How to Establish a Major Building Defect

On 15 January 2015, the Home Building Amendment Act 2014 changed the terminology and definitions for building defects from structural to “major” and from minor to “in any other case” i.e. non-major.

So, what is the new definition of a major building defect?

In these two recent NSW Civil and Administrative Tribunal (NCAT) Appeal Panel decisions they have considered the definition of major defect and how to establish whether a defect meets this definition, providing some useful guidance on this topic How to Establish a Major Building Defect.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Replacing Items of Common Property in Strata

The NSW Supreme Court has recently handed down a decision in regards to common property that will have a considerable impact on the practice of strata managers across the State. The Court’s decision answers the following often asked questions:

  • What type of resolution does an owners corporation need to pass in order to replace an item of common property?
  • Is the replacement of an item of common property a repair that can be authorised by an ordinary resolution?
  • Or does a decision to replace an item of common property need to be made by special resolution because the replacement of the item will improve or enhance the common property?

What was the outcome of this recent case that involved a dispute between the owners of an apartment building on a waterfront in Sydney’s Eastern Suburbs… Replacing Items of Common Property in Strata?

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Owners Corporations and Security Cameras

The use of surveillance cameras in both private and public spaces is increasing significantly.

Security cameras are installed by local councils and private enterprise, and you can expect to be digitally recorded walking into a shopping centre, travelling on public transport, and even taking the dog for a walk in a local park.

An often vexed issue is what rights do strata lot owners and owners corporations have to install their own security cameras?

Owners corporations and lot owners should be aware of the Surveillance Devices Act 2007 (NSW). Do you need a by-law?

These two recent NCAT cases share some lessons Strata, Owners Corporations Lot Owners and Security Cameras

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Owners Corps, Common Property and Insurance

Cracked walls and failing waterproof membranes are two of the common issues which owners corporations have to deal with.

Difficulties may arise where, if the owners corporation takes no action, there may be further consequences in terms of damage to other common property, damage to particular lots, and damage to the property of lot owners.

For some owners corporations, the backing of an insurer can be a “life saver” in a situation like this – but what should the owners corporation do if their insurer declines coverage or otherwise refuses to pay for all or part of the damage which the owners corporation (or a lot owner) is seeking to have fixed?

So, what happens when the insurer refuses to pay? Owners Corporations Common Property and Repairs

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




NCAT Approves Security Fob By-law

In a recent decision, NCAT upheld a security fob by-law made by an owners corporation.  This is a good decision as it demonstrates that appropriately worded security fob and access key by-laws can be made by owners corporations.

Introduction

Many strata buildings contain security systems which restrict access to and egress from the buildings.  These systems often include security access keys or fobs which are distributed to owners and occupiers to enable them to get into and out of the building.

Did you know owners corporations are able to implement appropriately worded security fob and access key by-laws?

So, what was included in this particular by-law Security Access, NCAT and By-laws

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Owner Gets to Keep the Balcony!

Who is responsible for fixing a balcony on common property that has fallen into disrepair but was constructed without the approval of the owners corporation?

It’s not uncommon for owners to build structures on common property without the approval of their owners corporation.  But what happens when these structures fall into disrepair?

Who is responsible for fixing them?  And can the owners corporation insist on those structures being demolished?

A recent NCAT case decision may surprise you Balconies, Common Property and NCAT

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Give me Back my Hot Shower!

Can the chairperson of an owners corporation disconnect the hot water supply to common property showers in a swimming pool area without the authority of his owners corporation?

A recent NCAT case grappled with this interesting issue.

So, how did they resolve it? Hot Showers, Common Property and NCAT

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




NCAT says Landlords are not responsible for Tenants’ Noise

In a recent case, NCAT has decided that a landlord falls under no obligation to ensure that their tenants comply with the by-laws in a strata scheme.

The Case
The case of Filetti -v- Eales; Eales -v- Filetti [2018] NSWCATCD 66 involved a dispute about noise between owners and residents in an apartment building in Vaucluse, Sydney.  Ms Filetti owns and lives in an apartment in that building.  She claimed that the tenants who lived in the apartment above hers created excessive noise. Ms Filetti applied to NCAT for orders against the tenants and the owner of the apartment above, Mr Eales, to require them to treat the floor space of their apartment to prevent the transmission of excessive noise. Ms Filetti also sought an order to compel Mr Eales to require his tenants to comply with the by-laws concerning the noise, and an order to require Mr Eales to compensate her for breaches of the by-laws committed by his tenants.

The Decision
NCAT dismissed Ms Filetti’s claim.  NCAT was not satisfied that Ms Filetti had proven that Mr Eales’ tenants created excessive noise.  NCAT accepted that it had power to make an order to require a lot owner to comply with the by-laws.  However, NCAT did not consider that it could make an order requiring an owner to ensure his or her tenants comply with the by-laws.  NCAT observed that the strata legislation does not impose an obligation on landlords to ensure their tenants comply with the by-laws (although NCAT did find that a landlord had capacity to require his or her tenants to comply with the by-laws).  For that reason, NCAT dismissed Ms Filetti’s claim for an order for Mr Eales to ensure that his tenants complied with the by-laws.

The Claim for Compensation
Ms Filetti also made a claim for compensation against Mr Eales for a breach of the by-laws by him.  NCAT expressed doubt that it had power to make an order for compensation in the circumstances.  NCAT considered that the decision of the Court of Appeal in The Owners Strata Plan 50276 -v- Thoo [2013] NSWCA 27 suggested that compensation is not available in respect of a breach of a by-law either in NCAT or a court of general jurisdiction.

Conclusion
Ultimately, Ms Filetti’s claim was unsuccessful because she did not prove that Mr Eales’ tenants were making excessive noise in breach of the by-laws. However, the more interesting aspects of the case are the findings by NCAT that it cannot make orders requiring a lot owner to ensure his or her tenants comply with the by-laws or order one lot owner to pay another owner compensation for a breach of the by-laws.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Tribunal Upholds Validity of General Meeting

In a recent case NCAT upheld a general meeting special resolution of an owners corporation that approved the installation of new rain water tanks in a strata scheme, despite there being:

  • technical non-compliance with the Strata Schemes Management Act 2015 (SSMA) in the notice convening the general meeting
  • an argument by a lot owner that the placement of the new rain water tanks near her lot devalued the lot

So, was the decision a victory for common sense?  Tribunal Upholds Validity of General Meeting

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Strata Scheme Insurance Problem

NCAT was recently presented with a unique insurance problem concerning the insurance policies for a strata scheme in the snowy mountains region of NSW.

The strata scheme contains 100 lots and common property with free standing houses and outbuildings that are situated on acreages.

The common property also includes a free standing community hall, roads and paddocks occupying 806 acres of rural land.

Confronting the owners corporation for many years was a unique insurance problem. The strata legislation required the owners corporation to insure all of the buildings in the strata scheme, even the homes and outbuildings that were situated entirely on the lots and did not contain any common property.

How did NCAT resolve this unique Insurance Problem?

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.