Unregistered Owners Corporation Managers Receiving Your Fees?

CASE LAW UPDATE A recent Victorian Civil and Administrative Tribunal (“VCAT”) case involving a the owner of a commercial lot in a Fitzroy Owners Corporation against other lot owners who were being paid to provide Owners Corporation management services has shone a light on informal arrangements in older or smaller multi-unit properties in Victoria.

The VCAT found that the lot owner managers:

  • Received a fee for their management services to the Owners Corporation;
  • Were not registered;
  • Were not appointed under a contract of appointment;
  • Raised fees from lot owners not based on lot liability.

The VCAT resolved the matter by declaring that the Owners Corporation must convene a special general meeting to:

  • Accept the existing unregistered managers’ resignation;
  • Discuss whether to appoint a registered manager or whether to self-manage by a committee of no less than three lot owners;
  • To nominate signatories to the Owners Corporation’s account;
  • To seek legal advice on whether the Owners Corporation should recover management fee paid to the unregistered managers since 2007; and
  • Whether to appoint an independent auditor.

CASE REFERENCE: Lentini v Brien (Owners Corporations) [2014] VCAT 814 (9 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.

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