Legal Responsibilities while Living in a Vertical Village

An Owner’s perspective: John Hutchinson - OCN

An Owner’s Perspective

IANAL“I AM NOT A LAWYER”

Who carries the Responsibility ?

• Owners Corporation• Executive Committee• Delegates – Strata Manager / EC members

Responsibilities

• Taking responsibilities seriously....– How do we discharge duties– What powers do we have to do it

• The OC’s single responsibility– Manage the Common Property

Managing Common Property

1. Keep it safe2. Keep it clean3. Keep it in good repair4. Keep it insured5. Keep it run in an orderly way

Particular Responsibilities

• Repairs & Maintenance– Absolutely no excuse not to do– If no money, levy owners or borrow– Waiting on defects claim / insurance is no excuse– OC liable for losses arising from common property

failure if negligent

Discharging Responsibilities

• Important Areas– Controlling Spending– Stopping Sinking Fund sinking– WHS and Fire Safety checks– Privacy & Discrimination– Maintaining Records

Tools for an Effective EC - 1

• Delegate to Sub-Committees – Any owner (not just EC) can help– Use SM if no volunteers, or– Consider paying for assistance

• Set authority limits on spending– Authority for BM or SM or EC officer– Decision making between EC meetings

Tools for an Effective EC - 2• Structure your EC Meetings– Action items from last EC meeting– Fire Safety & WHS as standing items on Agenda– Sub-Committees to report on progress

• Articulate Policies– Complaints policy ?– Privacy policy ?– Code of Conduct ?

Tools for an Effective EC - 3

• Maintain total Transparency– Scheme Website most timely & effective method• By Laws properly with TOC• Introductory Pack & Tips for Living• Downloadable Forms• Latest financial reports• Minutes• Consultants Reports

Tools for an Effective EC - 4• Think of OC / EC as a “service provider”• Set measurable Goals for the Year - eg.– Spending within 10% of budget– Outstanding compliance matters cleared by y/e– Projects completed– Complaints / disputes resolved

• Communicate with residents – newsletter etc.

Powers of an EC

• Powers limited to responsibility to maintain common property

• Not the same as directors of a company• Do not extend to – Settling disputes between residents– Telling residents how to live their lives– Donating owners funds to charity

Empowered ?• Executive Committee decides it needs to

spend $15k on refurbishing garden irrigation if...a) $25k available in garden budget for the year ?b) $5k available in garden budget for the year ?c) El Nino threatens

• Could the Treasurer make this decision by himself ?

Empowered ?• Executive Committee asks Owners to pass by

Special Resolution a By Law to1. Ban short term letting by owners for terms of

less than 3 months2. Clamp any non bona fide visitor cars using Visitor

Parking3. Provide that no children reside in the studio

apartments

Empowered ?• Executive Committee Resolves that

1. It declines to pay for the installation of a handrail beside the pool for the aged resident of Lot 3

2. After due diligence a contract be executed with a new Strata Manager for a 3 year term

3. A contract be entered into with XYZ Building Management Co for a term of 10 years

4. A facility agreement be executed for the OC to borrow $50,000 for 3 years at 8% fixed

TAKE AWAY Duties, Responsibilities & Powers

1. Responsibilities are about “Managing Common Property”

2. Take Responsibilities seriously but do not overreach

3. Duties of care, impartiality & honesty4. Persuasion, Transparency and Communication

are Powers

Legal Responsibilities while Living in a Vertical Village

- An Owner’s Perspective -John Hutchinson

Owners Corporation Network 2015