Pecuniary Interest Disclosures – When are they Required?

When does a strata committee member need to disclose a pecuniary interest they have concerning a decision to be made by the committee?

The position is clear when a committee member has a direct pecuniary interest in a matter to be decided by the committee. A disclosure of that interest must be made by the committee member.

But what about indirect pecuniary interests? What are they and when do they need to be disclosed?

An example is where a committee member wishes to engage a company to carry out work for an owners corporation and his or her relative is a director or shareholder of that company. Is that an indirect pecuniary interest which must be disclosed?

The most likely answer is “yes”. This is because a committee member will have an indirect pecuniary interest if a person connected with them (such as a relative) has a direct interest in the matter to be decided by the committee.

What are the Grey Areas?

There are some grey areas. For example, can it be said that an indirect pecuniary interest arises when the committee member’s relative is merely an employee of the company that will be engaged by the owners corporation? In those circumstances, does the relative (as an employee rather than director or shareholder of the company) stand to benefit from the company’s appointment by the owners corporation?

The answer to that question is also most likely “yes” because the legislation simply requires the relative to have a “direct interest” (not necessarily a direct pecuniary interest) in the matter in order for the committee member to fall under an obligation to make a pecuniary interest disclosure.

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

Getting Your By-Laws Right: Making Landlords Accountable

In 2018, NCAT decided that a landlord is not responsible for ensuring that his or her tenants comply with the by-laws that apply to a strata building.  That decision was confirmed by the Appeal Panel of NCAT in Feletti -v- Eales [2019] NSWCATAP 100.

Therefore, if a tenant is breaching a by-law, the owners corporation of the building is not normally entitled to take action against the landlord to require the landlord to ensure that his or her tenant complies with the by-law.

This means that the owners corporation needs to take action against the tenant instead of the landlord which it may not want to do because tenants come and go and it can be difficult to enforce NCAT orders against them.

So, what is the solution to this problem for owners corporations?

There is, however, a solution to the problem.  An owners corporation can make a by-law that requires landlords to ensure that their tenants comply with the by-laws.  That by-law will give the owners corporation the right to take action against a landlord when his or her tenants breach the by-laws.

We have drafted that by-law and a number of strata managers have introduced the by-law into the strata schemes they manage.

We expect that the by-law will prove very useful for owners corporations who introduce it because it will allow those owners corporations to take action against landlords whose tenants are breaching the by-laws.

The by-law goes one step further and will also allow an owners corporation to take action against both landlords and tenants whose guests and invitees breach the by-laws.

Order Your By-law Here!

If you would like to find out more about the by-law, or you are interested in purchasing the by-law from us, please email us here or call 9562 1266 now.

In at least two recent cases, NCAT has decided that “no pets” by-laws are invalid.

Are strata pet by-laws banning the keeping of pets no longer worth the paper they are written on?

What about the basic habitation rights of owners who want to live in a “pet free” building?

Where does this leave “no pets” buildings?  Pet By-laws – Is it the End of No Pets By-laws?

Need a pet by-law or some advice contact us now!

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

Did you know that an owners corporation can be served with legal documents at the address recorded on the common property certificate of title? Do you know if your common property certificate of title contains the proper address for service of legal documents on your owners corporation?

You want to make sure the proper address is recorded. In a recent case we saw, an owners corporation had not updated its address for service. Legal documents were sent to the old address and never passed on to the owners corporation. The NSW Civil & Administrative Tribunal (NCAT) made orders against the owners corporation in default of its appearance. The owners corporation only found out about the orders made against it after the orders were made!

So, how do you avoid this embarrassing situation? Common Property Certificate of Title Address

Read on to learn why you should make sure your current address is registered on your common property certificate of title as your address for service. Your current address may be either the address of your building or your strata manager’s address.

If you require help to update your address on your certificate of title please contact us.

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

In 2018 the High Court concluded that NCAT did not have jurisdiction to resolve disputes between residents of different states.

This meant that NCAT could not resolve disputes between strata owners who lived in different states such as NSW and QLD.

A recent decision of the Appeal Panel of NCAT clarifies that NCAT can decide a dispute between an owners corporation and a lot owner or occupier who is resident in another state. This is a sensible decision and clarifies uncertainty as to the extent of NCAT’s jurisdiction to resolve strata disputes.

What was the case that led to this decision and why? NCAT Clarifies the Extent of its Jurisdiction

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

Strata Managers are often unfairly the focus of criticism by lot owners, when something happens which those owners don’t like.

In some instances a dysfunctional owners corporation will have a compulsory strata manager appointed to try and get things back on track.

When a strata manager receives a request to put their name forward to be appointed as a compulsory strata manager it can be a difficult decision to make, as to whether to agree to put yourself forward.

The good news is that a recent NCAT Appeal Panel decision has provided some Helpful Guidance for Appointment of Compulsory Strata Managers.

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

We recently reported about an NCAT case in which a lot owner was ordered to remove CCTV cameras she unlawfully installed on the common property of a strata building in breach of the by-laws and strata laws.

But what happens when a next door neighbour (who is not bound by the by-laws and strata laws) installs a CCTV camera that peers into your home?

What can you do about that? Can you force your neighbour to remove or reposition their CCTV camera?

Read here to find out: Strata and Invasion of Privacy by CCTV Cameras

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

The cost of fixing the unfolding national building crisis involving building defects including the use of dangerous combustible cladding, could soar past $6.2 billion, according to a new economic analysis.

It is estimated that around 3,461 residential apartment blocks across the country have flammable exterior cladding that’s 170,000 apartments mostly constructed in the last 10 years, the majority of these in NSW.

So, what can you do, whilst the issue is being addressed, to mitigate and minimise your strata blocks risk?  Cladding and the Warranty Period – How can you Minimise your Risk?

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

The current NSW home building legislation states that buildings must be at risk of collapse or be uninhabitable to reap the benefit of a full 6 year warranty.

It seems absurd to provide warranties only for defects (major) at this extreme end of the spectrum, which, as is now being acknowledged, should not be occurring at all in a properly regulated building industry.

So, what about all the other defects?

Before your building defects warranty period expires we strongly suggest that the following 3 points be considered: BUILDING DEFECTS – Top 3 Tips Before your Home Warranty Period Expires

Have you or your client recently purchased a new strata home? Do you have a building defect issue (or you’re not sure)? Talk to our building defect experts before your warranty period expires.

For all strata legal and building defects contact us here or call 02 9562 1266 we would be happy to assist.

Over the last few years the Home Building Act has been amended a number of times raising many questions in regards to the building defects rectification process such as:

1. What is the duty to mitigate?
2. What is ‘reasonable access’?
3. When can you refuse the builder and developer access to carry out rectification work?
4. Has the builder already attempted rectification work that has been unsuccessful?

So, what steps can owners corporations take to mitigate the loss Building Defects and the Rectification Process.

It’s a complex area of law and in order to protect the interests of the owners corporation it’s wise to seek legal advice on navigating this process.

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