Do You Have Strata Buildings Less than 6 Years Old?

The NSW Government has announced a win for strata managers and owners corporations who have buildings under 6 years old.

You now have an avenue to pursue the rectification of any common property for major building defects, subject to eligibility.

Here we share the following:

  • Key information
  • What is Project Intervene?
  • Who is Eligible?
  • What is classified as common property?
  • What is a serious defect?
  • How do I register for ‘Project Intervene’?
  • Related information

For specific information visit NSW Government ‘Project Intervene‘

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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.



Does NCAT have the Power to Resolve all Strata Disputes?

A recent hot topic has been the width of the powers given to NCAT to resolve strata disputes.

In particular, can NCAT resolve any strata dispute or just some disputes?

This interesting issue was considered in a recent decision of the Appeal Panel of NCAT.

The Strata Schemes Management Act 2015 gives NCAT power to make orders to settle complaints or disputes about the operation, administration or management of strata schemes or the exercise of functions of an owners corporation.  But the width of that power is not entirely clear.

For example, does the power allow NCAT to make an order to resolve any strata dispute?

Here we share a recent case outcome Can NCAT Resolve Any Strata Dispute or Just Some Disputes?

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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.



NSW Supreme Court Rules By-law Void for Uncertainty

A recent NSW Supreme Court ruling invalidated a by-law that required several owners corporations in a prominent strata complex in Sydney to all use the same strata manager.

The Finger Wharf at Woolloomooloo Bay is a well-known Sydney landmark. It was redeveloped about twenty-five years ago and remains a prominent Sydney landmark where many people now live, and businesses thrive.

The Finger Wharf structures, including the associated marina, are subdivided into seven strata schemes and a stratum lot. The Finger Wharf is governed by a management statement (SMS).

Up until recently, the SMS required all owners corporations to appoint the same strata managing agent as the Building Management Committee’s (BMC) agent. There was a corresponding by-law for each strata scheme.

However, at a general meeting in 2022 three of the owners corporations voted to appoint a new strata managing agent for their buildings, challenging the SMS that had existed for the last two decades without issue.

The dispute among the residents and occupants of the Finger Wharf about its management ended up in the NSW Supreme Court.

The Supreme Court ruled that the SMS provision and by-law that required all of the strata schemes to use the same strata manager as the BMC was void for uncertainty and invalid.

The Court concluded that the SMS provision and by-law were void because it was not clear what functions of each owners corporation were required to be delegated to the same strata manager.

The full case details can be found here:

Walker Corporation Pty Ltd v The Owners – Strata Plan No 61618 [2022] NSWSC 1246

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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.



Proposed Laws to Give NSW Building Commissioner Power

An owners corporations duty to maintain and repair defective common property in NSW is likely to undergo a major change if the proposed Building Compliance and Enforcement Bill 2022,NSW is passed by the NSW Parliament and becomes law.

The major changes are designed to give the NSW Building Commissioner Mr David Chandler draconian powers to force owners corporations to fix common property defects.

 

What are the New Powers Under the Bill?

The new powers under the Bill includes:

  • A right to enter a strata scheme to inspect and investigate defects
  • Organise and undertake destructive testing
  • Forcing people associated with strata schemes to answer questions in writing
  • Issue compliance notices
  • Accept compliance undertakings
  • Issue search warrants
  • Applying to the Land and Environment court for restraining or remedial orders

The proposed changes will allow fines to be issued to owners corporations who are in breach of the Commissioner’s orders to a maximum of $22,000 and $2,000 per day for any continuing breach.

Consultation on the proposed bill ends on 25 November 2022 and if the bill is passed it will give the Building Commissioner more muscle against those owners corporations who fail to recognise that the duty to maintain and repair defective common property is an immediate duty that cannot be delayed or suspended.

 

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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.



A Great WIN for Owners Corporations in NSW!

Existing Claims: Statutory Warranties and Defects

On 24 August 2022, in a recent case, the New South Wales Supreme Court confirmed that an owners corporation can add to an existing claim for a breach of statutory warranties new defects that may manifest after the owners corporation has commenced its legal action.

Did You Know?

This applies, even if the warranty period for those defects has expired at the time they are added to the claim.

Here we share the recent case: A Great Win for Owners Corporations in NSW

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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.



Can Tenants Apply to NCAT for Rent Relief for Defects?

Tenants, Building Defects, NCAT and Rent Relief

 

In a recent case, a property manager failed to inform a landlord of defects in the common property of a strata building and take any steps to investigate issues that a tenant had complained about.

The tenant applied to NCAT for a rent reduction as the landlord had breached their obligation to keep the rented premises in a reasonable state of repair as water leaked into the premises. The tenant was successful.

Who Could be Liable?

 

If a tenant claims rent relief from NCAT due to defects in a strata building, it’s important to note that NCAT could deem that it is the responsibility of the:

  • Landlord who could lose rent (or worse) if they do nothing;
  • Property manager if they fail to fix defects in the premises that they are authorised to repair following a tenant’s complaint in a timely manner;
  • Property manager if they have not advised the landlord of defects (where they are not authorised organise repairs) following a tenant’s complaint;
  • Owners corporation who could also be held liable for a landlord’s loss of rent.

A Timely Reminder for Managing Agents!

Ensure your professional indemnity insurance is current;

  • Ensure your professional indemnity insurance is current
  • Obtain landlord consent on a minimum amount for repair works which can be dealt with without the landlord’s approval;
  • Allocate sufficient resources to attend to repair requests in a timely manner to avoid issues which could lead to court proceedings;
  • Request that any common property defects are promptly repaired by the owners corporation;
  • Ensure that the relevant strata by-laws for the apartment block are up to date to minimise your risk

Here we share some cases…

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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.