Does an owners corporation have to enforce its by-laws?  If an owners corporation decides to ignore breaches of its by-laws, can NCAT force the owners corporation to take action and enforce its by-laws?  A recent NCAT case provides the answer to these questions.

Introduction

Almost every strata building is governed by a set of by-laws. Those by-laws set out rules that regulate behaviour, noise, the keeping of pets and, among other things, the performance of renovations.  The by-laws are binding on the owners corporation and the owners and occupiers of the lots.  An owners corporation has the power to enforce the by-laws if they are breached.  For example, an owners corporation can issue an owner or occupier of a lot with a notice to comply with a by-law or apply to NCAT for an order to require the owner or occupier to obey a by-law.  But what happens when an owners corporation decides to turn a blind eye to a breach of a by-law committed by an owner?  Can the owners corporation be forced to enforce the by-law against the culprit?  If so, by whom?  A recent NCAT case reveals the answers to these questions.

The Case

Suzanne Lyon owns a lot in a residential strata scheme in Wollstonecraft, Sydney.  In August 2020, the owners corporation created a common property rights by-law to give the owner of the lot beneath Ms Lyon’s lot, Mr Swanson, the right to build a pergola over his rear courtyard.  Subsequently, Mr Swanson built the pergola, but Ms Lyon claimed that the pergola did not comply with the by-law because it was too high.  The by-law had permitted the pergola to be 2.7m above the concrete floor of the courtyard but it was built about 3.21m above that concrete floor.  Ms Lyon wanted the pergola to be removed or modified but the owners corporation was not prepared to force Mr Swanson to change the pergola.  For that reason, Ms Lyon sued the owners corporation in NCAT and sought orders to require the owners corporation to remove Mr Swanson’s pergola or enforce the common property rights by-law by requiring the pergola to comply with it.

The Outcome

Ms Lyon’s claim was partially successful.  NCAT agreed with Ms Lyon that the pergola was too high and was not built in accordance with the by-law.  NCAT then considered whether it had power to make an order to force the owners corporation to enforce the by-law and require Mr Swanson to comply with it by changing the height of the pergola.  NCAT concluded that it did have that power because it could make an order, on the request of an owner, to settle a complaint or dispute about the failure of an owners corporation to exercise its functions including its power to enforce a by-law.  NCAT held that there would be a sufficient basis to make an order where an owners corporation has a discretion to exercise a function (such as its discretionary power to enforce a by-law) but decides not to do so.  NCAT considered that there was little point in the strata legislation creating a mechanism for an owners corporation to pass a common property rights by-law merely to have that by-law flouted and for the owners corporation to fail to act in the face of complaints from other owners and legal advice it had received.  Ultimately, NCAT concluded that the owners corporation’s failure to manage Mr Swanson’s non compliance with the by-law, or to make any attempt to require him to comply with the by-law, meant that an order should be made requiring the owners corporation to exercise its functions to administer the strata scheme for the benefit of the owners and in accordance with the by-laws.

The Orders

For those reasons, NCAT ordered the owners corporation to take all necessary steps to require Mr Swanson to comply with the by-law by requiring him to reduce the height of the pergola to 2.7m above the concrete surface of his courtyard.  However, NCAT gave the owners corporation 6 months to comply with that order to allow Mr Swanson sufficient time to apply to the owners corporation for approval to amend the by-law to permit the pergola to remain at a height of 3.21m above the courtyard floor and for that amendment to the by-law to be approved by the owners corporation.

Analysis

This case is one of the first times that NCAT has made an order to compel an owners corporation to enforce its by-laws.  The decision does break new ground because it was previously thought that because the Strata Schemes Management Act 2015 does not explicitly require an owners corporation to enforce its by-laws but rather gives an owners corporation a discretion to do so, it was not possible for NCAT to force an owners corporation to require owners and occupiers to comply with its by-laws.  The order made in the case begs the question: What does the owners corporation need to do to take “all necessary steps” to require an owner to comply with a by-law?  Does that require the owners corporation to issue a notice to comply with the by-law against the owner?  Or does it require the owners corporation to do more and, if necessary, take legal action against the owner to force him or her to comply with the by-law?  And what if the owners corporation is successful in that legal action, but the owner ignores orders that are made to require him or her to comply with the by-law?  What is the owners corporation required to do then?  It remains to be seen whether those questions will need to be answered by NCAT in the future.

Conclusion

The case sends a message that owners and occupiers of lots who are affected by breaches of the by-laws committed by other owners and occupiers are not helpless.  They can apply to NCAT for orders to force their owners corporation to enforce the by-laws against those in breach of them.  It remains to be seen whether the decision in Lyon v The Owners – Strata Plan No. 11045 [2023] NSWCATCD 31 will be followed in future cases.

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Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Good renovation by-laws will protect all parties such as the owners corporation, the lot owner (and future owners) plus ensure any renovations to a lot, in particular structural, are safe for the building.

A good renovation by-law will outline items such as:

• A clear statement of the authorised work
• The time frame for completion
• Setting out any conditions that must be met
• All contractors details and their insurances
• Development consents
• Recording all works, including structural works
• Conditions that the lot owner and their contractor/s must adhere to
• How waste is to be dealt with
• Hours of work to minimise noise and disturbance to neighbours and the building
• Access and parking requirements to ensure minimal disturbance to other lot owners and common property areas
• Who is responsible for any ongoing maintenance
• Ensuring that all work complies with relevant standards and legislation such as the Building Code of Australia and the Design & Building Practitioners Act 2020
• Any nuances and more!

Why is it important to ensure that renovation by-laws are thorough?

Apart from wanting the renovation to run smoothly, the type of by-law to be used will depend on the renovation that is being undertaken. For example:

• Is the renovation a bathroom or kitchen renovation involving waterproofing or changes to floor coverings; and
• do you need a cosmetic, minor or major renovations by-law?

The tighter the renovation by-law the less likely there will be issues however in the event of an issue a well written by-law will more than likely get things back on track, minimising any disputes. A badly written renovation by-law may only exacerbate the situation and cause unwanted delays and disputes and may even end up in NCAT.

Are you in need of a renovation by-law?

Our legal team has significant expertise developing renovation by-laws for strata, company, and community living.

• We have been developing renovation by-laws for 40+ years.

• We know whether you will require a by-law for renovations for owners corporation approval.

• We guarantee within 7 days you will receive the right renovation by-law.

• We also understand that you ‘may’ need your renovation by-law urgently for an upcoming strata meeting – just let us know, we will make it happen.

DO YOU NEED A RENOVATION BY-LAW? CLICK HERE NOW!

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

What do you need to consider in your EV Strata By-law?

EV by-law’s prepared by our team permits all owners to install electric vehicle chargers in their car spaces or garages and connect those chargers by cabling leading to the switchboard.

However, there are a number of matters an owners corporation needs to consider when adopting the by-law and permitting owners to install electric vehicle chargers.

Seven EV By-law Considerations

1. Is there sufficient room on the switchboard for additional circuit breakers to be installed for each electric vehicle charger installed by an owner?
2. Is the existing electrical infrastructure on common property sufficient to handle the additional loads generated by electrical vehicle chargers when they charge EVs? If not, who will be liable to pay for the upgrade of that infrastructure?
3. Is it possible for electric vehicle chargers to be separately metered and charged to the owner’s account instead of the owners corporation paying for the electricity that is used by the EV chargers?
4. Do the EV chargers and their use create any risks to the health and safety of other residents?
5. Are there sufficient cable trays in place in the garage or other areas to accommodate the cabling that will need to be run between electric vehicle chargers in lot owners’ garages and the switchboard.
6. Will the electric vehicle chargers be compatible with any load management system in place and the electrical infrastructure that exists in the building?
7. Is it possible for limitations to be placed on the loads drawn by electric vehicle chargers, for example, to limit electric vehicle chargers to single phase chargers drawing no more than 10amps power?

JS Mueller & Co Lawyers EV by-laws deal with some of these considerations and often is tailored to deal with most of them.

CLICK HERE FOR ELECTRIC VEHICLE (EV) BY-LAWS

Important Changes to CLMA 2021

The commencement of the Community Land Management Act 2021 (CLMA 2021) on 1 December 2021 has introduced a number of important changes to the laws regulating by-laws in Community Management Statements and Neighbourhood Management Statements.

Are Your By-laws up to Date?

As a result of these changes a number of by-laws contained in Management Statements are no longer valid or enforceable and many by-laws in Management Statements are now redundant.

This means there is a need for community associations and neighbourhood associations to review their Management Statements to ensure compliance with the CLMA 2021.

By-law Reviews – What Lessons Have Been Learned?

In the article below, we share some of the lessons that have been learned from those by-law reviews following the commencement of CLMA 2021. We look at:

• Harsh By-laws
• Pet By-laws
• Leasing
• By-laws Regarding Association Committees and Insurance
• Old Terminology
• Changes to Part 1 By-laws

Read article hear – CLMA 2021 Lessons Learned

Are You Compliant – Need a Review?

Our specialist strata lawyers have reviewed dozens of Management Statements for community and neighbourhood schemes. Need a review – click here now

ARE YOU COMPLIANT? – CLICK NOW FOR A REVIEW!

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

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There has been a substantial increase in the number of electric vehicles (EV) being purchased by residents of strata buildings from cars to bikes and other vehicles.

A Recent Study

A recent study of the ‘future of EV charging in Sydney apartments’ revealed that:

• 48% of respondents plan to have an electric vehicle of some kind, within the next 5 years
• 78% were in favour of installing charging facilities
• 79% would like a user-pays arrangement for individual vehicle spaces

Does an EV Charger Require Owners Corporation Approval?

The fact is that electric vehicles need charging and that means installing electric vehicle chargers in your apartment block is inevitable.

Installation of electric vehicle chargers will normally involve changes to common property that require owners corporation approval through a by-law.

But what should the by-law cover?

There are two key issues which should be covered in the by-law.

First, who pays for the cost of the electricity that will be used by the EV charger?

Second, what happens if the EV chargers requires the building’s electricity infrastructure to be upgraded (e.g. to 3 phase power)? Who pays for the upgrade?

Get your EV By-law from the Experts 

Our specialist team of strata lawyers have drafted many by-laws permitting owners to install electric vehicle chargers in strata buildings. Our EV by-law covers all essentials including:

• Who is responsible for paying for the cost of electricity used to charge electric vehicles
• Any necessary upgrades to the electricity infrastructure in the building

GET YOUR ELECTRIC VEHICLE (EV) BY-LAW NOW!

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist

On 25 August 2021, new strata laws commenced which changed the rules regarding pet ownership in strata buildings.

Those rules mark a shift in the NSW Government’s policy concerning pets in strata buildings and encourage pets in strata.

But the new rules create traps for young players that can have unintended consequences for those unfamiliar with them.

In this article, we take a closer look at the new laws regulating pet ownership in strata buildings and the pitfalls associated with them – Pets and New Strata Laws

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.

What is the Next Chapter for Pets and Strata?

If you are an owner or occupier of strata property,  you could not help but notice the flurry of activity over the last couple of years, both at a legislative level and in the Courts of New South Wales in relation to the question of pets.

In the next (but probably not the last) instalment of this saga, the New South Wales Government is implementing amendments to the legislation and to regulations, to commence on 25 August 2021.

Amendment to the Strata Schemes Management Act 2015

Commencing on 25 August 2021, section 137B will be inserted into the Act. Section 137B effectively prevents a by-law, or a decision of an owners corporation under a by-law, from banning the keeping of an animal within a strata scheme unless the animal unreasonably interferes with another occupant’s use and enjoyment of their lot or the common property.

The question which arises from this section is what is meant by “unreasonably interferes with another occupant’s enjoyment of their lot or the common property”?

The New Regulation

Also, now to commence on 25 August 2021 is the Strata Schemes Amendment (Pets) Regulation.

The specific purpose of this regulation is to set out, for the purposes of section 137B, the circumstances in which the keeping of an animal unreasonably interferes with an owner or occupant’s use and enjoyment of their lot.

In short, this new regulation says that an animal will cause an “unreasonable interference” with an owner or occupant’s use and enjoyment of their lot if:

• the animal makes a noise which interferes with the peace, comfort and convenience of another occupant;
• the animal repeatedly runs at or chases another occupant, visitor or another animal;
• the animal repeatedly causes damage to the common property or to another lot;
• the animal endangers the heath of another occupant through infection or infestation;
• the animal causes a persistent offensive odour that penetrates another lot or the common property; or
• for dogs and cats, the owner of the animal fails to comply with orders under the Companion Animals Act 1998.

The provisions also pick up the provisions of the Companion Animals Act 1998 which refer to a “restricted” dog and a “menacing or dangerous” dog. Those dogs will be able to be banned from strata buildings.

Conclusion

It will be interesting to see whether these additions to the strata legislation assist or provide more interpretive problems for owners corporations.

Author I Warwick van Ede I Lawyer I BEc LLM Acc Spec (Property).

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.

There is a common misconception that an owners corporation is not responsible for repainting a water damaged ceiling in a lot or repairing consequential water damage to a lot that is caused by a common property defect.

In a recent case, NCAT held that:

• an owners corporation is responsible for carrying out those repairs;
• the common property memorandum does not exempt an owners corporation from having to perform those repairs.

Here we discuss the case and explain why an owners corporation is not exempt from repairing damage to lot property NCAT Orders Owners Corporation to Repair Lot Property

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.

NSW Land Registry Services has announced changes to the procedure for by-law registrations which will impact strata managers. Here is an overview of the changes:

1. What are the changes to by-law registrations?

• All paper certificates of title will be cancelled
• Strata managers will no longer be able to register by-laws themselves
• All by-law registrations will need to be done through PEXA

 2. When will this take effect?

• On the 11th October 2021

3. How can we help you?

• JS Mueller & Co Lawyers is PEXA registered and approved to lodge electronic by-laws
• We were one of the first firms to register by-laws electronically
• We have over 18 months experience completing by-law registrations electronically
• We make the electronic by-law registration process easy!

If you would like assistance registering your by-laws electronically – click here.

For more information about electronic registration of by-laws visit ORG.

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.

Are Apartment Blocks the new COVID-19 Super-spreaders?

Just like cruise ships strata buildings have the capacity to be super-spreaders of COVID-19.

Apartment buildings and strata blocks have many shared facilities and not all, such as lifts, can be closed during COVID-19 breakout periods.

Shared facilities such as lifts, foyers, stairwells, air-conditioning, garbage and laundry facilities all have the potential to spread COVID-19 and with the current Delta variant, that can occur very quickly, as seen with this recent lockdown of a prominent strata building in Sydney’s east!

As all of Greater Sydney deals with the lockdown and NSW Health advice stating how difficult it is to control the spread of this new very contagious strain of COVID-19, Owners Corporations are grappling with a lack of power to help stop their strata blocks becoming the next victim of COVID-19.

Owners Corporation Assistance

To assist owners corporations with managing the situation (and bringing some control back) we have developed a COVID-19 by-law to assist you with the current situation.

For COVID-19 by-law assistance contact us here now, we’re happy to help.