Q&A: What Sort of Things Can We As Owners Corporation Managers Charge For?
We looked for answers for some of the most frequently asked questions that Owners Corporations Managers ask.
Question: Can we charge for two Owners Corporation (OC) certificates per sale-one at the beginning and one prior to settlement?
Answer: Yes, you can. This is a common procedure that occurs when a person purchases into an owner’s corporation. Many strata companies are frustrated because they pay for the first OC certificate and have to pay again for an updated one. The two, however are not the same under the law and must be treated as such. The initial OC certificate is a requirement of the paperwork that must be included in the Sale of Contract, it also ensures that the purchaser has done some due diligence.
A conveyancer must factor this into the overall cost of purchasing the property. If there are any changes to the document during the settlement period, you may need to request for an updated OC certificate which is charged for separately. The charging process differs with each company but under Section 151 of the Owners Corporation Act, a person may request for an OC Certificate for a fee. This fee may be charged per certificate issued.
Question: What fees and charges can an Owners Corporation Manager lawfully charge for?
Answer: Before appointing a new Owners Corporation Manager, each Owners Corporation signs a Contract of Appointment with that managing agent. Inside that contract, a list of charges and fees must included. Specific charges for ballots and preparation of records for termination should also be listed down. To make sure that the contract is valid, it must be dated and signed by all parties. It must also be stamped with the common seal.
The Strata Community Australia VIC (SCAV) has a list of recommended charges that you may choose to include in the contract. This will help you determine whether or not you are being charged reasonably and fairly.
Question: Our developer signed a three-year Contract of Appointment with our current Strata Management Company, but we are not happy with their charges. What can we do?
Answer: The developer is the original owner under the law. He is able to sign a three-year term contract with a Owners Corporation management company. When you take over the ownership, this contract is still valid until the stipulated time. If you are not happy with the services you are being provided with, you can discuss this with the management company. If you cannot resolve the issues at hand, you can start the process of terminating the contract and looking for new management.
Do you have any questions regarding residential and commercial strata management? Are you looking to switch strata managers? Not altogether satisfied with the information you’ve been getting from your current strata managers? Don’t hesitate to contact Montano Strata’s qualified team today.