From Held to Ransom to Back in Control
Compulsory Strata Management: Case Study
Breaking Free: 12 Months to Restore a Paralysed Scheme
The Situation
This owners corporation had stopped functioning. Under its previous managing agent, years of financial mismanagement had left it unable to pay creditors or carry out maintenance. The owners coropration was frozen out of its own trust account, cutting the building off from its own funds, and the agent had even concealed NCAT proceedings from the Strata Committee and lot owners. Trust had completely broken down, and the owners, after consultation with Compass Strata, concluded that compulsory management was the only way to restore their scheme to proper order.
What Compass Strata Did
Compass Strata supported the applicant lot owners and the Strata Committee through a consent orders application to NCAT - an agreed pathway that avoided a drawn-out contested hearing. The lot owners formally endorsed the application, and the Tribunal eventually appointed Compass Strata as compulsory strata managing agent for 12 months, exercising all the functions of the chairperson, secretary, treasurer and strata committee.
Under the appointment, Compass Strata regained control of the scheme's funds, rebuilt the financial records, paintakingly brought creditor accounts back into good standing, and restarted the stalled maintenance program.
The Result
Within the 12-month term, the owners corporation was restored to financial liquidity and proper working order, and self-governance was handed back to the owners on a sound footing.
Every community is different, and every situation has its own story. With our in-depth experience, from everyday management to Tribunal-appointed compulsory management, Compass Strata may be able to help you out. Speak to us today.
