WA: Q&A What role does the Volunteer Strata Manager play?

Wa lot owners may wonder about the role of a volunteer strata manager. Can a volunteer strata manager be paid? Do they have to notify anyone about a change in management? Do they arrange a contract with the strata council?

Table of Contents:

• QUESTION: Is bullying behaviour sufficient grounds for removing a volunteer strata manager?
• QUESTION: If the volunteer strata manager resigns through the year, can they remain a committee member?
• QUESTION: I have just become a volunteer strata manager for our strata. Do I need to notify anyone about the change in strata management?
• QUESTION: I have been a volunteer strata manager for 15 years. Is there any kind of remuneration I could propose for myself to the committee at our next AGM?

Question: Is bullying behaviour sufficient grounds for removing a volunteer strata manager?

I have been a lot owner in a ten lot strata for over 55 years. Over the years, the volunteer strata manager (VSM), who is not a lot owner, has been bullying and controlling to elderly residents who are too afraid to speak out for fear of being abused. I recently experienced this when addressing some concerns in writing on the state of the common property. I received personal abuse in the form of a letter. My question is: Are there sufficient grounds to remove a VSM who is not a lot owner?

Answer: The person acting as a VSM for your strata company is not a VSM by the definition given by the Act.

You mentioned that your VSM is not an owner of a lot. The Strata Titles Act 1985 (the Act) defines a VSM as:

volunteer strata manager means a strata manager of a strata company who — (a) (b) (c) is the owner of a lot in the strata titles scheme; and does not receive any fee, reward or benefit for work performed as a strata manager other than an honorary fee or reward not exceeding, if an amount is fixed by the regulations, that amount; and personally performs the work of the strata manager;

Understanding this, I suggest that the person acting as a VSM for your strata company is not a VSM by the definition given by the Act. I believe this alone is sufficient reason to cease the existing agreement. It is still advisable for the strata company to seek legal advice in regard to its contractual obligations.

The Act requires a volunteer agreement to be in place when a strata company has a VSM. One option would be to issue the VSM with a show cause notice under Section 151(1)(a) for being in contravention of the ACT (holding the VSM position without being a lot owner).

Section 151(2) states:

If a strata company is satisfied that there are proper grounds for termination of a strata management contract, the strata company may terminate the contract by giving the strata manager written notice of termination — (a) specifying the date (being not less than 28 days after the date of the notice) on which the termination will take effect.

This process requires the issuing of a show cause notice in writing stating the grounds and setting out the particulars. Section 151(4) sets out the requirements (keep in mind this is for termination of a strata management contract):

4. A show cause notice must —
   
   1. be in writing; and
   2. state that the strata company proposes to terminate the strata management contract; and
   3. specify the grounds on which it is proposed to terminate the strata management contract; and
   4. set out particulars of the facts relied on as evidence of those grounds; and
   5. specify the period (being at least 14 days after the date of the notice) within which the written submissions must be received by the strata company

It is possible that the above process may not be necessary, and this would likely be discovered via seeking legal council. However, if in doubt, I suggest following this termination process as a minimum.

Luke Downie
Realmark
E: ldownie@realmark.com.au
P: 08 9328 0999

This post appears in Strata News #725.

Question: If the volunteer strata manager resigns through the year, can they remain a committee member?

Our volunteer strata manager has resigned partway through the year. Can they remain as a committee member, or does their election to a committee member need to go to a general meeting? We have a person ready to take on the volunteer strata manager role and have drafted a new contract. Does this need to go to a general meeting or can the committee make this appointment?

Answer: If the volunteer strata manager has resigned, they can still remain as an elected council member.

If the volunteer strata manager has resigned, they can still remain as an elected council member.

A new volunteer strata manager will need a new contract and criminal record check to be done. This can be decided at the council meeting.

Refer to Strata Title Act 1985, Schedule 1 BL 8 (2)(b).

Shane White
Strata Title Consult
E: shane.white@stratatitleconsult.com.au

This post appears in Strata News #705.

Question: I have just become a volunteer strata manager for our strata. Do I need to notify anyone about the change in strata management?

I have just become a volunteer strata manager for our strata. Who needs to be notified about the change from a strata manager to a volunteer strata manager? I presume some department somewhere needs to know who is the strata manager. What happens when a unit is sold etc.

Answer: whilst there isn’t technically a requirement to notify anyone about the change in Strata Manager, it would normally be prudent to let the owners of the scheme know, so they can correspond correctly with the new manager.

Further to proclamation, whilst there are many conditions that ‘a Strata Manager must’ abide by, in accordance with the Regulations, there are many conditions to which a volunteer strata manager ‘does not apply’.

The definition of a volunteer strata manager means a strata manager of a strata company who —

1. is the owner of a lot in the strata titles scheme; and
2. does not receive any fee, reward or benefit for work performed as a strata manager other than an honorary fee or reward not exceeding, if an amount is fixed by the regulations, that amount; and (c) personally performs the work of the strata manager.

The question posed by yourself is ‘who needs to be notified about the change in a strata manager’.

Good governance would have a motion on notice at a general meeting, in the circumstance when the scheme resolves by ordinary resolution to no longer be in the care of a Strata Management company. It should be made clear to all owners that their scheme is now engaging a volunteer strata manager. In addition, if a contract is being entered into for this service, a motion on notice should appear to authorise the Council of the Strata Company to do so.

The scheme is required to maintain a current ‘address for service of the strata company’. ‘A scheme notice, or an amendment of the scheme notice, for a strata titles scheme must be in the approved form’.

Again, this address should be a motion on notice at a general meeting, so it not only forms part of the books and records of the scheme, but will be attached to the strata plan with Landgate. A person contacting their Local Council may be able to identify the registered address for the scheme, as it is attached to the plan. Some schemes have a physical mailbox specifically for scheme correspondence, which would be utilised for this requirement.

So whilst there isn’t technically a requirement to notify anyone about the change in Strata Manager, it would normally be prudent to let the owners of the scheme know, so they can correspond correctly with the new manager. I would suggest providing some contact details for the volunteer strata manager and the Council of the Strata Company, to all owners, so as to correctly manage and respond to appropriate correspondence.

ESM Strata
E: mchurstain@esmstrata.com.au
P: 08 9362 1166

This post appears in Strata News #484.

Question: I have been a volunteer strata manager for 15 years. Is there any kind of remuneration I could propose for myself to the committee at our next AGM?

We are in a small complex of 6 units and we are a self managed strata. I have been managing the accounts, auditing, maintenance, insurance, and pretty much everything else and it is very time consuming.

I have been doing this since 2004 and am wondering if there was any kind of remuneration I could propose for myself to the committee at our next AGM?

Answer: The new changes to the Strata Titles Act will allow for a maximum payment of $3000 per year for volunteer managers.

Volunteer strata managers have an important job within the strata scheme but with that position comes great responsibility. Your other owners will expect the same service as that provided by a Strata Management company.

Regulated Strata Managers will be required to have certain educational qualifications and a National Criminal Records search. Any offences relating to property or dishonesty offence will preclude a person from being a Strata Manager, this includes Volunteer Strata Managers.

The new changes to the Strata Titles Act will allow for a maximum payment of $3000 per year for volunteer managers. Of course, you will need to negotiate the fee for your services and a lot will depend on the size of the strata scheme. Your proposed fee could be included in the Agenda as a budget item.

It would be advisable to have a contract drawn up which specifies your responsibilities as a Volunteer Strata Manager. You will also need to have the latest copy of the Strata Titles Act and the Regulations, your fellow owners will expect you to be proficient in both.

More information can be found in the New Amendments in the Act at sections 143 to 155 inclusive and in the New Regulations at clause 90 to 102.

Shane White
Strata Title Consult
E: shane.white@stratatitleconsult.com.au

This post appears in Strata News #387.

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