search the site

These pages contain articles from our newsletters along with Pdf files of our recent newsletters. Subscribe: To go on our mailing list to receive our free quarterly newsletter, please Click Here Click on the edition (pdfs approx 200kb) you wish to view Winter 2008 Autumn 2008 Summer 2007/8 Spring 2007 Winter 2007 Autumn 2007 Summer 2006/7 Spring 2006 Winter 2006 Autumn 2006 Summmer 2005/6 Spring 2005 Winter 2005 Autumn 2005 Summmer 2004/5 Spring 2004 Winter 2004 Autumn 2004 Summer 2003/4 Click for a free download of Acrobat Reader search the site for subjects of interest. The index below doesnot contain all references • Builders - random audit • Painting - colour change • Committees & voting rights • Pay for equipment not used • Committee powers • Postal voting - getting it right • Contractors - delays • Prescribed Works staying out of trouble • Contractors - a fair go • Smoke alarms • Court cases • Tenants - getting rid of • GST & Insurance • Trees & neighbours • GST Options • Taxation burden on Unit owners • GST & building costs • Trust monies - respect for • Gutter cleans • Unit sales at risk • Mobile phones - research • Win win on carparks • Painting supervisor pays off • Working bees pay off • Audits required by law • Insurance - not a mtce policy • Committees - get involved • Mediation services • Contractors & quotes • New electricity charges   Please note all material is subject to copyright and is not intended as a substitute for legal advice. Older articles may be out of date on costs and legislative details.   Summer 2006/07 Privacy Act - lies some managers tell You may recall that in our Spring 2006 edition we covered the misuse of the Privacy Act to thwart owners contacting one another. The manager refused to supply an officer of the group with a list of owners. Since then we have received legal advice from one of Adelaide's prominent legal firms. Part of this advice appears below. The entire document can be found on our web site www.unitcare.com.au. Advice concerning aspects of privacy legislation You have sought our advice regarding the provision by a strata manager of names, addresses and telephone numbers to a body corporate. In particular you have inquired whether such provision would contravene any privacy legislation. I understand that the question has arisen in the context of a rival strata management business refusing to provide a body corporate with such information on the grounds that to do so would be in breach of privacy legislation. Put simply, our advice is that a strata manager can (and must if requested to do so) provide such information to the body corporate (or an officer of the corporation) so as to allow the business of the body corporate to be conducted. Our advice is based on the following facts. If any of the facts are incorrect, you should let us know because it might change our advice. The facts You have been told that a strata management business is refusing to provide the officers of a body corporate (managed by it) with the contact details for the unit holders/owners in the group on the grounds that to do so would breach privacy laws. We understand that the body corporate and in particular its officers require this information for the efficient management of the affairs of the body corporate. Relevant Law The relevant law that we have considered in providing this advice is as follows: Privacy Act 1988 (Commonwealth) Strata Titles Act 1988 (South Australia) Community Titles Act 1996 (South Australia) The common law of agency If your manager tries to prevent you and your fellow unit owners from contacting each other by refusing to supply your group's list of owners and other documents requested then we suggest you quote this article and refer them to our web site for the full document. If they continue to misuse the Privacy Act contact our office. We have forwarded a copy of this advice to the associations representing Strata & Community Title managers in South Australia. We have asked them to help stamp out this unethical and possibly illegal practice. Read the full document www.privacy.gov.au/   Water Restrictions at a Glance There is a lot of confusion about the new water restrictions. The following appears at www.sawater.com.au and may help you and your group help our environment. GARDENS AND LAWNS Even numbered properties can use sprinklers only from midnight to 8am and 8pm to midnight on Tuesday, Thursday and Saturday. Odd numbered properties can use sprinklers only from midnight to 8am and 8pm to midnight on Wednesday, Friday and Sunday. No watering of gardens and lawns with sprinklers at any time on Mondays. Mondays are for the Murray. Hand-held hoses fitted with a trigger nozzle, watering cans, buckets and drip-watering systems may be used at any time. No sprinklers are to be used between 8am and 8pm on any day. HARD SURFACES Water must not be used to wash paved or concreted areas, decking, walls or roofs of a building at any time unless it is necessary to do so to protect public health, ensure safety of people using the area, ensure the health and welfare of animals using the area or in case of accident, fire or other emergency. Windows may be cleaned from a bucket filled directly from a tap. FOUNTAINS AND PONDS A fountain or pond that doesn't recycle water must not be operated and must not be topped up unless it supports fish. The level of water in a fountain or pond that recycles water may only be topped up with water from a hand held hose or bucket. Fountains and ponds must not be emptied and refilled. SWIMMING POOLS AND SPAS Existing pools and spas must not be emptied nor refilled from empty. New pools or spas may only be filled under the authority of a permit from SA Water. A permit will not be granted unless proof a cover has been purchased to prevent water loss through evaporation. The level of water in a swimming pool or spa that has been previously filled with water may only be topped up or maintained with water from a hand held hose or bucket. Children's wading pools must not be filled with more than 250 litres of water. WASHING CARS AND BOATS Water must not be used to wash a vehicle except by means of a commercial car wash, or a bucket filled directly from a tap. A hand held hose fitted with a trigger nozzle or a high pressure low volume water cleaners may be used to rinse a vehicle after washing it with water from a bucket. Boat owners are permitted to flush out motors and rinse off metal parts to prevent corrosion. Please contact the manager or secretary of your group to reprogramme your common irrigation controller if needed.   REISA Code of Conduct The Real Estate Institute of South Australia (REISA) has introduced a strict new Code of Conduct for members which will further raise professional standards for the benefit of practitioners and consumers alike. The new Code, effective from Monday 23 October 2006, reflects current industry practice and is in line with the proposed legislative changes. REISA President, Mark Sanderson, said that the new Code was written in plain English and is available for consumers on the REISA website.. "In developing a new Code of Conduct we were resolute that it must be easy to understand and must be a document that agents and their clients can refer to," he said. "The Code deals with issues that have raised consumer concern in the past such as prices in advertisements, marketing expenses and the process of making an offer." Key elements of the Code include: Practitioners must advertise the expected selling price or price range of a property consistent with the estimated selling price as agreed between the vendor and agent in the Sales Agency Agreement When presenting appraisals to clients, practitioners must provide comparative sales data to substantiate their appraisal All expected expenses (including marketing costs) must be clearly disclosed to clients in writing All instructions and authorities to a practitioner must be made in writing. Failure to comply with REISA's Code may also constitute a breach of State legislation which can carry a financial penalty or cancellation of license. Mr Sanderson said that he was confident most practitioners would welcome this Code as it reflects ethical practice and raises the bar for professional conduct. "The vast majority of agents are hard-working and ethical and this new Code will help deal with the handful of agents who give real estate practice a bad name."   Sustainability - How We Can Help Hot, Cold, Wind, Rain, No Rain What can WE do to limit Climate Change? We hope that you saw Al Gore's unforgettable movie/documentary 'An Inconvenient Truth'. Far from being bogged down and depressing, this inspiring man gave hope. Al says that if world leaders can get together NOW and tackle this ghastly threat, then something can be done. They did it with depletion of the ozone hole. We see hope too. Business leaders (the ANZ Bank CEO for instance) are starting to urge our leaders to take drastic action. Farmers across the land are looking darkly at a Canberra for allowing thirsty cotton and rice plants to suck the lifeblood from our rivers. The British Prime Minister has released the Stern Report which counts the economic cost of this threat so that world leaders will at last prick up their ears. Money matters. So what can we do? Talk Climate Change to anyone and everyone. Climate Change is on everyone's mind, in everyone's interest. Get it on the talk agenda at your Club, in the bus, at work, in your Corporation. Email and write to the media, business, politicians at all levels of Government, Community leaders, Community groups. Develop sustainable practices in your property, and put it on your Corporation's agenda. Vote: Demand that the political party of your choice understands what you want, NOW, well before an election. Encourage them to develop truly useful Climate Change strategies and policies. Keep your air conditioning and watering to a minimum this summer. Think how far every drop of water comes to squirt out of your hose. An occasional soak is much better than frequent sprinkles. Take a quick shower - never a long one. That’s a luxury we cannot afford. Have you changed to low wattage fluorescent light globes yet. No? Then do it now. Use public transport, bike or walk when you can. Use a car wash where the water is recycled rather than a bucket and hose. Get water wise at work and in recreation too. Switch to Green Energy - if you are a member of the RAA they currently have a great deal going with Energy Australia where you can get discounts. Other suppliers have green energy deals. View a summary of the landmark Stern Report from the UK and look up www.climatecrisis.net     Spring 2006 Sustainability - How We Can Help Green House Gases: Australia’s emissions of greenhouse gases are amongst the highest, per person, in the world. The average Australian family produces more than 15 tonnes of greenhouse gases each year. *Most unit households fall below the Australian Average so usage for many would probably be less. Source AGL website. As you can see from the table above, participating in the program does cost a little more. That is because alternative generation generally operates on a small scale and is more costly to produce. Your group can make a difference through residents and the Corporation joining a Green Energy scheme such as AGLs, which UnitCare services is part of or that offered by Origin Energy. With this in mind UnitCare will include a Green Energy item on your Corporation’s AGM Agenda. Your Corporation will be able to discuss the options and decide if a Green Power for the common property is appropriate. Each unit holder of course makes their own decision about their unit’s internal power usage. We hope that you will opt to join us in reducing greenhouse emissions and change to Green Power also. The AGL website gives its options at www.agl.com.au. Just follow links to Green Choice. And to get information and tips on how to reduce consumption visit www.sustainable.energy.sa.gov.au/home     Winter 2006 Laws unto Ourselves The following is an extract from the CHU (insurance) Newsletter Late last year The Sydney Morning Herald (17/12/05) challenged its readers to help come up with laws to make strata living easier for everyone. And the results come not a minute too soon - just after the NSW Government announced it’s going to allow 400,000 new apartments to be built in Sydney in the next 10 years. Judging by the response, our elected representatives have failed to understand the basic needs of apartment-dwellers in the 21st century. So with muted fanfare (so it doesn’t disturb the neighbours), here are your top ten new rules for our high-rise future. Unpaid levies for investment properties should be deductible directly from rental income after three months of overdue payments. Owner-occupiers should have a bigger say in the running of buildings than absentee investors. The process for dealing with people who flout buildings’ by-laws should be simpler and faster. Committee members should be offered basic training in by-laws and how to conduct meetings. The chairperson, secretary and treasurer of the committee should have to pass a basic test on their duties within three months of taking office, after which they can be paid for their work. New owners and tenants should be required to sign a document that states that they have read and understood the by-laws and agree to abide by them. The use of proxies should be restricted - with a limit on the number any one person can hold at a general meeting. Unfair building management contracts, signed with or sold off by developers, should be scrapped and replaced with a standard contract until such times as the owners’ corporation can negotiate fair terms. The same goes for unfair strata management contracts.   Autumn 2006   Termites - a New Treatment Option Termites cause more damage to homes than floods, fire and storms put together. Some 40% of S.A. homes suffer termite attack. Termites are social insects living in colonies of up to a million individuals. The Queen rules the colony and is the mother of all the termites. Without her the colony has no future. Several pest species of termites nest in tree stumps, under homes, in gardens, from which the workers make subterranean tunnels to timber located in our homes within about a fifty metre radius of the colony. Most attacks on homes and timber originate from outside. They return to the nest and share gathered food with the queen and all members of the colony. How do termites gain access? Houses and other buildings provide termites with the ideal combination of warmth, moisture and food sources. Termites can find ways to enter your house that you’ve never thought of. They are small enough to gain entry into hidden areas of cellars, crawl spaces, and concrete slabs, through openings as small as 0.1mm. A loose mortar joint, a small space around a drain pipe, garden soil covering air vents, or a settlement crack in the concrete slab is all they need to gain entry to the home. Some history. Chemical barriers to prevent the access of termites into the wall and roof timbers have been applied around homes and under timber floors and concrete slabs in Australian homes since 1954. Organochlorine insecticides such as dieldrin, aldrin, chlordane and heptachlor were used as chemical barriers until 1995 with the chemical being active in the soil for ten years to 25 years. Since 1995 chemicals which have a shorter period of protection have been approved to prevent termite access into buildings with retreatment being recommended every five years. Baits - an alternative to chemical barriers. For many years we have suggested bait boxes for client groups with active termites. These take the form of short sections of PVC sewer pipe containing poisoned tasty timber. The pipe is dug into the soil and capped with a PVC screw cap. The traps are checked every few months. The great value of this method is that the termites take the poison back to nest and kill it off. There is now a more sophisticated and reliable method of baiting with the trade name of Sentricon. Its features are: In ground bait tube Active ingredient in Sentricon AG Termite Bait is called hexaflumuron. Insect Growth Regulator, specifically a Chitin Synthesis Inhibitor. Prevents the termites from completing their moulting process. Termites die if they can’t complete the moult process. Bait is taken back to the nest and spread throughout the entire colony via trophallaxis. Rate of 5g/kg impregnated in compressed cellulose matrix (briquettes). Hexaflumuron at 5g/kg is undetectable by the termites. 6 months post commencement of baiting, 80% of colonies had been eliminated with a further 6% having consumed sufficient bait to gain elimination. (Range 4 to 12 months) Our pest control contractor (ARL) has changed his approach and is now using and recommending Sentricon. See sentricon.com.au. and Power Point presentation.     Fence Notices   Dealing with your neighbour over a shared boundary fence can cause some anxiety and tension. The Fences Act covers fences and neighbours. It spells out procedures and forms (Forms 1 to 4) along with a method of dispute resolution. The Act can be found on our web site. For Strata Corporations the Fences Act applies to the boundary of the group only as under Section 5 of the Strata Act the Corporation owns all the fences between the units. For a Community Corporation the fences between lots and on the external boundary of lots are usually owned by the respective lot owners. This means that the Fences Act applies for all fence works in the Corporation. Here are some pointers if you, your group or a neighbour is looking to undertake some work. If you want to put up a new fence and want your neighbour to contribute, you must serve on the adjoining owner a ‘Notice of Intention To Erect A Fence’ using Form 1. If you want to repair, replace or carry out maintenance work on the fence and want your neighbour to contribute, you must serve a ‘Notice of Intention to Replace or Repair a Fence’ using Form 2. All notices must be served on the adjoining owner either by handing them to the owner personally or by sending them by Registered Post. Leaving it in their mailbox, putting it under the door or sending it by ordinary post do not count, even if your neighbour actually gets it. Similarly, giving it to someone else who lives there, or a family member or tenant of your neighbour does not count. If you are not sure who the legal owner is, you can ask your local council or search at the Lands Titles Office. If there is more than one owner, you should serve all of them. Keep a copy of any notice you serve, and also a record of the date, time and method of service, in case your neighbour later says they did not get it. Once the Form 1 or 2 notice has been served on the other owner, you must wait 30 days before starting any work. In this time the other owner may object with a cross-notice, which may include counterproposals. This cross-notice should use Form 3. If the adjoining owner agrees with the proposal, work can commence immediately, but you should get an agreement in writing or else wait for the 30 day notice period to expire. If you get no reply from the other owner after 30 days, they are taken to have agreed and you can go ahead with the work described in the notice and claim their share of the cost from them. If you sent the notice by Registered Post, check with the post office to see when your neighbour actually collected the notice. You should allow 30 days from that date and also give at least two days notice of intention to commence fencing work. OBJECTIONS AND COUNTERPROPOSALS If you receive a Form 1 or 2 notice and you object to the proposal, you should complete a Form 3 cross-notice. This cross-notice must be served on the adjoining owner within 30 days of receiving the fencing notice. The same rules of service apply as above. You do not have to give reasons for objecting - you may simply state “I object to your proposal”. Nor do you have to make a counter-proposal. However, if the case goes to court you will be required to tell the court your objections to the proposed work, and if you do not have good reasons, the court may order the work, and may also order you to pay court costs. So, if you have good reasons, it makes sense to state them in your cross-notice. If you want to suggest something different from what your neighbour has proposed, you should do so, giving details of the work and the cost. Your neighbour then has 30 days to answer your notice. It is not a sufficient objection for a cross-notice that you are about to sell your land and will not get the benefit of the proposed work. As long as you are the owner, the Fences Act procedure binds you. However, you may wish to let your neighbour know that you are selling, as they may agree to wait and deal with the new owner. Nor is it reasonable to object to fencing simply because you are not living at the place where the fence is to be built. An inability to afford the work is sometimes the reason for an objection, but this will not stand up in court, particularly if the fence is in a poor state and the work is obviously needed. If you agree that the work is required but you cannot afford to pay for it at this time, you should discuss terms of payment with your neighbour. If you cannot agree on a solution, consider using a mediation service. Other reasons that are not acceptable in court include that you don’t care about the state of the fence, or don’t think a fence is needed. The court normally considers it reasonable for neighbours to have a boundary fence and for the fence to be kept in a good state of repair. However, it may be proper to object if the proposed fence is quite different to other fences in your area. If you have served a Form 1 or 2 and you receive a Form 3 cross-notice in reply, the same rules apply to you. If there are any counter-proposals with which you disagree, you must serve a written objection (the Form 3 notice can be used) within 30 days. If necessary you can make a counter-counter proposal if you think it will help to resolve the matter. If there are no counter-proposals in the cross-notice (that is, it contains an objection only) you do not have to reply – the notice procedure is finished without agreement or right to proceed. If you receive a Form 1, 2 or 3 and do not object within 30 days, you will be legally bound to contribute to the proposal described on the form. This is true even if you have told your neighbour that you do not agree, or you are sure that they already know this. Serving a Form 3 or a written objection is the only legally effective way of saying that you disagree. For more details information on... • No agreement • Failure to proceed • Power of entry • Paying for fencing work download a copy of ‘Fences And The Law’ from our website or call us and we will post you a copy. Our thanks to the Legal Services Commission for much of the content. Go to the Links page of our web site to view more helpful information from the Legal Services Commission.   Summer 2005/06 UnitCare Going Sustainable Summer 05/06 UnitCare is working towards social and environmental sustainability in its business. It all came about at Adelaide's wonderful Festival of Ideas in July 2005. There we were motivated by the idea of a business having three major sustainable elements being financial, social and environmental. Whilst our directors and staff had always been somewhat aware of our social and environmental responsibilities, we had never thought to actually measure our performance against set objectives. So that is what we are attempting and we hope that many of our clients, both Strata & Community Corporations and individuals, will join us on this exciting and necessary journey. Our first steps: Social: We believe that we already contribute substantially in this way but are investigating how to progress further. We aim to: conduct our business with integrity. champion the cause of fair and honest dealings in our industry volunteer our services regularly contribute to needy people create a secure and meaningful working environment for our staff encourage personal growth Environment: This is where we can make great progress. We are looking at power consumption, and motor vehicle usage, to reduce greenhouse gasses. We are supporting Trees for Life (www.treesforlife.org.au), a marvellous organisation that has thousands of volunteers growing and planting native vegetation to reduce greenhouse gases and promote biodiversity. This will in some degree make up for the resources we use and gases we cause to be emitted. We are looking to transfer to Green Power with our electricity supplier and are shredding then recycling all waste paper, and reducing the refuse we put in the rubbish bin. We are now recycling our printer toner cartridges through Planet Ark www.planetark.com This is done through major post offices.   Some Tips to Help Our Planet Will you work towards social and environmental sustainability too? What you can do: Change all light bulbs to energy savers Get out of the shower after 3 minutes or less Recycle paper, plastics, glass etc Call your electricity supplier and change to green energy Give a hand to a community organisation or someone needy What your corporation can do: Change all common property light bulbs to energy savers Mulch gardens Be water wise through the coming summer - drip systems, no daytime watering, etc Change to green energy See the Links page on our web site for more help.   Fake Cameras May Help   Some of our clients have installed fake video cameras at their groups to deter burglars. Here are a selection of cameras. If your group would like to explore this idea you can pick up cameras from the company on the brochure or drop into Dick Smith Electronics.  top of page   Spring 2005 Court Case - update Spring 2005 Since our last edition there have been some developments in regard to Ms. Lorraine Thomson (lawyer/accountant). You may recall that she refused to hand over the Strata Corporation funds and records following her sacking in May 2004. As the new managers we have been pursuing Ms. Thomson through the Magistrates Court. We published the orders in our Winter 2005 edition. Following orders from Magistrate Kleinig to the ANZ Bank to transfer the group's funds to our Trust account, we discovered more than $5,000 had been taken by Lorraine Thomson. Ms. Thomson had written a cheque to her business, L Thomson & Co, without authority and in contravention of the Magistrate's orders. She withdrew the groups funds just 5 days after she had been ordered by the Magistrate not to touch the funds without the authority of the Corporation and new manager. Ms. Thomson was in court when the orders were read. This along with levies owed by Ms. Thomson have made it difficult for the strata corporation to pay its contractors and insurance. At the time of writing we understand that Ms. Thomson is before the Legal Practitioners Conduct Board on ten complaints. In addition she has been reported to the Police for misappropriation of funds. She is due to appear in the Magistrates Court in late August on the matter of contempt and the unpaid levies. We have put in an extraordinary effort to safeguard our client's records and funds with mixed results. The good news is that the group is insured with CHU/QBE. We have made a claim for the missing funds against the Fidelity cover and are hopeful of recovering the money. This case and many others involving body corporates make the case for a cost effective specialist tribunal. We understand legislation to reform many body corporate matters will soon reach State Parliament o   Building Cost Increases The following appeared in Common Ground (published by CHU Insurance) this year. The average cost to build a house has risen by up to 7% or $9,000 in the past year or even more in some states, according to a leading industry group. It is predicted that building or renovating a house will soar as much as 10% in the year ahead. The Master Builders Association said the increase had been driven by spiralling material costs, shortages of land and a lack of skilled tradespeople - costs had increased by about 20% - 30% in the past year and are expected to keep spiralling upwards. This rise was also being attributed to a heavy construction schedule. There are critical shortages in several skilled areas including finishing trades such as tilers, wall and ceiling fixers and bricklayers. Labour costs have jumped as much as 30% in WA because of skills shortage tradesmen - as an example plasterers can make up to $800 a day. Industry members said yesterday that even some units sold at the start of the year before they were built or off-the-plan' have been hit by the cost increases, with at least one redeveloper forced recently to renegotiate prices for apartments it sold nine months ago.  top of page Winter 2005 Recent Court Cases Winter 2005 The following are a couple of recent Court cases where Magistrates found for the Corporation over individuals. Overdue levies - debt collection supported. Case 1 involves a young man who failed to pay his levies for years. Ryan vs Strata Corporation. Matters in Dispute.... 1. The plaintiff objected to the Strata Corporation's claims for interest, account overdue fees and debt recovery costs and said that these should not be payable by him, 2. The plaintiff said that he had been overcharged amounts of $241 and $518 being for collection fees paid to the debt collection agency. 3. The plaintiff accepted that the strata corporation was entitled to recover legal fees incurred in recovering the amount claimed but said that the collection fees charged by the debt collection agency do not constitute legal fees and that the only amount which the strata corporation was entitled to recover are costs payable to a legal practitioner and not otherwise, The Magistrate found that the defendant (Strata Corporation) was entitled to recover amounts on account of interest, account overdue fees and debt recovery fees and he dismissed the plaintiff's (Unit owner) claim. Unit owners who fail to pay their levies cause difficulties for their fellow owners and can make it difficult to undertake needed works and pay the insurance. The Court has upheld the Corporation's right to vigorously pursue owners for the debts they owe and to recover all costs in doing so. This case was resolved some 2 years after the sale of Mr Ryan's unit.   Recovering corporation records Case 2 involves an owner who refused to hand over records and funds despite being sacked as the Corporation's manager. Strata Corporation vs Thomson The magistrate made the following orders..... To enable Unit Care Services to comply with its duties under Section 40 of the Act, I direct Ms Thomson to hand over to Unit Care Services all documents in her possession relevant to the Corporation including: all minutes of all Corporation meetings all accounting records in respect of receipts and expenditure all statements of account in respect of each accounting period in which she was strata manager or which she has access to any notices or orders served on the Corporation and all information relevant to the Corporation's banking including bank statements I direct Ms Thomson to produce all documents relevant to the management of the Corporation and the Corporation's bookkeeping, whether those documents are in the possession of Ms Thomson or stored elsewhere.   Termite Attack - Who Is Liable ? Recently we provided a report for an owner in a group of 8 units. His unit had sustained in excess of $30,000 of termite related damage. The damage was continuing and the Corporation had to date taken no action. His unit had not been tenanted for more than a year. Interestingly, in a letter to the agent of Unit 8 the Strata Manager states 'I confirm that the Corporation is responsible for the damage caused by termites to the common property; however the Corporation is not responsible for the damage to the unit owner's property'. If the Corporation failed to undertake regular inspection, as we understand is the case, for what is a foreseeable attack in Adelaide, we believe the Corporation may be liable for all repairs that are the result of its oversight. Our conclusions in this case were.... There appears to have been a series of breakdowns in communication between the agent for unit 8 and the Corporation / Strata Manager. There also appears to have been a failure to understand the law in relation to this serious matter. The Agent for Unit 8 arranged for and paid the pest control company The Agent may have failed to advise the strata manager / Corporation The Strata Manager appears to have failed to advise and have the Corporation undertake annual termite inspections The Strata Manager appears to have failed to understand that the Corporation has an exposure to claims from owners who have suffered losses due to the Corporation's negligence. The writer suggests that given the time taken to address the issues and the number of parties involved that the following should occur in the near future: The boundary issue be resolved to prevent termite entry in the future. This will require expert advice and negotiations with the neighbour. This is urgent. The Corporation, its manager, the owner of unit and their agent seek mediation with a view to sharing costs. This can be done through the Adelaide Magistrates Court mediator, the Community Mediation Services or through the use of a professional mediator. Given the size of the repair bill some parties may need to advise their respective insurance companies of a potential claim. The insurance companies may assist with mediation. The Corporation have an annual termite inspection of all units along with their yards. That all owners ensure that there are no materials or soil stored against the exterior of their units. That all owners ensure that water from irrigation systems does not spray against exterior walls of their respective units. Our report was circulated to all owners and we understand that urgent action has been undertaken including solving the original cause of the infestation - the retaining wall adjacent to the unit.  top of page Autumn 2005 Leasing Common Property The Strata Titles Act (STA) Section 26 and the Community Titles Act (CTA) Section 111 allow body corporates to lease common land to unit/lot owners. Here are a couple of examples of how licences have been useful for UnitCare clients: 1 an older group of seven units where owners had fenced and built on the yards at the rear of their units. They did not realise that the rear yards were not part of their title to the unit and are in fact common property under the STA. Whilst there had been few problems with this arrangement, the risk was that a new owner buying into the group might demand access to the common property and or the removal of all buildings and structures on the common property rear yards. To secure owners rights to continue to occupy the rear yards we had our conveyancer draw up a Licence to Occupy. This document details the owner's responsibilities and rights along with the term and area of the lease. The outcome had some surprises. Owners, now secure in the rights to their yards, have spent on improvements including paving and plantings. The group's appearance had been substantially improved. A commercial factory site where the common property includes a block of toilets. One of the owners was reluctant to install toilets in their warehouse and asked that they use the common toilet block. As it was unused by the other unit holders a licence was drawn up and agreed to by the body corporate. The group now earns income from the lease of the toilets and the owner has more time to install toilets. For the Licence to Occupy to come into force the body corporate needs to agree by unanimous resolution. This requires a general meeting of owners. The meeting notice needs to include the resolution and details of the lease including a strata or community title plan showing the proposed lease area. Two thirds of all owners need to agree with the proposal with no dissent under the STA and under the CTA the resolution is passed at a properly convened meeting of the corporation without any vote being cast against it. Following agreement leases are sent to the Presiding Officer or Secretary for signing under seal. The owner then signs the lease, copies are issued and the matter is noted on the body corporate file so that prospective purchasers are aware of the arrangement as required by law. Leasing can be of benefit to owners and their body corporate. We can assist with preparing & issuing the leases.     Low Powered Air Conditioners Over recent years there has been a dramatic increase in the installation and use of refrigerated air conditioners in units. In older groups the challenge is the available cabling and power supply. To deal with this we have with the help of Murray Munro at B&T Management, developed some conditions that may help. Here is an extract: Split Systems: Wall split units shall be Single Phase inverter type with heat pump equipment only. This reduces electricity consumption and limits the start up current rating plus achieves the higher energy rating in compliance with AS/NZS 3823 2:2003 and AS/NZS 3823 2:2003 for MEPS and ENERGY labelling. The equipment must comply with Environmental Protection Authority regulations at the time of installation. Specification: Maximum Cooling rating 3.5 KW Maximum Heating rating 4.8 KW Power Supply - Single phase 240V Maximum Running Current Cooling cycle 4.2 amps (Start up 7 amps) Heating cycle 5.5 amps (Start up 10 amps) EER - Cooling 3.76 COP - Heating 3.84 Air Circulation 191 litres/second Fan Speeds 4 Compressor Type Rotary Compressors to be charged with Refrigerant R410A Portable Air Conditioners: Modern portable refridgerated air conditioners can be effective in cooling smaller units. The Australian Consumers Association - Choice recommended the Dimplex DAC 9000 for $1,100 as a reasonable cooling performance with relatively even cooling of a single room. This was the smallest and lightest of the tested models and it was noted that these types of air conditioners were not very stable and the condensation water was cumbersome to drain. Policy: Portable air conditioners are permitted subject to the satisfactory and safe drainage of the water from the equipment. Owners and residents should ensure that waste water is disposed of in a safe and proper manner and does not drain onto the walkways so as to ensure that there is not a slip hazard o  top of page Private Water Meters There has been some confusion at new unit groups that have a water meter for each unit or lot. People assume that the water meter is read by SA Water. Unless the water meter is installed by SA Water and connected to the street mains supply the unit / lot owner owns the meter. Reading: If this is the case at your unit then your body corporate needs to have all the private meters read at the same time as SA Water reads the street meter to your group. To make this easy, fair and not cost an 'arm and a leg' we use Strata Water Solutions (SWS). This firm make all the arrangements and bill the respective unit owners for their water use and forward the monies to the body corporate or their manager. The body corporate pays the whole SA Water account. Any difference is water used on common property. Faults: SWS also report on any meter problems. Our experience is that the private meters are subject to more frequent breakdowns than the government water meters. Sales: When a unit is sold it is very important that the body corporate or their manager advise the sales agent and conveyancer how the water bill is paid. With private meters a special reading needs to be undertaken, which can be undertaken by SWS .   Saving Water in the Driest State The following are some do's and don'ts of water use in SA. It is an extract from information supplied by SA Water. Watering gardens, grounds & nurseries: Public or private gardens, recreational areas, sports grounds or nurseries can be watered: By hand (through hand help hose/bucket/watering can); or Through a drip-feed irrigation system; or Where the watering takes place through a sprinkler -after 5pm and before l0am on any day (or, when daylight saving is in force, after 6pm and before l0am). Hosing down external paved areas: No hosing down of external paved areas with water at any time unless it is absolutely necessary to do so to: Protect public health, or; Ensure the safety of people using the area, or; Ensure the health and welfare of animals using the area, or; Deal with Fire, accident or other emergency. Cleaning of motor vehicles, boats: Water must not be used to clean a vehicle or boat unless the water is applied: From a bucket/watering can filled from a tap; or By a high-pressure low volume water cleaner; or From a hand-held hose fitted with a trigger nozzle, Motor vehicles/boats can be cleaned at a commercial carwash or by means of an automatic washing system that recycles water. Boat motors may be flushed or rinsed after use. Construction sites: Water must not be used to control dust or other pollutants resulting from building works unless water is applied from a hand-held hose fitted with a trigger nozzle, or directly from a motor vehicle designed to carry/deposit water.   Corporation Articles - How to Change Recently some of our clients have faced difficulties around tenants subletting. Research has shown that the problem can be helped by a change in the Articles of their Strata Corporation. Subletting is where a tenant lets their unit out to another party who is not on the written lease with the unit owner. This arrangement can result in a high turnover of tenants and little care by them for the property or their fellow residents. Our lawyers at Lynch Meyer (Sam Appleyard) have drafted a couple of new Articles that prevent subletting. To add the new Articles a Strata Corporation needs to agree by special resolution under Section 19 of the Strata Titles Act. A Special Resolution requires: general meeting (at least 2 weeks notice) a copy of the proposed articles to appear on the meeting notice two thirds of registered unit holders must agree owners may vote in person or by proxy the amended Articles must be lodged with the Lands Titles Office using the prescribed form. The default set of Articles for strata groups appears on our web site - use the search facility. If your group needs help give us a call o   The Corporation Seal Strata and Community Titled groups are required to have a Common Seal. The form and use of the seal can lead to some confusion. Appearing are examples of seals for both Strata and Community Titles. The Strata Titles Act (STA) and Community Titles Act (CTA) both spell out the wording and use of the Corporation's seal. The word 'plan' is not legal The seal needs to be used when a plan is amended, cancelled or amalgamated. It may also be used when signing contracts. The seal is generally used in the presence of an officer or as directed by a general meeting of owners. Hint: If you order a seal get the folding type as this can be easily stored with the body corporate's books o   Private Water Meters There has been some confusion at new unit groups that have a water meter for each unit or lot. People assume that the water meter is read by SA Water. Unless the water meter is installed by SA Water and connected to the street mains supply the unit / lot owner owns the meter. Reading: If this is the case at your unit then your body corporate needs to have all the private meters read at the same time as SA Water reads the street meter to your group. To make this easy, fair and not cost an 'arm and a leg' we use Strata Water Solutions (SWS). This firm make all the arrangements and bill the respective unit owners for their water use and forward the monies to the body corporate or their manager. The body corporate pays the whole SA Water account. Any difference is water used on common property. Faults: SWS also report on any meter problems. Our experience is that the private meters are subject to more frequent breakdowns than the government water meters. Sales: When a unit is sold it is very important that the body corporate or their manager advise the sales agent and conveyancer how the water bill is paid. With private meters a special reading needs to be undertaken, which can be undertaken by SWS o  top of page Summer 2004/05 Builder finally cements a deal For some 7 years a group of UnitCare unit owners have been battling the builder of their units over a shocking driveway paving job. UnitCare took on the management of this group of nine units in 2002. The owners had given up on having the loose and dangerous paved driveway replaced by the builder. The cost of replacement looked to cost around $35,000. This cost was beyond the means of many owners as they were on fixed single incomes. As managers we suggested a fresh approach using Koukourou Engineers and Michael Hutton from Lynch Meyer lawyers. The engineer's report revealed that the builder had failed to lay a proper foundation (to Australian Standards) for the pavers resulting in them moving and coming loose. The poor backfill and compaction had also caused the crushing of plastic storm water pipes and sumps. Since late 2002 the builder has tried to avoid full responsibility by blaming sub contractors and offering to just repack some areas of pavers. The matter has been back and forth to Court for directions hearings. The parties came to an out of court settlement prior to trial. At the time of writing a new concrete drive is being laid by the builder, in addition the builder is paying much of our client's legal costs. This case highlights the need to seek specialised legal advice before pursuing a builder over substantial faults. It is sad to note that some builders go on to keep their licences despite a trail of poor workmanship and a complete insensitivity to the plight of older unit owners who are in a poor position to afford legal help or to make good the original work. top of page   New Fact Sheet for Sales Agents   To answer the many queries and problems that arise during the sale of units we have published a Fact Sheet for real estate Sales Agents. We have found over the years that many agents fail to understand what makes selling units different from a regular stand alone housing. The result has been confused and angry purchasers. Recent cases have included telling a prospective owner they have a carport when this is not the case, advising a buyer into a new community title that there would be no body corporate fees as owners maintain their own units. The new fact sheet deals with: Searches - how much to pay, what an agent gets for the $55 search fee what to look for including policies on pets, air-conditioners, articles / by-laws, strata / community plans who owns what and more Approvals for potential purchasers - how to make an application for a pet air-conditioners what to look for including policies on pets, Repairs/Works - who pays for what termite inspections / treatment leaking showers Community Titles - how they are different scheme descriptions by-laws The fact sheet came about as part of a new Real Estate Institute of SA training programme. It is intended to be of assistance to residential sales agents selling units & lots in South Australia. You can download a copy from our website www.unitcare.com.au or call us for a copy. top of page     Voting - Getting it Right Some strata managers and self managed groups have owners vote on important issues through the use of 'postal voting slips' This practice is dangerous as it in no way binds the Corporation or its members to any decision made in this fashion. The Strata Titles Act only allows for decision making at general or committee meetings. There is no provision for postal voting other than through the use of a proxy for a general or committee meeting or an absentee vote for a general meeting. Voting rights at general meetings 34. (3) A vote may be exercised as follows: (a) it may be exercised (subject to paragraph (b)) by the unit holder or a proxy of the unit holder; 34. (4) A unit holder may exercise an absentee vote on a proposed resolution by giving the secretary written notice of the proposed vote at least six hours before the time of the meeting Management committee 35. (7) A member of a management committee can appoint another person (who must, unless all of the units comprised in the strata scheme consist of non-residential units, be a unit holder) to act as his or her proxy at any meeting of the committee that the member is unable to attend. The Strata Act is set up to ensure owners get an opportunity to discuss the merits or otherwise of an issue. An option for Corporations is to call a general meeting and circulate sufficient information with a proxy form that enables the owner to submit an absentee vote. Owners can of course still attend the meeting however if the issues are clear and well argued they may well lodge a 'postal vote'. In this case it will be legally binding.  top of page Spring 2004 Respect for the Trust of Clients It is easy to take the trust of our clients for granted. This is no more apparent than when dealing with their money. Over many years clients have come to us from other managers having had problems with the management of their money. There have been unauthorised works amounting to $1,000s, financial statements that did not add up, missing funds and disputes over accounts for works and jobs paid for but only part done. There will always be some misunderstandings between managers and their clients however there are ways to minimise the risk and improve the level of trust. Have the committee check the specification for any major works before going to tender Get approval for special works/accounts by the management committee before paying them Send a monthly ledger of the accounts to the Treasurer Send a copy of the Audit report to the group These precautions keep managers on their toes and have the owners sharing the responsibility. On a related issue we continue to hear stories of strata managers hiding behind the Privacy Act when owners are seeking information about their body corporate. Owners seeking a list of owners or ledgers have been refused with managers siting the 'Privacy Act as forbidding them to release this information. This is not true, the Privacy Act prohibits third parties receiving information from a manager. For example a manager may not release a list of owners to a real estate agent unless the owners and the Body Corporate have granted permission. As the owners are the Body Corporate they are not third parties for the purposes of the legislation. A recent example of this reprehensible behaviour was a manager refusing to supply the list of owners to a group of owner occupiers. The owners then went to their local Council and were supplied the list from the rate payer files. It is clear to us that some managers are lying to clients using an Act that does not apply in order to withhold information that may be used against them. Trust should not be taken for granted, although intangible it is precious and underpins our job as body corporate managers.  top of page Winter 2004 Supreme Court Appoints Administrator Earlier this year the Supreme Court of South Australia appointed an administrator to a large group of units here in Adelaide. Unit owners may not appreciate that the Courts can take away the control of their body corporate group if it becomes unmanageable. This is legislated for under Section 37 of the Strata Titles Act (see box). Generally the Administrator investigates the causes of the management crisis and provides strategies to the Court on how the body corporate can return to orderly and proper management. This will usually involve consulting with owners. Interestingly the Administrator has 'full and exclusive power to administer the affairs of the strata corporation (including power to do anything for which a special or unanimous resolution of the strata corporation is required).' This gives the Administrator the flexibility to change the Articles, raise levies, make binding decisions that would normally require a general meeting of owners. Our experience is that the Court takes this step with great reluctance and only as a last resort. We understand this may be the first time the Supreme Court of S.A. has appointed an Administrator to a unit group. Hint: If your group is becoming unmanageable we suggest seeking help before owners resort to lawyers and large bills. Help is available from the Community Mediation Services (ph 8384 5222) or ring us for a free initial consultation.   Administrator of strata corporation's affairs 37. (1) The Court may, on application by- (a) a strata corporation; (b) a creditor of a strata corporation; (c) a person with a registered interest in a unit, appoint an administrator of the strata corporation, or remove or replace an administrator previously appointed. (2) An administrator has, while the appointment remains in force, full and exclusive power to administer the affairs of the strata corporation (including power to do anything for which a special or unanimous resolution of the strata corporation is required). (3) The administrator must comply with any directions that the Court may give from time to time. (4) The remuneration of an administrator will be fixed by the Court and payable from the strata corporation's funds. (5) The administrator may, by written instrument, delegate any of his or her powers. (6) A delegation under subsection (5)- (a) may be made on such conditions as the administrator thinks fit; and (b) is revocable at will; and (c) does not derogate from the power of the administrator to act in any matter personally. (7) Where a person- (a) is appointed as an administrator; or (b) is removed or replaced as an administrator, that person must, within 14 days, give the Registrar-General written notice of his or her appointment, removal or replacement.    Taxing Times With June 30 approaching Body Corporates are again facing tax compliance issues. The following article is from the Advertiser. Beware strata title tax Len Iles of Hazelwood Park and secretary of a strata title corporate has asked me to point out again the tax position of strata title corporations. This is causing concern to many people who have so far not caught up with this tax requirement. He said the Tax Office "has imposed another slug primarily on pensioners and retirees by taxing at company rates with no cut-off the interest credited to strata title maintenance accounts conducted by unit owners". "As secretary of our strata title I received a direction ... to furnish income tax returns for the past three years. This was the first I knew that bank interest credited on such accounts is now taxable. I have discussed the situation with many other strata title owners and they know nothing about it. I have yet to find one did" Mr Iles said. Comment: Here in South Australia we have received advice from the ATO that they no longer grant exemptions. In addition we have to deal with ATO requests through out the year not just in July. Recently we have been arguing over the need for quarterly PAYG requests for some of our groups. top of page High Winds & Brick Walls The following is an extract from the latest Corporate Home Unit Underwriters newsletter (see www.chu.com.au). 'Recent damage to many older apartment buildings due to recent gale force winds, highlighted the lack of attention to maintenance issues. In several instances large panels of brickwork were 'stripped' from buildings, the primary cause being deterioration of the wall ties in the external walls. Subsequent investigation of these occurrences showed that in all cases the wall ties had lost their connection with the outermost brickwork panel. The difficulty that building owners have is that 'if it ain't broke, don't fix it' tends to surface. Nevertheless it is reasonable to assume that all older (pre 1960) buildings, close to inner city or close to the ocean, will have defective wall ties unless remedial measures have already been undertaken The extent of deterioration of wall tie generally can be determined by removing a small section of brickwork in selected areas. This enables an assessment then to be made on the condition of the wall ties throughout the building. Often after the preliminary investigation stage, it is more practical to install new ties to all brickwork panels as this can prove to be more economical than continuing with the investigation process. This particular issue highlights the need for ongoing maintenance in all areas, preferably in accordance with an overall plan prepared with professional assistance.' Source: R J Baxendale Consulting Engineer Pty Ltd (02) 9906 6699  top of page   Autumn 2004 Findings - Enquiries into Strata Managers The Hon. John Rau MP released his report on the strata title industry in February this year. Amongst his many recommendations are: Professional Strata Managers should be registered and licensed so as to enable their activities to be scrutinised and regulated. A code of conduct and range of specific legislative requirements, including appropriate criminal sanctions, should be imposed upon professional Strata Managers modelled on those soon to apply to Real Estate Agents. Strata Managers should not be permitted to chair Corporation meetings. A quick, easy, inexpensive and user-friendly dispute resolution mechanism needs to be developed. .... the Residential Tenancies Tribunal could perhaps be modified to serve this function. A property vendor's Section 7 statement should be required to include a copy of the Corporation's most recent accounts. A concise explanation of the difference between Strata Title and Torrens Title should also be provided. Unpaid Strata fees should also be clearly and explicitly disclosed. The report identifies: funding for additional dispute and advisory services through the use of interest on strata manager Trust accounts. the need to adopt a wholistic process to the licencing and regulation of all real estate practitioners problem managers who refuse to hand over records and funds at termination the many problems faced by unit owners in 'vertical villages' . The lack of good information to prospective unit purchasers. We applaud John Rau's efforts on this report and reform in the Real Estate Industry generally. The report has gone to the Minister for Consumer Affairs. It is expected that a discussion paper and draft legislation will be forthcoming later this year. We will continue to press for greater accountability through Mangers being obliged to: supply quarterly financial reports to all owners monthly reports to Treasurers invoices to committees/officers for approval supplying all owners a copy of the BC's insurance certificate following renewal and the establishment of an indemnity fund to protect unit owners money.  top of page   RAU REPORT RECOMMENDATIONS 8.1 Professional Strata Managers should be registered and licensed so as to enable their activities to be scrutinised and regulated. 8.2 A code of conduct and range of specific legislative requirements, including appropriate criminal sanctions, should be imposed upon professional Strata Managers modelled on those soon to apply to Real Estate Agents. 8.3 Conflicts of interest can and do arise between Strata Managers, Strata Unit holders, third party suppliers and developers. These conflicts need to be the subject of legislation requiring full disclosure of any such conflicts and providing penalties for breaches. 8.4 Strata Managers should not be permitted to chair Corporation meetings. The actual or potential conflict of interest associated with this behaviour makes it highly undesirable. This may mean that an independent chair person is required from time to time in some Corporations. 8.5 Certain core obligations imposed on Strata Managers are so important, as to require strict observance with appropriate formalities. This is the case irrespective of whether the Corporation is professionally managed or not. These functions include trust account auditing, obtaining and maintenance of appropriate insurance and the maintenance of an appropriate sinking fund. 8.6 In order to insure that adequate insurance is held and maintained, Strata Managers should be obliged to: a) Obtain a professional valuation as to the replacement cost of buildings at least every five (5) years. b) Arrange common insurance on behalf of Unit holders for each Unit (not including personal effects, furniture or chattels). 8.7 Irrevocable proxies should be outlawed. 8.8 A maximum term for Management agreements, or at very least a clear power to dispense with the services of a Strata Manager at any time, should be mandated by law. 8.9 Aside from certain specific obligations imposed on all Strata Managers at all levels of sophistication, a practical and legal distinction should be drawn between the simple Strata Corporation and a professionally managed Strata Corporation. 8.10 Professional Managers should be required to hold professional indemnity insurance as against a major default on their part, for example failure to provide adequate insurance cover for the Corporation. 8.11 Mandatory "sinking fund" arrangements should be introduced, with preference being for an insurance based product rather than by direct contribution to a fund (if possible). 8.12 Funding for the Regulatory Scheme may be in part secured from interest on funds held by Managers (currently estimated at $13 million). 8.13 Strata Managers should only be able to exercise powers specifically delegated to them by the Corporation. Such delegation should be in writing to eliminate ambiguity. 8.14 A quick, easy, inexpensive and user-friendly dispute resolution mechanism needs to be developed. (The Victorian V. C.A.T. model seems to work well in other fields but it may not suit local South Australian conditions). In South Australia, the Residential Tenancies Tribunal could perhaps be modified to serve this function. 8.15 Replace the requirement for a unanimous resolution to approve the termination of a freehold Strata Scheme to a requirement that no more than 25% of owners vote against the termination (as currently applies for 'special resolutions'). 8.16 Include provisions for dealing on fair terms with the interests of any owners not supporting termination. 8.17 The current segmented approach to legislative schemes governing Real Estate Agents, Strata Managers and other associated professional callings should be abandoned in favour of an holistic approach focusing on the common themes of accountability, transparency, avoidance of conflicts of interest and regulation through a licensing regime capable of imposing standards and regulating conduct in the industry. 8.18 A property vendor's Section 7 statement should be required to include a copy of the Corporation's most recent accounts. A concise explanation of the difference between Strata Title and Torrens Title should also be provided. Unpaid Strata fees should also be clearly and explicitly disclosed o  top of page   LANDLORDS - TRIPPING OVER COURT A Queensland tenant has been awarded a $1.2m payout for back injury A woman who injured her back when she tripped on a hole in a carpet sued her landlady and won $1.2 million in damages last June. The Supreme Court in Brisbane was told Donna Maree Muir, now 45, had fallen in the hallway of the house and landed in the bathroom, sustaining a serious injury. Muir sued the owner of the house, claiming her injuries were caused by the owner or the agents' failure to take reasonable care for Muir's safety. She claimed that the carpet had been allowed to remain in a dangerous state, that it had not been repaired after requests to do so, and that no interim measures had been taken to ensure that the carpet could not be tripped over. Justice John Helman found that, by failing to replace or repair the hall carpet, the owner had failed to maintain the house in good tenable repair. He said the owner had therefore exposed Muir to a risk of injury o Source: Courier Mail June 27, 2003  top of page Adelaide Soils Clay foundations are the cause of major problems to our houses, as they swell or shrink to some degree when they become wet or dry out. The concrete structure that transfers the load to this foundation is the footing system. The chance of footing failure is higher if extreme site conditions, such as the following are permitted to occur: Planting of trees too close to footing Excessive watering of gardens adjacent to the house Lack of watering to maintain moisture levels Lack of maintenance to site drainage Failure to repair plumbing leaks. Reactive clay soils swell or shrink to such an extent, that foundation movements can damage houses. These soils are generally rare in major cities except Adelaide. In order to prevent cracking to buildings and piping, corporations should find out the classification that is applicable to their site's soils and take the necessary advice to maintain the best soil equilibrium, to prevent soil heave or shrinkage o Source: CSIRO Australia & chu.com.au  top of page Summer 2003/04 New Enquiries into Strata Managers Following hot on the heels of the Rau Enquiry into real estate practices the Hon. John Rau MP has commenced an enquiry into the strata industry. In parallel the Attorney General has released his long awaited discussion paper on the regulation of body corporate managers (BCM). Both enquiries arise following many complaints to Government agencies and MPs. These complaints include: a BCM controlling a corporation's meeting, rather than assisting reluctance of a BCM to provide minutes of meetings and trust account records difficulties obtaining information from a BCM about activities he or she has undertaken on behalf of the corporation when a manager is appointed, a refusal by the new BCM to deliver up the corporation members information about the basis on which a BCM proposes to charge the corporation for his or her services a BCM not fully disclosing any commissions he or she may obtain for arranging services (such as insurance) with a particular provider a BCM advising the corporation members that he or she cannot legally be replaced We have provided the AG with a comprehensive series of recommendations and evidence of improper behaviour by some BCMs. Much of our submission is available on our web site. Our recommendations focus on: Mangers being obliged to: