Strata schemes are a microcosm of society. Disputes occasionally occur because of divergent owner views, complex rules that apply, the substantial property and monetary interests that exist and the close living arrangements in medium and high density living. So finding ways to resolve disputes is important to preserve harmony and co-operation. The top five reasons for disputes are:
Know the strata rules for your state, and your scheme’s by-laws so you’re fully informed of your rights and your responsibilities. If you’re buying into a scheme, review the records of the owners committee so you know the finances and any issues they may be facing.
Take an active interest in what goes on in your scheme. Attend owners committee meetings where decisions are made, and make your vote count. Use your proxy if you can’t attend. Ensure that insurance is adequate, and that the sinking fund matches the long term maintenance planned for the next few years.
If you believe the by-laws for your strata scheme aren’t working, change them. You do this by putting a motion with the new by-law to a general meeting, getting over 75 per cent to vote for it. If you’re not happy with the performance of a strata manager, put a motion to hold a meeting to instruct them on how you want them to manage your scheme.
Each quarter it is likely you will need to pay levies to fund your share of the annual running costs of the owners corporation and maintenance. Occasionally, additional special levies may need to be imposed to fund unexpected or especially expensive maintenance, or for other reasons. So ensure you make allowance for these in your personal budgeting.
Protect your investment
Maintain common property. If it’s getting run down, put up a motion at a meeting for specific works to be done.
Strata schemes are a microcosm of society. Disputes occasionally occur because of divergent owner views, complex rules that apply, the substantial property and monetary interests that exist and the close living arrangements in medium and high-density living. So finding ways to resolve disputes is important to preserve harmony and co-operation. The top five reasons for disputes are:
In most states conciliation or mediation is required in strata disputes. A few states require the scheme to undertake an internal dispute resolution process in some circumstances. All states provide for disputes in strata schemes to be handled by specified tribunals or courts. Some states have very sophisticated specialist dispute processes and venues, but a number have limitations on whether or not damages can be ordered and whether or not costs orders can be made. For specific information for your locality, visit the website of your state or territory government strata scheme regulator. Ref: Strata Community Aust.
