Strata commission soft pedals on compliance
Published:Sunday | December 26, 2010 | 12:00 AM
Avia Collinder, Business Writer
The Strata Commission, created to bring delinquent strata companies in line and regulate their operations, has softened its stance on delinquents in acknowledgement that recessionary conditions may not be the best time to force expenses on struggling home owners.
Long past the summer deadline, less than half of local stratas—986 of an estimated 2000—are now registered as new laws require, with the remainder pleading financial problems as the cause.
Fees for the smallest complexes of one to five units start at J$1,000, and ranges up to J$100,000 for 201-250 units.
The penalty for late or non-registration is J$250,000.
Strata manager Sonia Graham said the recession was having its impact on everyone, and that more time was being allowed strata corporations to register.
Graham said some groups were finding it difficult to collect outstanding maintenance fees, from which registration fees and other obligations would be funded.
But compassion now will be replaced by a firmer response in the new year, she tells Sunday Business.
"The list of unregistered strata corporations will be published shortly and a final call for registration made," Graham said on Monday.
Quarterly arrangements
The process which began in May was initially to be completed July 30, 2010.
While no monthly or quarterly arrangements have been requested by delinquent corporations, some have made part-payments with a promise of completion in due course, she said.
A number of strata corporations also remain uninsured, a issue that matters when owners try to sell to a buyer seeking a mortgage to finance the purchase.
Several local mortgage providers have strata corporations on their blacklist because of the insurance issue.
Graham said the Strata Commission has advised strata corporations of the insurance brokers through which they can negotiate discounted insurance rates.
"I am unable to give a feedback as to how many strata corporations have made use of the offers," she said.
The Commission has so far held off on imposing fines and has initiated no property sales, which are permissible under the revised Registration (Strata Titles) Act for non-payment of maintenance fee services.
To smooth the path to compliance by homeowners to meet their financial obligations, and to help maintain harmony between owners and the strata executive, the Commission offers advice on good governance and dispute resolution services to registered corporations.