Administration
If your owners corporation is dysfunctional or cannot pay its debts, you may need an Administrator to temporarily step in.
Owners corporations can become dysfunctional for a number of reasons but often it is due to in-fighting between owners or deadlocked votes preventing decisions being made.
Administrators can only be appointed by VCAT on the application of an owner, a creditor or person with an interest in the land affected by the owners corporation. Once appointed, the Administrator will act in accordance with any orders made by VCAT. They must always act in good faith and with due care and diligence. The Administrator can otherwise make any decisions and do any things that the owners corporation under administration could normally do.
The appointment of an Administrator is a matter that must be disclosed to prospective purchasers and is generally accepted to have a negative impact on property values. Ideally the Administrator should complete its tasks as soon as possible and then be removed so that the normal democratic operation of the owners corporation can be restored.
Administration is a service offered by Stratablox. If an Administrator is being considered at your owners corporation we encourage you to get in touch with us.