Most caretaking and letting agreements allow Bodies Corporate to terminate if their onsite manager becomes insolvent. Typically, the process of establishing insolvency is straightforward because the onsite manager is (for example) declared bankrupt or placed into liquidation. But what happens if there isn’t a clear insolvency event? Or the onsite manager claims to be solvent when all signs indicate they are actually insolvent?

 

These issues arose for the Body Corporate for the Hub Apartments when it terminated the engagement of their onsite manager based on “presumed” insolvency. The onsite manager opposed this and applied to an Adjudicator to invalidate the termination. Fortunately for the Body Corporate, the termination was upheld. We acted for the Body Corporate in this case. It was a challenging dispute, but the Body Corporate ultimately won. So how did they do it?

Adversarial mindsets in strata buildings mean that most differences become disputes to be won or lost; rather than challenges to be mediated to a fair compromise between affected stakeholders. And, that has many negative impacts on all strata stakeholders.

Inevitably there will be differences between stakeholders in strata, community, and company titled property complexes.

But, it's not necessary [or desirable] for those differences to escalate into serious and sometimes long-running disputes.

So, we need better ways to handle these differences.

Should You Accept a New Contract From Your Lift Company?

Article contributed by

Equity Elevator Consultants

• Gold Coast Greenfield Supply
• Population Radar

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