Compulsory Strata Management
NCAT Appointment s237 of SSMA
Chart a path forward
Strata living reflects the diversity of society, encompassing individuals from various backgrounds. In an ideal scenario, everyone shares a unified vision for community management. However, disagreements that adversely impact the smooth running of the community can arise, leading to the need for Compulsory Management.
In New South Wales, Owners Corporations facing dysfunction may ordered or apply for Compulsory Management by the NSW Civil and Administrative Tribunal (NCAT). Compulsory management may be triggered when the strata scheme faces challenges like failure to maintain common property, inadequate financial management, lack of mandatory insurance, dysfunctional strata committees, or non-compliance with legislative requirements. If attempts to resolve issues fail, the NCAT can exercise its power under section 237 of the Strata Schemes Management Act 2015 to appoint a strata manager to assume part or all of the functions of the Owners Corporation.
Put simply, compulsory strata management mandates the involvement of a professional strata management company to handle the administrative and operational aspects of a strata property. It involves transferring some or all of the powers and functions of an owners corporation to a compulsory manager, ensuring effective maintenance and protection of owners' interests in the strata property.
In such instances, securing the services of an experienced strata manager like Compass Strata is paramount. This expert guidance is instrumental in steering the community toward effective functioning and alleviating owners of the stress associated with a poorly functioning Owners Corporation.
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