Archers The Strata Professionals Supplement

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40 years young With only 25% of businesses in Australia making it longer than 15 years, Archers the Strata Professionals is proud of a 40-year history that has defied the odds, and what is even better is that they feel like they are just getting started. Far from an aging beast that is stuck in the olden days, Archers the Strata Professionals has spent their 40th birthday rejuvenating to ensure they are providing the very latest in technology and service standards to their clients. The brainchild of Colin Archer, Archers the Strata Professionals opened their doors in 1982, on the Sunshine Coast, in a bid to professionalise the body corporate industry.

Australia Qld and works with his Archers leadership team on the continual evolution of the industry.

Colin Archer

Since this time Archers has grown to six locations across Queensland and a team in excess of 90. With Partners located in each office and a centralised head office team, Archers has the resources to keep up to date with legislative, advocacy and operational changes, yet the localised attention of on the ground teams that get to know the intricacies of their schemes under management.

Nicky Lonergan

Colin himself is an industry leader becoming the Founding President of the National Community Titles Institute (now Strata Community Australia) in 1996, awarded the national industry award for Service to Strata in 2014 and the Queensland's President award in 2016. Colin is a life and longest serving member of industry body Strata Community

In 2019, Archers specifically went outside their profession to find a CEO that had strong corporate governance background necessary for a bodies corporate organisation, yet had imagination and flair to take Archers into the next phase of its evolution. Nicky Lonergan was appointed and has since challenged the leadership team to continually evolve and improve the overall service offering. Nicky believes in honouring the history of the industry, the legacy of Archers, the needs of their clients, and most importantly attracting the very best team possible to guide Archers over the next 40 years.

Employer of Choice If you questioned Archers the Strata Professionals on what makes them unique, they would unquestionably answer that it is their team and providing the resources to enable them to strive for excellence in their role. Leading volunteer committees is more effectively done when the committee can build long-term and trusting relationships with their strata manager. Archers understand that attracting and retaining a first-class team is their top priority and work incredibly hard to ensure they are the employer of choice for strata professionals to grow and develop their careers.

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Meet the team, scan the QR code to learn more

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ResortNews | July 2022


The role of a Bodies Corporate Residents, owners and investors who have a financial investment in a strata property have a shared responsibility to shared facilities. To ensure compliance they elect a group, called a committee, to act on their behalf. The committee is supported by the Strata Manager and on occasion a Building Caretaker. Often Bodies Corporate are referred to as the fourth tier of government. Owners and residents of a scheme are required to ensure they meet the regulatory framework of: 1.

Australian Government

2.

State Government

3.

Local Government

4.

Specific property by-laws

Archers understand the needs of a volunteer committee in actively and efficiently managing their strata scheme, no matter what the size. They understand creating effective committees can be overwhelming and believe in

ResortNews | July 2022

making strata simple. After 40 years leading an industry and conducting market research, they know the key needs of a committee are: •

Professional yet personal advice and service – building a long-term relationship with a professional who offers personal contact and who understands your property and its specific intricacies is of high value to you You expect prompt, proactive and reliable information – ultimately you need problems solved long before they become contentious You hold a position of trust and need peace of mind when making decisions on behalf of residents and

owners – being provided with the right choice, up-to-date information and possible outcomes enables you to make informed decisions •

Being educated on the rules and regulations of body corporate and ensuring you’re meeting your obligations can be intimidating – having a partner that can guide you along the way is reassuring and safeguards your compliance with the Body Corporate and Community Management Act 1997 Having an impartial body corporate partner that can act in the best interest of all stakeholders enables a voice of reason when competing interests arise – whether a committee

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member, resident manager, owner occupier, investor, or developer, each stakeholder’s concerns are important •

A smooth transition to a new strata manager – knowing this is all in hand with minimal intervention on your behalf allows you to make the right choice in strata partner

And of course, balancing body corporate fees with excellence in delivery is critical and a key consideration when choosing a body corporate manager

As a client driven organisation, Archers continually evaluates their structure and service offering to deliver to these core needs of a committee.

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The history of Body Corporate

Management Archers, your expert in Queensland strata legislation is turning 40 in 2022! In 2022, Archers has served the Queensland Strata Industry for 40 years, we are owned and operated in Queensland for Queenslanders. We pride ourselves on our experienced staff and expert knowledge of the strata legislation in Queensland. For our birthday, we look back over the changing landscape of Queensland legislation since it began.

1930 to 1960 | The emergence of community living In Queensland and Brisbane specifically the demand for community living arose from the housing shortage in the 1930s. At that time, community living was facilitated either under tenancies in common, supplemented by agreements or Company title, whereby the building is recognised as a company and is governed by its constitution. Company title did not allow for freehold ownership over a unit. This caused many flow-on issues

such as obtaining finance and ability to readily buy and sell.

1960-1970 | Multistory dwellings and cluster housing were given direction through two new laws The demand for housing increased following the end of the second world war and high-density dwellings were in full swing. To address the issues for community living under the present systems, the Building Units Titles Act 1965 (QLD) [BUTA] was legislated. Once the building was habitable, a building units

plan and a body corporate was created to insure the building, maintain common property and operate an administrative fund. It also provided owners’ rights to services and unit entitlements, which dictates the proportion they contribute to the fund. In the 1970s there was a shift to townhouses or cluster housing as an alternative to multi-story living. In response, the Group Titles Act 1973 (QLD) [GTA] was introduced to allow land to be subdivided into lots by registering a group titles plan which identifies lots, common areas and lot entitlements.

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1970-1995 | Unregulated management rights and BUTGA were born The 1970s also saw the emergence of management rights, specifically on the Gold Coast. Management rights are arrangements with the body corporate to provide a combination of caretaking and letting agent services with a resident manager living at the building. The intention was to have an onsite manager to organise maintenance and holiday let for investors. This was implemented through service contracts, which has played a part in further legislative changes that occur over the next 50 years. BUTA and GTA legislative instruments ensured strata titled living could be managed well in Queensland, however, there still were practical obstacles which gave rise to unnecessary hardship for owners. To remove these hardships and provide a modernisation, the BUTA

and GTA were combined into one Act, called the Building Units and Group Titles Act 1980 (QLD) [BUTGA]. Key improvements introduced included new types of resolutions, lot entitlements were determined in proportion with the unimproved values of all the lots in the plan, disclosure obligations introduced, better defined by-laws, and appointment of a managing agent to guide the committee in achieving outcomes in their voluntary roles. A significant introduction was the dispute resolution process which involved the ability to make an application to a referee for an order on any matter under BUTGA. If dissatisfied with the order, there were provisions for appeal. BUTGA was amended three times to address application issues leading to misuse, a lack of transparency and anomalies in drafting errors. In 1991 a paper was released setting out a variety of practical issues and sought consultation

A crane building one of Archers longest managed buildings, Seaview Mooloolaba.

on the lack of restriction over term of service contracts, proxy votes abuse, lack of provisions for staged developments and onsite managers [with management rights] securing exclusive use of common property. In 1994 the Government attempted to right side the deficiencies in the Act, and it was substantially rewritten however, it was abandoned with no consensus among stakeholders. Outside of

BUTGA, there are some specific pieces of legislation that were introduced during this period for specific schemes, the most noteworthy being, Integrated Resort Development Act 1987 (QLD), Sanctuary Cove Resort Act 1985 (QLD) and Mixed Use Development Act 1993 (QLD). These were designed to deal with planning and management of large-scale developments for which BUGTA was unable to accommodate.

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1995 – 2021 | Welcome to the modernisation of strata regulations An alternative to further changes to BUTGA was drafted, called Body Corporate and Community Management Act 1997 (QLD) [BCCMA] as an overarching law with four separate modules which were designed for specific development types. The Standard Module for residential, the Accommodation Module for holiday letting and serviced apartments, the Commercial Module for commercial schemes and the Small Schemes module for schemes with less than 6 lots. There were so many improvements increasing the transparency and accountability of service providers to bodies corporate and gave consumer protections. The dispute resolution process was rewritten and led to the appointment of a Commissioner for BCCM. Since 1997, the BCCMA has been amended several times, with notable key changes, outlined in the table below. In 20141 DJAG reviewed strata rules and bylaws, debt recovery and scheme termination and produced a property law body corporate governance paper and in 2015 QUT report recommended changes Year

Topic

2000 2003

The Commissioner

In 2021 administrative changes involving an array of amendments fixed some anomalies in wording, relaxed requirements for small schemes, communication and meetings could use electronic methods and minor fixes. There have also been changes in other legislative instruments such as the Building & Other Legislation (Cladding) Amendment Regulation 2018 which required bodies corporate with aluminum composite paneling to proceed through three steps for remedial works and improvements to smoke alarms under the Building Fire Safety Regulation 2008 to name a few.

2022 | What issues are currently being reviewed? There continues to be petitioning of the State Government rule makers from all stakeholders for more reforms. At present DJAG are reviewing the management rights in community title schemes as there are a growing number of issues surrounding the tenure of the contracts

(up to 25 years), duties and responsibilities and the appropriateness of having a caretaker in specific schemes. Another area to be addressed is how to terminate a dysfunctional scheme (zombie schemes), where the cost of the bank to take possession to sell is less than their debt owing, leaving the lot abandoned. When this situation occurs several times in one scheme, few lot owners are raising funds for the many and costs get cut. Body corporate committees struggle on a pathway through this and due to limited funds are reluctant to spend money on a solution, hence rendering them like a zombie.

2022 | What does the future hold? How many Queensland schemes are under the various legislation now? Believe it or not, there are still schemes under the now Corporations Act 2001 (Cth) and BUGTA that have not transitioned to BCCMA. Of the 51,000 schemes registered under the BCCMA: •

58% were registered under the standard module (residential);

29% under small schemes module (<6 lots);

10% under the accommodation module (investment); and

5% under the commercial module.

The BCCMA in its current form allows bodies corporate to selfregulate and for the ½ million owners living in community living in Queensland, it remains unclear if lack of external regulation, even with the assistance of experienced body corporate managers, is the cure. Archers have been supporting the Queensland strata industry since 1982, your expert in body corporate legislation. Following in the footsteps of our founder Mr Colin Archer, who has been and continues to be an advocate for fairness, transparency and providing quality support to clients in the industry. We anticipate more law reform to continue to meet the evolving needs of those growing amount of Queenslanders who live in community living. Archers are proudly owned and operated by Queenslanders, for Queenslanders and we are your expert in navigating the intricacies of managing a body corporate. Property Law Act 1974 and BCCMA 1997 investigation

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Key change(s)

Reason for change(s)

• Adjudicators right to delegate investigation to third party

• Secured decisions for over 50+ orders already made. The change was retrospective

• Application to adjust lot entitlement

• Just and equitable circumstances each scheme

2007

• Conciliation process

• Increased ability for dispute resolution

2002

• Contract disclosure

• Information sheet underneath warning statement

• Allowed contracts to be faxed

• Defines if it is faxed, it is received

• Contracts sold off the plan timeframes

• Settlement to not take place earlier than 14 days after the seller advises its completed

• Changes to ability to termination

• Buyer cannot on technical grounds

• Duty of care introduced and a code of conduct for caretakers and body corporate managers

• For letting agent, resident managers, body corporate managers and service contractors to act in best interest of the body corporate

2003

• ­On selling and buying lots

• Enhanced consumer protection

2011

• Introduced equality and relativity principals for calculating when selling

• R ­ esolve issues surrounding lack of transparency and inequality.

• Interest schedule lot entitles by market value

• Now adjustments required a resolution without dissent

• Removed the reversion process and the disclosure requirements of 2011

• In practice a single lot owner had the ability to effectively over-turn a lawful order of an independent court, tribunal or adjudicator.

• Clarity on enforcement of bylaws

• Gray area on process to enforce schemes specific rule

• Voiding exclusive use bylaws for letting agent or service contractor

• Cannot grant exclusive use right on common property for the purpose of carrying on a business

• I­ n addition to the conciliation process introducing the Commercial and Consumer Tribunal (now QCAT) and district court processes

• D ­ ue to the level of unresolved and increasing volumes of disputes. The committee was also given a code of conduct.

2005 2009

Contracts for sale of units

2010 2003

Service providers

Lot entitlement changes 2012

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to BUGTA in response to enduring disputes for earlier built staged developments, effectively aligning BUGTA with BCCMA procedures.

2003

By-law

2007

Dispute resolution

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ResortNews | July 2022


Meet the leadership team A combined 180 years of experience in strata management is unequalled in the industry.

Colin Archer

Nicky Lonergan

Aaron Margaritis

Colin is the founder of Archers with over 40 years’ experience in property, finance, body corporate management and accounting having founded Archers the Strata Professionals in 1982. He is an industry leader and is a life and longest serving member of Strata Community Australia Qld.

An authentic finance industry leader with a high level of business acumen who leads confidently, consistently and collaboratively to achieve growth and success. Develops a driven culture through the empowerment of staff, harnessing their collective genius and encouraging them to strive for excellence.

Aaron commenced with Archers in 2003 as an Accounts Assistant and has progressed through to Chief Financial Officer and Company secretary being invited to join the Executive Management Team in 2013. Aaron oversees the Body Corporate and Company accounting functions, IT Management and is responsible for process improvement.

Kim Cullen

Wayne Hewitt

Grant Mifsud

Melissa Braney

Kim has 15 years of extensive experience within the strata industry having spent 7 years with the Archers team as a Senior Body Corporate Manager and Office Manager, Gold Coast. Prior to establishing her Strata credentials, Kim spent 10 years within the insurance and accounting industries.

Wayne has been heavily involved in the strata industry since 2008 and has previously spent a number of years working as a Property Manager. He has extensive experience managing medium to large schemes, which are governed under various Body Corporate modules.

Experienced Partner with a demonstrated history of leadership within the strata industry. Skilled in Public Relations, Negotiation, Budgeting, Development Consulting and Mentoring. Strong entrepreneurship professional with Accounting Diploma, Certificate IV in Property Operations focused in Training and Assessment from SCA QLD.

Part of the Archers team since 2008 Melissa began managing the Whitsundays office in 2011. She has extensive experience in the strata industry and specialises in management of large prestige properties on Hamilton Island, which are governed under Company Law. Her in-depth legislative knowledge provides clients with expert and professional advice.

Joel McBride

Frank Griesau

Stephen McCulloch

Patrice Armagnacq

Having been with Archers since 2010, Joel has extensive experience in the strata industry and manages a variety of schemes throughout the Whitsundays, Mackay and mining regions. Alongside his Strata experience, Joel has spent over 20 years in various roles within the property industry - including surveying, real estate and project development roles.

Frank has been in the Industry since 2010 and joined Archers in 2014. Frank is responsible for overseeing a diverse portfolio of schemes under Archers management. With his experience in the American Property Management Industry and background in operational management he helps his portfolio reach their financial and operational targets.

Stephen is an experienced Strata Manager who has been with Archers since 2007 and the Executive Leadership team since 2013. With a strong legal background in Litigation, Commercial Law, Property and Body Corporate Law - Stephen brings a wealth of knowledge and a high level of professionalism to the team.

Patrice joined Archers with 12 years’ experience in professional services. Appointed as Operations Manager in 2019 Patrice oversees the successful operation of all offices. With a background in HR and Board and Senior Management support, Patrice has an intrinsic understanding of all facets of a business, making her business insights invaluable.

Chairman

Partner, Gold Coast

Partner, Airlie Beach

Managing Director and CEO

Partner, Brisbane

Partner, Townsville

Company Secretary and CFO

Partner, Sunshine Coast

Partner, Cairns

Andrew Staehr

Director & Senior Development Consultant

Andrew joined in 2002 and is a Partner and Director at Archers and is a Fellow Member of Strata Community Australia (Qld). Andrew is a regular expert speaker at industry events and has worked with some of the largest property developers in Australia and the World to establish many of Queensland’s most awarded projects.

Partner, Airlie Beach

Operations Manager

Supporting the leadership team is unquestionably the most dedicated, experienced and client focused team of people you will have the pleasure of meeting. ResortNews | July 2022

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Why choose Archers as your Strata Manager? •

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We return phone calls within 24 business hours, answer correspondence within 48 hours and have an owner’s portal easily accessible on our website facilitating common requests. With forty years in the industry and offices on the Gold Coast, Brisbane, Sunshine Coast, Whitsundays, Townsville and Cairns, we ensure your biggest asset (your home/investment) retains value and is maintained. On-going education and the absolute best in training standards means our team have up to date technical knowledge keeping you legally compliant. It is our pleasure to provide you with the email address, direct line and mobile number of your

personal body corporate manager. At Archers we do not hide behind 1800 numbers. We even provide alternate meeting options. •

We understand relationships take ‘two to tango’ and welcome continual and constructive feedback. We are here as your support and can only undertake our role to the highest standard by working together. A key difference within the Archers team is the number of qualified individuals in our accounts team that ensures the key issues of levy notices, collecting contributions, debt recovery and your financial requirements are completed with accuracy and transparency. We have a dedicated collections office for levy arrears.

We are industry leaders who adhere, and in fact are involved in establishing, professional integrity and ethical principles within the industry. We are often consulted by Government and the peak industry body. Privacy, data maintenance and security protocols are heavily invested in within the Archers network. Our IT infrastructure and data security policies are available on our website for your perusal.

Payment options - Owners are offered a range of payment options including direct debt, BPay and credit card.

Debt recovery - we follow the legislative procedure to the letter and have a centralised arrears officer who provides personal contact and

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a customer friendly approach to recovery. •

Financial statements are maintained in our software program and the treasurer is provided with a monthly status report. The owner’s portal allows for owners to review.

Bank Accounts - Each scheme has it separate bank account where we administer and maintain the funds on behalf of the body corporate.

Security - our systems have many security layers and controls to ensure approval of payments are recorded and transparent. Committee approvers of invoices are established through the invoice hub and there is visibility of previously approved invoices for the current period.

ResortNews | July 2022


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Building

harmonious

strata communities

For those living in strata communities, and those that provide support services to strata communities, it may seem like a mythical concept that true harmony can be achieved. That, however, is what Archers the Strata Professionals wanted to determine in their May and June Smart Strata Community Education Seminar roadshow when they put the topic on the table: The Great Strata Debate: Caretakers, By-laws and Committees create harmonious strata communities.

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Treating all parties with respect

Working in good faith for the best interest of the scheme rather than the individual

Over 500 individuals registered to attend the roadshow across locations, an increase on previous years, demonstrating that harmony is a desired outcome and that committee members are willing to become better informed.

HWL Ebsworth Partner, Mario Esera

Chambers Russell Lawyers Partner, James Nickless

Between 14th May to 15th June six seminars were held across Queensland (Sunshine Coast, Gold Coast, Airlie Beach, Townsville, Cairns, Brisbane and online) with speakers presenting their individual theories on what factors lead to harmony within communities, and as expected they did not agree! Across the series, viewpoints were heard from:

OMB Solicitors Partner, Juliette Nairn

Nicholsons Solicitors Partner, Andrew Suttie

Strata Solve Director, Chris Irons (Former Commissioner)

Grace Lawyers Partner, Jason Carlson

ARAMA CEO, Trevor Rawnsley

While each seminar did lead to differing outcomes on what created the most harmony, what was repeatedly applauded was the genuine willingness of committees and service providers to work towards creating harmony

The series was hosted by Archers the Strata Professionals CEO, Nicky Lonergan and Archers Partners from each region joined the panel to answer the questions from the audience in each region.

and identifying the barriers to overcome. It was agreed that every scheme is so different that pinpointing what leads to harmony was not possible for all communities, especially in relation to the detailed aspects of each argument in terms of caretaker agreement terms, remuneration, education standards, recourse for non-performance of managers, reasonable decision making and by-law enforcement. These topics were widely debated and priority varied to each schemes needs. In saying that, it was clear that all schemes would benefit from: •

Better and more mindful communication techniques

Educated and informed committees and owners

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Due to the importance of the topic and content, for the first time the seminar was recorded and is now available for committees Australia wide to view (see the QR code below) and share amongst other committee members that could not attend. The feedback from the seminars was encouraging and provides guidance on the topics that committees want to hear about at the next series being busily planned for in October 2022. To find out more on building a harmonious strata environment, watch the online version of the recent seminars via QR code.

ResortNews | July 2022


ResortNews | July 2022

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www.abcm.com.au

info@abcm.com.au


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