AAA recently attended an AGM for an apartment complex which is managed by B-Strata to ensure that the owners best interests were foremost for the next financial year.
However when the minutes were issued, the discrepancy re conducting a valuation of the building for insurance purposes caused such alarm with CEO Samantha Reece that she advised the strata management company that she wanted to attend the office and hear the recording of the meeting.
Three visits later and after hearing the recording, it was evident that despite the assurances of the Director, the minutes in fact had been falsified.
While the Director, a former President of Strata Community Association (SCA) WA and current SCA National Board member, stated that he would amend the minutes, the whole experience did not sit well with AAA.
Ms Reece stated that there had been a strong focus on escalating insurance premiums which resulted in strata managers receiving a bigger slice of the pie with insurance commissions.
"B-Strata was securing 27% commission for the insurance placement and what's more the insurer had already increased the value of the building by $500,000 from the previous year despite no valuation being conducted," Ms Reece said.
"The motion clearly deferred the valuation until the 2025/26 financial year but the minutes indicated that the Strata Company had instructed B-Strata to undertake the valuation this financial year.
"What was also concerning was that the contract of engagement restricted the apartment complex to only use one broker therefore not allowing for a competitive quoting process.
"Strata Managers need to remember that they are engaged by the apartment owners and they have a fiduciary responsibility, which they are not to directly profit from."
This example indicates why AAA is calling urgently for a WA Strata Commissioner.
"This is not the first time that we have received a valid complaint about B-Strata and with the focus on increasing apartment living, owners need to know the State Government has their back."
Комментарии