Must an Owners Corporation Repair Lot Property

In last week’s newsletter article, we reported on a recent NCAT case in which an owners corporation was ordered to repair damage to lot property caused by a common property roof leak.

Our article generated considerable interest. The NCAT decision begs the question: Is an owners corporation responsible for repairing lot property?

In this article, we take a closer look at that issue and consider whether the NCAT case we reported on last week (Mastellone v The Owners – Strata Plan No. 87110 [2021] NSWCATAP 188) was correctly decided.

Read the full article Is an Owners Corporation Responsible for Repairing 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.




Owners Corporation Told to Repair Lot Property by NCAT

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.




NCAT Dishes Out the Penalty for Order Breaches

In a recent case NCAT has penalized an owners corporation $6,600 for breaching an order to repair common property defects.

However, due to a quirk in the strata legislation, before NCAT could impose that penalty, the lot owners who sough the penalty had to obtain the consent of the NSW Attorney General to make the penalty application.

The case highlights the importance of new laws in the Strata Schemes Management Amendment (Sustainability Infrastructure) Bill 2021 that are expected to commence later this year that will give NCAT power to issue penalties of up to $5,500.00 (without the consent of the NSW Attorney General) for breaching orders made by NCAT.

Read on…NCAT dishes our punishment for order breaches

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




Considering Mediation – Get the Right Advice!

How should your owners corporation deal with a request from a lot owner to attend at Mediation?

Mediation is an important part of the dispute resolution processes for strata schemes pursuant to the Strata Schemes Management Act 2015.

A recent decision of the Appeal Panel of NCAT  has underlined the need for agreements reached at Mediation to be sufficiently certain if they are to be capable of being enforced under the strata legislation.

This in turn raises questions about how owners corporations should approach Mediation, particularly the most common form of Mediation for strata matters, under the auspices of Fair Trading NSW.

In this recent case we explain how getting the wrong advice can stop you from enforcement.

Where ever possible an owners corporation should take the following steps Mediation and the Right Advice.

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




Owners Corporations and Discrimination Legislation

Is your owners corporation likely to be subject to claims that it is discriminating against disabled persons?

A recent decision of the Administrative and Equal Opportunity Division of NCAT has determined that an owners corporation “provides services” to owners and occupiers within a strata scheme. As a result, owners corporations are potentially subject to the provisions of the Anti Discrimination Act 1977, in relation to the way that owners corporations manage and control common property and the finances of the strata scheme.

This raises the prospect that owners corporations may face increasing burdens to manage common property with the needs of disabled persons in mind.

Potential Implications for Discrimination in Strata Schemes

Potentially, this decision widens the possibility that claims under the Anti Discrimination Act can be brought against owners corporations for issues such as:

  • providing alternatives to stairs
  • installation of lifts
  • installation of other lifting mechanisms
  • broadening of doorways to enable wheelchair access
  • providing non-slip devices
  • providing access ramps
  • accessibility of garbage facilities
  • accessibility of recreational facilities

Owners corporations would be well advised to take great care, and even to seek advice, when issues of discrimination are raised by lot owners and residents .

Read the full article here: Owners Corporation and Discrimination Legislation.

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




Get Your Renovation Approvals Right!

A recent decision by NCAT has provided guidance on what needs to be done for an owners corporation to approve renovations done by an owner.

This case involved a dispute between the owners corporation of a large mixed use building in Milsons Point and the owner of a commercial lot in the building who wanted to fit-out his lot as an office involving alterations to common property.

The case produced a surprising outcome and is likely to change the practice that is followed by owners who seek owners corporation approval to renovate.

So, does a common property rights by-law authorise an owner to carry out works affecting the common property?

Here we share the case and outcomes: Get Your Renovations Approvals Right

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




Is NCAT’s Ability to Resolve Strata Disputes Unclear?

What would you think if you were told that NCAT could not order an owners corporation to carry out repairs to common property or order a lot owner or tenant to comply with a by-law?

No doubt you would think that could not be correct.

However, recent decisions by the Appeal Panel of NCAT have cast doubt on NCAT’s power to resolve most types of strata disputes.

So where does that leave us?

Read the full article here: Is NCAT’s Ability to Resolve Strata Disputes Unclear?

For all NSW strata legal, by-law, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.




Can “Squatter’s Rights” Exist in a Strata Scheme?

There have been two recent court cases involving “squatter’s rights” over parcels of land in Sydney.

In both of those cases, people have acquired ownership of parcels of land they did not own through adverse possession by exercising “squatter’s rights”.

Both of these cases raise interesting questions for strata schemes:

  • What are “squatter’s rights”?
  • Can “squatter’s rights” exist in a strata scheme?
  • Do the rules for “squatter’s rights” make it impossible for a person to claim ownership of part of the common property in strata scheme?
  • Do those rules make it difficult for an owners corporation to claim ownership of a lot even if it has been abandoned?

Abandoned houses, “dunny lanes”, car spaces, storerooms and more: here we explain this complex area of law and share some recent cases – Squatters Rights in Strata Schemes.

For all NSW strata legal advice inclusive of by-laws, building defect and levy recovery advice please contact us here or call 02 9562 1266, we’re happy to assist.




Supreme Court, NCAT and A Load of Rubbish

In a surprising decision, the Supreme Court has recently held that lot owners are able to start legal action in NCAT to force an owners corporation to grant them a licence to use common property before the owners corporation has rejected their proposal for a licence.

This decision will alter the strategy of some owners who want to obtain special rights over areas of common property and may result in the commencement of litigation to gain leverage over an owners corporation.

Ultimately this case gives NCAT a mandate to attempt to resolve strata disputes in a more flexible way.

Read the full case here Supreme Court, NCAT and A Load of Rubbish

For NSW strata legal, by-law, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.




New Rules for Abandoned Goods Check Your By-laws

Get Your By-Laws Checked: New Rules for Abandoned Goods and Vehicles on Strata Properties

On 1 July 2020, the NSW legislation for abandoned goods on strata properties moved to the Uncollected Goods Act 1995 and will therefore no longer be regulated under the Strata Schemes Management Act 2015 and strata regulations.

This means what can be done to dispose of or sell abandoned goods on common property in NSW strata buildings has changed.

A Quick Summary of the New Rules for Abandoned Goods

1.The Uncollected Goods Act 1995 (Act) is the law that now governs goods and vehicles abandoned on common property within strata properties in NSW.

2. The Act divides abandoned goods into six categories with different rules and procedure applying to each category. The six categories are:

    • Perishable
    • Low Value
    • Medium Value
    • High Value
    • Personal Documents and Memorabilia
    • Motor Vehicles (an owners corporation can move vehicles that it reasonably believes have been abandoned on common property)

3. A person disposing of the abandoned goods will not be liable for doing so if they follow the procedures set out in the Act. This includes disposing of abandoned goods in accordance with an order made by the NSW Civil and Administrative Tribunal (NCAT) as NCAT has the power to order the disposal and management of the goods.

4. Under the Act, uncollected goods including any goods that owners reasonably believe to be abandoned or left behind on common property.

5. Appropriate records of the sale or disposal of the abandoned goods must be kept by the party disposing the goods and who it went to as follows:

    • Low value items documentation must be kept for at least 12 months
    • Higher value items plus their records must be kept for at least 12 years

6. If you don’t know the person who owns the abandon goods, you should make a reasonable effort to identify the owner of the goods and communicate with them.

7. The strata committee can request that additional expenses for removing, storing, maintaining or insuring the goods are covered.

8. A person cannot confiscate and refuse to return the goods because the owner owes money for other debts, such as rent or levies.

9. For more information visit Fair Trading NSW ‘uncollected goods and vehicles in strata schemes.

10. You will need to update your abandoned goods and vehicle by-laws to ensure they are in line with these new laws.

For NSW strata legal, by-law, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.