JULY 2023
Banning the charging of lithium-ion batteries in apartments
Page 22 | Strata Insurance Solutions
Approval required for introducing a new parking system
Page 26 | Tower Body Corporate
Are all debts to the body corporate treated as unpaid levies?
Page 30 | Mahoneys
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4 What’s the point of issuing a Form 10 notice?
William Marquand, Tower Body Corporate
6 Where is the boundary point between the lot and the common property?
Todd Garsden, Mahoneys
8 Do volunteers need to provide a tax file number and ABN to get reimbursed?
William Marquand, Tower Body Corporate & Rod Laws, TINWORTH & CO
10 Renter’s right to feel safe
Chris Irons, Strata Solve
12 Maintaining Common Property –What needs to be done?
14 Why does our strata manager want to add a gallery vie variation to their contract?
Todd Garsden, Mahoneys
16 Does a car parking lottery system breach the by-laws?
Chris Irons, Strata Solve
18 Enormous premiums and $100k excess for small strata schemes in FNQ
Tyrone Shandiman, Strata Insurance Solutions
20 Can the caretaker refuse to maintain the owner roll?
Frank Higginson, Hynes Legal
22 Banning the charging of lithium-ion batteries in apartments
Tyrone Shandiman, Strata Insurance Solutions
24 Are committee members compelled to ‘police’ bylaw breaches?
Chris Irons, Strata Solve
26 Approval required for introducing a new parking system
William Marquand, Tower Body Corporate
28 Deadlocks and fire doors
Stefan Bauer, Fire Matters
30 Are all debts to the body corporate treated as unpaid levies?
Todd Garsden, Mahoneys
32 Has your car park been allocated to someone else?
Peter Hunt, Mathews Hunt Legal
34 Housing crisis – not just material
Strata Community Association (Qld)
36 The QLD LookUpStrata Directory
If there was an issue with the minutes, an amended copy of the minutes could be issued.
It’s not quite clear, but the question here is around whether there was a technical issue with the way a contravention notice was issued and whether that invalidates the notice.
This seems to be missing the point of why a notice is issued – to advise an owner that they are breaching a body corporate by-law. If the owner agrees and stops, the issue will end there. If the owner disagrees with the rationale of the body corporate, they can respond. If they continue breaching the by-law, the body corporate can take further action.
After voting on the issue outside a formal committee meeting, we issued a Form 10 notice. If minutes were not distributed correctly, is the notice enforceable?
Our body corporate committee voted on an issue outside a formal committee meeting resulting in issuing a Form 10 Notice of Continuing Contravention.
Should minutes be circulated recording the decision to vote outside a meeting? If yes, and there were no minutes circulated, is the decision valid? Minutes of the vote were circulated but incorrectly recorded the votes. Is the Form 10 enforceable?
The owner is either breaching the by-law or they are not.
If a body corporate has made a decision via a VOC, both notice of that VOC and the minutes of the VOC should have been sent to all owners.
Was there a technical issue with the way the body corporate issued the notice? Depending on the type of the problem and the nature of the by-law breach, this could potentially provide an area of dispute if the legal path was followed, but it doesn’t necessarily invalidate the complaint itself – the owner is either breaching the by-law or not.
If the body corporate has concerns about how the breach notice was issued, it could always re-run the process if necessary. This may be particularly worthwhile if the matter proceeds via the Commissioner’s office. It’s always good to ensure best practice is adhered to. Equally, if the owner who received the notice does not feel it was issued correctly, they are entitled to say so, but they should also acknowledge the content of the notice itself.
Body corporates should try to do things correctly. If they are not, there are means to address that, but errors will occur. It isn’t a game of gotcha – ad hominem attacks don’t resolve the issue.
William Marquand | Tower Body Corporate [email protected]READ MORE HERE
In a Building Format Plan, where is the boundary point between the lot and the common property? If an owner drills and screws into a boundary wall, why aren’t they making an improvement to common property?
An owner notified the committee they plan to renovate their kitchen, bathroom and laundry. These renovations include replacing the cabinets attached to boundary walls. The total cost of these works is estimated to be >$3,000.
Our building is under the Building Format Plan (BFP); no specific by-laws cover renovations.
Our body corporate manager advised that given the works are contained within the lot, approval for the works is not required. These are not improvements to common property.
In a BFP, where is the boundary point between the lot and the common property? If an owner drills and screws into a boundary wall, why aren’t they making an improvement to the common property?
Simply drilling into a boundary wall does not always equate to an improvement to the common property.
In a Building Format Plan, the boundary of lots is the midpoint of the structural elements (such as the boundary walls). If the boundary is between two lots, there is no common property involved – it is the two separate lots.
Common property will only come into the equation if the wall in question is the boundary separating the lot and the common property. However, simply drilling into a boundary wall does not always equate to an improvement to the common property. The work would need to extend beyond the midpoint of that wall (not the first paint layer).
Todd Garsden | Mahoneys [email protected]
Do volunteers need to provide a tax file number and ABN to get reimbursed?
Our treasurer insists our volunteer maintenance person provides a Tax file number and ABN before the body corporate can reimburse them. Is this correct?
We own and live in a Queensland apartment. Last year the committee reappointed a volunteer maintenance person who often worked outside normal work hours. They did a great job. He presented his work hours etc to be reimbursed and the amount was approved by the committee. The treasurer insists that, under ATO laws, the volunteer had to provide a Tax file number and an ABN before he could be reimbursed. He refused to comply and has not been paid. Is this correct?
Is the maintenance person being reimbursed for the materials used or their labour?
William Marquand, Tower Body Corporate
It’s not quite clear from the question, but is the maintenance person being reimbursed for the materials used or their labour?
If it is for the materials, they should probably be reimbursed provided all expenses have been reasonably recorded and receipts supplied. If it is for the labour, the treasurer may have a point.
According to the ATO website:
If the supplier does not provide an ABN and the total payment for goods and services is more than $75 (excluding GST) you generally withhold the top rate of tax from the payment and pay it to us.
If a supplier has applied for an ABN you can offer to hold payment until they have obtained and quoted their ABN.
If the payment is withheld, the contractor can then claim the tax back when they make their tax filing. In practice, this can cause some problems as contractors doing very small jobs may not want to get an ABN. And, even if they would be reimbursed the full amount by the tax office, they may not want to wait for the full payment. If they refuse to get an ABN and you refuse to make payment without one, you might lose a good contractor. In those circumstances some body corporates might opt to just pay the contractor the full amount and leave it to them to declare their income. If they do, there could be a problem with the ATO or perhaps the issue will be picked up in an audit. Committee members may be in breach of the code of conduct. Body corporates are supposed to follow the law, but some might see this as an acceptable risk.
See the ATO website for more information: Withholding if ABN not provided
Rod Laws, TINWORTH & CO:
I am not sure as to the actual facts of this case as you talk of volunteers, but then getting reimbursed for time. It sounds as if this is a contractor and the normal requirements for quoting an ABN apply. If not quoted as part of a business to business transaction, ABN withholding tax of 47% applies and should be remitted to the ATO. At the end of the year, a summary should be provided to the contractor showing gross payments and ABN withholding.
Rod Laws | TINWORTH & CO [email protected]
William Marquand | Tower Body Corporate [email protected] READ
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As a tenant, can my daughter expect to feel safe on the common property of her apartment building? The body corporate is aware the lighting is not working but refuses to carry out repairs due to the cost.
My daughter has rented in a small unit complex in Townsville. The security lighting in the common areas on the external stairways and car park areas is not working. The complex is very dark in these areas, with no natural, street, or security lighting. My daughter does not feel safe after dark, especially walking from the garage to the door of her unit.
She has notified the real estate in writing. They have passed her concerns onto the body corporate. The body corporate has responded that they are aware the lighting is not working, and they have decided not to rectify it due to the expense.
Is the body corporate required to maintain/ install working security lighting? If they choose not to, are they liable if my daughter sustains an injury (or worse) due to inadequate lighting?
Under Queensland body corporate legislation, a tenant is known as an ‘occupier’. Occupiers have direct rights with the body corporate. In other words, if the body corporate has a responsibility to maintain common property for the benefit of all residents – including occupiers – then the body corporate must meet those obligations, regardless of whether it appears too costly or they would prefer not to. It is not up to the real estate agent to initiate this. Your daughter can do that directly.
If the body corporate maintains its position and does not want to address the issue, then your daughter can pursue dispute resolution proceedings against the body corporate through the Commissioner’s Office. Your daughter may also have options to pursue this matter through the Residential Tenancies Authority. Recent tenancy reforms in Qld require minimum housing standards, and your daughter may have rights to pursue this issue as a result of those standards.
This is general information only and not legal advice.
Chris Irons | Strata Solve [email protected]
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The minute a property is completed each of the elements that make it up begin to wear out. As a building ages, the Owners will be called upon to maintain it That maintenance will come at a cost and no matter what, the cost will be met by the Owners. The good news is, Owners do have the ability manage and control their maintenance costs.
Refer to your Strata Plan, walk around the Common Property and take note of the various common areas, capital items, services and facilities
Once identified, quantify the number or amount of the elements that make up your Common Property
Establish an approximate age or condition of the elements that make up the Common Property and Determine a replacement or maintenance interval
There are very real risks associated with maintaining the Common Property, or not maintaining it as the case may be. Owners, residents, or visitors can be hurt by a loose handrail, a crack in the path, a faulty safety switch. Painting becomes a lot more expensive the longer it is left, the consequence of which is higher levies.
Owners can assess the Common Property themselves or contract someone else to do it. Self-assessment can be daunting and very time consuming because you don’t know what to look for or have the tools and systems to record and document what you need in a meaningful, compliant way. Contracting the work out can result in lower risk and more meaningful documentation, but it is important that Owners remain engaged in the process.
When you engage a Contractor to inspect and report on your strata building, their inspection will incorporate all elements of the Common Property that are accessible and visible to them on the day of the inspection. The qualified and experienced inspector will use all available resources to catalogue the building, but the building can’t tell them when it was last painted or that the balcony in unit 3 leaks, or the gutters are about to be replaced. Engaged Owner are able to provide necessary history on the building and where willing can attend the inspection to download their knowledge to the Inspector The additional information will give Owners the best of both worlds, a baseline level of information about their Common Property maintenance requirements, based on an onsite inspection by an experienced professional, informed by additional historical information and relevant current issues provided by the site contact.
QIA Group has been providing compliance reports to the Strata Industry since 2005. We always attend site and understand the value of Owner engagement during the inspection process. Our experienced inspectors are local to Victoria We take samples when we carry out an asbestos inspection, so Owners know whether they do or don’t have asbestos containing materials in their building. We offer ongoing support to Strata Companies after the report is compiled and respond to Owner feedback in a timely and substantive manner. CONTACT US NOW FOR FURTHER INFORMATION OR CHECK US OUT HERE: QIA Services
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Why does our strata manager want to add a gallery vie variation to their contract?
Our strata manager wants to add a gallery vie variation to their contract. What is a gallery vie variation? Why should we agree, and what are the benefits to owners?
A gallery vie clause limits the rights of the body corporate to terminate the agreement in some very specific circumstances.
It would be unusual for a strata manager to want to include a gallery vie clause in their administration agreement.
However, a gallery vie is a clause that limits the rights of the body corporate to terminate the agreement in some very specific circumstances – which primarily benefits the other party to the contract and their financier.
It is usually not a controversial decision to agree to the clause as it will allow the other party to more readily secure finance to purchase the business related to the agreement. If the clause was not agreed to, the potential pool of managers would be limited. It may not provide for a quality manager (who would also be under pressure from their financier and financing terms).
Todd Garsden | Mahoneys [email protected]
In student accommodation, the caretaker has an occupational authority to manage the car parking. They run this on a lottery system. Some owners complain this is a breach of by-laws. How can we move forward?
We have a 170 lot student-only accommodation building. The caretaker has an occupational authority (OA) over the common property security gated car park. They manage the car park via a lottery system. Provided tenants can support their “student” status as specified in the Development Application (DA), they apply for a parking space each semester.
The caretaker also has a letting agency that handles the letting of approximately 80% of units to students. The remainder are either self-managed or managed by external agents.
A group of self-managed owners are concerned about the management of the car park. They believe the caretaker is breaching the by-laws by providing only some residents full access to the common property car park. Does the OA allow for the caretaker to manage the car park, or is this a by-law breach?
An option would be an information session for owners, residents and other interested parties about the myriad issues at play here.
This is not a query that can be simply answered with a general response. There are issues involving by-laws, occupational authority and several related matters, and it is impossible to give a determination on these things. It all depends upon the particular circumstances of your scheme – and each scheme is different. I’d recommend you seek specific legal advice.
Another option would be some kind of information session for owners, residents and other interested parties about the myriad issues at play here. While that would not offer a determination per se, it may assist in providing clarity to all concerned and ease some of the tensions.
This is general information only and not legal advice.
Chris Irons | Strata Solve [email protected]READ MORE HERE
Access to insurance in FNQ, especially for small strata schemes, is expensive and hard to find. With $100k excess charges for a named cyclone, how do small strata schemes navigate this?
In FNQ, a severely limited number of insurance companies are willing to insure strata buildings because of the risk of cyclone and flood events. The pool of insurers becomes even more restricted for small strata complexes.
We have one insurance company available, and they charge enormous premiums and $100K excess charges in the event of a named cyclone and/or storm surge flooding. How can we reach a broader base of companies willing to insure small strata schemes in FNQ?
How do we deal with potentially $200K worth of excesses if a named cyclone trashes and floods our strata without charging a $7K+ special levy per lot?
A small strata does not carry the cash needed to absorb this large outlay.
The cyclone reinsurance pool should come into force for insurers in the coming 6-7 months, and this should mean more insurers offering cover at a more affordable rate.
With a building of more than 10 lots insured for a sum greater than $5million, currently limited insurers will quote. Usually, the holding insurer is the most likely insurer to offer cover.
Notwithstanding, the cyclone reinsurance pool should come into force for insurers in the coming 6-7 months, and this should mean more insurers offering cover at a more affordable rate.
You may consider changing the expiry date to 1st January 2024, as that is when all insurers must come on board with the cyclone reinsurance pool.
If you haven’t paid the policy, it may be worth speaking with a broker as they may be able to offer the same policy on a no commission and fee for service basis, which may save you in premium. Likewise, they may have other insurers available that have not been considered.
Tyrone Shandiman | Strata Insurance Solutions [email protected]
If the
The new Regulation Modules in 2020 provided some benefits to the sector, such as allowing strata to catch up with technology on electronic voting. But they only went so far. With the new strata laws currently being formulated, we are about to see some really meaty stuff emerge from government.
The forced dispossession of people from their property is going to be one of the most talked about provisions of Queensland strata law in decades, if not ever.
The government has had plenty of opportunity to study schemes in other countries and our southern neighbour, NSW, so you would like to hope that whatever is produced will be best-in-class.
What seems clear is the need for an economic reason for a forced sale to take place. How this is defined will be super interesting.
At the moment, the proposed new laws would require just 75% of lot owners to approve the termination of a scheme where the body corporate has agreed it is more financially viable to terminate rather than maintain or remediate the scheme.
It seems that this is the only basis on which schemes can be brought to an end without 100% support.
How to define that trigger to the satisfaction of all parties involved will be a genuine challenge. Who said life in government was easy?
And if that isn’t enough to add some spice to the lives of various owner committees across the state, there’s also the potential ructions that will come from bodies corporate being able to prohibit (as opposed to just regulate) smoking and what they do with the ability to tow cars a bit more readily.
the
gather and maintain the owner roll, are they within their rights to refuse?
Even those with just a passing interest in strata law in Queensland should be a tad excited with what we have coming up in the next few months .
The body corporate manager is responsible for providing administrative services (including general and financial administration) to the body corporate, while the caretaker service contract focuses on delivering services other than administrative in nature.
These three issues alone are going to really rattle some cages. It would be an unusual body corporate indeed that, when given a lot more power, is not at least tempted to use/abuse it.
Considering these provisions, if the body corporate requests the caretaker gather and maintain the owner roll, would this constitute a conflict with the caretaker agreement and the BCCM Act? Is the caretaker obliged to undertake administrative tasks such as maintaining the strata roll. Are they within their rights to refuse?
I have been part of the group that has discussed these proposed changes since this government was elected in 2020. The balancing act that must be performed when trying to consider both individual and collective rights is not simple. These new laws will take away people’s rights – the right to choose when you sell your property or to smoke on an area of common property are going to be affected.
There are obviously views both for and against what the government has announced, and the government has clearly decided that the greater good is best served by heading down this path.
So, we will have new laws that add another layer of complexity to what is already a quite complex regime.
The management of the body corporate roll is definitely a task for a body corporate manager –not the caretaker.
By Frank Higginson | Partner, Hynes LegalAgain, the views can diverge, but I tend to lean towards the camp of more prescriptive laws being better for the sake of certainty for all involved in strata.
To me, the management of the body corporate roll is definitely a task for a body corporate manager – not the caretaker. The roll is a body corporate record capable of being accessed like any other body corporate record (like emails, letters, minutes etc) and should be an administrative task.
Frank Higginson | Hynes Legal [email protected]
If you think the laws that regulate things are bad, imagine living in a world without them? That would certainly be good for lawyers, but I don’t necessarily think the same applies for owners and occupiers. Anyway, we hold our collective breath and see. Details of the new laws will emerge towards the end of the year.
One thing is for sure – it is going to be very interesting!
How proactive should the building manager or body corporate committees be regarding educating, warning or banning the charging of devices such as computers, scooters or bike lithium-ion batteries in apartments by residents?
How proactive should the building manager or body corporate committees be regarding educating, warning or banning the charging of devices such as computers, scooters or bike lithium-ion batteries in apartments by residents? Self-igniting batteries/chargers have caused serious fires. Could the building’s fire insurance be at risk if pre-emptive action is not taken?
In a similar vein, would it not be incumbent upon the building manager’s overall responsibility for maintenance and safety (preventative and actual) to have a plan for building-wide inspections and/or renewal of flexible water supply hoses periodically? I understand they are susceptible to failure after five years and could easily cause extensive damage to a high-rise apartment complex.
Placing restrictions on charging devices such as computers, scooters or bike lithium-ion batteries in apartments goes beyond what most strata buildings do.
A body corporate has limited jurisdiction on what it can make owners do inside their lot, and I would recommend the body corporate seek advice from their strata manager on whether a by-law can be drafted to cover off on any concerns the body corporate has about lot owner activities.
If an owner is doing anything contrary to law or council regulations when charging devices, the body corporate may report this breach to the relevant governing body. Regulations and laws are commonly established to help minimise risks associated with activities deemed to be risky.
A body corporate is expected to take reasonable action to minimise risk. Placing restrictions on charging devices such as computers, scooters or bike lithium-ion batteries in apartments currently goes beyond what most strata buildings do in this regard.
Claims history is a major consideration when insurers assess a proposal for new insurance. If there is a major fire claim, this may impact the insurability, premiums and excesses imposed by the insurer.
Concerning flexi-hose inspections, the building manager’s duties may only be limited to managing common property. However, they may facilitate the inspection if it is within the scope of their services or if they otherwise agree to assist in this regard.
Owners will typically be responsible for maintaining their lot (including flexi hoses) in good condition in accordance with the BCCM Act. The committee can make recommendations to owners to inspect their flexi-hoses but may have limitations on enforcing the inspection of hoses.
Tyrone Shandiman | Strata Insurance Solutions [email protected]
Under Queensland legislation, if a committee member sees a bylaw being breached, are they legally compelled to take action to stop the behaviour?
Under Queensland legislation, if a committee member sees someone breaching a bylaw, such as unreasonable behaviour on common property or damaging common property, are they legally compelled to take action to stop the behaviour? If so, this is a heavy burden that would often fall on volunteer retirees who live on site.
What powers do committee members have under Queensland law? Do officials have to enforce bylaws and correct behaviour?
How much can a body corporate official or manager rely on local authorities to back them up when the perpetrators may not be breaking state laws? Could the police be compelled to assist? An example is teenagers running wild, causing damage in the pool area, and disrupting other swimmers.
If there is sufficient evidence of a bylaw breach, then yes, the committee is meant to be following that through.
We’re talking about two separate issues here. Not everything which happens in a body corporate is a body corporate issue to address. There’s this idea that everything that occurs within the boundaries of a complex is up to the committee to address. Some things are
not for the committee to manage, and some are a police matter, as with your example of teenagers running wild.
I’ve had this question before in different forms. The first thing to do is engage with the parents or guardians and find out what is happening here. In extreme circumstances, say something like child safety, you need to get the police involved.
Coming back to your first issue about bylaws. Yes, the committee does have a legal responsibility to enforce bylaws. If there is sufficient evidence of a bylaw breach, then yes, the committee is meant to follow that through. However, just because somebody alleges a problem with the bylaw doesn’t necessarily make it so.
If I say Nikki is causing noise on the scheme, and I want our bylaw enforced against her, that’s one thing. But I need to come up with evidence. I need to cough up the logbook of all the times that she’s
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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.
caused me noise. Me saying Nikki is making a lot of noise is not enough, and committees are entirely within their rights to decline to do that.
Chris Irons | Strata Solve [email protected]
Our body corporate has introduced a ticketing system for regulating parking within the complex. This system has been added to the by-laws without approval at AGM or EGM. Is this appropriate, or is approval from owners required?
By-laws can only be added or amended via a general meeting of owners, an AGM or EGM. If the committee introduced the bylaw, you should have had an opportunity to vote, and there would be a record of the vote.
The best question might not be whether the committee fully upheld the legislation but does the system work.
If that hasn’t happened, it sounds like the ticketing system has been installed informally on the committee’s authority. Is this permissible? Maybe, depending on cost and how the system operates. It’s only possible to say with all of the information.
As a next step, you can contact your committee or body corporate manager and ask them to explain the system and why it was installed. Surely there has been some communication sent to owners about what it is and how it works?
if you are unhappy with the system, you can work through the complaints hierarchy – letter to the committee, motion to the committee, motion to a general meeting, complaint to the commissioner – to redress the issue.
It is possible, maybe likely, that the committee is overstepping its reach in some way if it has installed this system without consultation with the owners or any voting. If that is the case, the system should probably be removed until the committee has instituted correct procedures.
Still, there should be a lot of sympathy for committees trying to control parking issues with out of the box ideas because the formal help available to them is so limited. Many schemes have tried the means of resolution allowed by the legislation and have found them ineffective at resolving parking problems.
The attorney general promised some new legislation around parking in February, but that office is still twiddling its thumbs on progressing the idea many months later. In these circumstances, it’s unsurprising that some owners will look at alternative solutions. The best question might not be whether the committee fully upheld the legislation but does the system work. Is the body corporate better off? If the answer to these questions is yes, the next step might be finding a way to have the system approved by owners at a meeting.
William Marquand | Tower Body Corporate [email protected]
If our fire doors were compliant in 1999 and owners have since installed deadlocks, are the doors still compliant, or do they need to be replaced?
The Certificate of construction for our building states the build as 1999. It’s a Class 2 build with eight units and two stairwells. Our doors are now classed as non-compliant because they all have deadbolt locks with a knob set below. Owners can’t afford to replace the doors.
How do we know if the fire doors passed compliance at the time of the build? If the doors were compliant in 1999, do they have to comply with the current standard?
The deadbolt may be able to be replaced with a compliant door lock mechanism.
After the installation of a prescribed fire safety system, the installation is required to be certified, stating that the material and installation methods comply with the requirements of the day. This certificate would be required to confirm if the door hardware was compliant on the day of construction. Deadbolts could prevent the fire door from latching in the closed position and are therefore not permissible.
Door knobs may be compliant as per AS1905.1-1997. However, this would need further investigation to be confirmed.
The fire doors may not need to be replaced unless they contain asbestos. If not, the deadbolt may be able to be replaced with a compliant door lock mechanism.
Stefan Bauer | Fire Matters [email protected]READ MORE HERE
If a lot owner agrees to and receives a service, then subsequently fails to pay the body corporate for it, is this recoverable similar to an unpaid levy? Can the owner still vote?
Section 200 of Body Corporate and Community Management (Accommodation Module) Regulation 2020 permits a body corporate to supply, or engage another person to supply, certain services for the benefit of owners and occupiers of lots e.g. cleaning, painting, and mowing.
If a lot owner agrees to and receives a service, then subsequently fails to pay for it, is this just a simple debt, or is it recoverable as a body corporate debt similar to unpaid levies? Does the debt preclude the owner from voting etc., until paid?
A debt owed through a service agreement is treated slightly differently than an unpaid levy.
A debt owed through a service agreement is treated slightly differently than an unpaid levy. A service agreement debt does not attach to the lot in the same way as an unpaid levy, and the body corporate does not have the same rights to charge interest or reasonable recovery costs.
However, the service agreement debt is still a debt associated with the ownership of a lot, and so the owner (if the agreement was with the owner). Accordingly, the owner would be unable to vote at general meetings or nominate for the committee.
Todd Garsden | Mahoneys [email protected]
Since 2001, Seymour Consultants has applied professionalism, honesty and integrity to every project and built a reputation as a market leader in the Strata Industry.
An increasingly common practice in bodies corporate is the transfer of car parks between owners. The committee must quickly record that reallocation in a new Community Management Statement (‘CMS’), which should be a simple and relatively cheap process.
Unfortunately for some owners, the new CMS has failed to record the reallocation, and instead, a car park is wrongly allocated to someone else. This is very bad news for a vendor who thinks they have a car park to sell but then finds out that the valuable car space is owned by someone else.
The situation becomes a legal minefield when there are numerous reallocations over many years based on an initially incorrect allocation. One of our matters involved an exclusive use area allocated to two different lots and incorrectly recorded for about 20 years when the error was discovered. The implications are that two lots thought they both had the exclusive use of that area, which had a knock on effect when the lots were sold over the years. In addition, this scheme had 3 other incorrect recordings of exclusive use areas.
We recommend that:
1. Committees immediately seek to register any valid reallocation in a CMS. Do not wait until the next CMS is due to be lodged, as it may never happen, and then the body corporate will likely be in breach of the legislation, which requires the new CMS to be registered within three months of the notification (unless an Adjudicator’s Order is obtained);
What happens if, during the transfer process, your car park is allocated to someone else?
2. All owners check their CMS to make sure that they are occupying the car park noted in the CMS – it is better to find a problem now rather than when a sale is pending; and
3. Any owner involved in a reallocation should check that the new CMS correctly recorded the reallocation.
Committees should immediately register any valid reallocation in a CMS.
Peter Hunt | Mathews Hunt Legal [email protected]
Over the past year, Queensland gained an enormous net increase of 92,000 people, which is a 1.8% increase in our total population, and more than any other state. Tales of skyrocketing rents, obscene results at auction and families sleeping in cars have become all too common over the past two years. Obviously, this creates a storm of economic, social and town planning issues.
As you would expect, being in rental or mortgage stress significantly diminishes your wellbeing1. Being homeless, even more so2
A fundamental shift in our thoughts on housing are needed. The mindset of buying a detached house that “will double in value every ten years” is being rapidly disrupted.
A lot has been made over the years about the so-called wealth effect and it’s positive consequences for the economy. It is true, that as house prices appreciate, historically, Australians have tended to spend more, given they feel wealthier, albeit they only really are on paper. This conventional wisdom has come under scrutiny in recent years, particularly as household debt has exploded and as we now face a broad belt tightening by almost all Australians in the wake of increasing in interest rates on record debt levels.
A recent University of New South Wales into this topic yielded fascinating results. The report, titled Housing: Taming the Elephant in the Economy, suggested a Royal Commission to ensure younger Australians aren’t burdened with the cost of housing. Certainly, a radical prospect.
1 Tap into Safety. 2022. The Impact of Financial Stress on Mental Health - Tap into Safety. [online] Available at: <https://tapintosafety.com.au/the-impact-of-financial-stress-on-mental-health/> [Accessed 10 October 2022].
2 Mental Health Foundation. 2022. Homelessness: statistics. [online] Available at: <https://www.mentalhealth.org.uk/explore-mental-health/mental-health-statistics/homelessness-statistics> [Accessed 10 October 2022].
“Australia’s approach to housing policy has fuelled income and wealth inequality and created significant economic instability. This is a huge drag on productivity and warps Australia’s capital investment patterns,” said the report’s lead author, Professor Duncan Maclennan. The fact is, investment in existing housing, either by owner occupiers or investor owners, when higher than market equilibrium blunts investment in other productive goods and services. Whilst paying off a mortgage yields dividends for the owner of the property, there’s no multiplier effect out there in the economy. The money goes into the walls and is locked there. We need to make housing more affordable to encourage investment in other productive assets and businesses.
What does this have to do with strata? Quite frankly, everything. A strata title property is on average almost $400,000 cheaper than a detached dwelling in Brisbane. The embrace of strata is critical to building a better Queensland, and Government of all levels need to embrace it as a major solution in the housing crisis and a lever to pull to help solve other, significant policy challenges. As a starting point, strata housing is more affordable than detached housing, not to mention better for the environment due to its reliance on less land to be cleared, its residents more easily placed within walkable environments or near public transport, much less likely to need to use cars. This helps reduce net emissions and protect native animals.
The social multiplier by building more strata won’t just make housing more affordable, cities more walkable and preserve green space. It will have a variety of positive social impacts that will be felt widely.
There are some important factors to consider socially about the effect of exorbitant property prices.
I guess none of us have really considered how housing impacts the birth rate in Australia and the social and economic implications of that.
Recent research indicates that diminishing home ownership, caused by the relative growth of property prices to wages has adversely affected Australia’s birth rate. A recent University of Sydney study showed that increased housing wealth encouraged those who already owned housing to have more children but was a significant barrier to those in rental accommodation having children at all. This is particularly worrying when you consider that only 37% of people aged between 25 and 34 own a home. It would appear obvious that any disincentive for people of prime childbearing age to not have children will have significant long-term implications for society broadly.
This is just one of the many unintended consequences of our current housing crisis and why we must all work together to ensure we are supporting workable, affordable solutions.
Laura Bos General Manager
www.qld.strata.community
Tower Body Corporate
Your Building Matters
P: 07 5609 4924
W: https://towerbodycorporate.com.au/
Bright & Duggan
Strata Professionals
P: 02 9902 7100
W: https://bright-duggan.com.au/
Vision Strata Services
Your local Strata Firm based on the Gold Coast QLD
W: http://visionstrata.com.au/
Civium Communities
When you build trust, you build a community
P: 1300 724 256
W: https://civium.com.au/
Northern Body Corporate Management
Specialist Body Corporate Management for North Queensland
P: 07 4723 8217
W: https://www.nbcmqld.com/
Network Pacific Strata Management
Supporting our Qld strata communities
P: 07 5609 8677
W: www.networkpacificstratamanagement.com.au/
Bryant Body Corporate Management
Not All Agents Are the Same!
P: 07 5437 7777
W: https://www.bryantstrata.com.au/
Quantum United Management
Creating vibrant and connected communities
P: 61 38360 8800
W: https://www.quantumunited.com.au/
Archers the Strata Professionals
Your Partners in Stratas
W: https://abcm.com.au/
Actualised Industries
A breath of fresh air
P: 1300 728 760
W: https://www.actualisedindustries.com.au/
Building Rectification Services
P: 07 5539 3588
W: https://www.buildingrectification.com.au/
Covid19 Plans
Covid19 Safety Plans for Strata
P: 1300 828 344
W: https://covid19plans.com.au/
Strataregister.com Pty Ltd
Find the Strata / CT Manager for your property
P: 0411 483 249
W: https://www.strataregister.com/
Rawlinsons
Calculated Confidence
P: 08 9424 5800
W: https://www.rawlinsonswa.com.au/
Strata Guardian
Fight low returns and rising levies with us.
P: 1300 482 736
W: https://www.strataguardian.com/
Network Pacific Strata Franchise
Join our successful team
P: 03 9999 5488
W: https://www.networkpacificstratamanagement.com.au/qld/
Sedgwick
Building Consultancy Division & Repair Solutions
W: https://www.sedgwick.com/solutions/global/au
QIA Group
Compliance Made Easy
P: 1300 309 201
W: https://www.qiagroup.com.au/
BIV Reports
Specialist in Strata Compliance Reports
P: 1300 107 280
W: https://www.biv.com.au/
GQS
Quantity Surveyors & Building Consultants
P: 1300 290 235
W: https://gqs.com.au/
Seymour Consultants
Body Corporate Report Specialists
W: https://www.seymourconsultants.com.au/
Budget Vals
Built For Strata
P: 1300 148 150
W: https://www.budgetvals.com.au/
Palmer Acoustics
Specialist Acoustic & Audio Visual Engineering
P: 61 7 3802 2155
W: https://palmeracoustics.com/
HFM Asset Management Pty Ltd
Building Efficiency
P: 1300 021 420
W: https://www.hfmassets.com.au/
Independent Inspections
Sinking Fund Forecast, Insurance Valuations, OHS
P: 1300 857 149
W: http://www.iigi.com.au/
Leary & Partners
Quantity Surveying Services Since 1977
P: 1800 808 991
W: https://www.leary.com.au
Pircsa Pty Ltd
Professional Insurance Restoration and Consultancy
P: 0460 555 077
W: https://pircsa.com.au/
Quality Building Management
keeping your buildings legally compliant and safe
P: 1300 880 466
W: https://qbm.com.au/
Solutions in Engineering
Quality Reports On Time, Every Time!
P: 1300 136 036
W: https://www.solutionsinengineering.com/
Property Safety Services
Your compliance needs, your way
P: 0414 558 222
CORE Consulting Engineers
Delivering 360° engineering solutions for strata
P: 02 8961 3250
W: https://core.engineering/
Mabi Services
Asbestos, Safety & Building Consultants
P: 1300 762 295
W: https://www.mabi.com.au/
Arena Energy Consulting Pty Ltd
Independent Embedded Network Consulting Services
P: 0452 411 247
W: https://www.arenaenergyconsulting.com.au/
Strata Energy Services
Simplifying Energy For Strata
P: 1300 060 111
W: http://www.strataenergyservices.com.au/
Strata Insurance Solutions
Protecting owner assets is who we are.
P: 1300 554 165
W: https://www.stratainsurancesolutions.com.au/
Whitbread Insurance Brokers
Empower Your Vision
P: 1300 424 627
W: https://www.whitbread.com.au/
CHU Underwriting Agencies Pty Ltd
Specialist Strata Insurance Underwriting Agency
P: 1800 022 444
W: https://www.chu.com.au/
Strata Community Insurance
Protection for your strata property. And you.
P: 1300 724 678
W: https://www.stratacommunityinsure.com.au
Flex Insurance
Your Cover Your Choice
P: 1300 201 021
W: https://www.flexinsurance.com.au/
Driscoll Strata Consulting
Knowledge | Experience | Service
P: 0402 342 034
W: https://driscollstrataconsulting.com.au/
Sure Insurance
Sure. Insurance, but Fair
P: 1300 392 535
W: https://sure-insurance.com.au/strata-hq/
Pacific Security Group
Experts in electronic security since 2005
P: 1300 859 141
W: https://www.pacificsecurity.com.au/
Mahoneys
Body Corporate Law & Dispute Resolution Experts
P: 07 3007 3777
W: www.mahoneys.com.au/industries/bodies-corporate-strata/
Hynes Legal
We are different.
P: 07 3193 0500
W: https://hyneslegal.com.au/
Bugden Allen Graham Lawyers
Specialising in property development & strata law
P: 02 9199 1055
W: http://www.bugdenallenlawyers.com.au/
Douglas Cheveralls Lawyers
The Go-To Strata Lawyers
P: 08 9380 9288
W: https://www.dclawyers.com.au/
Mathews Hunt Legal
BODY CORPORATE LAWYERS... EXCLUSIVELY
P: 07 5555 8000
W: https://mathewshuntlegal.com.au/
Grace Lawyers Know. Act. Resolve.
P: 07 3102 4120
W: https://gracelawyers.com.au/
Holman Webb Lawyers
Body Corporate and Strata Dispute Experts
P: 61 732 350 100
W: https://www.holmanwebb.com.au/
Royer Mace Lawyers
Your Property is our Priority
P: 0434 388 898
W: https://royermace.com.au/
MiMOR
Connecting People – Creating Communities
P: 0414 228 644
W: https://www.mimor.com.au/
Stratabox
Building Confidence
P: 1300 651 506
W: https://stratabox.com.au/
ResVu
Customer Service Software for Strata
P: 0874778991
W: https://resvu.com.au/
StrataMax
Streamlining strata
P: 1800 656 368
W: https://www.stratamax.com/
MYBOS
Building Management - Residential & FM Schemes
P: 1300 912 386
W: https://www.mybos.com.au/
StrataVault
Connecting people, processes, and applications
P: 1300 082 858
W: https://globalvaults.com.au/
Urbanise
Automate your workload to increase efficiency.
P:1300 832 852
W: https://www.urbanise.com/
Professional TV Antenna Service For You Today
P: 1300 800 123
W: https://www.installmyantenna.com.au/
LookUpStrata
Australia’s Strata Title Information Site
W: https://www.lookupstrata.com.au/
Strata Community Association
P: 02 9492 8200
W: https://www.strata.community/
Owners Corporation Network
The Independent Voice of Strata Owners
W: https://ocn.org.au/
Your Strata Property
Demystifying the legal complexities of apartment living
W: https://www.yourstrataproperty.com.au/
Tinworth & Co
Chartered Accountant & Strata Auditors
P: 0499 025 069
W: https://www.tinworthaccountants.com.au/
Matthew Faulkner Accountancy
Strata Auditing specialists
P: 0438 116 374
W: https://www.mattfaulkner.accountants/
Ki Creative Design
Purposeful Design Solutions
P: 0451 541 006
Altogether Group
Power.Water.Data
P: 1300 803 803
W: https://altogethergroup.com.au/
Energy On Pty Ltd
Providing utility network solutions
P: 1300 323 263
W: https://www.energyon.com.au/
EDSI Solutions
Electrical Concierge Services
P: 07 3205 7002
W: https://edsi.net.au/
ENM Solutions
Providing Solutions for Embedded Networks
P: 1300 000 366
W: https://www.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/
Fire Matters
Fire Safety Compliance
P: 07 3071 9088
W: https://firematters.com.au/
Windowline Pty Ltd
Australia’s strata replacement window & door specialists
P: 02 8304 6400
W: https://windowline.com.au/
Lifestyle Clotheslines
Clothesline and washing line supplier & installer
P: 1300 798 779
W: https://www.lifestyleclotheslines.com.au/
Higgins Coatings Pty Ltd
Specialist painters in the strata industry
P: 1300 HIGGINS
W: https://www.higgins.com.au/
Dulux Property Services
Total Building Maintenance & Remedial Solutions
P: 0434 834 799
W: https://www.duluxconstructionsolutions.com.au/
Rochele
Prompt & Professional
P: 1300 808 164
W: https://rochele.com.au/
StrataLoans
The Experts in Strata Finance
P: 1300 785 045
W: https://www.strata-loans.com/
Lannock Strata Finance
The Leading Strata Finance Specialist
P: 1300 851 585
W: https://lannock.com.au/
Austrata Finance
Pay Now or Pay Later: It’s Your Choice®
P: 1300 936 560
W:https://austratafinance.com.au/
The Green Guys Group
Australia’s Leading Energy Saving Partner
W: https://greenguys.com.au/
Humenergy
People, Innovation and Value Sharing
P: 1300 322 622
W: https://www.humenergy.com.au/
Strata Solve
Untangling strata problems
P: 0419 805 898
W: https://stratasolve.com.au/
LUNA
Building and Facilities Manager
P: 1800 00 LUNA (5862)
W: https://www.luna.management/
Elite Building Managers Australia
Education for Building Managers
P: 0420 520 976
W: https://www.elitebma.com/
RFM Facility Management Pty Ltd
Strata and Specialist Cleaners
P: 1300 402 524
W: https://www.rfmfacilitymanagement.com.au/
Control Pest Management – Brisbane
Pest Control Professionals
P: 1300 357 246
W: https://controlpestmanagement.com.au /locations/brisbane-pest-control/
sharonbennie – Property Recruitment
Matching top talent with incredible businesses
P: 0413 381 381
W: https://www.sharonbennie.com.au/
LIFTS & ELEVATORS
Innovative Lift Consulting Pty Ltd
Australia’s Vertical Transportation Consultants
P: 0417 784 245
W: https://www.ilcpl.com.au/
The Lift Consultancy
Trusted Specialised Advice
P: 07 5509 0100
W: https://theliftc.com/
ABN Lift Consultants
A team of friendly, open minded professionals
P: 0468 659 100
W: https://www.abnlift.com/
Fair Water Meters
Fair water - fair bills
P: 1300324701
W: https://fairwatermeters.com.au/
Asset Strata Valuers
Leaders in Strata Property Valuations
P: 1800 679 787
W: https://assetstratavaluers.com.au/
Groundfloor™
Australian parcel, mail, and refrigerated lockers
P: 03 9982 4462
W: https://groundfloordelivery.com/
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