In a recent decision that has produced a confusing outcome, the Appeal Panel of NCAT has decided that NCAT does not have power to award damages (but might be able to order payment of compensation) where there are defects in common property that an owners corporation does not repair.

The outcome of this case has added further uncertainty to an already uncertain area of law concerning NCAT’s power to order payment of money in strata disputes.

So, what power does NCAT have to order payment of compensation according to this recent case? Common Property, Strata Disputes, NCAT and Compensation Payments

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

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.

The Land and Environment Court has recently approved a collective sale of a strata scheme.

This is the first time the Court has approved the collective sale of a strata building since the strata renewal laws commenced on 30 November 2016.

The case highlights the importance of ensuring each step in the collective sale process is followed to the letter of the law.

The case also provides guidance on how various problems created by the strata renewal laws will be resolved by the Court including problems determining the amount of compensation that should be payable to the owners.

In this article we take an in-depth look at the case and what lessons can be learned from the Court’s decision First Strata Collective Sale Approved by Court

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.

The NSW Government proposes to change the laws regulating short term accommodation in NSW.

Recently, the key aspects of those new laws were published for public comment and submissions. The submission period has now closed.

In this article we take an in-depth look at those proposed changes to the laws regulating short term accommodation.

We consider the impact those changes will have on strata laws and planning laws (and strata living) and also review the key features of the Code of Conduct that will regulate participants in the short term accommodation industry.

What are the Proposed New Laws for Short Term Rental Accommodation?

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.

From sunset clauses to cooling-off periods, changes to the strata laws are being considered all over Australia.

The first cab off the rank will be modifications to the Victorian strata laws, due to be implemented in the next couple of months. These changes will bring some of those laws into line with NSW strata laws.

Some proposed changes include:

1: Sunset Clause

The new laws will clean up the ‘sunset clawback’ regulations. The laws will  prevent property developers from deliberately delaying the completion of buildings, in order to invoke the sunset clause.

No longer allowed will be the cancelling of contracts and the readvertising of properties on the market, at a much higher price.

Get out clauses will also be introduced for people who’ve bought properties off the plan, and discovered their completed apartment is substantially different from what they’d agreed to buy.

2: Cooling Off Period

The cooling off period will be extended from five to 10 business days with limitations on the vendor’s ability to get purchasers to sign those rights away.

3: Proxy Farming

Committees will be reduced from 12 to seven members with restrictions on proxy farming and committee proxies.

 4: Voting Rights

Lot owners voting rights on contractual limitations will be banned. It’s also yet to be seen if this will affect the vetos on short term letting often pre imposed on purchasers of new buildings.

 5: Levies

Lot owners who default in paying their levies will incur more debt recovery costs but, on the other hand, for those people suffering hardship payment plans can be arranged.

 6: Renovations

Owners corporations will be able to set conditions under which renovations must be conducted, clamping down on rogue renovators, while rules that unreasonably prohibit the installation of sustainability measures will be invalid.

7: Smoke Drift

Rules to combat cigarette smoke drift will be allowed and residents made responsible for their guests’ behaviour, including being fined for any breaches.

 8: Penalties

Maximum penalties for rule breaches will be increased to $1,100, with the fines paid to the owners corporation. Voting thresholds for legal action will vary, depending on the level of courts involved.

If these laws are accepted,  we’ll see a huge step closer to a uniform set of national strata laws.

More Information

You’ll find more information (and proposed laws) at consumer.vic.gov.au/OCBill. These regulations reflect many of the NSW laws in place and how they’ll roll out nationally.

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