Legal Responsibilities in a Vertical Village - An Owner's Perspective

1. Legal Responsibilities while Living in a Vertical VillageAn Owner’s perspective:John Hutchinson - OCN

2. An Owner’s Perspective IANAL “I AM NOT A LAWYER”

3. Who carries the Responsibility ? • Owners Corporation • Executive Committee • Delegates – Strata Manager / EC members

4. Responsibilities • Taking responsibilities seriously.... • How do we discharge duties • What powers do we have to do it • The OC’s single responsibility • Manage the Common Property

5. Managing Common Property • Keep it safe • Keep it clean • Keep it in good repair • Keep it insured • Keep it run in an orderly way

6. Particular Responsibilities • Repairs & Maintenance • Absolutely no excuse not to do • If no money, levy owners or borrow • Waiting on defects claim / insurance is no excuse • OC liable for losses arising from common property failure if negligent

7. Discharging Responsibilities • Important Areas • Controlling Spending • Stopping Sinking Fund sinking • WHS and Fire Safety checks • Privacy & Discrimination • Maintaining Records

8. Tools for an Effective EC - 1 • Delegate to Sub-Committees • Any owner (not just EC) can help • Use SM if no volunteers, or • Consider paying for assistance • Set authority limits on spending • Authority for BM or SM or EC officer • Decision making between EC meetings

9. Tools for an Effective EC - 2 • Structure your EC Meetings • Action items from last EC meeting • Fire Safety & WHS as standing items on Agenda • Sub-Committees to report on progress • Articulate Policies • Complaints policy ? • Privacy policy ? • Code of Conduct ?

10. Tools for an Effective EC - 3 • Maintain total Transparency • Scheme Website most timely & effective method • By Laws properly with TOC • Introductory Pack & Tips for Living • Downloadable Forms • Latest financial reports • Minutes • Consultants Reports

11. Tools for an Effective EC - 4 • Think of OC / EC as a “service provider” • Set measurable Goals for the Year - eg. • Spending within 10% of budget • Outstanding compliance matters cleared by y/e • Projects completed • Complaints / disputes resolved • Communicate with residents – newsletter etc.

12. Powers of an EC • Powers limited to responsibility to maintain common property • Not the same as directors of a company • Do not extend to • Settling disputes between residents • Telling residents how to live their lives • Donating owners funds to charity

13. Empowered ? • Executive Committee decides it needs to spend $15k on refurbishing garden irrigation if... • $25k available in garden budget for the year ? • $5k available in garden budget for the year ? • El Nino threatens • Could the Treasurer make this decision by himself ?

14. Empowered ? • Executive Committee asks Owners to pass by Special Resolution a By Law to • Ban short term letting by owners for terms of less than 3 months • Clamp any non bona fide visitor cars using Visitor Parking • Provide that no children reside in the studio apartments

15. Empowered ? • Executive Committee Resolves that • It declines to pay for the installation of a handrail beside the pool for the aged resident of Lot 3 • After due diligence a contract be executed with a new Strata Manager for a 3 year term • A contract be entered into with XYZ Building Management Co for a term of 10 years • A facility agreement be executed for the OC to borrow $50,000 for 3 years at 8% fixed

16. TAKE AWAY Duties, Responsibilities & Powers • Responsibilities are about “Managing Common Property” • Take Responsibilities seriously but do not overreach • Duties of care, impartiality & honesty • Persuasion, Transparency and Communication are Powers

17. Legal Responsibilities while Living in a Vertical Village - An Owner’s Perspective - John Hutchinson Owners Corporation Network 2015