Flat Chat Forum NCAT – the NSW Tribunal Current Page

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  • #48916
    AvatarPaddy
    Flatchatter

    We live in a small 70’s inner west strata apartment block with 9 apartments. The block has not been well maintained  and now considerable work has to be done to bring the building up to scratch. Over the past 2 years the SC has been following with OC support the development of a body of works to achieve agreed objectives. The capital works component of the current strata fees would not allow completion of that work in under 7 years.

    The disruption to strata life would of course be considerable over this time period while the work is being undertaken. Because of this it was proposed to raise a special levy so that the bulk of the work could be completed in a reasonably short time. The rest could then be finished as money becomes available from the usual strata fees.

    At our recent AGM which had to be conducted by teleconference due to the current climate, 6 of the 9 apartments participated. 4 were present plus 2 proxies. The special levy was proposed and voted on. 5 residents agreed to the special levy and one of the proxies abstained because they are in the process of completing the sale of their apartment. So 5 of 9 strata owners agreed to a special levy.

    Following the meeting a report was emailed to all owners. The 3 strata owners who didn’t participate in the AGM have strongly indicated their objection to a special levy being raised.

    AGM papers were sent to all owners in advance as required. The papers included a comprehensive strata committee report explaining the history of the works development and financing options with reasons for and against.

    Question:  What is the likelihood, given the above, of NCAT overturning the outcomes of the AGM should the matter reach this point?

    • This topic was modified 8 months, 2 weeks ago by .
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  • #48921
    Jimmy-TJimmy-T
    Keymaster

    My understanding is that special levies do not require a special resolution, meaning that a simple majority can pass them.  Unless there is a serious imbalance in the Unit Entitlements, 5-3 is a majority in this case.

    Given that the correct procedures have been followed, and assuming the levies aren’t for some frivolous reason, I wouldn’t think your minority group had much chance at NCAT.

    Even if there had been some technical issue (like not sending out agendas) the Tribunal probably wouldn’t change the ruling because the missing three votes would not have made a difference to the outcome.

    But then NCAT is a strange beast that sometimes makes odd rulings, so who knows?

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Flat Chat Forum NCAT – the NSW Tribunal Current Page