Real Estate Board to become strata watchdog
Published: Wednesday | December 30, 2009
Sandra Watson, general manager of the Real Estate Board.
The Real Estate Board (REB) has confirmed that it is to double as the Commission of Strata Corporation, a new creation of the amended strata law that will share secretariat to minimise the cost of its operation.
Sandra Watson, the REB general manager, has stressed that the new responsibilities will be carried out by the board at as "minimal a cost as possible".
The revamped Registration (Strata Titles) Act is intended to address weaknesses in the management of strata corporations that run housing complexes and apartment blocks across the country.
Corrective measures
Among the ills it seeks to correct are the absence of annual general meetings of proprietors, non-appointment of executive committees, non-payment of contributions by owners for the maintenance of common areas, and non-payment of annual insurance coverage.
Watson's announcement that the REB will become strata commission came last week at a forum in Kingston to discuss the amendments. The event was hosted by Sagicor Jamaica's property management unit, and law firm Myers Fletcher and Gordon.
"The costs will be minimal. Your fears will be allayed when the regulations are published," the REB head said, noting that the regulations were currently being drafted.
"It will not impact maintenance fees significantly," she said.
Watson noted as well that, as far as possible, members of REB will be members of the strata commission but that strata members will be represented as well.
But, while the cost of running the commission may not provide strata corporations with a problem, the regulation regarding corporations providing financials on an annual basis is already shaping up to cause some worry.
Reporting requirements
Amendments to the strata titles law, passed by both Houses of Parliament, include a require-ment
The required documentation includes audited financial statements or, subject to the approval of the commission, accounts that have not been audited but have been prepared in accordance with generally accepted accounting principles.
Strata fees might have to be increased to meet insurance costs and other obligations arising from the new amendments, but the proposals should give unit owners more incentive to pay, it has been generally accepted.
Strata corporations are required to report on activities during the financial year such as meetings held by the corporation and the appointment of executive members.
Where maintenance fees are unpaid, the bill provides for recovery by two mechanisms: the power of sale, which is activated when balances are outstanding for thirty days, and application to the courts for an order of possession.
In relation to sale, the strata corporation must give the owner, and his agent and mortgagee, written notice of the outstanding amounts. The notice must specifically stipulate that, if the amounts owed are not paid within 30 days, the corporation may sell the strata property lot by auction or private treaty.
Maintenance fees
Maintenance fees will be paid after sale obligations. If there is any money left over after all liens are satisfied, this will be paid to the original owner or lodged to an account in the commission's name until it can be paid over.
The second means of recovery involves applying to the courts for an order of possession where maintenance fees are owed for a period in excess of 60 days and all efforts to locate the proprietor have been unsuccessful.
The property may then be rented to recover outstanding amounts. If it is already rented, the returns from rental can be collected to cover the debt.
The amendments also provide for a $1 million penalty to be imposed on owners for breaches of strata corporation bylaws.
Prime Minister Bruce Golding, who piloted the bill in the House of Representatives last month, said
avia.collinder@gleanerjm.com
Real Estate Board to become strata watchdog
