Owners Corporation Does Not Exist for The Unit I Bought Apparently

Hi Ozbargainers!

Just wondering if anyone has been in a similar situation that I have.

Earlier this year my partner and I became owners of an apartment unit (first home owners). We didn't move in until months later due to COVID 19 related reasons but now we have moved in and after meeting with the other Owner occupiers of the complex (only 6 units in total) I found out we do not have an owners corporation and have missed out on at least one AGM in the past. Apparently the previous owners of my unit was the Executive of the owners corporation and did not appoint another person after leaving.

I was not aware of this at all when we came to the place and strata have been doing nothing at all to help with the situation (not sure if it was their responsibility to inform us.)
Honestly Strata has not been doing anything at all as well… intercoms been broken for months, nobody cleans the building and every email I send to them is rarely replied to.

I'm entirely new to this world of apartment living and feel like a headless chicken here What would be the next best steps to go ahead and rectify this?

Thanks

Edit: Located in NSW

Comments

  • +2

    Can you update your profile with Location?

  • +3

    Sell apartment and buy a house.

    • I wish I could but a house is too pricey for me for what we are earning at this time :)

      • Too late apartments prices are gone !

  • +5

    Do you realise you are the strata committee (along with other owners)?
    You can take charge of this and get it done.
    If you organise an AGM and nobody comes (very possible) you can make the decisions.
    This could include appointing a manager to get things done, and setting levies etc.

    I find this kind of arrangement preferable to a big apartment complex with costly managers, but maybe you don't?
    I would 100% check the insurance is up to date immediately, however, even if you don't want to be more involved.

    • If you organise an AGM and nobody comes (very possible) you can make the decisions.

      Don't you need a quorum?

      • If you can’t form a Quorum, you need an AGM.

        • I suppose?

          https://www.fairtrading.nsw.gov.au/housing-and-property/stra….

          If there is no quorum within 30 minutes of the scheduled start time, the Chairperson must either:

          adjourn the meeting for at least 7 days, or
          declare a quorum and go ahead with the meeting. The quorum is then the owners and proxies present who are entitled to vote.

      • +1

        For NSW (and maybe other states) you do need a quorum, but if one can't be formed there are rules to get around it. For example, in a General meeting, after 30 minutes without a quorum the meeting can continue.

  • OP, I suggest you read the Strata Management Act first and the Model Bylaws next.

    • Yes this is something I really neglected to do at the start. Was too excited about getting our first home and didnt go too far into the details on this side.

  • -1

    You need to call for a AGM. Elect a new committee, as mskeggs mentioned, make sure everything is up to date eg building insurance. Then start prioritising repairs.

    Did the intercom work when you settled? Was anything mentioned about it not working? I’d take it up with the agent to organise the fix.

    • Thanks for the advice. The intercom was working when we settled so I'd imagine we have to engage strata to get it fixed.

      I read this here which discussing calling for an AGM:
      https://www.fairtrading.nsw.gov.au/housing-and-property/stra…

      It discusses this here:

      "There are two ways to arrange for a general meeting:

      the Secretary or strata committee can call one at any time, or
      if owners entitled to vote, who together hold at least a quarter of the total unit entitlements, ask for a meeting in writing."

      From this I gather its a bit of a catch 22 situation for us :/

      So we cant call one due to the lack of secretary/strata committee however Strata Management is doing **** all and not being responsive. Have you ever faced such a situation here?

  • Apparently the previous owners of my unit was the Executive of the owners corporation and did not appoint another person after leaving.

    Tell them it was included as a special condition in the contract that you would be handed this title..

    • +1

      From the sounds of the disorganization I'd be worried that OP has discovered the reason why the previous owners left…

  • Rent

  • What did the section 184 certificate say when you bought the unit?

  • a 6 apartment block, if you can get others to agree, sack the strata manager and self-manage.

    Failing that, call a meeting, set up a committee and then review how good the strata manager is. Change when their contract runs out if you think they are useless. I can highly recommend Luke at Sky Living Strata.

    I'm in an 8 unit block. We don't self-manage because I'm the only one that has time to spare.

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