Dealing with a dysfunctional Owners Corporation, under Section 237 of the Strata Schemes Management Act 2015, involves addressing significant issues within a scheme that hinders effective operation.
Avoiding a compulsory appointment is always best.
Here are key strategies to prevent escalation to a compulsory appointment:
- Best seek to resolve disputes through neutral mediation to promote cooperation and find common ground among owners.
- Elect and engage with new committee members to bring fresh perspectives and skills to tackle dysfunction.
- Effectively collaborate, seek professional advice, maintain communication, encourage resident participation, and follow the Strata Schemes Management Act 2015 and the obligations within it.
- If disputes persist, seek NCAT intervention for specific Orders that address administration and management issues.
If these strategies fail, then it is a serious and a last resort step to take and proceed to NCAT who can appoint a skilled strata manager to handle challenges, bringing expertise in finance, maintenance, and conflict resolution.
An application for a compulsory manager will require detailed submissions and evidence to support the process. If you are looking to submit an application, you can complete our Compulsory Appointment Form below:
What issues will generally allow NCAT to appoint a compulsory Strata Manager?
Common issues can include:
- failing to maintain and repair the common property;
- declining to make decisions or having continued deadlock at meetings;
- unfairly discriminating against a minority of owners or residents in the Scheme;
- never raising adequate levies for repairs, insurance, utilities and other services;
- ignoring and failing to deal with conflicts of interest matters;
- rarely, if ever, keeping proper records;
- refusing to hold an annual general meeting;
- not complying with Tribunal or other Court orders.
What are the benefits of a Section 237 Appointment?
- A professional agent offers specialised skills in strata management, including legal knowledge, financial acumen, and dispute resolution expertise, ensuring efficient administration.
- Experts in a specific issue can be engaged at the discretion of the Strata Manager to ensure issues are dealt with under a best practice model and with efficiency.
- The agent’s independence guarantees unbiased decisions, resolving conflicts neutrally for the best interest of the Owners Corporation.
- Structured management promotes financial prudence, legal adherence, record-keeping accuracy, and improved communication.
- Expert agents mediate disputes impartially, fostering a more cooperative and respectful environment.
- Overwhelmed owners gain confidence as a professional agent can ensure efficient operations for the term of the Order and will get things back on track for the longer term while also ensuring that asset values are retained in the property.
Disclaimer: The article and its content are necessarily brief and general in nature and are not intended to be relied upon by any reader in dealing with a particular problem. They do not constitute any form of legal advice or opinion and should not be relied upon as such.
Further legal advice on any aspect of this information should be sought from a legal services professional in your state or territory. Whilst all care has been taken in the preparation of this information the producers accept no liability for any omission or misguidance.
Liability limited by a scheme approved under Professional Standards Legislation.
Our experienced and reliable team can help your Owners Corporation successfully navigate through a difficult period.
If your Owners Corporation is struggling to function effectively and is not fulfilling its duties in general, the Tribunal can appoint a compulsory strata manager to help you get things back on track sooner rather than later.
With over four decades of industry experience, the team at Strata Choice is well-equipped to provide you with the expert guidance and support you need. We can take care of all functions, including those of the Strata Committee, Chairperson, Secretary, and Treasurer.
We’d love to help you. Complete our Compulsory Appointment Form to get started.