Sunday, 16th June 2019

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Lloyd
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Last seen: 3 years 37 weeks ago
Joined: 26/03/2012

Does anyone know where I can find out about developers proxy voting power. We have bought into some units and the developer has used this proxy power to increase his fees by 100%. We have only just found this out and he has told us he has power of proxy after the sale of the unit. I certainly never gave him proxy voting rights nor was it a condition of sale.

I have found the legislation for NSW in Strata Management Legislation Amendment Act 2008 that provides greater safeguards for owners’ voting rights, the legislation has been amended so a developer or a person connected with the developer cannot make use of a proxy voting appointment or power of attorney that was obtained by a condition in a contract for the sale of a strata lot, or another related contract or arrangement. But I cannot put my finger on the legislation for Queensland.

Any info is greatly appreciated.

Wayne

jamiekillorn
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Last seen: 6 years 46 weeks ago
Joined: 10/04/2011

Are you talking about a 100% increase in his management fee?

Jamie Killorn

n/a
Lloyd
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Last seen: 3 years 37 weeks ago
Joined: 26/03/2012

Yes in both CTS the developer who has the management of the complex has increased his annual fee by 100% using a Limited Power of Attorney (LPOA). After more investigations it was discovered that other owners have a LPOA in their Contract of Sale Disclosure documents. Well I do not and the developer used the LPOA to increase the management service fees on both CTS in our complex.

The developer has a LPOA in other owners Sale of contract for the first 12 months of the scheme - which I am told is standard.

An Extract of LPOA from an owner Contract of Sale

Power of Attorney -
Pursuant to Section 219 of the Body Corporate and Community Management Act 1997 ("the Act"), the Seller states as follows:
1. Pursuant to the Contract of Sale for the Lot, the Buyer gives to the Seller a limited Power of Attorney to attend and vote at meetings of the Body Corporate.
' 2. The Power of Attorney may only be exercised by a duly authorised corporate representative of the Seller.
3. The Power of Attorney may be exercised only to vote in favour of a motion or resolution for:
a) authorising or ratifying the entry by the Body Corporate into the Body Corporate Agreements on terms generally the same as those terms contained in the Disclosure Documents or as varied in accordance with Section 214 of the BCCM Act;
b) adopting the by-laws substantially the same as those included in the Proposed Community
Management Statement or as varied in accordance with Section 214 of the BCCM Act;
c) authorising the consent to a new community management statement to record a by-law required to rectify an inaccuracy, defect, error or omission in a by-law contained in the Community Management Statement; _
d) authorising variations to the Building Management Statement in order to rectify an accuracy, defect, error or omission in the Building Management Statement or as otherwise considered by the Seller in its absolute discretion necessary in order to achieve the proper operation of the Development;
e) authorising a transfer. lease, easement, licence. grant or allocation of exclusive use or other right over any of the Common Property or the Land (including the allocation of carparking spaces and storage spaces by exclusive use bylaw to owners or occupiers of lots in the Scheme),
f) authorising variations to the Lot Entitlements of lots in the Scheme other than the Lot where that variation will not materially prejudice the Buyer:
g) granting of an occupation authority under the regulation module for the Scheme in favour of the Service Contractor and/or Letting Agent for the Scheme;
h.) adopting a resolution to acquire or lease personal property that is required to facilitate the effective operation of the Body Corporate and the facilities provided for the use of owners and occupiers of the Scheme;
i.) the election of executive and ordinary members of the Committee of the Body Corporate; and
j.) authorising a request or consent or both to register a new community management statement for the Scheme reflecting one or more of the variations or matters referred to in this subclause.
4. The Power of Attorney expires one (1) year after establishment of the Scheme.

This does not entitle him to grant increase in fees and is a motion for Financial gain.

So Things have progresed as follows;

Developer - wont talk to use
Body Corporate - started to be helpful and said they even if mine was void he had enough proxy to pass the motion. BUT when I said that the motion is outside the scope of the LPOA and he has no authority they started to back pedal and suggest I seek legal advise. This from the people that are supposed to protect our assets.

Developer - wont talk to use - mainly because of other legal issues that are going on with his vompanies.

So recently I lodged a complaint with the BCCM commisioners office for and adjudication.

I am now waiting for a response.