Administrators and their affect on Owners Corporations.
CASE LAW UPDATE
The involvement of an Administrator in an Owners Corporation may directly lead to Apartments being devalued…
In a recent Victorian Civil and Administrative Tribunal (“VCAT”) case, the Tribunal made orders to assist a lot owner to sell one of her apartments in a 6-lot scheme. Due to a deadlock in voting between the lot owners, an administrator had been appointed to manage the Owners Corporation’s affairs.
An administrator’s powers are given to it by VCAT and can include the power to perform certain functions, or all of the functions of an Owners Corporation. The appointment of an administrator essentially removes some or all of the Owners Corporation’s functions from the control of the lot owners.
According to the Tribunal “…it is a notorious fact, to my mind, that the market value of the lot is depressed by there being an administrator and potential purchasers would tend to be discouraged by there being an administrator…”
This case is an example of the importance of lot owners actively participating in their Owners Corporation to ensure it performs its functions and duties according to law to avoid the risk of an administrator being appointed.
Case Reference: Connors v Adams (Owners Corporations) [2014] VCAT 863 (7 July 2014)
Tisher Liner FC Law has a dedicated Owners Corporation Law division committed to providing quality legal advice and representation to Owners Corporations, Committees, Lot Owners and Managers. Any further questions, please contact a member of our Owners Corporation team.
