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.

Popular regional areas of NSW have been experiencing a housing crisis for some time now due to the lack of supply of full-time rental homes, further fuelled by the pandemic and devasting floods in recent times.

What Restrictions are in Place?

In response to the housing crisis new holiday letting regulation has recently come in across the Byron Shire where a home can only be on the short term market for 90 days.

Also, now in place are short term holiday restrictions of no more than 180 days a year for the greater Sydney region, Ballina area, Bega Valley, the City of Newcastle, Dubbo, parts of the Clarence Valley and Muswellbrook regions.

The Loophole

However, some letting agents have found a loophole allowing them to get around the new legislation.

A multi-dwelling property where a person lives in one of those homes can still rent the others without restriction where there is more than one dwelling on the property, which permits a possible 365-day annual income.

These properties are usually defined as:

• Hosted – where the owner lives on the premises for most of the time, or
• Non-hosted – where the owner simply plays landlord, and the home is permanently off the long term market

It’s the latter category that has come under fire for inflaming the housing crisis.

A proposed 90-day cap on short-term letting in parts of Byron Shire is expected to be implemented to alleviate a dire rental shortage on non-hosted properties.

The cap, if passed, is set to be enforced from June 2024 to give landlords time to plan ahead.

Do you need a Short Term Accommodation By-law Review?

It’s 8 weeks until the holiday season are your STRA by-laws up to date?

CONTACT US HERE FOR A STRATA BY-LAW REVIEW!

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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.

The NSW Government is working to increase confidence in the NSW building industry by creating a new foundation for construction, by looking at improvement of laws and consumers/workers protection.

How to Have Your Say!

To have your say on the proposed building laws reform in NSW you can:

• Complete the all-in-one survey which allows you to skip through all topics to those that are of interest to you or;
• If you are only interested in a single topic, you may complete one or more of the 7 individual survey topics
• You may also make a submission which allows you to give detailed feedback or respond directly to the questions in the regulatory impact statements

Deadline for Your Feedback

To provide feedback please Friday 25 November 2022.

For more information, please refer to the NSW Government here.

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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.

Updated Rules for Strata and Residential Property Managers

Updated rules for strata managing agents and real estate agents including assistant agents commenced on 1 September 2022.

The laws incorporated feedback from the public consultation in June and July this year on the Property and Stock Agents Regulation 2022.

The new Regulation will keep existing rules plus provide further consumer protection and a reduced administrative load for agents.

There is also a new additional rule that applies to strata managing agents and their assistant agents.

NSW Fair Trading is giving agents a six-month transition period to adjust to the changes from 1 September 2022 to 1 March 2023

What are the New Rules?

Here we explain some changes for strata and residential property managers under the Regulation:

Strata Managing Agents

• Strata managing agents are now required to cooperate when transferring functions to a strata scheme or community land scheme
• This applies in situations where the agent’s contract has ended, and the scheme has decided to self-manage.
• Clarifying the duties of assistant agents performing business agent or on-site residential property manager functions

Residential Property Managers

• Changing the disclosure of material facts requirements –when dealing with residential tenancy agreements, agents only need to disclose the material facts outlined in the Residential Tenancies Regulation 2019
• Clarifying the duties of assistant agents performing business agent or on-site residential property manager functions

For more information about the changes and what this means for you, visit NSW Fair Trading Property and Stock here or call Fair Trading on 13 32 20.

Contact Us

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.

The Australian Building Codes Board (ABCB) has announced the following in relation to the recent launch of the National Construction Code (NCC) 2022:

• As of 1 May 2023, NCC 2022 will be adopted with a transition period until 1 October 2023
• The transition period is for the modern homes provisions for energy efficiency, condensation mitigation and liveable (accessible) housing
• While the transition dates from 1 May to 1 October 2023 are in place NCC 2019 will remain in force
• Following 1 October 2023, NCC 2022 is to be adopted

How Different is NCC 2022?

• Consistency improvements have been implemented across all volumes with a new structure and number convention
• It is more web accessible with a significantly improved user experience and reorganised code’s
• As part of the transition old clause numbers will be listed to the right of documents
• You will be able to save a PDF version directly to your device or purchase a printed copy of NCC 2022
• You will no longer need to sign in to NCC Online but you will need to register to ensure you stay up to date with notifications

For more information the National Building Code 2022 is available here NCC 2022

Contact Us

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 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.

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.

Contact Us

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.

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…

• https://www.caselaw.nsw.gov.au/decision/18261da0208ae3ceaf03173b
• http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWDC/2019/9.html

Contact Us

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.