Hi All,
Am after some advice – our Strata Managers in their infinite wisdom have charged legal expenses (which we requested be to our sinking fund) against our Admin fund.
We now have a deficit in our Admin fund which they are requesting we raise a Special Levy to cover. This is a significant cost – yet we have the required amount available in our sinking fund.
We requested a transfer be made but have been informed that the transferred amount will need to be repaid into the sinking fund within 3 months.
Do we have any form of recourse? It seems a paper loss, since we have the money but they are lodged in the wrong accounts.
AFAIK there is nothing restricting a special resolution allowing the funds to be transferred from the SF to the AF without a need to repay the SF assuming that there are sufficient funds in the SF to allow the transfer and they have not been precommitted towards some other work (eg carpet replacement, painting, concrete repairs etc).
Are we legally entitled to do this?
My concern is that the NSW Fair Trading states that a transfer is allowed between funds BUT it must be repaid by way of special levy within 3 months.
My problem being we don’t want to repay this as the sinking fund should have been debited in the first instance instead of the admin fund.
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