professional development is recognised nationally and internationally. When you choose a professional strata manager you entrust them with your money and compliance with your obligations, it is important to have someone you know can be trusted.
SCAQ members, unlike other strata managers having rigorous external standards put upon them, and they are answerable to best practice standards across industry.
Members of SCAQ are required to:
• Undergoing Mandatory Training and Continuing Professional Development to maintain their membership with SCAQ
• Maintain professional indemnity insurance
• Meet ethical requirements and conform to a code of conduct overseen by a professional standards committee
The SCAQ accreditation pathway is rigorous and industry leading. It is underpinned by a staged approach to work in the industry, with stages of accreditation taking years to achieve. This supervisory approach helps ensure appropriate mentoring by senior members of industry, as well as bringing participants up to speed on the latest theory and practice in the industry.
This pathway takes years to achieve full competence and certification in it should serve as peace of mind for lot owners that their asset is being managed with professional skill, care and years of experience.
SCAQ members learn a variety of skills throughout their education and in an ongoing fashion through classroom style as well as on the job training.
These include:
• Financial management
• Insurance advisory
• Building maintenance
• Contract management
• Dispute resolution
• Administration best practice
SCAQ members are the best in their field, with professional, educational and ethical obligations on them which are second to none in the industry.
If your Strata Manager is not an SCAQ member, we encourage you to make the switch to ensure that your home is protected by the guarantee of quality that comes with SCAQ membership.
Find out more:
www.qld.strata.community
Tower Body Corporate
Your Building Matters
P: 07 5609 4924
W: https://towerbodycorporate.com.au/ E: info@towerbodycorporate.com.au
Bright & Duggan
Strata Professionals
P: 02 9902 7100
W: https://bright-duggan.com.au/ E: customercare@bright-duggan.com.au
Vision Strata Services
Your local Strata Firm based on the Gold Coast QLD
W: http://visionstrata.com.au/ E: info@visionstrata.com.au
SSKB Strata Managers
A Positive Difference in Strata
P: 07 5504 2000
W: https://sskb.com.au/ E: sskb@sskb.com.au
Civium Communities
When you build trust, you build a community
P: 1300 724 256
W: https://civium.com.au/ E: clientservices@civium.com.au
Northern Body Corporate Management
Specialist Body Corporate Management for North Queensland
P: 07 4723 8217
W: https://www.nbcmqld.com/ E: nbcm@bigpond.net.au
Network Pacific Strata Management
Supporting our Qld strata communities
P: 07 5609 8677
W: www.networkpacificstratamanagement.com.au/ E: info@networkpacific.com.au
Bryant Body Corporate Management
Not All Agents Are the Same!
P: 07 5437 7777
W: https://www.bryantstrata.com.au/ E: peterbryant@bryantstrata.com.au
Quantum United Management
Creating vibrant and connected communities
P: 61 38360 8800
W: https://www.quantumunited.com.au/
E: info@quantumunited.com.au
Archers the Strata Professionals
Your Partners in Stratas
W: https://abcm.com.au/
E: marketing@abcm.com.au
Building Rectification Services
P: 07 5539 3588
W: https://www.buildingrectification.com.au/
E: admin@buildingrectification.com.au
Ouroboros design
Architect assistance with upgrades and renovations
P: 0400 152 833
E: garymo12@gmail.com
TRADECOM GROUP
Innovative Commercial Building Projects
P: 1300 301 888
W: https://tradecomgroup.com/ E: services@tradecomgroup.com
Rawlinsons
Calculated Confidence
P: 08 9424 5800
W: https://www.rawlinsonswa.com.au/ E: info@rawlinsonswa.com.au
Strataregister.com Pty Ltd
Find the Strata / CT Manager for your property
P: 0411 483 249
W: https://www.strataregister.com/ E: hello@strataregister.com
Strata Guardian
Fight low returns and rising levies with us.
P: 1300 482 736
W: https://www.strataguardian.com/ E: contact@strataguardian.com
Sedgwick
Building Consultancy Division & Repair Solutions
W: https://www.sedgwick.com/solutions/global/au
E: sales@au.sedgwick.com
QIA Group
Compliance Made Easy
P: 1300 309 201
W: https://www.qiagroup.com.au/ E: info@qiagroup.com.au
GQS
Quantity Surveyors & Building Consultants
P: 1300 290 235
W: https://gqs.com.au/ E: info@gqs.com.au
Seymour Consultants
Body Corporate Report Specialists
W: https://www.seymourconsultants.com.au/ E: info@seymourconsultants.com.au
BCRC
Construction Materials & Durability Consultants
P: 02 9131 8018
W: https://bcrc.com.au/ E: sydney@bcrc.com.au
Budget Vals
Built For Strata
P: 1300 148 150
W: https://www.budgetvals.com.au/ E: reports@budgetvals.com.au
Palmer Acoustics
Specialist Acoustic & Audio Visual Engineering
P: 61 7 3802 2155
W: https://palmeracoustics.com/ E: ross@palmeracoustics.com
HFM Asset Management Pty Ltd
Building Efficiency
P: 0407 734 260
W: https://www.hfmassets.com.au/ E: info@hfmassets.com.au
Independent Inspections
Sinking Fund Forecast, Insurance Valuations, OHS
P: 1300 857 149
W: http://www.iigi.com.au/ E: admin@iigi.com.au
Leary & Partners
Quantity Surveying Services Since 1977
P: 1800 808 991
W: https://www.leary.com.au
E: enquiries@leary.com.au
BIV Reports
Specialist in Strata Compliance Reports
P: 1300 107 280
W: https://www.biv.com.au/ E: biv@biv.com.au
Pircsa Pty Ltd
Professional Insurance Restoration and Consultancy
P: 0460 555 077
W: https://pircsa.com.au/
E: steve@pircsa.com.au
Quality Building Management
keeping your buildings legally compliant and safe P: 1300 880 466
W: https://qbm.com.au/ E: sales@qbm.com.au
Solutions in Engineering
Quality Reports On Time, Every Time!
P: 1300 136 036
W: https://www.solutionsinengineering.com/ E: enquiry@solutionsinengineering.com
CORE Consulting Engineers
Delivering 360° engineering solutions for strata
P: 02 8961 3250
W: https://core.engineering/ E: admin@core.engineering
Mabi Services
Asbestos, Safety & Building Consultants
P: 1300 762 295
W: https://www.mabi.com.au/ E: cinfo@mabi.com.au
Olive Tree Consulting Group
Solutions in Strata Compliance
P: 0400 161 659
W: https://olivetreeconsultinggroup.com.au/ E: admin@olivetreeconsultinggroup.com.au
Network Pacific Strata Franchise
Join our successful team
P: 03 9999 5488
W: https://www.networkpacificstratamanagement.com.au/qld/ E: bodycorp@networkpacific.com.au
Strata Insurance Solutions
Protecting owner assets is who we are.
P: 1300 554 165
W: https://www.stratainsurancesolutions.com.au/ E: info@stratainsurancesolutions.com.au
Whitbread Insurance Brokers
Empower Your Vision
P: 1300 424 627
W: https://www.whitbread.com.au/ E: info@whitbread.com.au
CHU Underwriting Agencies Pty Ltd
Specialist Strata Insurance Underwriting Agency
W: https://www.chu.com.au/ E: info_nsw@chu.com.au
Strata Community Insurance
Protection for your strata property. And you.
P: 1300 724 678
W: https://www.stratacommunityinsure.com.au
E: myenquiry@scinsure.com.au
Flex Insurance
Your Cover Your Choice
P: 1300 201 021
W: https://www.flexinsurance.com.au/
E: info@flexinsurance.com.au
Driscoll Strata Consulting Knowledge | Experience | Service
P: 0402 342 034
W: https://driscollstrataconsulting.com.au/ E: enquiries@driscollstrataconsulting.com.au
Sure Insurance
Sure. Insurance, but Fair
P: 1300 392 535
W: https://sure-insurance.com.au/strata-hq/ E: strata-quotes@sure-insurance.com.au
CRM Brokers
The smart insurance choice
P: 1300 880 494
W: https://www.crmbrokers.com.au/strata-insurance/ E: crmstrata@crmbrokers.com.au
Mahoneys
Body Corporate Law & Dispute Resolution Experts
P: 07 3007 3777
W: www.mahoneys.com.au/industries/bodies-corporate-strata/ E: info@mahoneys.com.au
Hynes Legal
Industry leaders delivering real strata solutions
P: 07 3193 0500
W: https://hyneslegal.com.au/ E: frank.higginson@hyneslegal.com.au
Bugden Allen Graham Lawyers
Specialising in property development & strata law
P: 02 9199 1055
W: www.bagl.com.au
E: info@bagl.com.au
Douglas Cheveralls Lawyers
The Go-To Strata Lawyers
P: 08 9380 9288
W: https://www.dclawyers.com.au/ E: office@dclawyers.com.au
Mathews Hunt Legal
BODY CORPORATE LAWYERS... EXCLUSIVELY
P: 07 5555 8000
W: https://mathewshuntlegal.com.au/ E: admin@mathewshuntlegal.com.au
Moray & Agnew Lawyers
Legal strategies and solutions for our clients
P: 03 9600 0877
W: https://www.moray.com.au/
E: https://www.moray.com.au/
Grace Lawyers
Know. Act. Resolve.
W: https://gracelawyers.com.au/ E: enquiries@gracelawyers.com.au
Holman Webb Lawyers
Body Corporate and Strata Dispute Experts
P: 61 732 350 100
W: https://www.holmanwebb.com.au/ E: contact@holmanwebb.com.au
Royer Mace Lawyers
Your Property is our Priority
P: 0434 388 898
W: https://royermace.com.au/
E: solon@royermace.com.au
MiMOR
Connecting People – Creating Communities
P: 0414 228 644
W: https://www.mimor.com.au/ E: info@mimor.com.au
Stratabox
Building Confidence
P: 1300 651 506
W: https://stratabox.com.au/ E: contact@stratabox.com.au
ResVu
Customer Service Software for Strata
P: 0874778991
W: https://resvu.com.au/
E: enquiries@resvu.com.au
StrataMax
Streamlining strata
P: 1800 656 368
W: https://www.stratamax.com/ E: info@stratamax.com
MYBOS
Building Management - Residential & FM Schemes
P: 1300 912 386
W: https://www.mybos.com.au/
E: sam@mybos.com.au
StrataVault
Connecting people, processes, and applications
P: 1300 082 858
W: https://globalvaults.com.au/ E: team@thestratavault.com
Urbanise
Automate your workload to increase efficiency.
P:1300 832 852
W: https://www.urbanise.com/ E: marketing@urbanise.com
Onsite Building Management Software
Modern and user friendly BMS
P: 0490 091 887
W: https://onsite.fm
E: hello@onsite.fm
Stratafy
Only Complete Cloud Strata Software ecosystem
P: 1300 414 155
W: https://stratafyconnect.com/ E: sales@stratafyconnect.com
LookUpStrata
Australia’s Strata Title Information Site
W: https://www.lookupstrata.com.au/ E: administration@lookupstrata.com.au
Strata Community Association
P: 02 9492 8200
W: https://www.strata.community/
E: admin@strata.community
Owners Corporation Network
The Independent Voice of Strata Owners
W: https://ocn.org.au/
E: enquiries@ocn.org.au
Your Strata Property
Demystifying the legal complexities of apartment living
W: https://www.yourstrataproperty.com.au/ E: amanda@yourstrataproperty.com.au
Tinworth & Co
Chartered Accountant & Strata Auditors
P: 0499 025 069
W: https://www.tinworthaccountants.com.au/ E: caren.chen@tinworth.com
Matthew Faulkner Accountancy
Strata Auditing specialists
P: 0438 116 374
W: https://www.mattfaulkner.accountants/ E: matt@mattfaulkner.accountant
Windowline Pty Ltd
Australia’s strata replacement window & door specialists
P: 02 8304 6400
W: https://windowline.com.au/
E: info@windowline.com.au
Clear Edge Frameless Glass
Energy Efficient Balconies for Elevated Living
W: https://www.clearedgeglass.com.au/ E: sales@clearedgeglass.com.au
Altogether Group Power.Water.Data
P: 1300 803 803
W: https://altogethergroup.com.au/ E: eaustin@altogethergroup.com.au
Energy On Pty Ltd
Providing utility network solutions
P: 1300 323 263
W: https://www.energyon.com.au/ E: EnergyServices@EnergyOn.com.au
ENM Solutions
Providing Solutions for Embedded Networks
P: 1300 000 366
W: https://www.enmsolutions.com.au/ E: info@ENMSolutions.com.au
EMERLITE ELECTRICAL SERVICES
We Answer The Phone - No Job Too Big Or Small
P: 07 5591 9191
W: https://www.emerlite.com.au/ E: office@emerlite.com.au
Fire Matters
Fire Safety Compliance
P: 07 3071 9088
W: https://firematters.com.au/ E: sbauer@firematters.com.au
Control Pest Management – Brisbane
Pest Control Professionals
P: 1300 357 246
W: https://controlpestmanagement.com.au /locations/brisbane-pest-control/ E: ray@controlpestmanagement.com.au
Install My Antenna
Professional TV Antenna Service For You Today
P: 1300 800 123
W: https://www.installmyantenna.com.au/ E: info@installmyantenna.com.au
Lifestyle Clotheslines
Clothesline and washing line supplier & installer
P: 1300 798 779
W: https://www.lifestyleclotheslines.com.au/ E: admin@lifestyleclotheslines.com.au
Higgins Coatings Pty Ltd
Specialist painters in the strata industry
W: https://www.higgins.com.au/ E: info@higgins.com.au
Rochele
Prompt & Professional
P: 1300 808 164
W: https://rochele.com.au/ E: jeremy@rochele.com.au
Lannock Strata Finance
The Leading Strata Finance Specialist
P: 1300 851 585
W: https://lannock.com.au/ E: strata@lannock.com.au
StrataLoans
The Experts in Strata Finance
P: 1300 785 045
W: https://www.strata-loans.com/ E: info@strata-loans.com
Austrata Finance
Pay Now or Pay Later: It’s Your Choice®
P: 1300 936 560
W:https://austratafinance.com.au/ E: info@austratafinance.com.au
Groundfloor™
Australian parcel, mail, and refrigerated lockers
P: 03 9982 4462
W: https://groundfloordelivery.com/ E: ask@groundfloordelivery.com
Leaf Shield
Leafshield Gutter Protection Specialists
P: 1300 362 246
W: https://leafshield.net.au/why-leafshield/ E: info@leafsheild.net.au
The Green Guys Group
Australia’s Leading Energy Saving Partner
W: https://greenguys.com.au/ E: sean@greenguys.com.au
Humenergy
People, Innovation and Value Sharing
P: 1300 322 622
W: https://www.humenergy.com.au/ E: Info@humenergy.com.au
Fair Water Meters
Fair water - fair bills
P: 1300324701
W: https://fairwatermeters.com.au/
E: info@fairwatermeters.com.au
Strata Solve
Untangling strata problems
P: 0419 805 898
W: https://stratasolve.com.au/
E: chris@stratasolve.com.au
LUNA
Building and Facilities Manager
P: 1800 00 LUNA (5862)
W: https://www.luna.management/ E: info@luna.management
RFM Facility Management Pty Ltd
Strata and Specialist Cleaners
P: 1300 402 524
W: https://www.rfmfacilitymanagement.com.au/
E: nathan@rfmfacilitymanagement.com.au
Arena Energy Consulting Pty Ltd
Independent Embedded Network Consulting Services
P: 1300 987 147
W: https://www.arenaenergyconsulting.com.au/ E: info@arenaenergyconsulting.com.au
Embedded Network Arena
Independent Embedded Network Consulting Services
P: 1300 987 147
W: https://embeddednetworkarena.com.au/ E: info@embeddednetworkarena.com.au
sharonbennie – Property Recruitment
Matching top talent with incredible businesses
P: 0413 381 381
W: https://www.sharonbennie.com.au/ E: sb@sharonbennie.com.au
Essential Recruitment Solutions
Specialising in Strata recruitment
P: 0448 319 770
W: https://www.essentialrecruitmentsolutions.com.au/ E: maddison@essentialrecruitmentsolutions.com
Innovative Lift Consulting Pty Ltd
Australia’s Vertical Transportation Consultants
P: 0417 784 245
W: https://www.ilcpl.com.au/ E: bfulcher@ilcpl.com.au
The Lift Consultancy
Trusted Specialised Advice
P: 07 5509 0100
W: https://theliftc.com/ E: sidb@theliftc.com
ABN Lift Consultants
A team of friendly, open minded professionals
P: 0468 659 100
W: https://www.abnlift.com/ E: andrew@abnlift.com
Asset Strata Valuers
Leaders in Strata Property Valuations
P: 1800 679 787
W: https://assetstratavaluers.com.au/ E: workorders@assetstratavaluers.com.au
Adelaide StrataVal
Strata & Community Insurance Valuations
P: 08 71112956
W: https://www.strataval.com.au/ E: valuations@strataval.com.au
Pacific Security Group
Experts in electronic security since 2005
P: 1300 859 141
W: https://www.pacificsecurity.com.au/ E: operations@pacificsecurity.com.au
As of April 2022, The Strata Magazines received a national audience engagement of around 20,000 views within one month of their release.
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