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We are in a NSW development that has 6 buildings on the strata plan but only 3 built and no start in sight for the remaining 3 as only half of the units are sold in the first 3. The initial period will presumably last for another few years, and the owners are being bullied by the developer who holds a majority on the Owners Corporation. Can we apply to NCAT to remove the remaining buildings from the strata plan?
… Sounds odd that a strata plan without all its buildings built could be registered.
I am not familiar with the early stages but where I am the date of the registration of the Units Plan (ACT-speak for strata plan) predated the completion of the buildings. The Units Plan was needed to show the distribution of all the unit entitlements of the units comprising the nascent Owners Corporation before anyone moved in.
It’s called a staged development and it allows the developer to continue to build as planned without the approval of the owners corporation, if one has even been formed.
It also allows for the initial period to be extended.
It’s very complicated and an area where consulting an experienced strata lawyer over a dispute isn’t just a good idea, it’s a no-brainer.
Why? Have a look at this document from the solicitor general’s office
As an owner who has had to tolerate the bullying of the developer ( and still does) of our 14 unit Strata plan in NSW you have my sincere sympathy. Even though in the SSMA 2015 it implies that the initial period requires the developer to be the Chair, Secretary and Treasurer of the Owners Corporation, our developer did not operate in compliance with the Act.
By the time we had the first AGM some years after we had moved in , he had kept all our levies, no bank account for the Strata Scheme existed and our new committee started the year with no money at all. We are still trying to catch up and have just had our 2nd AGM.
The developer is still bullying the other owners with almost weekly threats of taking us to court for anything and everything and after all this time we still cannot get our By Laws passed because he holds more than 25% of the lot entitlements and so votes against the special resolution that is required.
Hence we have only the 8 By Laws that he registered with the Strata Plan and these all favour his apartment. He still holds 39% of the lot entitlements and will do until he has sold more units.
He has already advised that he will keep the units that will give him 27% of the lot entitlements so that we will never be able to get our By laws passed. So after all that, I absolutely agree with Jimmy, get the lawyer ( we couldn’t afford one) and get your developer sorted as soon as you can. They can make your life a misery and unfortunately if they are bullies they even frighten the Strata managers.
If we had our time over again we would have gone to NCAT at the beginning to get a Strata Manager appointed by the Tribunal due to the OC being “ dysfunctional “ .
Faraway girl said
… we have only the 8 By Laws that he registered with the Strata Plan and these all favour his apartment. He still holds 39% of the lot entitlements and will do until he has sold more units.
You can always go to NCAT and get the by-laws rescinded on the grounds that they are unfair, unconscionable or oppressive, and then replaced with the standard by-laws as laid out in the strata regulations.
You can also get orders that the developer is not allowed to participate in the committee.
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