Condominium Financials

[Tammi]

Am sure many of you have read the letter in Friday's Pattaya Mail from the gentleman who was elected to the condo committee as financial officer, discovered irregularities, and because he wouldn' t go along with irregularities was banned by the rest of the committee from committee meetings! It is a very worrisome and disturbing letter.

I have very little experience of financial reports. What are the 'red flags' that co-owners should look for?

Our AGM is coming up soon. Any help would be greatly appreciated.

This condo has, as I have heard many have, a fund for collecting 3% from anybody who sells a unit after being introduced to the buyer by condo staff. But I have been told that the co-owners cannot see the accounting for the fund - only the committee can see and there is never any accounting for it. This, to me, is crazy.

[Artisan]

This condo has, as I have heard many have, a fund for collecting 3% from anybody who sells a unit after being introduced to the buyer by condo staff. But I have been told that the co-owners cannot see the accounting for the fund - only the committee can see and there is never any accounting for it. This, to me, is crazy.

Hi Tammi,

Are you sure that the committee can see this "commission"? The normal level of commission is 3% and is usually given by the seller to someone who has introduced the buyer to the seller. Usually, this would likely be the "condo staff" as they are more visible and who I class as being different to the condo committee. If the condo committee is pocketing this commission without showing it in the condo accounts then the co-owners are being swindled.

[Tammi]

This condo has, as I have heard many have, a fund for collecting 3% from anybody who sells a unit after being introduced to the buyer by condo staff. But I have been told that the co-owners cannot see the accounting for the fund - only the committee can see and there is never any accounting for it. This, to me, is crazy.

Hi Tammi,

Are you sure that the committee can see this "commission"? The normal level of commission is 3% and is usually given by the seller to someone who has introduced the buyer to the seller. Usually, this would likely be the "condo staff" as they are more visible and who I class as being different to the condo committee. If the condo committee is pocketing this commission without showing it in the condo accounts then the co-owners are being swindled.

There is a notice on the board saying that the 3% will be paid into a staff welfare fund. The co-owners don't know what happens to the money. One Minutes of Committee Meeting, a few years ago said that money would be taken from this 3% commission fund to pay for a staff party.

The notice says the commission is paid into a dedicated bank account. Another co-owner asked the office about it and was told that the 'book' was with 1 of 3 Committee Members and go ask them

We already pay something like 5% of salary into the government (?) welfare fund for the staff.

Do you have any ideas on 'red flags' for condo normal accounting and the Sinking Fund?

I've collected together some old records from other people in the condo but can't make head or tail of it. I did notice that "Other Assets" has had same figure for several years.

Thanks for your help.

[ripley]

I would examine the Minutes of General Meetings over the last few years. If this "fund" has not been officially presented for approval by the Co-owners then it is illegal. Co-owners decide all issues of both income and disbursal at these Meetings. If that's not happening in your building you have the right to place the matter on the Agenda of the next AGM or, if you feel an urgency, get 20 percent of the owners to call for an Extraordinary General Meeting. Same goes if you believe you're not getting the straight skinny on Condo Income from common property, etc. In this case, a summary of reported income over the last few years will be helpful to support your case and promote discussion at the GM.

[Rimmer]

This is a 2007 thread posted by someone who's last activity on the board was in 2008

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