Investigative Journalism and Learning Hub - Waratah Strata Management Ignored Concerns About Their Contract on 27 February 2017

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From: SP52948 owner
To: Robert Crosbie Waratah Strata Management
Subject: Fwd: Waratah Strata Management contract issues
Date: 27/2/17, 8:55 pm

Hi Robert,

I visited LPI and confirmed that the Determination of Property Boundary was completed in July 2000. Accordingly, I have corrected the Motions for AGM/EGM 2017, which I will provide after we meet on Wednesday.

I reviewed your contract and found some discrepancies between what was approved at AGM 2016 and what was signed, so there will be a Motion at the next general meeting to clarify some items for owners:

In Motion 28.1 at AGM 2016 on 19 October 2016, owners corporation approved appointment of Waratah Strata Management at base value of $21,800.00 + disbursements $13,300.00 inclusive of GST,

1. EC members Mr. Stan Pogorelsky and Mr. Moses Levitt signed the Contract with Waratah Strata Management on 14 December 2016, changing the base value to $23,110.00 + fixed disbursements $11,990.00 inclusive of GST without owners corporation approval or knowledge,

2. Default yearly increase of contract with Waratah Strata Management is 5% (more than three times the official CPI), or as agreed at each AGM,

3. Waratah Strata Management reserves the right to earn all rebates, discounts and commissions in Disclosure Schedule from the following providers:

CHU Underwriting Agencies Pty Ltd 20% of base premium
Strata Unit Underwriters Pty Ltd 20% of base premium
Strata Community Insurance 20% of base premium
Finn Foster & Associates 15% of base premium or as agreed
Whitbread Insurance Brokers 20% of base premium
Driessen Insurance Brokers 15% of base premium
Austbrokers Sydney 20% of base premium
CRM Insurance Brokers 50% of all commissions
Honan Insurance Brokers 20% of base premium
BCB Insurance Brokers 75% of policy commission

4. Section 7 of the contract with Waratah Strata Management provides avenue for strata agency to transfer the agreement to another agency or related persons upon approval by owners corporation which must provide a response to Waratah Strata Management within 28 days after receiving such notice from the agent, and owners corporation must notify new agent of its decision within 28 days after receiving a request from new agent to enter into a new agency agreement.